LGC Capital Completes $8 Million Bought-Deal Private Placement

Montreal, Québec – February 16, 2018 – LGC Capital Ltd. (TSXV: LG) (“LGC) is pleased to announce that it has completed its previously-announced bought-deal private placement, including a partial exercise of the underwriter’s option, by issuing 18,515,000 units at a price of $0.435 per unit for gross proceeds to LGC of $8,054,025.  The units were sold to “accredited investors” in Canada and internationally through Cormark Securities Inc. as underwriter.  Each of the units is comprised of one common share and one common share purchase warrant.  Each full warrant entitles its holder to subscribe for one additional LGC common share at an exercise price of $0.49 for 36 months from the closing date.  In the event that the volume weighted average trading price of LGC’s shares on the TSX Venture Exchange for a period of 20 consecutive trading days commencing four months from the closing date is at least $0.65, 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 trading 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, for further investments, and for working capital.

John McMullen, CEO of LGC commented, “LGC would like to thank the banking and legal teams for their tireless efforts to close this funding into LGC from a major international institutional investor in the global cannabis sector.  We now have more than CAD $16,400,000 cash on hand and are well funded to execute our already announced growth strategy with respect to current investments and build-outs.  This new funding adds considerable financial capabilities for LGC to seek additional investments for our portfolio in the legalized medical cannabis sector globally, with the intended focus of leading to revenue-generating activities for LGC and its shareholders.”

At closing, LGC paid a cash commission to Cormark Securities, as underwriter, in an amount equal to 6% of the gross proceeds from the private placement.  In addition, LGC issued 1,110,900 “broker warrants” to Cormark Securities, representing 6% of the number of units issued and sold in the private placement.  Each of the “broker warrants” entitles its holder to purchase one additional unit at the offering price of $0.435 for a period of three years from the closing date of the private placement.

The securities issued at the closing are subject to a “hold period” which expires on June 17, 2018.

In connection with the private placement, each of LGC’s six directors and officers has entered into a Lock-up Agreement with Cormark Securities under which they have agreed not to sell any LGC common shares or any securities convertible or exchangeable into LGC common shares for a period of 120 days from the closing date of the private placement without the prior consent of Cormark Securities, subject to limited exceptions.

LGC also announces that it has loaned an aggregate of $210,328 to three of LGC’s directors and/or officers in order to fund the exercise by them of LGC stock options and an additional $442,853 to fund the payment by them of related taxes.  The loans, which do not bear interest, must be repaid within two years and are subject to approval by the TSX Venture Exchange.

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 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:

Company 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”) and Habi Pharma Pty Ltd (“Habi Pharma”), 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 Habi 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, 2017, 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 neither LGC nor Habi Pharma 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 Increases Strategic Interest in Australian Medical Cannabis Company – Little Green Pharma

MONTREALFeb. 15, 2018 – LGC Capital Ltd. (TSXV: LG) (LGCis pleased to announce that it yesterday completed its previously-announced transaction with licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as Little Green Pharma (“Little Green Pharma“), whereby LGC increased its strategic interest in Little Green Pharma to 14.99% from 11.91%.

John McMullen, CEO of LGC commented, “We are very much looking forward to Little Green Pharma cultivating its first crop over the coming months and producing its first medical cannabis products for commercial sale in Australia.  The funding provided by LGC over the past few months has provided Little Green Pharma with working capital to enable it to start its first commercial production.  LGC’s objective is to fund many of our other investment initiatives around the world to achieve the same goal over the coming year.”

At closing, Little Green Pharma issued 2,283,495 additional shares to LGC at a deemed issue price of AUD $1.16398 per share for a total consideration of approximately AUD $2,657,950.  LGC paid for the shares by issuing 5,000,000 LGC shares to Little Green Pharma at a deemed issue price of CAD $0.53 per share, representing the closing price of LGC’s shares on the TSX Venture Exchange on January 19, 2018, for a total consideration of CAD $2,650,000, equivalent to AUD $2,679,150 based on the Bank of Canada exchange rate on February 14, 2018.  The 5,000,000 LGC shares are subject to a “hold period” which expires on June 15, 2018.

The subscription agreement entered into by LGC and Little Green Pharma at closing contains an undertaking by LGC to participate in Little Green Pharma’s next capital raise, by June 30, 2018, to the extent required to maintain LGC’s 14.99% shareholding in Little Green Pharma.

Note: On February 14, 2018, the Bank of Canada’s daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9891.

About Little Green Pharma (www.lgpharma.com.au)

Little Green Pharma is a private entity in Australia and is one of the few companies in Australia to be granted a licence to cultivate and produce Medical Cannabis within Australia. On December 14, 2017, Little Green Pharma announced that its first crop of medicinal cannabis was being cultivated in Western Australia at its secure growing facility south of Perth. That event marks the first time medicinal cannabis has been cultivated locally in Western Australia. Little Green Pharma aims to have first product available for patients within the first few months of 2018.

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:

Company 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”) and Habi Pharma Pty Ltd (“Habi Pharma”), 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 Habi 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, 2017, 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 neither LGC nor Habi Pharma 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 Completes US$2.34 Million Convertible Loan Transaction to Fund Business Expansion

MONTREALFeb. 8, 2018 – LGC Capital Ltd. (TSXV: LG) (“LGC“) is pleased to announce that it has now completed its previously-announced transaction with international investors YA II PN, Ltd and Cuart Investments PCC Limited pursuant to which they loaned an aggregate amount of US $2.34 million (approximately CAD $2.94 million) to LGC at a closing held today.

John McMullen, LGC Capital’s CEO commented; “LGC intends to use these proceeds to further advance its core business divisions on its global platform and seek new acquisitions and investment opportunities that are synergistic with LGC’s current focus.”

The loan has a term of twelve months and bears interest at an annual rate of 9.5%, payable quarterly in arrears.  The principal amount of the loan is convertible into LGC common shares at the option of the lenders at a price per share equal to the lesser of (i) US $0.538 (CAD $0.675), representing the US dollar equivalent of 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50), and (ii) 90% of the lowest daily volume weighted average trading price of LGC’s shares during the five trading days immediately preceding the date of a conversion notice from the lenders, subject to a minimum conversion price of CAD $0.50.

