LGC Capital Ltd. Grants Stock Options and Amends 2016 Stock Option Plan

MONTREALDec. 11, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC“) announces that on December 8, 2017, its Board of Directors granted an aggregate of 5,250,000 stock options to six of LGC’s directors and officers.  The stock options have an exercise price of $0.36, representing the closing price of LGC’s shares on the TSX Venture Exchange on December 7, 2017, and a term of ten years.  The stock options were granted under LGC’s 2016 Stock Option Plan.

LGC also announces that its Board of Directors amended the 2016 Stock Option Plan on December 8, 2017 so as to increase the number of shares that can be issued thereunder to 58,946,726 shares, equal to 20% of the 294,733,632 common shares of LGC issued and outstanding following the recent completion by LGC of its $3.73 million private placement.  The increase represents 12,137,661 additional common shares.  The amendment to the 2016 Stock Option Plan is subject to approval of the TSX Venture Exchange and to shareholder approval, which LGC intends to seek at its next annual meeting.

Following the amendment to the 2016 Stock Option Plan, the Board of Directors of LGC granted an aggregate of 9,750,000 additional stock options to six of LGC’s directors and officers.  These additional stock options also have an exercise price of $0.36 and a term of ten years and were granted under LGC’s 2016 Stock Option Plan, as amended.  The 9,750,000 stock options may not be exercised until such time, if any, as LGC acquires approval from the TSX Venture Exchange and shareholder approval for the amendment to the 2016 Stock Option Plan described in this press release.

About LGC Capital Ltd. (www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services.


Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.s.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Receives Conditional Approval for AAA Trichomes Transaction

MONTREALDec. 6, 2017  – As per previously announced press release on October 31stLGC Capital Ltd. (TSXV: LG) (LGC) is pleased to announce that the TSX Venture Exchange has conditionally approved LGC’s proposed transaction with Québec-based Tricho-Med Corporation (doing business as AAA Trichomes).

LGC wishes to report that its due diligence review of AAA Trichomes has been completed, all major deal points have been agreed upon, and the remaining technical details are being finalized. Closing documentation is being prepared and LGC expects to sign the principal loan documentation with AAA Trichomes in the next few days, which will then be held in trust pending final TSX Venture Exchange approval. In order to obtain final approval for the transaction from the TSX Venture Exchange, LGC must file various documents, which it expects to do within the next few days.

At the closing of the transaction, LGC will subscribe for a convertible debenture of AAA Trichomes in an amount of $4,000,000(the “Debenture”). The Debenture will bear interest at an annual rate of 10%, have a term of four years and be secured by first-ranking security on all of AAA Trichomes’ assets. Upon AAA Trichomes obtaining a licence to cultivate marijuana from the relevant regulatory authorities, the Debenture will convert into common shares of AAA Trichomes, representing 49% of the then-issued and outstanding shares, and a 5% royalty on AAA Trichomes’ net sales. In the event that AAA Trichomes does not become a publicly-listed company within twelve months of having obtained the licence, LGC will receive such number of shares so that it owns 54% of the then-issued and outstanding shares of AAA Trichomes, subject to approval by the TSX Venture Exchange.

AAA Trichomes is planning to build a large new cannabis processing facility in the Province of Québec, to be built in three phases. Construction is expected to start within a few weeks of the closing of the transaction with LGC.

John McMullen, CEO of LGC stated, “LGC Capital is a Canadian investment company with a global perspective. We are very pleased to have the opportunity to invest in a Canadian-based company. We are very impressed with the AAA Trichomes management team as they are moving as quickly as possible towards production.”

Subject to AAA Trichomes becoming a licensed producer, the AAA Trichomes processing facility will be an enclosed multi-level medical cannabis production operation. AAA Trichomes is scheduled to start operations in 2019 with an initial annual production rate of more than 2,500 kilograms reaching a planned production rate of more than 20,000 kilograms by 2021.

About AAA Trichomes

AAA Trichomes was incorporated in 2014 with the objective of becoming a manufacturer and distributor of cannabis products in Canada with an initial focus on the Québec market. Since November 2016, AAA Trichomes has been in the final review stage with Health Canada for the processing of its application to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

About LGC Capital Ltd. (www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South AfricaAustralia and Canada. LGC also has a strategic alliances with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world; and with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC Capital Ltd. is headquartered in Montreal, Canada.


Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its proposed investment in AAA Trichomes, and LGC’s operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including its proposed investment in AAA Trichomes, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to AAA Trichomes:
All information contained in this press release relating to Tricho-Med Corporation (doing business as AAA Trichomes) has been provided to LGC by AAA Trichomes. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Ltd. Raises $3 Million At First Closing Of Private Placement

Montreal, Quebec – December 1, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has raised gross proceeds of $2,980,773 at a first closing of its previously­announced private placement by issuing 19,871,822 units at a price of $0.15 per unit. LGC expects to hold a final closing for the balance of 5,647,326 units ($847,099) by Wednesday, December 6, which will bring the total amount raised in the private placement to $3,827,872. The units were sold to “accredited investors” in Canada and internationally.

Each of the units is comprised of one common share and one common share purchase warrant; each warrant entitles its holder to acquire one additional LGC common share at a price of $0.25 for a period of 18 months from the closing date of the private placement. In the event that the volume weighted average trading price of LGC’s shares on the TSX Venture Exchange for a period of ten consecutive trading days is at least $0.30, LGC will be entitled to send a notice to the holders of the warrants accelerating the expiry date of the warrants to a date not less than 30 days after the date of such notice.

As previously announced, LGC will use the net proceeds from the private placement to meet its obligations within LGC’s current cannabis investment portfolio and for working capital.

At the first closing, LGC paid cash commissions to various securities dealers in an aggregate amount of $127,624, representing 5% of the proceeds from the sale of units sold through such dealers. In addition, LGC issued an aggregate of 850,828 “broker warrants” to such dealers, representing an amount equal to 5% of the number of units sold through them. Each of the “broker warrants” entitles its holder to purchase one additional unit at a price of $0.15 for a period of 18 months from the closing date of the private placement.

