Allied Corp Announces LOI to Purchase Nevada USA Cannabis License and Land Lease to Install the Allied US Facility
Allied Corp (OTCQB: ALID) has signed a letter of intent with Fiore Cannabis Ltd. to acquire a US cultivation license in Nevada and lease a 9,000 square foot facility. The facility, valued at $3.5 million, is ready for cannabis cultivation and research, including psilocybin. Allied aims to utilize low-cost Colombian cannabis for US retail through its integrated supply chain. CEO Calum Hughes emphasized the significance of this expansion in anticipation of US cannabis legalization, leveraging existing Colombian production capabilities.
- Acquisition of a US cultivation license enhances market presence.
- 9,000 square foot GMP-compliant facility ready for operations.
- Low-cost production in Colombia at $0.05-0.10 per gram.
- Strategic partnership with Fiore for marketing and sales.
- Positioning for anticipated national legalization of cannabis.
- Exposure to legal and regulatory risks in the US cannabis market.
- Limited operating history with a history of net losses.
- Potential competition in the expanding cannabis industry.
- Dependence on legislative changes for market viability.
KELOWNA, British Columbia, Feb. 17, 2021 (GLOBE NEWSWIRE) -- Allied Corp. ("Allied") (OTCQB: ALID) – an international medical company focused on creating and providing health solutions to address today’s medical mental health issues is pleased to announce that it has signed a letter of intent (LOI) with Fiore Cannabis Ltd. (CSE: FIORE) (“Fiore”) to acquire a US registered cultivation license located within in the State of Nevada, USA. In addition to this, the LOI contemplates a land lease agreement for the land foot print upon which the ready built Allied 9000 square foot building will be installed.
Allied has completed the construction of a
About the Allied US-based Research and Product Fulfillment Center (the “Nevada Hub”):
Allied has spent that last 18 months designing, constructing and fine tuning the Allied building for deployment to the production location. This building is currently in Las Vegas and so is the land and licenses that Allied has signed intent to purchase and lease. The building has a purposeful design to cultivate specific genetics in the cultivation area of the building, as well, there is reserved space for psilocybin production and research as the Nevada State US legislation evolves. The remainder of the building is dedicated to storing imported Colombian produced product for fulfillment of retail-ready products. Once the retail-ready products are created out of the Colombia production output, they will be deployed into the US retail marketplace for consumption. This is a 2.5-year fulfillment of a purposeful supply chain strategy that many other agricultural commodities are following. Coffee, exotic fruit and many other agricultural products are produced in Colombia and brought into the US for processing before being released to retail. This is Allied’s International Vertically Integrated Supply Chain.
About Allied’s International Vertically Integrated Supply Chain.
In parallel with the building getting built over the past 18 months, Allied has spent the last 16 months getting the approval to commercialize their products out of Colombia. All of this work has resulted in a purposeful approach to Allied’s defined supply chain. With 12 hours of dark and 12 hours of sunshine cycles all year round, one season with 25 degrees Celsius and 60
“The intended sale of this license and land lease signifies the beginning of a strong multi-state operational approach to the US cannabis marketplace. We are confident that as legislation continues to move closer to US National Legalization, we will be ready. With our large scale production footprint and commercial export licenses in Colombia producing low cost high quality product, as well as, this cultivation and processing hub now located in one of the busiest tourism cities within the United States, we are set for the national volume demand that is coming. Many agricultural commodities consumed in the US are not grown in the US but rather South America due to all of the production and cost advantages. It is just good logic to believe that the same will be the case for cannabis.” says Calum Hughes CEO of Allied.
About Fiore Cannabis
Fiore Cannabis (CSE:FIOR) (OTCQX:FIORF) is a publicly traded company that has been investing in the development of medical and recreational cannabis products since 2014. Fiore has expanded its operating portfolio to include cultivation, production and retail offerings in our key North American legal jurisdictions of Nevada and California. For more information, please visit www.fiorecannabis.com.
About Allied Corp. - https://allied.health/
Allied Corp. is an international heath and technology company with a mission to address today’s medical issues by researching, creating and producing targeted health solutions. Allied Corp. uses an evidence-informed scientific approach to make this mission possible, through cutting-edge pharmaceutical research and development, innovative plant and mushroom based production and unique development of therapeutic products.
