Allied Corp Quarterly Update

JULY 24, 2019

NEWS RELEASE

Allied Corp Quarterly Update

Allied (or “Allied” or “the Company”) is a Nevada public company that is focused on bringing to market medical cannabis in Canada initially, via our wholly owned Canadian subsidiary with a Canadian subsidiary, AM(Advanced Micro) Biosciences, Inc. (“Advanced Biosciences”); a privately held British Columbia Corporation. Advanced Biosciences has active end stage license applications with the Canadian National Regulator: Health Canada.

Allied has been approved as the name change and will be executing the triangular merger with Advanced Micro Biosciences upon approval from FINRA in the United States.

Allied has plans for international expansion into South America via additional acquisitions of South American license holders. As a research and development company, our focus is on creating and providing targeted cannabinoid health solutions for today’s medical issues. One of our top R&D priorities is developing effective Post Traumatic Stress Disorder (PTSD) / Post Traumatic Stress Injury (PTSI) solutions. Subsequent to completion of the Advanced Biosciences Acquisition, the Company will continue the business of Advanced Biosciences.

Products and Services

The company has acquired a catalog of CBD-based (Cannabidiol) products, which include a heal-all cream, SPF 30 sun screen and anti-aging cream. Additional products using nano-technology will be produced for medical and intended for over-the-counter use.

We plan on bringing to market a catalogue of nano-encapsulated cannabinoid products. In addition to these efforts, we plan to offer balms, edibles, tinctures and many other products intended to help veterans and first responders.
A mechanical nano-emulsification process is applied to encapsulate the cannabinoids with a nano “micelle.” This molecule is rendered water soluble. This eliminates the need to combust (or smoke) the product, which is the unhealthiest administration tactic.
Patients and customers can enjoy the therapeutic benefits without needing to smoke any plant material.

The onset/offset of therapeutic benefit occurs within a much more predictable timeline:

3 minute therapeutic titration point
15 minute maximum effect
3 hour off set time

In addition to this, the Company plans to continue to develop solid partnerships for sales and distribution into South America.

Through Allied’s products and supply chain, clients will be able to access superior cannabis-related products with a greater level of confidence regarding quality control. The rapid growth of the cannabis sector requires companies to have sophisticated production and customer support systems in order to remain competitive and scalable. Allied is fortunate to have assembled a team of industry veterans and management professionals with the background and experience to enable the Company to build, manage and grow such systems.

Colombian Production

The Company’s Colombia facility is intended to provide the following benefits. Essentially, the site is situated in ideal equatorial climate conditions for growing:

12 hours of consistent natural sun all year round.
Massive land mass potential for expedient scale.
Steady temperatures with low variance during the year.
Rich fertile soils and plentiful water supply.
Multiple harvests per year of premium quality product.
Large cohort available of economical, experienced farming workforce.
Local farming skills honed over generations.
Sustainable labor costs.
Clear recognition of tax, job and industry benefits.
Environmentally and socially sustainable production.
Natural sunlight minimizes energy usage and carbon footprint.
Water usage not competing with local requirements.
Growing conditions lend well to pest and disease management.
Ability to create jobs and boost local/national economies.

Canadian Operations

The Company does not intend to produce large scale quantities of product in Canada. Our business model will focus on strain development and end-product processing may occur in Canada when possible. Large scale production will occur in South America.

Advantage for quality assurance and process control.
National legalization for recreational and medicinal cannabis.
Located in the region that leads the globe in strain development and production knowledge (British Columbia).
Ability to produce as “Canadian Made” with source materials produced internationally.
The premium quality that comes from the controlled environment with the Allied Canadian production facilities has been specifically produced to target the Anandamide and CB1 receptors. This product is directly produced for veterans and first responders living with PTSD.
Extraction of cannabinoids from plant biomass into live resin or to full cannabinoid oil.
Development of novel delivery mechanisms.
Proprietary formulations for cannabinoid disease targets.
Extraction and development of product formulations.
Plant tissue culture propagation.
Breeding and genetics.
Micro-biology.
Plant pathology and pest control.
Analytical testing and plant diagnosis.
Pre-clinical trials of cannabinoid-based therapies.

Triangular Merger Update and Go Public Advanced Micro Biosciences

In February 2019, all shareholders of AM (Advanced Micro) Biosciences (“the Company”) signed an agreement (the “exchange co” agreement) to undergo a triangular merger with a publicly trading company listed on the OTC exchange. The Company went through the audited financials, shareholder signatures and has completed all of the required paperwork filing to execute this transaction. AM Biosciences is now waiting on FINRA to issue a listing date and trading symbol.

When fully executed, all AM Biosciences shares will convert to Exchange Co shares (a privately held BC Corp). Each Exchange Co share carries an option to convert to Allied Corp shares. In addition to this, in order to keep our share cap down, 100% of shareholders signed in agreement to do a 0.86 to 1 roll back of the AM Biosciences shares prior to doing the merger.

For example, if you invested $15,000 into AM Biosciences at 15 cents and bought 100,000 shares. You will end up having 86,000 shares in Exchange Co, which can be converted into Allied Shares at any time, but we are hoping to open as Allied Corp on the OTC market close to $1.00USD.

Fianancial Update

During the period May 7, 2019 through June 15, 2019, the Company closed a $1,000,000 dollar private placement over-subscribed. A total of $1,325,000USD in proceeds was raised in a private placement at a price of $0.50 per share which was assigned to the Company. In connection with this offering, the Company issued 2,650,000 shares of Series A Preferred Stock which are convertible into common stock at $0.50 per share. After deduction of expenses these funds have been released to Advanced Micro for acquisitions and operations.