The securities issued at the first closing are subject to a “hold period” which expires on April 2, 2018.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act’), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.

About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.


Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition, and the private placement referred to above. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Provides an Update on its Private Placement and Binding Letter of Intent with Creso Pharma & Baltic Beer Company

MONTREALNov. 30, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) announces that it will close its previously-announced private placement of units, at an issue price of $0.15 per unit, in an amount of $3,727,872 in order to comply with the policies of the TSX Venture Exchange relating to the pricing of private placements, rather than in an amount of approximately $4.265 million as announced by LGC on November 28, 2017. LGC expects to complete the private placement this week.

Each of the units to be issued by LGC will be comprised of one common share and one common share purchase warrant; each warrant will entitle its holder to acquire one additional LGC common share at a price of $0.25for a period of 18 months from the closing date of the private placement. In the event that the volume weighted average trading price of LGC’s shares on the TSX Venture Exchange for a period of ten consecutive trading days is at least $0.30, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.

The units are being offered to “accredited investors” in Canada and internationally. LGC will use the net proceeds from the private placement to meet its obligations within LGC’s current cannabis investment portfolio and for working capital.

LGC also wishes to provide an update on its previously-announced binding Letter of Intent with Creso Pharma Limited (Australia and Switzerland) and Baltic Beer Company Ltd (UK), to develop and market a bespoke portfolio of cannabis and hemp-derived alcoholic and non-alcoholic beverages. The portfolio of beverages will contain various ingredients including seeds, extracts and terpenes from hemp and cannabis plants. LGC and Creso Pharma will each make an initial investment in the joint venture of € 150,000 (approximately CAD $225,000) for research and development, brand development and testing, which will be carried out by Baltic Beer. Each party will have a 33% interest in the joint venture.

About LGC Capital (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.

Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition, and the private placement and joint venture referred to above. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC or the joint venture could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital, Creso Pharma and Baltic Beer Company Ltd sign Binding Letter of Intent to develop cannabis and hemp derived alcoholic and non-alcoholic beverages

Highlights:

  • LGC Capital has signed a binding letter of intent with Creso Pharma Ltd and Baltic Beer Company Ltd

  • The new joint venture will create a bespoke portfolio of unique cannabis and hemp-derived alcoholic and non-alcoholic beverages

  • Creso Pharma to expand its product offering into the growing edible and lifestyle markets

  • Research and development work already underway in Switzerland, Estonia and the United Kingdom

MONTREAL, Nov. 29, 2017  – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that LGC, Creso Pharma Limited (Australiaand Switzerland) and Baltic Beer Company Ltd (UK), the home of the multi-award winning Viru Beer, have signed a Binding Letter of Intent to develop and market a bespoke portfolio of cannabis- and hemp-derived alcoholic and non-alcoholic beverages containing various ingredients, seeds, extracts and terpenes from hemp and cannabis plants.

The new joint venture company will include the following board members: Dr. Miri Halperin Wernli of Creso Pharma, John McMullen of LGC, and Alex Klaos of Baltic Beer Company Ltd, whose role will be to oversee the day-to-day operations of the new entity to ensure product development, growth targets and distribution reach are achieved.

Research and development work has already started in Switzerland, Estonia and the United Kingdom on a premium craft beer range containing unique terpenes mixes mimicking the terpenes of the cannabis plant. Terpenes are essential oils (organic compounds) found in plants that carry flavour and aroma.

The terpenes in the beer will carry the characteristic odour and fragrance of cannabis with the same taste and feel but will not contain THC or CBD or any other cannabinoids. The terpene mixes used to formulate the beers will have the smell and aroma of cannabis but in reality they originate from other plants mimicking the special mixtures. This is a significant advantage as it avoids the issue of regulatory restrictions.

Terpenes are safe molecules and are recognized as GRAS (“GRAS” = Generally Recognized as Safe) as attested by the U.S. Food and Drug Administration (FDA) classifying them as Food Additives, and by the Food and Extract Manufacturers Association and other world regulatory bodies classifying them as Safe (see WHO1/ FEMA GRAS2).

It is expected the first test batches of the terpene beer will reach selected markets in April/May 2018, with commercial sales expected to be ready for shipments from June/July 2018.

“This new joint venture combines Creso Pharma’s cannabis and hemp expertise with the prestigious and multiple award-winning beer creators, Baltic Beer Company, to develop and provide consumers with innovative, high-quality hemp- and cannabis-derived beverages. Through the vast geographic reach of the three parties which spans a number of continents, future commercial and distribution partners have already been identified and are eagerly anticipating this innovative new range of drinks,” said Creso Pharma’s CEO and Co-Founder, Dr. Halperin Wernli.

The joint venture partners have already identified potential distribution partners in Europe, far East Asia, Central and Latin America, Canada, Africa and with the recent legalization of hemp seed-based food and drink products in Australia and New Zealand, partners have been identified in this region as well.

Further research and development will identify other opportunities within the legal framework of the target markets, which focus on a range of premium beers containing cannabis- and hemp-derived components. The joint venture partners plan to expand their portfolio into other alcoholic and non-alcoholic beverages with further announcements to be made in due course.

The joint venture will market and sell its products only in full compliance with local market regulations and only after securing all appropriate regulatory approvals. LGC’s participation in the joint venture is conditional upon it obtaining all requisite regulatory approvals, including that of the TSX Venture Exchange.

“The cannabis infused beverage industry is an emerging and growing industry and we see a lot of potential value in this market. We also note Constellation Brands’ (NYSE:STZ) recent minority stake in Canada-based Canopy Growth Corporation which clearly signals real interest in this sector from much larger, established and more traditional business,” said John McMullen, CEO of LGC.