At closing, LGC issued an aggregate of 1,643,764 common share purchase warrants to the two lenders, representing an amount equal to 25% of the dollar amount of the loan divided by CAD $0.4465, being the volume weighted average trading price of LGC’s shares during the five trading days ended December 29, 2017.  Each warrant entitles its holder to acquire one common share of LGC at a price of CAD $0.70, representing 140% of LGC’s closing price on December 29, 2017, for a period of one year from the date of issuance.

In connection with the Investment Agreement, LGC paid a cash due diligence fee to RiverFort Global Capital Ltd. (“RiverFort”) of London, England.  At closing, LGC also paid a structuring fee to RiverFort by issuing 376,162 shares to it, representing an amount equal to 12.5% of the dollar amount of loan from YA II PN, Ltd, less the amount of the due diligence fee, divided by CAD $0.675, representing 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50).

The securities issued at the closing are subject to a “hold period” which expires on June 9, 2018.  LGC is at arm’s length from the two lenders and RiverFort.

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:

Company Contacts:

Canada contact: John McMullen, Chief Executive Officer
Tel.: (416) 803-0698;
Email: john@lgc-capital.com
Anthony Samaha, Chief Financial Officer (London)
Tel.: +44 (0) 20 7440 0640

Investor Relations Contact:

Dave Burwell, The Howard Group Inc.
Tel.: (403) 221-9015
Toll Free: 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 Investment Agreement 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, 2017, 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 Ltd. Receives TSX Venture Exchange Approval for US $2.34 Million Convertible Loan Agreement

Montreal, Québec – January 31, 2018 LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has received conditional approval from the TSX Venture Exchange for its previously-announced transaction with international investors YA II PN, Ltd and Cuart Investments PCC Limited pursuant to which they will loan LGC an aggregate amount of US $2.34 million (approximately CAD $2.88 million).  LGC intends to use the net proceeds from the loan to further advance its core business divisions on its global platform.

Closing of the transaction and the advance of funds to LGC is expected to take place shortly, subject to standard closing conditions.

The Investment Agreement between LGC and the two lenders, as amended (the “Investment Agreement”), provides that the loan will have a term of twelve months and bear interest at an annual rate of 9.5%, payable quarterly in arrears.  The principal amount of the loan will be convertible into LGC common shares at the option of the lenders at a price per share equal to the lesser of (i) US $0.538 (CAD $0.675), representing the US dollar equivalent of 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50), and (ii) 90% of the lowest daily volume weighted average trading price of LGC’s shares during the five trading days immediately preceding the date of a conversion notice from the lenders, subject to a minimum conversion price of CAD $0.50.

Upon each advance of funds under the Investment Agreement, LGC will issue common share purchase warrants to the lenders in an amount equal to 25% of the dollar amount of the advance divided by CAD $0.4465, being the volume weighted average trading price of LGC’s shares during the five trading days ended December 29, 2017.  Each warrant will entitle its holder to acquire one common share of LGC at a price of CAD $0.70, representing 140% of LGC’s closing price on December 29, 2017, for a period of one year from the date of issuance.

In connection with the Investment Agreement, LGC will pay a cash due diligence fee to RiverFort Global Capital Ltd. (“RiverFort”) of London, England.  LGC will also pay a structuring fee to RiverFort by issuing shares to it in an amount equal to 12.5% of the dollar amount of any advance of the loan by YA II PN, Ltd, less the amount of the due diligence fee, divided by CAD $0.675, representing 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50).  The shares will be issued on the date of the advance of the loan.

Any securities issued by LGC at the closing of the transaction, as well as any shares issued upon conversion of the loan or upon the exercise of warrants, will be subject to restrictions on resale for a period of four months from the closing date of the transaction.  LGC is at arm’s length from the lenders and RiverFort.

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:

Company Contacts:

Canada contact: John McMullen, Chief Executive Officer
Tel.: (416) 803-0698;
Email: john@lgc-capital.com
Anthony Samaha, Chief Financial Officer (London)
Tel.: +44 (0) 20 7440 0640

Investor Relations Contact:

Dave Burwell, The Howard Group Inc.
Tel.: (403) 221-9015
Toll Free: 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 Investment Agreement 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, 2017, 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 Expand Global Footprint in Medical Cannabis Market Through Investment in Jamaica’s Global Canna Labs Limited

  • LGC to subscribe for a $2.5 million secured debenture of Jamaican cannabis company Global Canna Labs Limited, convertible into an initial 30% interest, and to acquire a 5% royalty on net sales.
  • The Jamaican Cannabis Licensing Authority granted Global Canna Labs conditional approval for a Cultivator’s Licence (Tier 3) (over 5 acres) on December 20, 2017.
  • Global Canna Labs plans to start cultivation of its first commercial cannabis crop by Q2 2018.
  • Construction of Global Canna Labs’ first dispensary is expected to start in Q1 2018 in Montego Bay’s Hip Strip.
  • Plans are also in place for Global Canna Labs to open an on-site farm store and a dispensary in Kingston, Jamaica by the end of 2018.

Montreal, Québec – January 26, 2018 – LGC Capital Ltd. (TSXV: LG) (“LGC) is pleased to announce that it has signed a Letter of Intent with rapidly-developing Jamaican cannabis company Global Canna Labs Limited (“Global Canna Labs”) for a strategic investment in the Jamaican cannabis market as part of LGC’s ongoing international expansion.

The Letter of Intent with Global Canna Labs and one of its major shareholders provides that LGC will subscribe for a $2.5 million secured debenture, convertible into an initial 30% strategic interest in Global Canna Labs, and will also acquire a 5% royalty on Global Canna Labs’ net sales for $2 million, payable in shares of LGC.

John McMullen, CEO of LGC commented, This exciting transaction with Global Canna Labs will not only extend our global reach within the legalized cannabis industry, it will increase LGC’s investment footprint into the lucrative Caribbean Region. We believe that our investment will assist Global Canna Labs in achieving almost immediate production. The potential square footage, scale and expandability of this operation is significant and we look forward to working closely with Global Canna Labs and its highly-experienced team to build something quite special in Jamaica.”

Global Canna Labs Limited CEO Paul Glavine states; Today is a very significant day for the medical cannabis industry in Jamaica, with LGC today showing its strong financial commitment to jointly building a strong Jamaican brand in-country and on the world stage. Jamaica has for a long time been very well positioned to become a leader in the medical cannabis industry. It has a long, rich and varied culture and a highly motivated population. Global Canna Labs has secured a strong board, highly specialized in security, medicine and business expertise in the country. We have developed deeply rooted ties with the leaders in the local economy, which will allow us to maximize our expected production capacity of 40,000 kg annually through our current Montego Bay facilities as quickly as possible. We are glad to announce this partnership with LGC and we share its Jamaican vision. With 20 years of combined industrial experience in cultivating medical cannabis, we are now focused on rapidly building-out our operations and becoming the largest Caribbean producer of high grade medical cannabis.”

