Symbol: TSX-V: LG
MONTREAL, Feb. 21, 2018 /CNW Telbec/ - LGC Capital
Ltd. (TSXV: LG) ("LGC") is pleased to provide an update on its
investment in Tricho-Med Corporation (doing business as "AAA
Trichomes") in Quebec, Canada.
AAA Trichomes is currently in the process of building its
initial 34,000 square foot (Phase-1) Medical Cannabis production
facility, located only twenty minutes south-west of Montreal's Mirabel International Airport. (See picture
of location below - The red circle indicates the location.)
The construction of the first stage of this new state-of-the-art
greenhouse is now underway and is scheduled to be completed by the
fall 2018. AAA Trichomes is currently finalizing the
selection of the turn-key contractors for the construction of the
steel structure/outside envelope of the facility and is in the
final process of choosing the Heating Venting and Air-Conditioning
suppliers for the facility. The company has already commenced
detailed planning for its Phase-2 and Phase-3 expansions that will
advance the facility's overall size to over one million square feet
of cultivating and processing capacity.
AAA Trichomes has also formally engaged Cannabis Compliance
Inc., Canada's original cannabis
consulting firm (www.cannabiscomplianceinc.com) to manage its
compliance and licensing approvals. Cannabis Compliance Inc.
has successfully guided a number of Canadian Medical Cannabis
companies through the Health Canada approval process.
AAA Trichomes is on track for its Health Canada inspection by
the fall of this year. The company expects to run its two
trial harvests as soon as Phase-1 construction is complete, which
is a condition to being granted a full growing and production
license.
As per LGC's formal agreements with AAA Trichomes, LGC has now
forwarded its second of four installments of CAD $1 million to AAA Trichomes to fund the
construction. As reported in prior news releases, LGC entered
into a four-year secured convertible loan agreement with AAA
Trichomes in an amount of CAD $4
million, which will be disbursed in accordance with a
pre-agreed milestone disbursement schedule. Upon AAA
Trichomes obtaining a license to produce medical cannabis from the
relevant regulatory authorities, the loan will convert into common
shares of AAA Trichomes representing 49% of AAA's then-issued and
outstanding shares. LGC will also receive a 5% royalty on AAA
Trichomes' net sales.
John McMullen, CEO of LGC
Capital stated, "We are very impressed with the AAA Trichomes'
management team and their execution of their plans to date.
Ultimately, we have great comfort in this Quebec-based opportunity and we
see its potential to ultimately become a successful and sizeable
Canadian medical cannabis growing
operation."
LGC also announces that its Board of Directors has amended LGC's
2016 Stock Option Plan so as to increase the number of shares that
can be issued thereunder to 71,230,957 shares, equal to 20% of the
356,154,788 LGC common shares issued and outstanding following the
recent completion by LGC of its $8
million bought-deal private placement. The increase
represents 12,294,231 additional common shares. The amendment
to the 2016 Stock Option Plan is subject to approval of the TSX
Venture Exchange and to shareholder approval, which LGC intends to
seek at its next annual meeting.
About LGC (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 Tricho-Med Corporation (doing
business as "AAA Trichomes")
All information contained in this press release relating to AAA
Trichomes has been provided to LGC by AAA Trichomes. 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 Tricho-Med Corporation (doing business as "AAA
Trichomes"), 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 AAA
Trichomes 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 AAA Trichomes 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