On July 8th, Allied Corp. initiated the Series B financing to raise $3,000,000 within which the company will offer 4,000,000 shares at $0.75 cents USD. Please contact ir@allied.health with interest.

First inaugural healing retreat was hosted

In May 2019, AM Biosciences hosted the first inaugural healing retreat for veterans and first responders. A total of 29 people attended this retreat. This involved offering the participants healing activities such as education of the nature of PTSD, how to process through an event that is triggering to the individual, and activities to reset the nervous system. A full evaluation was done and planning has been initiated to host the next event in the third quarter of 2019.

The Allied Charitable Foundation

Affiliated with the Company is the Allied Charitable Foundation. The Allied Charitable Foundation has been created in accordance with Allied’s overall mission to help promote healing for as many Veterans and first responders as possible. It is Allied’s vision to create a legacy that will perpetuate the opportunities for those suffering from Post-Traumatic Stress to embark on their own healing journey. Allied has a dedicated team working with the Allied Foundation to ensure a broad range of holistic healing modalities are introduced to those in suffering. Through the Foundation, assistance may also be provided to those who truly need help but may not have all the means to achieve it. The powerful legacy created by the Allied Charitable Foundation will ensure that those suffering from Post-Traumatic Stress will receive assistance for years and years to come.

CLICK HERE TO DONATE TO SUPPORT OUR NEXT RETREAT

Colombia Update

MediColombias Acquisition (Colombian Licensed Producer)

In May 2019, the Company entered into an agreement to acquire a company called MediColombias. This company is based in Colombia with a full set of licenses and a lease agreement in place to begin production on a 5 hectare parcel of land. We have the ability to scale production to over hundreds of hectares. This is located in the area of Bucaramanga, Colombia. This acquisition includes a high level scientific team of experts and significant capital expenditures spent on an irrigation holding pond, security towers, fencing, etc. to meet the Colombia minister of justice and minister of agriculture requirements. The total acquisition price is $5,200,000.

Colombian National Ministry of Agriculture approval for seed evaluation.

In May 2019, we received notice from the National Ministry of Agriculture (ICA) that our seeds are successfully registered and we can begin what they call the “seed evaluation” process of production. This involves planting 60 plants of each strain. We have plants going into the ground within the second quarter of 2019.

After the harvesting of these plants, ICA will conduct an on-site inspection and may authorize the large scale initiation of production. The approval for “seed evaluation” came 6 months ahead of our anticipated timeline. We are consequently on pace for first harvest during first two quarters of 2020. We had originally anticipated this within third and fourth quarters of 2020.

In addition to this, to adhere to strict production regulations around seed approval and strain-acclimatization in Canada, we have created research and development environments (under personal production licenses approved by the Canada Regulators) that mimic the micro-climates in Suesca, Ibague and Bucaramanga. Our strains have performed very well in all three of these micro-climates. We have tested the strains with very high temperatures and humidity levels to mimic the natural weather patterns in the areas in which we will be cultivating. This is designed to mitigate the acclimatization risk that many peer companies are experiencing in Colombia.

Natural Health Vertical

“Tactical Relief™”

In June 2019, AM Biosciences was able to source, negotiate and execute and agreement to do the first packaging run of the “Tactical Relief” product that is targeted at veterans in the United States. This product is not based on THC, but rather a Hemp-derived CBD product that is targeted at the veteran community. We anticipate selling through a small 500 product launch in the second quarter of 2019. We have been able to secure distribution in Indiana, Kentucky, Tennessee and Illinois. The management and sales of this product is handled through a licensing deal with a company called Savage Consulting, LLC. Due to the national legislation in the United Sates, Allied has licensed the management of the hemp derived CBD product, Tactical Relief™ to Savage Consulting, LLC.

Additional Natural Health Products Acquisition

In May 2019, as a part of the Falcon Ridge Acquisition, the management team of AM Biosciences were able to negotiate the inclusion of a natural health products catalogue of products. This includes 50 products in the natural health vertical market. Three of these products are of particular interest as they have Natural Health Products registration numbers with Health Canada. AM Biosciences can add these to the product offerings in Canada and the United States.

Allied Corp Canada Update

Falcon Ridge Acquisition:

Canadian end-stage licensed producer applicant.

In May 2019, AM Biosciences closed a share purchase agreement and made the first installment payments for the acquisition of late stage Canadian Licensed Producer applicant: Falcon Ridge (the “Falcon Ridge Acquisition”).

We were given the approval from Health Canada as “Confirmation of Readiness” for this application. The building has been ordered and is anticipated to be delivered in Q3/Q4 2019.

Assumption of contract of purchase and sale of 8999 Jim Bailey Rd.

In May 2019, AM Biosciences assumed the contract of purchase and sale of real property located at 8999 Jim Bailey Rd. This is for the purchase of two real lots of approximately 1.1 acres each. This contract of purchase and sale is set to close in the third quarter of 2019. This land will be where the Canadian Licensed Producer and product processing and extraction facility will be located. Land preparation is well underway and is expected to be ready for when the building arrives in the third quarter of 2019.

Xtreme Cubes construction has begun

In June 2019, AM Biosciences signed the production and manufacturing contract to begin the manufacturing of the full building for the Canada extraction and production facility. This building will be a fully scalable, modular building. This building is expected to come off of the production line in Nevada sometime in the third quarter of 2019. We anticipate being able to extract and produce additional strain development in this building beginning fourth quarter 2019. The Company made an upfront payment of $230,000 USD in June 2019. More information on Xtreme Cubes can be found here.

We have received significant news coverage within the last quarter that resulted in 21,405,747 total media impressions, which were syndicated across 13 media outlets and shared to a social media audience averaging 2,795,971.