Alliance Growers Corp. (OTCMKTS:ALGWF) reported that it had finalized a definitive agreement with WFS Pharmagreen under which it will acquire a 30% equity interest in the Pharmagreen’s subsidiary. The two are working jointly in developing the Cannabis Biotech Complex which is on a 25-acre located in Deroche near Mission, BC.
Highlights of Investment
The main component of the Biotech Complex is a 62,000 sq. Ft. Cannabis Biotech Centre which is to be the first of a kind in Western Canada that will house a DNA Botany lab as well as a Tissue Culture Plantlet Production facility.
The option agreement grants Alliance Growers with an initial 10% equity interest in Pharmagreen subsidiary for an investment of up to CND $1,350,000. The option will allow Alliance Growers to earn to a maximum of 30% equity interest as well as a 30% profit share in the Cannabis Biotech Complex which is to be carried out in stages.
The funds by Alliance Growers to Pharmagreen have been instrumental in the completion of the pre-constructed phase of the project such as for permit application approvals from the municipal as well as regional districts.
The Cannabis Biotech Complex
The two companies got into the partnership in December 2017, and now the construction of the complex is underway. The tissue culture facility will provide the cannabis market with the highest quality 100% germ-free as well as disease-free genetically complete plantlets.
Also, the Biotech Complex will provide botanical DNA services, cold storage technology for the tissue culture preservation as well as extraction services for the CBD oils for medical and retail markets. It will also have 3 greenhouses as well as a 20,000 square feet extraction and distillation lab which will be capable of processing about 100,000 kg of fresh flower material for making CBD oil.
The Cannabis Biotech Complex is now in the construction phase and is forecast for completion in Q1 of 2020. The complex is meant to serve as a model for the future locations which Pharmagreen is planning to build across the globe. For now, the collaboration sees an opportunity of building additional facilities in servicing the market thanks to favorable conditions in the US.