LGC Capital Ltd.
Symbol: TSX-V: LG
MONTREAL, Feb. 15, 2018
/CNW Telbec/ - LGC Capital Ltd. (TSXV: LG)
("LGC") is pleased to announce that it yesterday
completed its previously-announced transaction with licenced
Australian Medical Cannabis company Habi Pharma Pty Ltd of
Perth, Australia, doing business
as Little Green Pharma ("Little Green Pharma"), whereby LGC
increased its strategic interest in Little Green Pharma to 14.99%
from 11.91%.
John McMullen, CEO of LGC commented, "We are very much
looking forward to Little Green Pharma cultivating its first crop
over the coming months and producing its first medical cannabis
products for commercial sale in Australia. The funding
provided by LGC over the past few months has provided Little Green
Pharma with working capital to enable it to start its first
commercial production. LGC's objective is to fund many of our
other investment initiatives around the world to achieve the same
goal over the coming year."
At closing, Little Green Pharma issued 2,283,495 additional
shares to LGC at a deemed issue price of AUD $1.16398 per
share for a total consideration of approximately
AUD $2,657,950. LGC paid for the shares by issuing
5,000,000 LGC shares to Little Green Pharma at a deemed issue price
of CAD $0.53 per share, representing the closing price of
LGC's shares on the TSX Venture Exchange on January 19, 2018,
for a total consideration of CAD $2,650,000, equivalent to
AUD $2,679,150 based on the Bank of Canada exchange rate on February 14,
2018. The 5,000,000 LGC shares are subject to a "hold period"
which expires on June 15, 2018.
The subscription agreement entered into by LGC and Little Green
Pharma at closing contains an undertaking by LGC to participate in
Little Green Pharma's next capital raise, by June 30, 2018, to
the extent required to maintain LGC's 14.99% shareholding in Little
Green Pharma.
Note: On February 14, 2018, the Bank of Canada's daily average exchange rate for the
Australian dollar was AUD $1.00 = CAD
$0.9891.
About Little Green Pharma (www.lgpharma.com.au)
Little Green Pharma is a private entity in Australia and is one of the few companies in
Australia to be granted a licence
to cultivate and produce Medical Cannabis within Australia. On December 14, 2017, Little
Green Pharma announced that its first crop of medicinal cannabis
was being cultivated in Western
Australia at its secure growing facility south of
Perth. That event marks the first
time medicinal cannabis has been cultivated locally in Western Australia. Little Green Pharma aims to
have first product available for patients within the first few
months of 2018.
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.
Information Relating to Little Green Pharma
All information contained in this press release relating to
Little Green Pharma has been provided to LGC by Little Green
Pharma. 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.
FORWARD-LOOKING STATEMENTS
This press release may
contain forward-looking statements with respect to LGC Capital Ltd.
("LGC") and Habi Pharma Pty Ltd ("Habi Pharma"), 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 and Habi Pharma 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, 2017, 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
neither LGC nor Habi Pharma has any 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