MONTREAL, Aug. 18, 2017 – LGC Capital Ltd. (TSXV: QBA) (“LGC”) is pleased to announce that it has received conditional approval from the TSX Venture Exchange for a private placement of a maximum of 30,000,000 units at a price of $0.10 per unit, for maximum gross proceeds to LGC of $3.0 million. To date, LGC has received signed subscription agreements and subscription funds for an aggregate amount of $1,555,000, which represents 15,550,000 units. Of that amount, senior management is contributing $300,000. LGC expects that a first closing of the private placement will take place on or about August 24, 2017.
John McMullen, LGC’s CEO, comments: “LGC will use the net proceeds from this private placement to advance the Company’s new initiatives in the global medical cannabis sector and for general working capital purposes. In particular, some of the capital raised will be used to assist with the funding of our new joint venture with AfriAg (Pty) Ltd and our recent investment in the House of Hemp (Pty) Ltd in South Africa. Funding will also be channeled towards seeking new medical cannabis investment opportunities elsewhere in southern Africa and in the Asia Pacific Region.”
Each of the units will be comprised of one common share and one common share purchase warrant; each warrant will entitle its holder to acquire one additional LGC common share at a price of $0.15 for a period of one year from the closing date. In the event that the closing price of LGC’s common shares on the TSX Venture Exchange is at least $0.20 for a period of not less than 20 consecutive trading days, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.
The units are being offered to “accredited investors” in some or all of the provinces of Canada and in other jurisdictions, if any, determined by LGC.
At the closing of the private placement, LGC will pay cash commissions to various securities dealers in an amount equal to 8% of the proceeds from the sale of units sold through such dealers. In addition, LGC will issue “broker warrants” to such dealers in an amount equal to 8% of the number of units sold through them. Each of the broker warrants will entitle the holder to purchase one additional LGC common share at a price of $0.10 for a period of six months from the closing date of the private placement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.
About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: QBA). LGC Capital’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, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC Capital has now entered into the agricultural space and the medical cannabis sector in southern Africa through its new joint venture with AfriAg and is seeking new investments opportunities in this sector.
John McMullen, Chief Executive Officer
Tel.: (416) 803-0698
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640
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Tel.: (403) 221-9015
Toll Free: 1-888-221-0915