Alex Klaos, Director of Baltic Beer Company Ltd stated, “This partnership brings together parties who have the expertise and proven history to develop unique cannabis and hemp plant derived product offerings for consumers. We are all very excited about working with Creso Pharma and LGC on this project. The partners bring scientific expertise, significant financial investment and a wealth of experience in the beer industry which we believe will be a resounding success.”

David Lenigas, LGC founder and Co-Chairman commented, “This is an excellent first venture with Creso Pharma. The international hemp and cannabis-infused beverage market is growing at significant rates and we are committed to becoming an active player in this exciting new market. Viru is already exporting their award-winning beer to many countries around the world, and with Creso Pharma’s scientific expertise, we look forward to working actively to create something of real value.”

About LGC Capital (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.

Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition, and the private placement and joint venture referred to above. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC or the joint venture could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital to Close Over-subscribed Private Placement for $4.265 Million

MONTREAL, November 28, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has closed the subscription books for its previously-announced private placement at a price of $0.15 per unit and expects to complete the private placement in an amount of approximately $4.265 million this week. In light of demand, LGC increased the size of the private placement from the previously-announced maximum of $3.25 million.

John McMullen, CEO of LGC stated“We at LGC Capital are very pleased with the global market response we have received throughout this capital raise. With these funds, LGC will now advance its global portfolio of businesses with our partners. These additional funds will help LGC to grow at a faster pace than we originally envisaged. We thank our new shareholders for their trust in LGC’s management and our plan to expand the scope of businesses that we are looking to invest in globally.”

Each of the units to be issued by LGC will be comprised of one common share and one common share purchase warrant; each warrant will entitle its holder to acquire one additional LGC common share at a price of $0.25 for a period of 18 months from the closing date of the private placement. In the event that the volume weighted average trading price of LGC’s shares on the TSX Venture Exchange for a period of ten consecutive trading days is at least $0.30, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.

The units are being offered to “accredited investors” in Canada and internationally. LGC will use the net proceeds from the private placement to meet its obligations within LGC’s current cannabis investment portfolio and for working capital.

About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.

Company & Media Contacts:

Canada Contact:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition, and the private placement referred to above. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Increases Size of Oversubscribed Private Placement Financing and Provides Update on Quebec Cannabis Investment

MONTREAL, November 21, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to provide an update on LGC’s previously-announced private placement financing and its proposed investment in new Quebec cannabis-focused AAA Trichomes.

Private Placement Financing – Over Subscribed

LGC is pleased to announce that in light of very heavy demand, it has decided to increase the maximum amount of its previously-announced private placement by 62% to CDN $3.25 million. On November 16, 2017, LGC announced a private placement of units in a maximum amount of CDN $2 million. Closing of the private placement is scheduled to take place this week. LGC has increased the financing amount to pursue further cannabis growth opportunities globally currently under consideration.

AAA Trichomes – Quebec, Canada

The previously-announced closing date for the proposed transaction with Tricho-Med Corporation, doing business as AAA Trichomes (“AAA Trichomes”), has been revised from November 24 to November 29, 2017.

As announced on October 31, 2017, LGC signed an option to acquire a 49% interest in Quebec-based AAA Trichomes, plus a 5% royalty on its net sales. AAA Trichomes is planning to build a significant new cannabis processing facility in the Province of Quebec.

All parties are working diligently and LGC is pleased with the progress made to date on this proposed transaction. The parties have mutually agreed to extend the deal closing date to allow for completion of the due diligence review and obtaining the necessary regulatory approvals, including that of the TSX Venture Exchange.

John McMullen, CEO of LGC states“We are pleased with the size and scope of the transactions currently happening in the cannabis sector and we believe that we are building the next investment opportunity with our international business model. This is evident by the solid uptake in this current private placement. We have received interest and orders from sizable global institutions and high net worth individuals, who I believe will be great partners as we move to the next level as a cannabis investment company. These new funds are targeted at growing the existing investment portfolio and seeking new cannabis opportunities globally.”

David Lenigas, Co-Chairman of LGC added“On behalf of LGC and in recognition of yesterday’s announcement by our Swiss strategic partner Creso Pharma, we applaud Creso’s achievement in expanding its global footprint and entering the very sizable Chinese market.”

http://www.skynews.com.au/business/business/company/2017/11/20/creso-pharma-enters-chinese-market.html

As previously announced, LGC and Creso Pharma Limited have entered into a letter of intent for a strategic alliance for the purpose of establishing a vertically-integrated cannabis enterprise with a global footprint spanning cultivation, IP generation, innovative product development and commercialisation.


About AAA Trichomes:
AAA Trichomes was incorporated in 2014 with the objective of becoming a manufacturer and distributor of cannabis products in Canada with an initial focus on the Quebec market. Since November 2016, AAA Trichomes has been in the final review stage with Health Canada for the processing of its application to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

About LGC Capital Ltd. (www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), Tricho-Med Corporation (“AAA Trichomes”) and Creso Pharma Limited (“Creso”) and their respective operations, strategies, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, AAA Trichomes and Creso, respectively, including the proposed transactions described herein, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC, AAA Trichomes and Creso, as the case may be, and persons acting on their behalf, respectively. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to AAA Trichomes and Creso:
All information contained in this press release relating to AAA Trichomes and Creso has been provided to LGC by each, respectively. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Ltd. Announces Private Placement

MONTREAL, Nov. 16, 2017  – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has received conditional approval from the TSX Venture Exchange for a private placement of units at a price of $0.15 per unit. The private placement will be in a minimum amount of $1 million (6,666,666 units) and a maximum amount of $2 million (13,333,333 units). LGC expects the closing of the private placement to take place within the next week.

Each of the units will be comprised of one common share and one common share purchase warrant; each warrant will entitle its holder to acquire one additional LGC common share at a price of $0.25 for a period of 18 months from the closing date of the private placement. In the event that the volume weighted average trading price of LGC’s shares on the TSX Venture Exchange for a period of ten consecutive trading days is at least $0.30, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.

