LGC Capital Ltd.
Symbol: TSX-V: LG
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 /CNW Telbec/ - 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.
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.
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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