Highlights:
- LGC Capital has signed a binding letter of intent with Creso
Pharma Ltd and Baltic Beer Company Ltd
- The new joint venture will create a bespoke portfolio of
unique cannabis- and hemp-derived alcoholic and non-alcoholic
beverages
- Creso Pharma to expand its product offering into the growing
edible and lifestyle markets
- Research and development work already underway in
Switzerland, Estonia and the United Kingdom
MONTREAL, Nov. 29, 2017
/CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is
pleased to announce that LGC, Creso Pharma Limited (Australia and Switzerland) and Baltic Beer Company Ltd (UK),
the home of the multi-award winning Viru
Beer, have signed a Binding Letter of Intent to develop and
market a bespoke portfolio of cannabis- and hemp-derived alcoholic
and non-alcoholic beverages containing various ingredients, seeds,
extracts and terpenes from hemp and cannabis plants.
The new joint venture company will include the following board
members: Dr. Miri Halperin Wernli of
Creso Pharma, John McMullen of LGC, and Alex Klaos
of Baltic Beer Company Ltd, whose role will be to oversee the
day-to-day operations of the new entity to ensure product
development, growth targets and distribution reach are
achieved.
Research and development work has already started in
Switzerland, Estonia and the United Kingdom on a
premium craft beer range containing unique terpenes mixes mimicking
the terpenes of the cannabis plant. Terpenes are essential oils
(organic compounds) found in plants that carry flavour and
aroma.
The terpenes in the beer will carry the characteristic odour and
fragrance of cannabis with the same taste and feel but will not
contain THC or CBD or any other cannabinoids. The terpene mixes
used to formulate the beers will have the smell and aroma of
cannabis but in reality they originate from other plants mimicking
the special mixtures. This is a significant advantage as it avoids
the issue of regulatory restrictions.
Terpenes are safe molecules and are recognized as GRAS ("GRAS" =
Generally Recognized as Safe) as attested by the U.S. Food and Drug
Administration (FDA) classifying them as Food Additives, and by the
Food and Extract Manufacturers Association and other world
regulatory bodies classifying them as Safe (see WHO1/ FEMA
GRAS2).
It is expected the first test batches of the terpene beer will
reach selected markets in April/May
2018, with commercial sales expected to be ready for
shipments from June/July 2018.
"This new joint venture combines Creso Pharma's cannabis and
hemp expertise with the prestigious and multiple award-winning beer
creators, Baltic Beer Company, to develop and provide consumers
with innovative, high-quality hemp- and cannabis-derived beverages.
Through the vast geographic reach of the three parties which spans
a number of continents, future commercial and distribution partners
have already been identified and are eagerly anticipating this
innovative new range of drinks," said Creso Pharma's CEO and
Co-Founder, Dr. Halperin Wernli.
The joint venture partners have already identified potential
distribution partners in Europe,
far East Asia, Central and
Latin America, Canada, Africa and with the recent legalization of
hemp seed-based food and drink products in Australia and New
Zealand, partners have been identified in this region as
well.
Further research and development will identify other
opportunities within the legal framework of the target markets,
which focus on a range of premium beers containing cannabis- and
hemp-derived components. The joint venture partners plan to expand
their portfolio into other alcoholic and non-alcoholic beverages
with further announcements to be made in due course.
The joint venture will market and sell its products only in full
compliance with local market regulations and only after securing
all appropriate regulatory approvals. LGC's participation in the
joint venture is conditional upon it obtaining all requisite
regulatory approvals, including that of the TSX Venture
Exchange.
"The cannabis infused beverage industry is an emerging and
growing industry and we see a lot of potential value in this
market. We also note Constellation Brands' (NYSE:STZ) recent
minority stake in Canada-based
Canopy Growth Corporation which clearly signals real interest in
this sector from much larger, established and more traditional
business," said John McMullen, CEO of LGC.
Alex Klaos, Director of Baltic Beer Company Ltd stated,
"This partnership brings together parties who have the expertise
and proven history to develop unique cannabis and hemp plant
derived product offerings for consumers. We are all very excited
about working with Creso Pharma and LGC on this project. The
partners bring scientific expertise, significant financial
investment and a wealth of experience in the beer industry which we
believe will be a resounding success."
David Lenigas, LGC founder and Co-Chairman commented, "This is
an excellent first venture with Creso Pharma. The international
hemp and cannabis-infused beverage market is growing at significant
rates and we are committed to becoming an active player in this
exciting new market. Viru is already exporting their award-winning
beer to many countries around the world, and with Creso Pharma's
scientific expertise, we look forward to working actively to create
something of real value."
About LGC:
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.
About Creso Pharma:
www.cresopharma.com
Creso Pharma brings pharmaceutical expertise and methodological
rigour to the world of medicinal cannabis and strives for the
highest quality in its products. It is the leader in medicinal
cannabis and cannabidiol (CBD) innovation and develops cannabis and
hemp derived therapeutic grade nutraceuticals and medicinal
cannabis products with wide patient and consumer reach for human
and animal health. Creso uses GMP development and manufacturing
standards for its products as a reference of quality excellence
with initial product registrations in Switzerland. It has worldwide rights for a
number of unique and proprietary innovative delivery technologies
which enhance the bioavailability and absorption of
cannabinoids.
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.
FORWARD-LOOKING STATEMENTS:
This press release may contain forward looking statements with
respect to LGC Capital Ltd. ("LGC"), Creso Pharma Limited
("Creso"), Baltic Beer Company Ltd ("Baltic"), their joint venture,
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, Creso and Baltic, including their proposed 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, Creso, Baltic or their joint
venture, as the case may be, and persons acting on their behalf,
respectively. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release and
neither LGC, Creso, Baltic or the
joint venture has any obligation to update such statements, except
to the extent required by applicable securities laws.
Information Relating to Creso Pharma Limited and Baltic Beer
Company Ltd
All information contained in this press release relating to
Creso Pharma Limited and Baltic Beer Company Ltd has been
provided to LGC by such companies, 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