The units are being offered to “accredited investors” in Canada and internationally. LGC will use the net proceeds from the private placement to meet its obligations within LGC’s current cannabis investment portfolio and for working capital.

At the closing of the private placement, LGC will pay cash commissions to various securities dealers in an amount equal to 5% of the proceeds from the sale of units sold through such dealers. In addition, LGC will issue “broker warrants” to such dealers in an amount equal to 5% of the number of units sold through them. Each of the broker warrants will entitle the holder to purchase one additional LGC common share at a price of $0.15 for a period of 18 months from the closing date of the private placement.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.

About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. The company also has a strategic alliances with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world; and with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC Capital Ltd. is headquartered in Montreal, Canada.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition, and the private placement referred to above. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital’s Strategic Partner Creso Pharma achieves landmark milestone with the commercial launch of first animal health product in Switzerland

MONTREALNov. 14, 2017 – LGC Capital Ltd.  (TSXV: LG) (“LGC”) is pleased to announce its strategic partner Creso Pharma (CPH-ASX) disseminated the following news release yesterday about the launch of its cannabis-based product anibidiol® in Switzerland and Lichtenstein. Of note, Creso Pharma and LGC have agreed that LGC will be spearheading the distribution of this product in Southern Africa and Canada through LGC’s investee businesses, subject to their obtaining all necessary regulatory approvals.


Creso Pharma and Virbac launch anibidiol® – the first Swiss approved hemp product with CBD as a complementary feed for companion animals

Creso Pharma and Virbac are pleased to announce the launch in Switzerland of anibidiol®, a natural complementary feed for companion animals containing a standardized amount of hemp extract with cannabidiol (CBD), the non-psychoactive substance of the hemp plant. The product supports companion animals’ immune system, its natural defenses and contributes to balanced behavior. It is now available for the first time to Swiss veterinarians.

anibidiol® is the first Swiss Agroscope conformed complementary feed for companion animals that contains natural hemp extract with CBD and is THC-free.

anibidiol® promotes the well-being of the animal by supporting its immunity and natural defense system. anibidiol® also supports a balanced behavior of the pet.

anibidiol® contains natural full plant hemp extract as well as hemp seed oil. This proprietary combination of CBD, the fatty acids Omega 3, Omega 6 and Omega 9, terpenes, flavonoids, and other active herbal ingredients have a complex interaction which enhances their overall health-promoting effect. The anibidiol® product range directly addresses the need for natural, non-pharmaceutical therapeutic approaches which are well tolerated by animals. The CBD contained in anibidiol® does not cause GI and dependency side effects and has a very good safety and tolerability profile.

In order to guarantee professional advice anibidiol® is marketed in Switzerland exclusively by Virbac and only through veterinary practices. The individually-packed portions contain a granulate formulation, which is mixed once a day with the pet’s food.

anibidiol® was developed by Creso Pharma, an Australian-Swiss company based in Zug and Perth. It is produced in Switzerland by Creso’s partner Swiss-based food and pharma development company, Domaco, Dr. med Aufdermaur AG (Domaco) and is marketed exclusively in Switzerland by Virbac (Switzerland) AG, Glattbrugg ZH.

Virbac is a global pharmaceutical animal health company with a presence in over 100 countries and more than 4,800 employees and sales subsidiaries in 31 countries. With a turnover of €872 million in 2016, Virbac ranks today as the 7th largest pharmaceutical veterinary company worldwide. Virbac operates through presence in North America (17%), Europe (39%), Latin America (16%), Far East (15%), and Rest of the World (13%). Its wide range of vaccines and medicines are used in the prevention and treatment of the main pathologies for companion and food-producing animals.

Creso Pharma CEO and Co-Founder Dr. Miri Halperin Wernli said: “We are very excited to launch anibidiol® in Switzerland and thrilled to be working in partnership with Virbac, such a well-established global company in the animal health field. This is the first introduction of our hemp-based complementary feed products for companion animals in the veterinary market. “It is a particularly significant launch for us as it is Creso’s first product launch in Europe and we intend to follow it with many more. “We look forward to working with Virbac to successfully promote, market and launch further quality hemp-based animal health products.” The recession-resistant worldwide animal health market is estimated to be USD 30 billion1 and is projected to continue to show rapid growth. Forty-one percent of pet owners have considered or tried various alternative therapies including nutritional supplements (29%) and herbal remedies (7%).2

Creso Pharma Switzerland is a subsidiary of Creso Pharma Limited, based in Perth, Australia, and listed on the Australian stock exchange ASX. Creso Pharma Switzerland develops, produces and markets worldwide hemp-based innovative nutraceutical products for humans and complementary feed products for animals. In Switzerland, Creso Pharma Switzerland markets its products for animal health with Virbac (Switzerland) AG. www.anibidiol.com

Virbac (Switzerland) Ltd., headquartered in Zurich-Glattbrugg, is part of the Virbac Group from France, which is dedicated exclusively to animal health, in more than 100 countries and on all five continents. Virbac (Schweiz) AG has a wide range of innovative health products for the prophylaxis and treatment of the most important diseases of domestic animals and livestock.

Vetnosis review 2016

2 Brown, L. P. (2001) Pet nutraceuticals: hype or wave of the future? Nutraceuticals World. January/February 2001 issue, pp. 34–41. Retrieved 31st July 2017 from: http://www.nutraceuticalsworld.com/issues/2001‐01/view_features/petnutraceuticals/ 

 


About Creso Pharma

Creso Pharma brings pharmaceutical expertise and methodological rigour to the world of medicinal cannabis and strives for the highest quality in its products. It is the leader in medicinal cannabis and cannabidiol (CBD) innovation and develops cannabis- and hemp-derived therapeutic-grade nutraceuticals and medicinal cannabis products with wide patient and consumer reach for human and animal health. Creso uses GMP development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. It has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.