 Transaction Details: (all amounts in Canadian dollars)

The transaction is comprised of two parts:

  • LGC will, by way of a secured convertible debenture (the “Debenture”), invest $2.5 million which will be disbursed in traches in accordance with the achievement of milestones in Global Canna Labs’ business plan; and
  • LGC will purchase a 5% royalty (“Royalty”) on Global Canna Labs’ net sales for $2 million, payable in shares of LGC.

The Debenture will have a four-year term, carry interest at an annual rate of 7%, and be secured by the assets of Global Canna Labs. The Debenture will be convertible into common shares of Global Canna Labs and to be formed Canadian affiliate so as to comply with Jamaican foreign ownership rules, corresponding to a 30% ownership interest in Global Canna Labs. The Debenture will be converted immediately prior to any liquidity event.

The Royalty will also be secured by the assets of Global Canna Labs, which will have the right to repurchase the Royalty for $6 million.

The Letter of Intent provides that LGC will carry out an accelerated due diligence review, to be completed by February 15, 2018, and that upon successful completion of due diligence, the parties will enter into definitive agreements by February 25, 2018.

Closing of the transaction with Global Canna Labs is also subject to the parties entering into definitive agreements and to standard closing conditions. The transaction is subject to regulatory approval, including that of the TSX Venture Exchange.

About Global Canna Labs (http://globalcannalabs.com)

Global Canna Labs is a Jamaican entity with its head office located in Kingston, Jamaica, with operations based in Montego Bay, with plans to become one of the leading cultivators and processors in Jamaica of cannabis for medical and recreational purposes. Target production is expected to total 1,876 kg in 2018 and rising quickly to 7,741 kg annually by 2021. These production targets can be rapidly expanded from current targets should demand exceed supply.

The Montego Bay site comprises a 22-acre plot with an additional 80-acre expansion opportunity on the same plot. The location is only 10 minutes from the Montego Bay airport and sea port providing logistics access for facilitating global exports.

Global Canna Labs is in the final stages of acquiring a full commercial cannabis license in Jamaica enabling clinical trials, dispensaries, recreational sale, and medical export. On December 20, 2017, the Cannabis Licencing Authority of Jamaica granted conditional approval for a Cultivator’s Licence (Tier 3) (over 5 acres).

Construction of its first 58,000 sq. feet of greenhouses is in progress and is nearing completion, with 4 additional acres of outdoor growth and state-of-the-art processing facility meeting GMP and ISO standards in the current site plan. Security fencing around the initial cultivation site covering 6 acres in total has already been installed.

Construction of Global Canna Labs’ first dispensary is expected to start in Q1 2018 in Montego Bay’s Hip Strip. Plans are also in place for Global Canna Labs to open an on-site farm store and its first dispensary in Kingston by the end of 2018.

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.

Information Relating to Global Canna Labs Limited

All information contained in this press release relating to Global Canna Labs Limited has been provided to LGC by Global Canna Labs Limited. 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.

For further information please contact:

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

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

Investor Relations:

Dave Burwell
The Howard Group Inc.
Tel.: (403) 221-9015
Toll Free: 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 Global Canna Labs Limited, 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 Global Canna Labs Limited 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 neither LGC nor Global Canna Labs Limited 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 to Increase Strategic Interest in Australian Medical Cannabis Company – Little Green Pharma

  • LGC to increase its strategic interest in Australian Medical Cannabis company Little Green Pharma to 14.99% by issuing 5,000,000 LGC shares.
  • Australian Government to allow the export of medicinal cannabis exports.

MONTREAL, Jan. 22, 2018 – LGC Capital Ltd. (TSXV: LG) (LGCis pleased to announce that it has entered into a Binding Term Sheet with licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as Little Green Pharma (“Little Green Pharma“), to increase LGC’s strategic interest in Little Green Pharma from 11.91% to 14.99%.

The proposed increase to 14.99% will take LGC’s interest in Little Green Pharma to just below the 15% threshold requiring approval from the Australian Foreign Investment Review Board.

Increasing LGC’s interest in Little Green Pharma has been a top priority for LGC over the past few months, and even more so since the Australian Government announced on January 4, 2018 an important step for the development of the Australian medical cannabis sector by permitting the export of medicinal cannabis products from Australia.

The full statement from the Hon. Greg Hunt MP, Australian Minister for Health, is set out below and is also available at:
http://www.health.gov.au/internet/ministers/publishing.nsf/Content/health-mediarel-yr2018-hunt003.htm

Australian Government to allow medicinal cannabis exports (4 January 2018)

In an important step for the development of the medicinal cannabis sector and to secure long-term supplies for Australian patients, the Federal Government will permit the export of medicinal cannabis products.

This follows extensive consultation that was undertaken last year.

Our top priority is to ensure a safe quality supply of medicinal cannabis for Australian patients.

This decision will help both the domestic supply and Australian producers by strengthening the opportunities for domestic manufacturers.

The Turnbull Government is committed to ensuring a safe, quality supply of medicinal cannabis is available to Australian patients under proper medical supervision.

In an additional move to support both patients and manufacturers, the Turnbull Government will now permit the export of Australian manufactured medicinal cannabis products.

We are making these changes because the expanding domestic medicinal cannabis products industry is facing increasing competition from imports.

And allowing the export of medicinal cannabis products will help the developing domestic market to grow further.

We believe it is appropriate to amend the regulations governing the export of cannabis products to provide a level playing field.

But this change will not come at the expense of Australian patients.

In fact, by helping the domestic manufacturers to expand, this in turn helps to ensure an ongoing supply of medicinal cannabis products here in Australia.

It will be a condition of any licence authorising export that medicinal cannabis products be made available, when and if required, to Australian patients first.

Exports were not initially allowed in the scheme because Australia was focussed on gaining the confidence of the international community in its cultivation system and other controls.

I’m pleased that the International Narcotics Control Board reported favourably on Australia’s framework in its 2016 Annual Report.

We are continuing to make it easier for doctors to access medicinal cannabis products more rapidly, while maintaining strict safeguards for individual and community safety.

We want a robust Australian medicinal cannabis industry so that doctors have safe, quality domestic products that they can confidently prescribe to their patients.

