LGC Capital Ltd.
Symbol: TSX-V: LG
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
MONTREAL,
Dec. 1, 2017 /CNW Telbec/ - LGC Capital Ltd.
(TSXV: LG) ("LGC") is pleased to announce that it has
raised gross proceeds of $2,980,773
at a first closing of its 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'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.
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.
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