The Canadian legal cannabis market is less than 12 months old and Alliance Growers Corp (OTCMKTS:ALGWF) is seeing further growth. The firm expects demand for clones in the cannabis market to surpass the $200 million mark by 2020. As such, Alliance Growers is gearing up for the expected growth by expanding its Cannabis Biotech Complex project.
Cannabis Biotech Complex
Cannabis Biotech Complex is a joint project between Alliance Growers and 1155097 BC Ltd. The latter is a subsidiary of WFS Pharmagreen Inc., a company that entered into a transaction agreement with Alliance Growers in late December last year.
The cannabis project lies on a property in the vicinity of Mission, British Columbia. The 25-acre property will provide enough space for large-scale developments. According to an official statement, the project is advancing well and could be completed by Q1 2020.
Even as the complex advances towards full operation, Alliance Growers is amending payment terms with Pharmagreen. In particular, part of the amendment includes Alliance Growers acquiring a 30% stake in the Cannabis Biotech Complex.
1155097 BC is the firm behind the building of the complex. Therefore, acquisition of shares in BC Ltd. will give Alliance Growers express stake in the complex by equal measure.
Alliance Growers Corp getting ready to utilize market growth
Dennis Petke, Alliance Growers’ President and CEO said that the 30% acquisition is a milestone they must achieve. In light of this, the firm will increase its funding commitment to deliver on the promise.
“We expect to announce a significant funding commitment in the first week of January 2019, to fund our second milestone investment to earn a 30% interest in the Cannabis Biotech Complex,” said Petke.
Since Canada legalized medical marijuana, the market is expanding exponentially. According to some estimates, overall cannabis industry might grow to between C$4.9 billion and C$8.7 billion after 2020. Interestingly, the same estimates note that the Canadian market is seeing a 10% increase in the number of patients monthly.