Doctors can apply under the Therapeutic Goods Administration’s Special Access Scheme Category or via an Authorised Prescriber to legally prescribe medicinal cannabis products.”

John McMullen, CEO of LGC commented, “The recent changes in Australian Government policy to allow companies like Little Green Pharma to export medical cannabis outside of Australia significantly changes the importance of this investment within the LGC global footprint portfolio. We have worked diligently through the highly-regulated Australian environment for the cannabis sector and have gained approval from the Australian Government’s Office of Drug Control to allow LGC to increase our shareholding above 5%. We are also looking forward to Little Green Pharma producing its first medical cannabis products for commercial sale over the next few months. We are also working closely with Little Green Pharma to provide access to other investee companies within LGC’s portfolio to cross-pollinate growing, facilities, processing and marketing ideas to broaden Little Green Pharma’s reach into potential international markets.”

Fleta Solomon, Little Green Pharma’s Managing Director commented; “We are thrilled that LGC has decided to increase its investment in Little Green Pharma to 14.99% and strengthen its position as a key cornerstone investor. With the Federal Health Minister recently announcing Australia’s potential to be the world’s number one medicinal cannabis supplier, LGC can strategically assist Little Green Pharma in its export and growth opportunities.”

The new Binding Term Sheet will increase LGC’s strategic shareholding in Little Green Pharma to an aggregate of 9,783,495 shares, representing a 14.99% interest. To that end, Little Green Pharma will issue 2,283,495 additional shares to LGC at a deemed issue price of AUD $1.16398 per share for a total consideration of approximately AUD $2,657,950. LGC will pay for the shares by issuing 5,000,000 LGC shares to Little Green Pharma at a deemed issue price of CAD $0.53 per share, representing the closing price of LGC’s shares on the TSX Venture Exchange on Friday, January 19, 2018, for a total consideration of CAD $2,650,000, equivalent to AUD $2,657,950 based on the Bank of Canada exchange rate on January 19, 2018.

The Binding Term Sheet also contains an undertaking by LGC to participate in Little Green Pharma’s next capital raise, by June 30, 2018, to the extent required to maintain LGC’s 14.99% shareholding in Little Green Pharma.

Closing of the transaction with Little Green Pharma is subject to the parties entering into a definitive subscription agreement and to standard closing conditions. The transaction is also subject to regulatory approval, including that of the TSX Venture Exchange.

Note: On January 19, 2017, the Bank of Canada’s daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9970.

About Little Green Pharma (www.lgpharma.com.au)
Little Green Pharma is a private entity in Australia and is one of the few companies in Australia to be granted a licence to cultivate and produce Medical Cannabis within Australia. On December 14, 2017, Little Green Pharma announced that its first crop of medicinal cannabis was being cultivated in Western Australia at its secure growing facility south of Perth. That event marks the first time medicinal cannabis has been cultivated locally in Western Australia. Little Green Pharma aims to have first product available for patients within the first few months of 2018.

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.

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.


For further information:

Company 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”) and Habi Pharma Pty Ltd (“Habi Pharma”), 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 Habi Phama 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 neither LGC nor Habi Pharma 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 Launches Initiative to Establish Global Cannabis Blockchain Platform

Highlights
  • LGC is implementing a strategy to create a new workable and transparent global cannabis supply chain platform.
  • The platform will be aimed at enabling a global transparent payment record for cannabis product, supply and payment.
  • The goal is to provide a new efficient platform that can be used for regulatory compliance purposes with government entities, give assurance to consumers on product sourcing and quality, and offer an efficient and compliant payment infrastructure for producers and retailers.
  • LGC is planning to use blockchain technology to provide a reliable and global supply chain register and smart contract framework, and to use Internet of Things (“IOT”) technologies to track physical product across the supply chain.

MONTREAL, Jan. 16, 2018 – LGC Capital Ltd. (TSXV: LG) (LGC) is pleased to announce that it is launching a new subsidiary company to specifically engage in the development of an efficient global marketplace technology platform designed to help producers, value-added processors and retailers in selling, and consumers in accessing, cannabis product. LGC will focus on providing a traceable and verifiable platform, thereby enabling producers to have an efficient payment mechanism that replaces current ad hoc cash-based payments and that will be fully compliant with all relevant jurisdictional regulations.

The platform will utilize the latest blockchain technologies to create a reliable and verifiable purchase and payment system and use Internet of Things (“IOT”) technologies to track cannabis product shipments so as to provide assurance to consumers regarding the sourcing and quality of products.

John McMullen, CEO of LGC states, “LGC is rapidly growing its legal cannabis footprint around the world with each country having its own regulatory framework, transparency and banking challenges that all need addressing as the industry expands and matures. We at LGC recognize these growing business demands, not only for our own operations, but also for other sector participants. We intend to launch a unique and “industry-specific” blockchain / IOT technology platform intended to address the specific needs of many cannabis operators. We will engage with a number of European institutional and technology groups that are highly experienced and knowledgeable in this space and will actively seek institutional co-investments in this venture prior to launching it.”

LGC Global Cannabis Marketplace Platform Initiative

As a fast-growing globally focused investment company with expertise in the cannabis supply chain, LGC is well placed to combine its capital resources and expertise in order to develop a global e-commerce framework to support the legal cannabis industry and to ensure it is integrated with the global banking system in a manner that is compliant with international and local regulations.

Many global technology companies as well as niche IOT and blockchain companies are advancing technology solutions to address the challenges outlined above. LGC intends to engage with industry and technology stakeholders to develop and deliver a global industry solution through a combination of its partnerships and access to capital.

LGC will work to develop an open-sourced framework-based distributed ledger, smart contracts and IOT designed to provide a business framework and supporting technology stack that can be used by producers, value-added processors, retailers and consumers in the cannabis sector.

Over the short to medium term, LGC intends to release a whitepaper for industry comment. This whitepaper will seek global consensus within the cannabis industry. In parallel, LGC intends to establish technology partnerships with key blockchain and IOT companies and systems integrators to implement the recommendations of the whitepaper when industry consensus has been achieved.