About Domaco, Dr. med Aufdermaur AG

Domaco, Dr. med Aufdermaur AG is a Swiss-based food and pharma development company that owns the rights to a number of innovative delivery systems used to administer active ingredients through galenic forms which is a way of preparing and compounding medicines in order to optimise their absorption.

About LGC Capital Ltd. (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. The company also has a strategic alliances with AfriAg (Pty) Ltd. to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world; and with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC Capital Ltd. is headquartered in Montreal, Canada.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”) and Creso Pharma Limited (“Creso”) and their respective operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC and Creso, including their proposed strategic alliance described herein, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC or Creso, as the case may be, and persons acting on their behalf, respectively. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and neither LGC nor Creso has any obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Creso Pharma and LGC Capital Announce Strategic Alliance

Montreal, Québec, Canada and Perth, Australia – November 9, 2017 – Creso Pharma (“Creso”), the Australian listed and Swiss based pharmaceutical company, and Canadian listed LGC Capital Ltd. (“LGC”), jointly announce the formation of a new and exciting strategic alliance intended to create a vertically-integrated cannabis operation with a global footprint spanning cultivation, IP generation, innovative product development and commercialisation.

  • In anticipation of the imminent launch of Creso’s first pioneering animal health product anibidiol in Switzerland and Lichtenstein as well as the upcoming launch of its human health product cannaQIX in Q1 2018, Creso is looking to aggressively expand its market reach.
  • LGC brings potential access to the highest quality, competitive supply of cannabis from southern Africa, a global logistics footprint and capability to introduce Creso’s innovative products to key markets of Canada and Africa and other regions within LGC’s growing global footprint.
  • Creso and LGC will engage in developing sales and distribution of products jointly in Europe, Canada, Latin America, Africa, Japan and the Asia-Pacific region.
  • Together, Creso and LGC will develop, produce and market innovative human and animal health solutions addressing the growing demand for cannabis and hemp-derived therapeutics, cosmetics, nutraceuticals and lifestyle products.
  • The combination of LGC’s access to competitive-source cannabis with Creso’s Swiss-based expertise in product development and market access is intended to deliver significant added value for customers and consumers.
  • The strategic alliance is designed to result in better access to high quality cannabis-based consumer products globally.

Dr. Miri Halperin Wernli, Co-Founder and CEO of Creso states: By combining our unique assets and strengths, we believe Creso and LGC will create an integrated cannabis products’ opportunity with a global footprint, covering from seed to finished goods, greatly benefitting patients and consumers.” 

David Lenigas, Founder and Co-Chairman of LGC commented: “Creso operates under the highest GMP Swiss standards and all of its products are manufactured, quality controlled and certified in Switzerland. Creso’s team consists of globally-recognised pharma professionals and this alliance between Creso and LGC is a terrific development for both companies.”

John McMullen, CEO of LGC states: “This alliance will be both invaluable and complementary to LGC’s investment portfolio and growing global partnerships. Together we will expand and strengthen Creso’s commercial offerings and LGC’s ability to service the global hemp and cannabis markets for humans and animals.”

Creso and LGC have entered into a letter of intent which will form the basis for the negotiating, drafting and signing by them of a mutually-satisfactory Collaboration Agreement.  The Collaboration Agreement, which Creso and LGC expect to sign before December 31, 2017, will set out in detail the terms and conditions of their strategic alliance.  The letter of intent provides that any activities to be performed by LGC in connection with the strategic alliance may be performed by LGC directly, or indirectly through one or more of LGC’s investee companies or businesses.

The signing of the Collaboration Agreement is conditional upon LGC and Creso having obtained all requisite regulatory approvals, including those of the TSX Venture Exchange and Australian Securities Exchange, respectively, to the extent applicable.

About LGC Capital Ltd. (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services.

About Creso Pharma (www.cresopharma.com)

Creso Pharma brings pharmaceutical expertise and methodological rigour to the world of medicinal cannabis and strives for the highest quality in its products. It is the leader in medicinal cannabis and cannabidiol (CBD) innovation and develops cannabis and hemp-derived therapeutic-grade nutraceuticals and medicinal cannabis products with wide patient and consumer reach for human and animal health. Creso uses GMP development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. It has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”) and Creso Pharma Limited (“Creso”) and their respective operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC and Creso, including their proposed strategic alliance described herein, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC or Creso, as the case may be, and persons acting on their behalf, respectively. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and neither LGC nor Creso has any obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital signs letter of intent for proposed acquisition of 20% of Etea Sicurezza Group Ltd

MONTREALNov. 1, 2017  LGC Capital Ltd. (TSXV: LG) (“LGC“) is pleased to announce that it has entered into a letter of intent with Etea Sicurezza Group Ltd (“Etea Sicurezza”) for a potential acquisition of approximately 20% of Etea Sicurezza by LGC. The letter of intent will form the basis for the negotiation of a mutually-satisfactory definitive agreement to be entered into between LGC, on the one hand, and Etea Sicurezza and its shareholders, on the other hand. LGC and Etea Sicurezza are at arm’s-length.

Based in London, England, Etea Sicurezza (www.eteasicurezzagroup.com) is a private company which specializes in fire safety and security by providing products and services to international companies such as L’Oreal, Coca Cola, BASF, Doha Metro and others. Etea Sicurezza was founded in 1998 and is now a global leader in the field of high-tech safety with offices in seven countries and agents in 20 countries. Etea Sicurezza operates as an EPC (Engineering, Procurement and Construction) contractor implementing safety systems, and provides proprietary and patented technologies that are customized and fully compliant with international standards.

“We are very pleased to have signed the letter of intent with Etea Sicurezza,” commented Mazen Haddad, Co-Chairman of LGC and head of its merchant banking division. “We believe that Etea Sicurezza is a strong company with great growth potential and that our proposed transaction will be beneficial for LGC and our shareholders.”

