Alliance Growers Corp.(CSE:ACG; FWB:1LA) has executed on the first tranche of a financing commitment from Alumina Partners (Ontario) Ltd., a subsidiary of 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. The original term sheet was reported in a news release on April 6, 2017.
The company proceeded with the first tranche of the offering today by issuing one million units at an issuance price of 10.5 cents per unit, as well as the issuance of 150,000 common shares, representing a portion of the commitment fee in respect of the equity facility. Each unit consists of one common share and one share purchase warrant, exercisable at 21 cents per share for a period of five years.
“We are strong believers in the tremendous growth that lies ahead for the regulated cannabis industry,” said Adi Nahmani, the Managing Member of Alumina Partners. “Alliance Growers has a robust multi-pronged approach to developing valuable assets in several key categories. We’re excited to invest in them, and look forward to watching management accelerate the development of those assets to the benefit of all shareholders.” The purpose of the Equity Facility is to provide the Company with continuous funding for its integrated projects at progressive intervals that are consistent with the value of the Company at each stage of its development and growth.
Dennis Petke, Alliance Growers’ President and CEO, commented on the execution of the equity facility. “We are thrilled with this ironclad endorsement from a company of the stature of Alumina Partners. They strongly believe in the Alliance business plan and strategy and share our view of where the cannabis market is going. To keep dilution to a minimum, we have only Continue Reading