Global Marketplace Platform for Cannabis Consumers and Producers

As the cannabis industry moves from a niche and often prohibited industry to a more globally accepted and approved regulated industry, it faces a number of challenges that it will need to overcome in order to achieve broad adoption:

  • Payment companies are providing limited payment capabilities, often requiring the legal cannabis supply chain to resort to cash-based transactions.
  • The lack of a convenient payment infrastructure limits consumer and retailer adoption.
  • Many global banking institutions are disinclined to support cannabis-related companies, thereby limiting them in raising growth capital and causing significant audit and regulatory issues.
  • Lack of reliable accounting and transaction recording due to the cash nature of the business can lead to “bad actors” engaging in the legal cannabis market.
  • Lack of appropriate e-commerce infrastructure limits advertising and consumption and thus market growth potential.
  • Lack of clear physical tracking capabilities and transparent and reliable records significantly limits consumer confidence in product sourcing and quality.

LGC intends to use blockchain and IOT technologies in order to create a global marketplace platform that will provide a state-of-the-art multi-channel (web, tablet, voice and smartphone based) e-commerce framework designed to assist producers, value-added processors, retailers and consumers in addressing the challenges described above.

Role of Blockchain

Blockchain, Smart Contract and Distributed Ledger Technologies such as Ethereum are transforming many industries and payment systems. Stakeholders increasingly realize the efficiencies and cost effectiveness of blockchain in areas like supply chain management. The use of a common and transparent ledger will provide a tool for them to quickly see the benefits of greater visibility, which in turn will lead to superior reconciliation, auditability and regulatory compliance.

Consumers would gain greater assurance of provenance and traceability of products. Non-compliant products can therefore be quickly identified in terms of source, quality, delivery process and history.

Role of IOT

IOT is gaining rapid mainstream adoption. Sensor technology is becoming exponentially less expensive so that sensors can be widely deployed in all cannabis product packages. In addition, the roll-out of global IOT networks enables efficient global tracking of both high-value and low-value shipments. When combined with a global distributed ledger, the basis for verifiable product governance and adherence to government regulations becomes substantially more viable.

LGC’s involvement in the establishment of a global cannabis blockchain platform will be subject to the approval of the TSX Venture Exchange, to the extent applicable.

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:

Company 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”) and 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 does not have 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 Launches JV Company with Creso Pharma and Baltic Beer Company toCapitalize on Growing Cannabis-Derived Beverage Market

Highlights:

  • Formal launch of joint venture company, CLV Frontier Brands Pty Ltd (CLV), which plans to develop and globally commercialize a premium portfolio of alcoholic and non-alcoholic beverages with cannabis and hemp ingredients.
  • CLV on target to ship first test batch of the initial beer range in April / May 2018, with commercial sales expected to commence in June / July 2018.
  • Worldwide commercialization will span various continents tapping in on the networks of all three companies. Large network of distribution partners already identified.

MONTREAL, Jan 11, 2018 – LGC Capital Ltd. (TSXV: LG) (LGC) is pleased to announce that it has formally launched its new joint venture company with Creso Pharma Limited (ASX: CPH) and Baltic Beer Company Ltd to capitalize on the fast-growing cannabis and hemp-derived beverage markets.

The joint venture company – CLV Frontier Brands Pty Ltd (“CLV”) – will develop and globally commercialize a premium portfolio of cannabis and hemp-derived alcoholic and non-alcoholic beverages containing various ingredients, seeds, extracts and terpenes from hemp and cannabis plants.

The launch of CLV follows the announcement in November 2017 of a binding letter of intent among the three parties and the formation of the joint venture company.

CLV is currently developing an initial premium four-beer range containing unique cannabis terpene mixes as well as other innovative ingredients. CLV also intends to create a vegan line of beverages for consumers who demand this option. These unique terpenes will carry the flavour and aroma of cannabis and will provide a sensual cannabis experience, but will not contain THC or CBD or any other cannabinoids.

Each of LGC, Creso Pharma and Baltic Beer will have a one-third interest in CLV. LGC’s involvement in the joint venture is subject to the approval of the TSX Venture Exchange.

Initial Test Batch Shipment and Global Commercial Launch on Track

CLV is currently on target to ship the first test batch of an initial four-beer range containing cannabis-derived terpenes in April / May 2018, with commercial sales expected to commence in June / July 2018.

CLV has already identified potential distribution partners in Europe, far East Asia, Central and Latin America, Canada, Africa, Australia and New Zealand and also plans to expand its portfolio into other alcoholic and non-alcoholic beverages over time.

CLV intends to establish a pilot R&D brewing facility in Tallinn, Estonia which will be dedicated to working on innovative recipes and developing proprietary know-how and IP which will be registered by the joint venture. CLV will distribute and market products strictly in compliance with all local laws.

Global Market Opportunity

The launch of CLV comes at a time when there is growing interest in the cannabis and hemp-derived beverage market, which is experiencing strong growth.

In October 2017, global beverage conglomerate Constellation Brands (NYSE: STZ) took a 9.9% stake in cannabis group, Canopy Growth, for a total of US$200 million in order to develop and market cannabis-infused drinks[1].

Meanwhile, the global craft beer market is predicted to grow at a compound annual growth rate (CAGR) of 11.04% between 2017 and 2021[2], with the European, Middle East and African markets expected to reach US$38.36 billion in 2021. The craft beer market in the APAC region is also growing strongly at a CAGR of 16.14%.

Source: https://www.businesswire.com/news/home/20170811005227/en/Global-Craft-Beer-Market—Geographical-Segmentation

CLV

CLV’s Board comprises LGC’s President and Chief Executive Officer John McMullen, Creso Pharma’s Chief Executive Officer Dr. Miri Halperin Wernli, and Baltic Beer Company Director Alex Klaos, whose role will be to oversee the day-to-day operations of CLV to ensure product development, growth targets and distribution reach are achieved.

John McMullen, CEO of LGC states, “LGC immediately recognized the potential of this joint venture, while working with Creso Pharma and Baltic Beer Company, to plan the development and commercialization of our new innovative products. We are very confident that the beverages that are developed through this joint venture will be well received. The worldwide commercialization plan is aggressive and I fully expect it will have a positive impact on the revenue stream for all parties involved.”

Dr. Miri Halperin Wernli, CEO of Creso Pharma states, “We are a global leader in cannabis innovation, developing hemp and cannabis derived therapeutic and lifestyle products and are committed to becoming a leading global player in the cannabis space through disruptive efficiency and innovation. Our approach is to partner with industry and technology leaders to develop and commercialize innovative products which will capture the consumers’ senses and imagination. Entering the cannabis derived beverages market exemplifies this approach and will build on our scientific and technical expertise as well as on our vast geographical reach for commercialization.”

What are terpenes?