The letter of intent provides that LGC will incorporate a new, wholly-owned subsidiary corporation (“Holdco”) which will issue 11,280,000 shares to LGC; Holdco will acquire 87.5% of the issued and outstanding shares of Etea Sicurezza from its principal shareholders in exchange for an aggregate of 45,120,000 Holdco shares and will acquire the balance of 12.5% of the issued and outstanding shares of Etea Sicurezza from a minority shareholder for cash, to be funded by LGC. Holdco will effect a private placement or other similar financing of 1,200,000 shares at a price of $0.83333 per share for gross proceeds of $1 million. The minority Etea Sicurezza shareholder will undertake to subscribe for common shares of LGC by way of private placement in an amount equal to the amount it receives for its 12.5% interest at a price per share equal to the then-market price of LGC’s shares.

The letter of intent provides that at the closing of the proposed transaction, Holdco will have 60 million shares issued and outstanding, of which, among others, the current Etea Sicurezza shareholders will hold an aggregate of approximately 75%, LGC will hold approximately 19%, and new investors will hold an aggregate of 2%. Holdco will own all of the issued and outstanding shares of Etea Sicurezza and have cash of approximately $1 million.

The letter of intent provides that at the closing of the proposed transaction, the Board of Directors of Holdco will consist of three nominees of Etea Sicurezza and two nominees of LGC, of whom at least a majority will be independent directors within the meaning of Canadian securities regulations.

The proposed transaction is subject to a number of conditions, including completion of due diligence reviews by LGC and Etea Sicurezza, to their respective satisfaction; the absence of any material adverse change with respect to Etea Sicurezza; the negotiation and execution by LGC and Etea Sicurezza of a definitive agreement in respect of the transaction; receipt of all corporate approvals, including approval of the Boards of Directors of LGC and Etea Sicurezza; and receipt of all other necessary regulatory approvals, including that of the TSX Venture Exchange, as the proposed transaction may be a “Reviewable Transaction” under Policy 5.3 “Acquisitions and Dispositions on Non-Cash Assets” of the TSX Venture Exchange. LGC cannot give any assurance that such conditions will be satisfied, that the proposed transaction will be successfully completed or as to the timing of the proposed transaction.

LGC also announces that it has completed its previously-announced transaction (see LGC press release – October 10, 2017) whereby LGC is guaranteeing repayment by Etea Sicurezza of notes issued by it in an aggregate principal amount of USD $1,000,000. As consideration for the guarantee, Etea Sicurezza will issue shares to LGC representing 3% of its outstanding shares and pay a cash fee to LGC. These shares will be cancelled upon completion of the proposed transaction described in this press release, with the guarantee from LGC remaining in force. The letter of intent with Etea Sicurezza does not provide for a distribution by LGC a portion of the shares of Etea Sicurezza to LGC’s shareholders, as referred to in LGC’s previous press release, although LGC may consider this option at a future date, subject to regulatory approval.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including the proposed transaction with Etea Sicurezza described herein, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to AAA Trichomes Inc.:
All information contained in this press release relating to Etea Sicurezza has been provided to LGC by Etea Sicurezza. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Signs First Canadian Cannabis Deal In Quebec

MONTREALOct. 31, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has signed an option with Quebecbased Tricho-Med Corporation, doing business as AAA Trichomes (AAA Trichomes) to acquire a 49% interest (plus a 5% royalty) in a new cannabis processing facility to be built in the Province of Quebec.

Subject to permitting, the AAA Trichomes processing facility will be one of the first enclosed multi-level medical cannabis producers in Quebec. Trichomes is scheduled to start operations in 2019 with an initial annual production rate of over 2,500 kilograms reaching a planned production rate of over 20,000 kilograms by 2021.

“This is LGC’s first deal directly in the Canadian cannabis sector and hopefully the first of a number of Canadian deals the Company is looking at taking a strategic investment.” Commented John McMullen, LGC Capital’s CEO. “This deal is on the back of our recent investment in Little Green Pharma, one of Australia’s fully licensed and permitted medical cannabis companies that is moving rapidly towards planting its first commercial crop (/or – has just planted its first commercial crop). We are also progressing well with our due diligence process on our potential investment in South Africa’s House of Hemp, having now completed 3 months of the due diligence on this exciting business.”

Under the terms of the exclusive option agreement, LGC plans to fund the building of the facility by way of a $4 million fully secured convertible debenture bearing interest at the rate of 10% per annum. Upon the facility being approved for cannabis cultivation and production, the debenture will automatically be converted to a 49% holding in the issued common share capital of Trichomes as well as a 5% royalty on all net sales of cannabis products.

AAA Trichomes was incorporated in 2014 with the objective of becoming a manufacturer and distributor of cannabis products in Canada with an initial focus on Quebec market. Since November 2016, AAA Trichomes has been in the final review stage with Health Canada for the processing of its application to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations.

The critical path in this transaction calls for due diligence to be completed by November 15th with a closing on an initial funding of $2 Million to take place on November 24th of this year. Conditions precedent to closing include, inter alia, execution and delivery of all definitive agreements relating to the convertible debentures, the net sales royalty and registration of securities against the assets of the Borrower. LGC plans to fund this investment over the construction period from current cash reserves and from Institutional debt.

Closing is also conditional upon LGC having obtained all requisite regulatory and TSX Venture Exchange approvals.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd.’s (TSXV: LG) mission is to invest into global high-yield diversified businesses. LGC’s flagship project is its partnership with AfriAg (Pty) Ltd. and South Africa’s House of Hemp to grow, cultivate and distribute medical-grade cannabis from its 40,000 m2 facility located in Block D of the Dube Tradeport’s Agrizone Complex. This greenhouse is the most eco-friendly and high tech agricultural facility in Africa.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its investment in AAA Trichomes Inc., and LGC’s operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including its proposed investment in AAA Trichomes Inc., could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to AAA Trichomes Inc.:
All information contained in this press release relating to AAA Trichomes Inc. has been provided to LGC by AAA Trichomes Inc. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Little Green Pharma Obtains Final Permits and Plans to Commence Commercial Medical Cannabis Production in Australia Within Weeks

Montreal, Québec – October 23, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to advise that Habi Pharma Pty Ltd of Perth, Australia, doing business as “Little Green Pharma”, has now received its final permits from the Australian Government enabling Little Green Pharma to move to its first commercial production of Medical Cannabis for the Australian market. Little Green Pharma has advised LGC that its plans to start growing within weeks.

