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CCIM: One of the cornerstones that we emphasize to our subscribers is the need for diversification. ACG is certainly doing this is as well with its intended acquisition of a tier 2 license holder (cultivation and production) in Jamaica. We already know that Canada is expected to allow imported cannabis and countries such as Columbia and Jamaica have significantly lower costs compared to Canadian facilities. What other advantages does this planned acquisition offer?
ACG: The opportunity to build our shareholder’s equity by joining forces with a thriving licensed Jamaican licensed cannabis company, where industry giants such as Canopy Growth are already established, provides tremendous prospect for growth. Diversifying Alliance Growers into Jamaica, a country with a high level of acceptance of cannabis, will broaden Alliance Grower’s global diversification and complement the Company’s strategy of building a global cannabis company that is going to be where the market is going, not where the market is today.
CCIM: The ROI to investors from ACG has been nothing less than spectacular with a return of over 900% from July 2016 in just over 18 months (July 2016 through January 2018) and the current share price of $0.33 appears undervalued given what has been discussed here. Are there any material concerns that existing and potential investors need to be aware of?
ACG: Thanks Louis, we strongly believe ACG represents a tremendous value proposition for investors at the current market price and will result in a strong investment to anyone who purchases in the open market or takes part in our current, open private placement at $0.30 with a full warrant at $0.40. Management believes there are no concerns specific to Alliance Growers in and of itself, just the typical cannabis industry concerns, the fluctuations etc.
However, I believe that the latest correction is the best thing to happen for Alliance as now investors are taking a closer look at what they are investing in. I believe the days of throwing money at cannabis companies and turning a quick profit are gone. Investors are more sophisticated now and the majority are looking for long term revenue producing sustainable diversified cannabis companies, like Alliance.