Cannabis terpenes are fragrant oils that give cannabis its aromatic diversity

  • They are what give Blueberry its signature berry smell and Lavender its sweet floral aroma.
  • At least 200 terpenes have been identified in cannabis and these molecules are potent and believed to affect both animal and human behaviour.
  • These oils are secreted in the flower’s sticky resin glands, the same ones that produce THC, CBD and other cannabinoids.
  • Like cannabinoids, terpenes bind to receptors in the brain and give rise to various effects.
  • As flavouring agents, terpenes raise no safety concerns. They are Generally Recognized As Safe (“GRAS”) 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).

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.

About Creso Pharma (www.cresopharma.com)

Creso Pharma is bringing the best of Cannabis to better the lives of people and animals. Creso brings pharmaceutical expertise and methodological rigour to the world of medicinal cannabis and strives for the highest quality in its products. It is a global leader in medicinal cannabis and cannabidiol (CBD) innovation and developing cannabis and hemp-derived therapeutic-grade CBD nutraceuticals and medicinal cannabis products with wide patient 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. Creso has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.

About Baltic Beer Company Ltd (www.virubeer.com)

A UK based company that created and markets an iconic Estonian beer brand called Viru Premium Estonian Beer. Viru beer is currently sold in numerous markets around the world including Australia, China, UK, Italy and Mexico to name a few and has won multiple awards including gold medals at Monde Selection, Brussels and the World Beer Championships Chicago.

[1] https://www.eater.com/2017/10/30/16575412/constellation-brands-cannabis-beverages-investment


For further information:

Company 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”) and CLV Frontier Brands Pty Ltd (“CLV”), 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 CLV, and of the joint venture 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 neither LGC nor CLV 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 Clarifies it is an Investor in the Global Cannabis Market, Excluding the United States

MONTREAL, January 5, 2018 – LGC Capital Ltd. (TSXV: LG) (“LGC”) wishes to comment on the directive issued yesterday by the United States Justice Department that will allow the enforcement of U.S. federal marijuana laws in those states that have legalized cannabis.

John McMullen, CEO of LGC stated: “As a Canadian, I have full respect for the United States Government. Yesterday’s directive by the U.S. Justice Department will unfold over time. That being said, I wish to remind our shareholders that LGC expressly has no current, nor expects to have, commitments to any cannabis investments in the United States. LGC’s portfolio is comprised only of investments in jurisdictions worldwide in which cannabis is or will shortly be legal, excluding the United States. 

We as an executive team and Board realize the future importance of medical cannabis products for the global consumer. Through our investment in Little Green Pharma, we are pleased with the recent decision of the Australian government to consider global export.

LGC also looks forward to the Canadian Government’s expansion of its legislative mandate to legalize cannabis further with the approval for recreational consumption. LGC’s pending investment in Quebec is both exciting and, we believe, will add to our potential returns.

We at LGC believe proudly in our direction and will diligently continue forward with our partners in Australia, Canada and Switzerland. Our partners in Southern Africa continue to excel in their goals as well. We recognize the potential for Southern Africa to grow and supply a large percentage of the world’s high-quality cannabis demand.

The global cannabis market is expected to reach at approximately $70 – $75 billion by 2025(1) and there are consumers who demand quality products. We are excited about LGC’s potential to deliver to those people.

We will update our shareholders and the markets in a timely manner as we deliver on our global mandates outside of the United States.”

(1) http://420intel.com/articles/2017 /12/12/canadian-innovations-cultivate-quality-cannabis-explosive-global-marijuana

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.


For further information:

Company 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 Investment Agreement 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 Ltd. Enters Into US $2.34 Million Convertible Loan Agreement To Fund 2018 Expansion

Montreal, Québec – January 2, 2018 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to announce that it has entered into an Investment Agreement with international investors YA II PN, Ltd and Cuart Investments PCC Limited pursuant to which they will loan LGC an aggregate amount of US $2.34 million (approximately CAD $2.94 million). LGC intends to use the net proceeds from the loan to further advance its core business divisions on its global platform.

John McMullen, CEO of LGC stated: “We thank London institutional group RiverFort Global Capital for its involvement and financial support of LGC’s global initiatives at this exciting time for the Company, as we rapidly expand our cannabis investment businesses. This funding will further secure LGC’s rapidly-developing platforms within the cannabis space. For a Canadian company to attract additional funding from an international group such as RiverFort speaks volumes for the work accomplished by LGC and our objectives for 2018.”

The loan will have a term of twelve months and bear interest at an annual rate of 12%. LGC will pay the interest on the date on which funds are advanced to it through the issuance of shares to the lenders at a price per share equal to the market price of LGC’s shares on the TSX Venture Exchange
at the time of the advance.

The principal amount of the loan will be convertible into LGC common shares at the option of the lenders at a price per share equal to the lesser of (i) US $0.538 (CAD $0.675), representing the US dollar equivalent of 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50), and (ii) 90% percent of the lowest daily volume weighted average trading price of LGC’s shares during the five trading days immediately preceding the date of a conversion notice from the lenders, subject to a minimum conversion price of CAD $0.50.

Upon each advance of funds under the Investment Agreement, LGC will issue common share purchase warrants to the lenders in an amount equal to 25% of the dollar amount of the advance divided by CAD $0.4465, being the volume weighted average trading price of LGC’s shares during the five trading days ended December 29, 2017. Each warrant will entitle its holder to acquire one common share of LGC at a price of CAD $0.70, representing 140% of LGC’s closing price on December 29, 2017, for a period of one year from the date of issuance.

In connection with the Investment Agreement, LGC will pay a structuring fee to RiverFort Global Capital Ltd. of London, England by issuing shares to it in an amount equal to 10% of the dollar amount of any advance divided by CAD $0.675, representing 135% of the closing price of LGC’s shares on the TSX Venture Exchange on December 29, 2017 (CAD $0.50). Fifty percent of the shares will be issued on the date of the advance while fifty percent will be issued on the repayment date of the loan, subject to the condition that if the lenders convert more than half of the amount advanced to LGC on an aggregate basis at a price per share equal to or greater than US $0.538, representing the US dollar equivalent of 135% of the closing price of LGC shares on December 29, 2017 (CAD $0.50), LGC will not be required to issue the second fifty percent of the shares. LGC will also pay a cash due diligence fee to RiverFort Global Capital Ltd.