John McMullen, LGC’s CEO commented; “We are delighted with this news from Little Green Pharma, in which we currently hold a 4.99% interest. Not only is Little Green Pharma one of the few licenced companies in Australia in the sector, but now it is also one of the very few companies permitted to grow Medical Cannabis for commercial production. LGC Capital is pleased that we have become a shareholder of Little Green Pharma just as it commences its journey down the path of commercial production. We believe that this investment will prove to be a resounding win-win for both Little Green Pharma and LGC.”

Fleta Solomon, Little Green Pharma’s Managing Director, commented; “We are in the process of importing seeds and look forward to the imminent planting of our chosen medicinal cannabis strains. Discussions are underway with local and international leading researchers in a collaborative approach to examine the effect of medicinal cannabis on general cognitive deficit in dementia and PTSD.”

As previously announced, LGC owns an initial 4.99% of Little Green Pharma and subject to certain Australian regulatory and other approvals, can potentially increase its interest in Little Green Pharma up to 19.03%.

About Little Green Pharma:

Little Green Pharma is one of the few companies in Australia to be granted a licence to cultivate and produce Medical Cannabis within Australia.

Little Green Pharma (www.lgpharma.com.au) has advised LGC that it plans to cultivate and produce one of the first clean locally-grown Medical Cannabis products for use solely within Australia, giving hope and relief to those suffering from certain debilitating illnesses. Little Green Pharma’s patented technology aims to control the medicinal cannabis particle size encapsulated in the liposomes to optimise the bio-availability so the cannabinoids are readily absorbed into the bloodstream. This enables the resulting preparation to achieve desired therapeutic results with significantly lower cannabinoid doses, when compared to other forms of medicinal cannabis. Little Green Pharma’s patented process significantly reduces production costs, enabling Little Green Pharma to be more competitive in the market.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd.’s (TSXV: LG) mission is to invest into global high-yield diversified businesses. LGC’s flagship project is its partnership with AfriAg (Pty) Ltd. and South Africa’s House of Hemp to grow, cultivate and distribute medical-grade cannabis from its 40,000 m2 facility located in Block D of the Dube Tradeport’s Agrizone Complex. This greenhouse is the most eco-friendly and high tech agricultural facility in Africa.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its investment in Little Green Pharma, and LGC’s operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including its proposed investment in Little Green Pharma, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to Little Green Pharma:
All information contained in this press release relating to Little Green Pharma has been provided to LGC by Little Green Pharma. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Completes Acquisition of Initial Strategic Interest in Licenced Australian Medical Cannabis Company – Little Green Pharma

MONTREALOct. 12, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has today completed the acquisition of stage one of its strategic interest in licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as “Little Green Pharma”, as announced on September 26, 2017 and October 5, 2017. On October 5, 2017, the Company announced that the TSX Venture Exchange had authorized LGC to proceed to the closing of the transaction and this transaction has now been completed.

At the closing, LGC subscribed for 2,161,091 shares of Little Green Pharma, representing an initial 4.99% of its issued and outstanding shares. As consideration for the shares, LGC paid AUD $432,218 and issued 5,660,000 LGC common shares to Little Green Pharma at a deemed issue price of $0.11 per share. LGC, subject to certain Australian regulatory and other approvals, can now move towards increasing its interest in Little Green Pharma up to 19.03%.

About Little Green Pharma:

Little Green Pharma is one of the few companies in Australia to be granted a licence to cultivate and produce Medical Cannabis within Australia.

Little Green Pharma (www.lgpharma.com.au) has advised LGC that it plans to commence cultivation and production of one of the first clean locally-grown Medical Cannabis products for use solely within Australia, giving hope and relief to those suffering from certain debilitating illnesses. Little Green Pharma’s patented technology aims to control the medicinal cannabis particle size encapsulated in the liposomes to optimise the bio-availability so the cannabinoids are readily absorbed into the bloodstream. This enables the resulting preparation to achieve desired therapeutic results with significantly lower cannabinoid doses, when compared to other forms of medicinal cannabis. Little Green Pharma’s patented process significantly reduces production costs, enabling Little Green Pharma to be more competitive in the market.

The Australian Medical Cannabis Market:

Little Green Pharma has advised LGC that Australia passed federal legislation in 2016 aimed at permitting the use of Medicinal Cannabis via a tightly-controlled licensed medical prescription system.

In March 2016The White Paper, entitled Medicinal Cannabis in Australia: Science, Regulation & Industry, was developed by the University of Sydney Business School’s Community Placement Program. Its publication followed the news that the Australian Government would shortly allow the cultivation of cannabis in Australia for medical or scientific purposes.

As the first-ever White Paper that analyses the medicinal cannabis industry in Australia, the paper examines international experiences and approaches, supply chain economics, quantities of cannabis required and potential regulatory dynamics. It also serves as a framework for the industry to commence engaging key stakeholders such as the Australian Government and the medical community.

