By now if you are like most small cap investors, the mere mention of asmall cap cannabis stock will probably have you rolling your eyes and thinking: “Please, I don’t want to hear about yet  another cannabis stock that’s supposed to make me rich!” After all, there has been no shortage of cannabis stocks (or fly-by-night cannabis stocks) trying to cash in on all of the hype surrounding the industry. But what if we were to tell you about a Canadian small cap cannabis stock that actually has a clear strategyor business plan not for where the cannabis market is today, but for where it is heading in the future? Investment Snapshot While Canada may only have 35 million people, there is a clear national regulatory framework in place for medical cannabis and soon for recreational use.   Quebec represents approximately 20% of Canada’s population, but is currently underrepresented when it comes to medical cannabis licenses issued by Health Canada. The province also has a long history of aggressively trying to obtain 25% of any industry in which the rest of Canada is involved in or trying toencourage.   Focused on the overall national Canadian and more specifically the provincial Quebec markets, small cap Canada based Alliance Growers (CNX: ACG; OTCMKTS: ALGWF) intends to build a “diversified global cannabis company focused not on where the market is today, but where it is going.”   Alliance Growers is organized around a “Four Pillars” strategy which maps out a network between licensed cannabis growers, cannabidiol (CBD) oil extractors, new agricultural technologies and the Company’s own Cannabis Biotech Complex.   Alliance Growers’ recently announced acquisition of Spyder Vapes Inc (an established, upscale, 'high-end with competitive prices' retail store chain) as part of a “Seed to Sale” vertical integration strategy will give both companies a significant advantage in cost and margin compared to competitors.   Canada’s Advanced Cannabis Laws and Regulatory Framework With a population of 35 million spread across ten provinces and three territories stretching from the Atlantic to the Pacific oceans, Canada at first glance appears to be a small and fragmented market for cannabis. After all, the USA has over 300 million people while the state of California (considered to be at the forefront of anything related to cannabis) has close to 40 million people.    However, there are huge legal and regulatory headaches and uncertainties for cannabis in the USA thanks to a federal government that’s not exactly supportive of the industry right now along with 50 different states having 50 different sets of rules (keep in mind that individual jurisdictions at the county or city level may also have their own rules or restrictions in place). Many American politicians also seem to think that cannabis will be a pot of gold for cash strapped governments and are taxing it accordingly. In contrast, legal access to dried marijuana for medical purposes in Canada was first provided in 1999 and was slowly followed by the steady implementation of various court decisions and regulatory frameworks.In August 2016, Canada enacted the Access to Cannabis for Medical Purposes Regulations (ACMPR) which allows commercial cannabis production by licensed producers for medicinal purposes only. Legislation to legalize cannabis for recreational use (Cannabis Act, Bill C-45) was passed by the House of Commons of Canada in late November 2017 and passed a second reading in the Senate of Canada on March 22, 2018 with a final vote scheduled for June 7. The bill will become effective later this summer. Since public opinion varies widely across Canada concerning recreational cannabis use, provinces still have the power to determine the method of distribution and saleas well as the legal age necessary for its purchase and any other appropriate restrictions. An excise tax will also be levied ranging from 5% to 15% depending on the province with revenue split between the federal and provincial governments. Nevertheless, there is a clear nationwide framework and understanding in place the cannabis is to be available for both medicinal and recreational purposes and it’s not to be overtaxed. Quebec’s Cannabis Industry Of all the Canadian provincial markets, Quebec’s is potentially the most interesting as the government there has always maintained an aggressive approach of trying to obtain 25% of any industry in which the rest of Canada is involved in or trying toencourage. This will naturally extend to the cannabis industry as the provincial government is anxious to develop a local base of skilled licensed producers to provide a self-sustaining supply of both medical and recreational cannabis. Quebec also represents approximately 20% of Canada’s population; but it’s currently under-represented relative to other provinces when it comes to ACMPR licensed companies as only two have been approved and only one of those companies actually producing. The Quebec provincial government has publicly stated they want Health Canada to process all 16 of the license applications in the province and have them approved expeditiously. The provincial government also wants Québec licensees to give a high priority on purchasing from local growers. As for other usage, Bill 157 (proposed in November 2017) would make the Société Québécoise du Cannabis (SQC) the only legal entity allowed to transport or sell cannabis at the retail (recreational) level where the minimum age for purchasing will be 18. Home-growing of cannabis in Quebec would not be permitted and there will be zero tolerance for driving under the influence (which is often a major public concern and why many people oppose legal recreational use). Alliance Growers’ “Four Pillars” and“Seed to Sale”Vertical Integration Strategies This leads us to one small cap cannabis stock that should be on your investment radar. Incorporated in 2014, small cap Alliance Growers (CNX: ACG; OTCMKTS: ALGWF)intends to build a “diversified global cannabis company focused not on where the market is today, but where it is going.”Alliance Growers is organized around a “Four Pillars” strategy which maps out a network between licensed cannabis growers, cannabidiol (CBD) oil extractors, new agricultural technologies and the Company’s own Cannabis Biotech Complex: The Cannabis Botany Centre. Alliance Growers has entered into a binding Letter of Intent with biotech sciences