The Investment Agreement contains standard representations, warranties and covenants of the parties. Closing of the transaction and the advance of funds to LGC is expected to take place on or before January 31, 2018, subject to standard closing conditions. The Investment Agreement, including all issuances of shares by LGC pursuant thereto, is subject to the approval of the TSX Venture Exchange. Any securities issued by LGC at the closing of the transaction, as well as any shares issued upon conversion of the loan or upon the exercise of warrants, will be subject to restrictions on resale for a period of four months from the closing date of the transaction. LGC is at arm’s length from the lenders and RiverFort Global Capital Ltd.

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.


For further information:

Company 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 Investment Agreement 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 positive update on House of Hemp (Pty) Ltd in South Africa with Support from Dube TradePort and Trade & Investment KwaZulu-Natal

MONTREALDec. 20, 2017 – LGC Capital Ltd. (TSXV: LG) (“LGC”) is pleased to provide the positive update regarding LGC’s ongoing due diligence currently conducted on the proposed 60% acquisition of the House of Hemp (Pty) Ltd (“House of Hemp”) in South Africa, under the agreements previously announced on July 18, 2017, and the onsite inspection of the 424,000 square feet of fully operational glasshouses and support facilities at Dube TradePort AgriZone Block “D” located at Durban’s International Airport.

LGC and House of Hemp are also pleased to report the strong support and assistance received from Dube TradePort (“Dube”) and Trade & Investment KwaZulu-Natal (“TIKZN”) for this exciting new agricultural and processing venture in the region.

LGC and AfriAg (Pty) Ltd (LGC’s 50/50 partner in this venture) have been working closely with the House of Hemp’s senior management and advisors during this extensive due diligence period since the Company announced this proposed acquisition in July 2017.  Due diligence is progressing well and on track, and all parties are working to secure the upgraded permits necessary to commence, research, cultivation and commercial production of Medical Cannabis within the new proposed Medical Controls Council (MCC) guidelines which were finally released in November 2017. This transaction is subject to completion of satisfactory due diligence and TSX Venture Exchange approvals.

John McMullen, CEO of LGC stated;

“Our due diligence is proceeding very well, on schedule, to plan and we are very excited about the potential of this project to add significant value to LGC shareholders, AfriAg (Pty) Ltd shareholders, House of Hemp, the Province of KwaZulu-Natal and the South African economy. LGC’s site visits to Dube in Durban last week with AfriAg management, advisors and legal representatives was very encouraging and confirmed the potential of this fully operational 424,000 square feet glasshouse facility. This agri-complex is considered absolutely fit for purpose and ideal for the cultivation of medical cannabis and hemp products. Management engaged actively and positively with all parties, including holding detailed discussions aligning all parties to the vision, mission and strategic objectives of Dube and TIKZN. The development team are working very hard to satisfy all the conditions put forth by the South African government, and once they are satisfied we believe we will receive the appropriate licenses and growing will begin almost immediately. We believe this can be achieved during Q1 2018.”

House of Hemp is headquartered and based in Block “D” of the Dube TradePort’s Special Economic Zone at Durban’s King Shaka International Airport, where it has a long-term lease over Block “D” in the AgriZone. This high security site consists of approx. 37,633m² (405,000 square feet) of fully equipped, temperature regulated and humidity-controlled glasshouses (including multiple plant nurseries), plus associated support infrastructure comprising refrigerated pack houses, laboratories and offices covering 1,760m2 (19,000 square feet).

This complex is regarded by Dube ( www.dubetradeport.co.za ) as one of the most eco-friendly and high-tech facilities of its kind in Africa and their Special Economic Zone (SEZ) is a world-class development offering globally integrated logistics and manufacturing infrastructure, and support for a range of airport-related activities, including cargo operations, warehousing, agriculture, and commercial real-estate for office, retail and hospitality.

On December 7, 2017, House of Hemp received written support from Dube TradePort confirming their support to ensure that the Dube TradePort Block D AgriZone site meets all the requirements to operate within the Medical Controls Council’s guidelines. Dube have engaged with the Medical Controls Council in this regard and reiterated their commitment to ensure that the business at Block D operates successfully within the necessary regulations and guidelines.

Dube have advised House of Hemp:

“Agriprocessing & Medical & Pharmaceutical production are key sectors within the Dube TradePort Special Economic Zone for Medical and Pharmaceutical Production and we look forward to accelerating your project here at Dube TradePort. In this regard we can confirm that we have the necessary environmental and zoning approvals to accommodate agricultural production, processing, packaging and distribution within the AgriZone. Furthermore, we are also in the process of establishing a pharmaceutical cluster as part of the Special Economic Zone. This will have shared infrastructure and services aimed at assisting investors in the sector to operate efficiently. We are happy to engage with the relevant stakeholders & regulatory bodies where necessary to assist in concluding the process of obtaining the relevant permits.”

This support from Dube, a South African Government entity under the (KwaZulu-Natal Provincial Government), comes after written and active support from another South African Government entity, Trade & Investment KwaZulu-Natal (“TIKZN”).

TIKZN (KwaZulu-Natal Provincial Government) ( www.tikzn.co.za )have committed to assist House of Hemp by facilitating meetings with applicable stakeholders, who can add value to House of Hemp and to the development of the cannabis industry in KwaZulu-Natal. Trade & Investment KwaZulu-Natal is a South African trade and inward investment promotion agency, established to promote the province of KwaZulu-Natal as an investment destination and to facilitate trade by assisting local companies’ access international markets.

TIKZN and Dube have recorded their willingness to co-operate on assisting House of Hemp to set up a world class centre of excellence in KwaZulu-Natal to conduct research, innovation and commercial training in the following cannabis value chain activities:

  • Seed securing and multiplication
  • Optimizing and fine-tuning cultivation indoors and outdoors
  • Packhouse
  • Nutrient production
  • Tissue culture
  • Marketing
  • Exploring functional use of by-products

TIKZN have also undertaken to:

Facilitate interactions and present the project to relevant stakeholders to garner to support the project promoters in this endeavour, where appropriate, and when needed by House of Hemp, including;

  • Funding agencies, investors/ joint ventures and investment incentives
  • Technology, engineering services and research institutes
  • Special economic zones and related incentives
  • Market linkages and networks
  • Training and human capacity development
  • Help link with experts to develop sustainable out grower models
  • Regulatory and compliance institutions including government

Facilitate the development of an effective cannabis industry association of KZN to among other offer the following shared services to the industry;

  • Provide relevant, reliable sector/ industry information to House of Hemp
  • Facilitate cannabis industry public education and awareness raising
  • Assist with applications for investment and export marketing incentives
  • Assist their overseas partners with applications for business permits
  • Assistance to investors to identify suitable premises and secure capital and operational finance
  • Facilitate supply chain collaboration in collective marketing, bulk buying as well as peer and roll mentorship
  • Facilitate in intergovernmental and industry association dialogues.