Investor Relations:
ir@allied.health
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Forward-Looking Statements:
This press release contains “forward-looking information” within the meaning of applicable securities laws in Canada or “forward-looking statements” made pursuant to the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information”). Forward-looking information may relate to the Company’s future outlook and anticipated events, plans or results, and may include information regarding the Company’s objectives, goals, strategies, future revenue or performance and capital expenditures, and other information that is not historical information. Forward-looking information can often be identified by the use of terminology such as “believe,” “anticipate,” “plan,” “expect,” “pending,” “in process,” “intend,” “estimate,” “project,” “may,” “will,” “should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similar expressions. The forward-looking information contained in this press release is based on the Company’s opinions, estimates and assumptions in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management currently believes are appropriate and reasonable in the circumstances. Forward looking statements in this press release include the following: that Allied is leveraging the conditions in its Colombia grow operation and future Kelowna location to support its Research and Development efforts; that Allied is making important strides forward to position itself as a leader in the medical cannabis space, that Allied intends to make a series of proposed trademark and other intellectual property protection filings, as part of the Company’s Intellectual Property and Pharma Development (IP&PD) Strategy, statements respecting the joint development, manufacturing, and introduction of TACTICAL RELIEF™ branded products, and the use of proceeds from the offering of convertible notes.
There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Risk factors that could cause actual results to differ materially from forward-looking information in this release include: the Company’s exposure to legal and regulatory risk; the effect of the legalization of adult-use cannabis in Canada and Colombia on the medical cannabis industry is unknown and may significantly and negatively affect the Company’s medical cannabis business; that the medical benefits, viability, safety, efficacy, dosing and social acceptance of cannabis are not as currently expected; that adverse changes or developments affecting the Company’s main or planned facilities may have an adverse effect on the Company; that the medical cannabis industry and market may not continue to exist or develop as anticipated or the Company may not be able to succeed in this market; risks related to completion of the greenhouse construction in Colombia, risks related to market competition; risks related to the proposed adult-use cannabis industry and market in Canada and Colombia including the Company’s ability to enter into or compete in such markets; that the Company has a limited operating history and a history of net losses and that it may not achieve or maintain profitability in the future; risks related to the Company’s current or proposed international operations; risks related to future third party strategic alliances or the expansion of currently existing relationships with third parties; that the Company may not be able to successfully identify and execute future acquisitions or dispositions or successfully manage the impacts of such transactions on its operations; risks inherent to the operation of an agricultural business; that the Company may be unable to attract, develop and retain key personnel; risks resulting from significant interruptions to the Company’s access to certain key inputs such as raw materials, electricity, water and other utilities; that the Company may be unable to transport its cannabis products to patients in a safe and efficient manner; risks related to recalls of the Company’s cannabis products or product liability or regulatory claims or actions involving the Company’s cannabis products; risks related to the Company’s reliance on pharmaceutical distributors; that the Company, or the cannabis industry more generally, may receive unfavourable publicity or become subject to negative consumer or investor perception; that certain events or developments in the cannabis industry more generally may impact the Company’s reputation or its relationships with customers or suppliers; that the Company may not be able to obtain adequate insurance coverage in respect of the risks that it faces, that the premiums for such insurance may not continue to be commercially justifiable or that there may be coverage limitations and other exclusions which may result in such insurance not being sufficient; that the Company may become subject to liability arising from fraudulent or illegal activity by its employees, contractors, consultants and others; that the Company may experience breaches of security at its facilities or losses as a result of the theft of its products; risks related to the Company’s information technology systems; that the Company may be unable to sustain its revenue growth and development; that the Company may be unable to expand its operations quickly enough to meet demand or manage its operations beyond their current scale; that the Company may be unable to secure adequate or reliable sources of necessary funding; risks related to, or associated with, the Company’s exposure to reporting requirements; risks related to conflicts of interest; risks related to fluctuations in foreign currency exchange rates; risks related to the Company’s potential exposure to greater-than-anticipated tax liabilities; risks related to the protection and enforcement of the Company’s intellectual property rights, or the intellectual property that it licenses from others; that the Company may become subject to allegations that it or its licensors are in violation of the intellectual property rights of third parties; that the Company may not realize the full benefit of the clinical trials or studies that it participates in; that the Company may not realize the full benefit of its licenses if the licensed material has less market appeal than expected and the licenses may not be profitable; as well as any other risks that may be further described in and the risk factors discussed in the Company's continuous disclosure including its Management's Discussion and Analysis sections in its Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K filed under the Company's profile at www.sec.gov.
Although management has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking information in this presentation, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information in this presentation. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers and viewers should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this release represents the Company’s expectations as of the date of this release or the date indicated, regardless of the time of delivery of the presentation. The Company disclaims any intention, obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
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