South America

Allied’s wholly owned subsidiary “Allied Colombia S.A.S” is a licensed producer (LP) of cannabis for medical, research and industrial applications. Allied Colombia is leveraging the ideal conditions for grow operations in Colombia.

Allied Corp Announces Production Results Showcasing Low Cost Per Gram, High Yield and Large Cannabinoid Percentages Positioning the Company for International Stage

Kelowna, BC, Canada – April 15, 2021 Allied Corp. (“Allied” or the “Company”) (OTCQB: ALID) an international medical company focused on creating and providing health solutions to ad-dress today’s medical mental health issues is pleased to share an analysis of the production data from its first harvests. Allied continues to harvest weekly and add to this data set and analysis. The following data are based upon actual harvest numbers that were collected at the Allied Production Center in Colombia.

In addition to the increase in grams produced per square meter, the cannabinoid percentages showed an increase when produced in Colombia when compared to North America. In summary, the results showed an increased production yield, higher cannabinoid percentages, high quality and a low cost per gram production cost. Allied has now cultivated several successive harvests with re-peatable results. These results can be described in the categories of Yield, Cannabinoid Potency, Quality, Cost, Frequency of Harvests.

Increased yield – approaching 1 kilogram per square meter

Allied has a proprietary approach that enables the high yield of its production output. Allied’s first harvest yielded 424 grams per square meter of production space. The second harvest, 612 grams per square meter and third and fourth harvest brought a yield of 684 grams and 893 grams respectively per square meter. The fifth and sixth harvest yielded 894 and 905 grams respectively per square meter. These data show that the Allied team, through its fine-tuned production approach is approaching the 1 kilogram per square meter goal of production output. Allied has been very purposeful to utilize the production space effectively.

Higher percentages of cannabinoids

Allied has received approval from the Colombian Ministry of Agriculture (“ICA”) for 20 out of 20 strains. It was reported by ICA that Allied was the first company to achieve this result. These strains have both non-psychoactive and psychoactive varieties that have been legally cultivated both in North America and now in the South America. The data collected showed that these strain profiles showed a significant increase in cannabinoid content when comparing the output from the North American cultivation environment with the South American cultivation environment. In Colombia, Allied has achieved repeatable THC cannabinoid percentages of 29.08% in the psychoactive varieties and CBD percentages of 24.64%. With the continuous quality improvement program at Allied, these percentages continue to increase.

Actual Cost – $0.05 cents per gram

Allied’s proprietary nutrient formulations and novel approach to production have proven to provide repeatable output at low cost with consistent quality. The data that are collected every week continues to add to the data set that is being used to calculate Allied’s low cost of production. Allied’s cost of production results have shown an average cost of production of $0.05 cents per gram. This presents a potential increased margin advantage to multi-state operators within the United States and wholesale buyers internationally. For National companies owning market share in markets with costs of production between $1.00 – $2.00, the Allied low-cost approach to production could enable these companies to claim additional margin in their supply chain.

Quality – achieving international standards

The proprietary Allied approach has been carefully crafted to meet European Pharmacopeia standards with zero pesticide use. A high level of quality has been built into every step of the production process. Every plant is counted and audited during every day of its life cycle. The data collected includes temperature, humidity, pest and disease management indicators. All harvested material is tested for physical identity, aflatoxins, foreign body count, total aerobic plate count, total yeast, e coli, salmonella, bile tolerant gram negative bacteria, cannabinoids, cadmium, lead, arsenic, mercury, terpenes and pesticides. All product is analyzed and approved based upon meeting thresholds for each of the testing parameters.

Frequency of Harvests: one season in Colombia enables consistent supply through weekly rolling harvests

Due to the advantages that the equatorial climate offers, Allied has adopted a weekly rolling harvest schedule. This presents consistent reliable supply at national level volumes. Allied can supply national level quantities to wholesale buyers in several international markets.

“We are very proud of the production team at Allied. The data collection and batch record analysis that we conduct every week enables us to continue to collect information and continue to improve our process, increase our production output and continue to analyze our cost per gram on a weekly basis.” Says Calum Hughes CEO of Allied.

Secure, Ideal & Scalable

Our farm in the heartland of Colombia represents a secure operation marked by good quality soil, pure and sustainable water sources, and established infrastructure.

Situated on the equator, our land is pristine, being both additive- and fertilizer-free.

And with 12 hours of sun and 12 hours of night year round, Colombia offers the most suitable environment to grow cannabis at scale, ensuring consistently high volume, excellent quality and efficient productivity.

Adjacent land, as well as an additional 24.7 acres (10 hectares), is also available to expand our R&D and growing operations.

Progress To Date

Allied has registered a seed bank in excess of 3,000 indigenous seeds including 22 different landrace varieties and 167 hybrids from around the world.

Under Colombian regulations, Allied has developed 50+ GMP cultivation, production and extraction Standard Operating Protocols (SOPs) to produce cannabis and hemp oil.

We have also developed multiple approved research protocols, including:

  • Seedbank research to classify Colombian varieties and those from around the world
  • Genetic research to develop and register new Colombian varieties
  • Substrate research to understand how Colombian varieties grow best at scale
  • Biomass research to understand the biomass potentials of cannabis at scale in the tropics

Agreement With Vitalis Extraction

Allied plans to implement Vitalis Extraction Technology equipment in Colombia during Q3 of 2020. Vitalis’ TrueCyclonic separation technology and LiquidTec CO2 recovery system can process up to 150 lbs of biomass a day.

Regional Development

Our grow operations in Colombia are located within a 6-mile (10-km) radius of newly emerging infrastructure and economic development, including:

  • Regional airport within 10kms of the farm
  • Brand new free trade zone (the first in the region)
  • Country club, hotels and hospitals

Regional Advantages

Colombia also represents grow operation advantages in the form of:

  • More welcoming and pro-cannabis regulatory environment
  • Agricultural infrastructure that rivals that of the US and Canada
  • Lower management and operating costs

Allied Gives Back in Colombia

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