Figure 1: LGC Capital’s CEO Mr John McMullen with Dr Thendeka Kunene from House of Hemp in the Dube TradePort AgriZone Block D Glasshouse.

Figure 2: Panoramic shot of inside one of the 3 massive interior modules within Block D glasshouse at Dube TradePort AgriZone.

Figure 3: LGC Capital’s CEO John Mc Mullen in the first of three interior modules in Block D Glasshouse at Dube TradePort AgriZone.

Figure 4: LGC Capital’s CEO John McMullen at the entrance to Block D at Dube TradePort AgriZone.

Figure 5: LGC Capital’s CEO John McMullen showing some of the ‘green’ credentials of Block D at Dube TradePort’s AgriZone.

Figure 6: Separation doors between growing rooms at Block D at Dube TradePort AgriZone

About LGC Capital Ltd.:

LGC Capital Ltd. www.lgc-capital.com is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG) with its headquarters in Montreal, Canada. 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 has a significant investment in Australian Medical Cannabis company Little Green Pharma; a strategic alliance 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; 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; and is partnering with AAA Trichomes to build one of the largest cannabis legal operation in Quebec.

Information Relating to House of Hemp:

All information contained in this press release relating to the House of Hemp has been provided to LGC by House of Hemp. 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.

Disclosure:

Mr. David Lenigas, who is Co-Chairman and a director of LGC, is also Executive Chairman of AfriAg Global plc and a director of AfriAg (Pty) Ltd. AfriAg Global plc owns 40% of AfriAg (Pty) Ltd.


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 House of Hemp, 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 House of Hemp, 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 Ltd. Increases Interest in Australian Medical Cannabis Company and Little Green Pharma Plants First Commercial Crop

MONTREALDec. 14, 2017  – LGC Capital Ltd. (TSXV: LG) (“LGC“) is pleased to announce that it has now received confirmation from the Australian Government’s Office of Drug Control to increase its interest in licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as Little Green Pharma (“Little Green Pharma“), above 4.99% and is now increasing its strategic interest to 11.91%.

In addition, LGC is also pleased to advise that Little Green Pharma yesterday commenced planting its first medical cannabis crop in Australia. Little Green Pharma made the following announcement today (refer to https://lgpharma.com.au/news/wa-first-little-green-pharma-starts-growing-medicinal-cannabis/):

WA first – Perth company starts growing medicinal cannabis

  • Little Green Pharma grows the first ever medicinal cannabis in WA
  • Local product expected to be available for WA patients early next year

The first crop of medicinal cannabis is being cultivated in Western Australia by a Perth based phytopharmaceutical company. Little Green Pharma, a private entity specialising in the cultivation and production of high quality, locally grown medicinal cannabis, today announced it is cultivating its first plants at its secure growing facility south of Perth.

The event marks the first time medicinal cannabis has been cultivated locally and the company aims to have product available for patients within the first few months of 2018.

Little Green Pharma Managing Director, Fleta Solomon, said the company had been working steadily towards the goal of producing clean, southwest grown medicinal cannabis products and reaching the cultivation stage was a major milestone.

“Medicinal cannabis is relatively new and strictly controlled in Australia. Companies wanting to produce it have to obtain licences and permits from both federal and state government agencies,” Ms Solomon said. “We were the first WA company to be granted a licence earlier this year to cultivate and produce medicinal cannabis and it has taken six months of hard work to reach the cultivation stage this week.

We are very excited about the future of our medicinal cannabis products.”

Ms Solomon said strict controls around the production of medicinal cannabis meant the company could not reveal the location of its secure hydroponic growing facility although the plants being cultivated had lower levels of the psychoactive THC cannabinoid and higher levels of the non-psychoactive CBD cannabinoid compared to recreational marijuana.

Ms Solomon said Little Green Pharma had developed a novel delivery system enabling a micro dose to be taken by patients. Little Green Pharma products will be manufactured in a local licensed facility monitored by the Therapeutic Goods Administration (TGA) and the WA Department of Health.

“Medicinal cannabis has been shown to have a role in chronic pain management and some neurological conditions including childhood epilepsy,” she said. “More research is needed into its effectiveness in treating other conditions.” Ms Solomon said Little Green Pharma planned to participate in medical research on medicinal cannabis and was in end stage talks with reputable research institutions in WA and overseas.

Fact summary

  • There are 13 companies licensed to produce medicinal cannabis in Australia but only a few of those have a permit to commence production.
  • Little Green Pharma is the only company in WA with a licence and permit from the Office of Drug Control to commence growing locally.
  • Medicinal cannabis is available for patients only via a doctor’s prescription.”

“The news that Little Green Pharma has now moved to commercial production with the planting of its first crop is excellent news.” John McMullen, LGC CEO commented.  “We are pleased that the Australian Government’s Office of Drug Control has allowed LGC to move to over the 5% shareholding threshold in Little Green Pharma, and that we have been given this opportunity to increase our strategic shareholding as Little Green Pharma moves into commercial production in the highly regulated and blue-chip Australian market. We are keen to increase our interest in Little Green Pharma further and negotiations are well underway to achieve this.”

Fleta Solomon, Little Green Pharma’s Managing Director commented; “We are thrilled that LGC Capital has been approved by the authorities to cement its position as a cornerstone investor raising its interest to 11.91%. This greatly assists Little Green Pharma in its intention to participate in medical research relating to cannabis strain profiles and the effect on various medical conditions. Discussions are currently underway with reputable research institutions and specialist doctors around the world.”

As previously agreed in October 2017, LGC will now increase its holding to 11.91% by subscribing for an additional 4,585,972 new shares at AUD $0.20 per share for a cash consideration of AUD $917,194. Closing of the transaction with Little Green Pharma is subject to standard conditions. Negotiations are also now currently underway with Little Green Pharma to further increase LCG’s interest, and the market will be updated as to the outcome of these negotiations.

Note: On December 13, 2017, the Bank of Canada’s daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9780.

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.

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.


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, including its investment in Habi Pharma Pty Ltd. 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 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 the first closing of its previously­ announced 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.