The University of Sydney summary of the White Paper can be viewed via the below link:

http://sydney.edu.au/news-opinion/news/2016/03/29/legalising-medicinal-cannabis-would-create–100-million-industry.html

The White paper can be viewed at:

http://mgcpharma.com.au/wp-content/uploads/2016/03/mgc_whitepaper_final-sml.pdf

Highlights of the White Paper:

  • Australia would need to produce 8,000 kg of medicinal cannabis per year to service the existing market.
  • Australian market currently estimated to be worth AUD $100 million to AUD $150 million per annum, and is likely to grow significantly in the next decade.
  • Medical Cannabis has the potential to help tens of thousands of patients suffering from a wide range of medical conditions such as Multiple Sclerosis, Epilepsy, Cancer, and Severe and Chronic Pain.
  • Up to 51,000 square metres of greenhouse space – almost three times the size of the Sydney Cricket Ground – would be needed to produce the amount of cannabis required to meet demand.

Further investment stages of the Little Green Pharma acquisition:

As previously announced, the subscription agreement between LGC and Little Green Pharma provides that subject to the issuance by Little Green Pharma of shares to various third parties, LGC will subscribe for a further 752,937 shares of Little Green Pharma for cash consideration of AUD $150,587, so as to maintain its shareholding in Little Green Pharma of 4.99%. In addition, subject to certain Australian regulatory approvals, which are currently in progress, and subject to approval by Little Green Pharma in its sole discretion, LGC may further subscribe, at its option, for additional shares of Little Green Pharma in order to increase its shareholding to a maximum of 19.03%. In the event that this option is exercised, LGC will subscribe for a maximum of 4,585,972 shares of Little Green Pharma for maximum cash consideration of AUD $917,194.

Note: On October 11, 2017, the Bank of Canada’s daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9728.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd.’s (TSXV: LG) mission is to invest into global high-yield diversified businesses. LGC’s flagship project is its partnership with AfriAg (Pty) Ltd. and South Africa’s House of Hemp to grow, cultivate and distribute medical-grade cannabis from its 40,000 m2 facility located in Block D of the Dube Tradeport’s Agrizone Complex. This greenhouse is the most eco-friendly and high tech agricultural facility in Africa.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its investment in Little Green Pharma, and LGC’s operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including its proposed investment in Little Green Pharma, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to Little Green Pharma:
All information contained in this press release relating to Little Green Pharma has been provided to LGC by Little Green Pharma. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

LGC Capital Signs Definitive Agreement to Acquire Strategic Interest in Licenced Australian Medical Cannabis Company – Little Green Pharma

TSX Venture Exchange authorizes LGC to proceed to closing of the transaction, scheduled for Tuesday, October 10, 2017

MONTREALOct. 5, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has entered into a definitive Subscription Agreement with licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as “Little Green Pharma”, for the acquisition of a strategic interest in Little Green Pharma, as announced on September 26, 2017. LGC is also pleased to announce that the TSX Venture Exchange has authorized LGC to proceed to the closing of the transaction, which is scheduled to take place on Tuesday, October 10, 2017.

Little Green Pharma is one of the few licenced companies in Australiaauthorized to cultivate and produce Medical Cannabis within Australia.

Little Green Pharma (www.lgpharma.com.au) has advised LGC that it plans to commence cultivation and production of one of the first clean locally-grown Medical Cannabis products for use solely within Australia, giving hope and relief to those suffering from certain debilitating illnesses. Little Green Pharma’s patented technology aims to control the medicinal cannabis particle size encapsulated in the liposomes to optimise the bio-availability so the cannabinoids are readily absorbed into the bloodstream. This enables the resulting preparation to achieve desired therapeutic results with significantly lower cannabinoid doses, when compared to other forms of medicinal cannabis. Little Green Pharma’s patented process significantly reduces production costs, enabling Little Green Pharma to be more competitive in the market.

“The signing of a definitive Subscription Agreement and approval by the TSX Venture Exchange to acquire this strategic initial interest in Little Green Pharma in Australia are truly landmarks for LGC Capital, as we seek to expand the Company’s global footprint in the fast-growing legalized medical cannabis industry” John McMullen, LGC’s CEO commented. “We are pleased to be given the opportunity to be a key strategic shareholder of Little Green Pharma as it moves towards commercial production in the highly regulated and blue-chip Australian market. We are also very excited about Little Green Pharma’s advanced patented technology.”

Fleta Solomon, Little Green Pharma’s Managing Director, commented; “There is no doubt that LGC Capital is going to be a strong strategic partner as we expand the company and its opportunities.”

The details of LGC’s agreement to invest in Little Green Pharma are as follows:

  1. At closing, LGC will subscribe for 2,161,091 shares of Little Green Pharma, representing an initial 4.99% of its issued and outstanding shares, by paying AUD $432,218 and issuing 5,660,000 LGC common shares to Little Green Pharma at a deemed issue price of $0.11 per share.
  2. Subject to the issuance by Little Green Pharma of shares to various third parties, LGC will subscribe for a further 752,937 shares of Little Green Pharma for cash consideration of AUD $150,587, so as to maintain its shareholding of 4.99% in Little Green Pharma.
  3. Subject to certain Australian regulatory approvals, which are currently in progress, and subject to approval by Little Green Pharma in its sole discretion, LGC may further subscribe, at its option, for additional shares of Little Green Pharma in order to increase its shareholding to a maximum of 19.03%. In the event that this option is exercised, LGC will subscribe for a maximum of 4,585,972 shares of Little Green Pharma for maximum cash consideration of AUD $917,194.

Note: On October 4, 2017, the Bank of Canada’s daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9802.

Closing of the transaction with Little Green Pharma is subject to standard conditions.


About LGC (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC’s objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services.

For further information please contact:

LGC Capital:
John McMullen, Chief Executive Officer
Tel: +1(416) 803-0698
Email: John@lgc-capital.com

Investor Relations contact:
The Howard Group Inc.
Dave Burwell, Vice President
Tel: +1(403) 221-9015
Toll Free in Canada: 1-888-221-0915,
Email: dave@howardgroupinc.com

London contact:
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640;

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”), its operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including any investment in the Medical Cannabis sector, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.

Information Relating to Little Green Pharma
All information contained in this news release relating to Little Green Pharma has been provided to LGC by Little Green Pharma. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.