companyWFS Pharmagreen Inc to acquire a non-dilutive 30% equity interest in WFS subsidiary BC New Co who will soon start construction of a new 58,000 square foot botany centre in Mission, BC that will include a DNA botany lab, an extraction facility and a tissue culture plantlet production facility. Cannabis plantlets will be grown using proprietary tissue culture propagation (specifically the “Chibafreen Invitro Plant Production System”) which assures consistent composition and purity of each plantlet for growers. Pharmagreen has already purchased the land upon which the proposed cannabis botany centre will be built and the design has been completed. Alliance Growers’ revenue share in the project will be 30%  Licensed Medical Marijuana Producers.Alliance Growers is investing in and building strategic partnerships with licensed cannabis producers at various stages in the licensing process. This includes entering into an exclusive agreement to acquire Quebec based BiocannaTech (which will become a licensed producer under Health Canada’s ACMPR in Québec where a facility expansion of up to 70,000 square feet should be operational by late 2019) and by making the first installment to acquire a 5% equity investment in the Ontariobased cannabis company Canwe (which is also planning a state-of-the-art production facility outside of Toronto that is projected to be licensed and operational by early 2019).These investments will also secure long-term plantlet sales for the Botany Centre, wholesale cost for flower to be acquired for CBD oil extraction and ongoing support. CBD Oil Production and Distribution.Since medical grade CBD has become a highly sought after compound in the treatment of a range of medical issues, Alliance Growers is finalizing terms on a 20% equity investment in an Israeli CBD Oil extraction company. The deal will allow Alliance Growers to have off-take rights to buy 20% of oil production at or near cost for global distribution. Research and Technology.Alliance Growers is involved in the development of technologies that will improve upon the quantity, consistency and distribution of cannabis production.BC New Co will be utilizing licensed technologies (e.g. the “Chibafreen” invitro plant micro propagation proprietary technologyfor controlled and precise production of cannabis plants)from Botanical Research In Motion International (B.R.I.M.) for the production of plantlets at the Mission Botany Centre. The Botany Centre will also allow B.R.I.M. to do continued research on behalf of BC New Co and there is further potential to apply these technologies to other agricultural industries. Alliance Growers will capitalize on the mandate to increase the number of ACMPR licensed companies in Canada and specifically in the province of Quebec where the Company plans to negotiate additional licenses. In addition, Alliance Growers will provide financing and other resources to build out BiocannaTech’s medical marijuana facility in the town of Mount Royal, Quebec, in preparation for the inspection from Health Canada. Once Health Canada is satisfied with a successful crop, Alliance Growers will be granted its distribution license which will help the Company gain an in-road to provide tissue culture plantlets to all licensed producers in Quebec. President and CEO Dennis Petke recently had this to say about the Company’s strategy: “BiocannaTech is now fully under the Alliance Growers’ umbrella, advancing the Alliance business model and creating value for our shareholders. We have great confidence in obtaining this license in a timely manner due to the existing team in Quebec and because we have access to some of the top grow talent in Canada as well as the best application process team. Given the advanced stage of the BiocannaTech application and the political motivation by Quebec and the Federal Government to make sure Quebec gets its fair share of ACMPR licenses, we expect approval by as early as mid-October. Alliance is fortunate to have financing commitments that coincide with our Capex needs over the next four months and beyond.  A huge bonus for Alliance, once we are granted an ACMPR license, we will be able to extend that license to other Alliance grow facilities in other provinces with an application process that takes only two or three months to complete. This acquisition is significant in that it assists Alliance in accelerating future licenses in addition to fortifying the balance sheet and feeding the income statement.” In addition, Alliance Growers has just announced the acquisition of Spyder Vapes Inc - an established, upscale, 'high-end with competitive prices' retail store chain based in Ontario that also has strong revenues and an aggressive growth plan across Canada.Alliance Growers and Spyder Vapes plan to add additional retail stores this year in jurisdictions where the latter can apply for legal cannabis distribution licenses and act as a retail arm for the former. President and CEO Petke noted in the press release announcing the deal: "We are very pleased with the acquisition of Spyder Vapes, as it launches our Seed to Sale strategy in the highly profitable retail cannabis space. We are particularly encouraged by the recent news highlighting the company MedMen, the U.S. marijuana retailer known for its upscale, Apple-like stores. California-based MedMen plans to undertake an RTO listing on the CSE, with a pre-money valuation of US$1.65 billion. Earlier in 2018 we witnessed the market success of the merger that created Hiku Brands Company Ltd,that included the high-end retail stores of Tokyo Smoke. These are two very exiting analogous companies to the Alliance Growers strategy that foretell a tremendous period ahead for Alliance and its stakeholders. We are fortunate to have financing commitments in place in anticipation of this expansion of the Alliance business model, in addition to new funding sources. Alliance Growers continues to execute on its business plan to create a diversified global cannabis company that is focused on where the market is going, not where it is today." The latest acquisition as part of a “Seed to Sale” vertical integration strategy will give Alliance Growers and Spyder Vapes a significant advantage in cost and margin compared to competitors.In other words, Alliance Growersis the one small cap cannabis stock that investors should be keeping an eye on over the coming months and years.