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MONTREAL, Nov. 21, 2017 /CNW Telbec/ - LGC Capital
Ltd. (TSXV: LG) ("LGC") is pleased to provide an update on
LGC's previously-announced private placement financing and its
proposed investment in new Quebec
cannabis-focused AAA Trichomes.
Private Placement Financing – Over Subscribed
LGC is pleased to announce that in light of very heavy demand,
it has decided to increase the maximum amount of its
previously-announced private placement by 62% to CDN $3.25
million. On November 16, 2017, LGC
announced a private placement of units in a maximum amount of
CDN $2 million. Closing of the private placement is
scheduled to take place this week. LGC has increased the financing
amount to pursue further cannabis growth opportunities globally
currently under consideration.
AAA Trichomes – Quebec,
Canada
The previously-announced closing date for the proposed
transaction with Tricho-Med Corporation, doing business as AAA
Trichomes ("AAA Trichomes"), has been revised from
November 24 to November 29, 2017.
As announced on October 31, 2017,
LGC signed an option to acquire a 49% interest in Quebec-based AAA Trichomes, plus a 5%
royalty on its net sales. AAA Trichomes is planning to build a
significant new cannabis processing facility in the Province of
Quebec.
All parties are working diligently and LGC is pleased with the
progress made to date on this proposed transaction. The parties
have mutually agreed to extend the deal closing date to allow for
completion of the due diligence review and obtaining the necessary
regulatory approvals, including that of the TSX Venture
Exchange.
John McMullen, CEO of LGC
states, "We are pleased with the size and scope of the
transactions currently happening in the cannabis sector and we
believe that we are building the next investment opportunity with
our international business model. This is evident by the solid
uptake in this current private placement. We have received interest
and orders from sizable global institutions and high net worth
individuals, who I believe will be great partners as we move to the
next level as a cannabis investment company. These new funds are
targeted at growing the existing investment portfolio and seeking
new cannabis opportunities globally."
David Lenigas, Co-Chairman of LGC added, "On behalf of
LGC and in recognition of yesterday's announcement by our Swiss
strategic partner Creso Pharma, we applaud Creso's achievement in
expanding its global footprint and entering the very sizable
Chinese market."
http://www.skynews.com.au/business/business/company/2017/11/20/creso-pharma-enters-chinese-market.html
As previously announced, LGC and Creso Pharma Limited have
entered into a letter of intent for a strategic alliance for the
purpose of establishing a vertically-integrated cannabis enterprise
with a global footprint spanning cultivation, IP generation,
innovative product development and commercialisation.
About AAA Trichomes:
AAA Trichomes was incorporated in
2014 with the objective of becoming a manufacturer and distributor
of cannabis products in Canada
with an initial focus on the Quebec market. Since November 2016, AAA Trichomes has been in the
final review stage with Health Canada for the processing of
its application to become a licensed producer under the Access to
Cannabis for Medical Purposes Regulations.
About LGC Capital Ltd.:
www.lgc-capital.com
LGC Capital Ltd. is a Canadian incorporated public company listed
on the TSX Venture Exchange (TSXV: LG). LGC is a diversified
investment company with core holdings in businesses that provide
shareholders with exposure to a diverse range of high-growth
businesses, products and services. To date, LGC has entered into
agreements for investments in private cannabis operations in
South Africa, Australia and Canada. LGC also has a joint venture with
AfriAg (Pty) Ltd. to grow and distribute medical and recreational
cannabis products in the southern African region for export to
regulated and certified end users around the world, and a strategic
alliance with Creso Pharma Limited for the creation of a
vertically-integrated cannabis operation, which includes
cultivation, IP generation, product development, and
commercialization. LGC is headquartered in Montreal, Canada.
FORWARD-LOOKING STATEMENTS:
This press release may
contain forward-looking statements with respect to LGC Capital Ltd.
("LGC"), Tricho-Med Corporation ("AAA Trichomes") and Creso Pharma
Limited ("Creso") and their respective operations, strategies,
investments, financial performance and condition. These statements
generally can be identified by use of forward-looking words such as
"may", "will", "expect", "estimate", "anticipate", "intends",
"believe" or "continue" or the negative thereof or similar
variations. The actual results and performance of LGC, AAA
Trichomes and Creso, respectively, including the proposed
transactions described herein, could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Some important factors that could
cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, government regulation and the factors described under
"Risk Factors and Risk Management" in LGC's Management's Discussion
and Analysis for the fiscal year ended September 30, 2016, as filed on SEDAR
(www.sedar.com). The cautionary statements qualify all
forward-looking statements attributable to LGC, AAA Trichomes and
Creso, as the case may be, and persons acting on their behalf,
respectively. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release and LGC
has no obligation to update such statements, except to the extent
required by applicable securities laws.
Information Relating to AAA Trichomes and Creso:
All
information contained in this press release relating to AAA
Trichomes and Creso has been provided to LGC by each, respectively.
LGC has relied upon this information without having made
independent inquiries as to its accuracy or completeness and
assumes no responsibility for any inaccuracy or incompleteness of
such information.
Caution Regarding Press Releases:
Neither the TSX
Venture Exchange nor its Regulation Service Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE LGC Capital Ltd