Alliance Growers Announces Letter of Intent with WFS Pharmagreen, Including Subsidiary Canna Companion

Commenting on the acquisition, Dennis Petke, Alliance Growers President and CEO said, “We are absolutely thrilled to have entered into an LOI with Pharmagreen. This presents an opportunity for Alliance Growers to rapidly build out our ‘Four Pillars’ Business Divisions ahead of schedule. This will definitely provide almost immediate value for Alliance Growers shareholders.”

The initial step is a proposal to obtain an exclusive license from Pharmagreen for the marketing, distribution and sales of all present and future Tissue Culture plantlet products utilizing the proprietary “Chibafreen Invitro Plant Production System” for the jurisdiction of Canada, for a fee of CAD$400,000. Consistent quality for mass production for the agriculture and marijuana industry stems from disease-free, genetically identical, healthy starting plant material that can only be truly achieved through Chibafreen Invitro technology.

The execution of the formal license agreement shall be on or before the closing of the Financing referred to below. Additionally both parties agree to possible further development of a “Full Spectrum DNA Botany Lab,” which would be the only such lab facility in Western Canada. A unique blend of clean room lab facilities including a botanical oils extraction lab would be built under the heading of “Botany Center.” Licensing opportunities for the “Botany Center” for the UK and European Union are subject to further negotiations and terms.

Peter Wojcik, CEO of Pharmagreen, stated, “We are very happy to be working with the Alliance Growers’ team. They are a very professional group that will complement our organization and they share our vision of where the industry is going and how to best to capitalize on this vision. When we received the endorsement of Tommy Chong, he said, “The decision to work with Pharmagreen was simple, they are the best at what they do and they care about people and animals. This strategic partnership with Alliance Gowers adds tremendous value to our business going forward.”

Subject to regulatory approval, Alliance Growers will use its best efforts to raise a minimum of CAD$400,000 to a maximum of CAD$500,000 on or before August 31, 2016 by way of a private placement offering of common shares (the “Financing”) to pay the license fee and continue its due diligence in Pharmagreen and its subsidiaries.

WFS Pharmagreen Inc. is a private company located in Mission, B.C. that is in the business of manufacturing and marketing cannabis-hemp based products for animals and owns the exclusive international rights to all present and future Canna Companion formulations and products. The Company’s executive management team and its advisory committee are composed of a significant mix of professionals that have been carefully gleaned from the fields of private and public company management; veterinary science; human medical science; marketing, branding and business development capped with unparalleled academic and celebrity endorsement. The Company also has a wholly owned subsidiary Canna Companion Products, Inc based in Washington State and operates a 5,000 sq. ft. product production and fulfillment center in Monroe Washington in support of its sales of the Canna Companion products. The Company’s celebrity endorsement is with world renowned Grammy award winning cannabis culture icon, Mr. Tommy Chong, of Cheech & Chong fame, who has never previously been involved with any public company.

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This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to the use of proceeds of the Financing, as well as the Company’s corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company’s ability to carry out its business plan following the issuance of the required licenses by Health Canada. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.

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