2018-05-02 14:48 ET - News Release

Mr. Dennis Petke reports

ALLIANCE GROWERS ANNOUNCES SECOND TRANCHE OF ALUMINA PARTNERS EQUITY FINANCING

Alliance Growers Corp. has provided an update on its Alumina Partners equity financing.

On April 6, 2017, Alliance announced the execution of the term sheet for a financing commitment offered by Alumina Partners LLC, a New York-based private equity firm, for a $5-million equity facility in a series of private placements, with an option to extend the commitment up to $10-million over the next two years.

The company is closing the second tranche of the offering by issuing 500,000 units at a price of 30 cents per unit for $150,000, whereby each unit consists of one common share and one share purchase warrant, exercisable at 40 cents per share for a period of three years. The company will pay a financing fee of 75,000 common shares at a deemed price of 30 cents per share. The warrants are subject to an acceleration clause after the resale restrictions on the shares have expired. The expiry time of the warrants can be accelerated if the company's shares trade at or above a weighted average trading price of 60 cents per share for 10 consecutive trading days.

About Alliance Growers Corp.

Alliance Growers is a diversified cannabis company driven by the company's four-pillar organization plan: Cannabis Botany Centre, strategic ACMPR (Access to Cannabis for Medical Purposes Regulations) investments, CBD (cannabidiol) oil supply and distribution, and research and development.

We seek Safe Harbor.