MONTREAL, Oct. 12, 2017
/CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased
to announce that it has today completed the acquisition of stage
one of its strategic interest in licenced Australian Medical
Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as "Little
Green Pharma", as announced on September 26, 2017 and
October 5, 2017. On October 5,
2017, the Company announced that the TSX Venture Exchange
had authorized LGC to proceed to the closing of the transaction and
this transaction has now been completed.
At the closing, LGC subscribed for 2,161,091 shares of Little
Green Pharma, representing an initial 4.99% of its issued and
outstanding shares. As consideration for the shares, LGC paid
AUD $432,218 and issued 5,660,000 LGC common shares to Little
Green Pharma at a deemed issue price of $0.11 per share. LGC, subject to certain
Australian regulatory and other approvals, can now move towards
increasing its interest in Little Green Pharma up to 19.03%.
About Little Green Pharma:
Little Green Pharma is one of the few companies in Australia to be granted a licence to cultivate
and produce Medical Cannabis within Australia.
Little Green Pharma
(www.lgpharma.com.au) has advised LGC that it
plans to commence cultivation and production of one of the first
clean locally-grown Medical Cannabis products for use solely within
Australia, giving hope and relief
to those suffering from certain debilitating illnesses. Little
Green Pharma's patented technology aims to control the medicinal
cannabis particle size encapsulated in the liposomes to optimise
the bio-availability so the cannabinoids are readily absorbed into
the bloodstream. This enables the resulting preparation to achieve
desired therapeutic results with significantly lower cannabinoid
doses, when compared to other forms of medicinal cannabis. Little
Green Pharma's patented process significantly reduces production
costs, enabling Little Green Pharma to be more competitive in the
market.
The Australian Medical Cannabis Market:
Little Green Pharma has advised LGC that Australia passed federal legislation in 2016
aimed at permitting the use of Medicinal Cannabis via a
tightly-controlled licensed medical prescription system.
In March 2016, The White
Paper, entitled Medicinal Cannabis in Australia: Science, Regulation &
Industry, was developed by the University of Sydney Business School's Community
Placement Program. Its publication followed the news that the
Australian Government would shortly allow the cultivation of
cannabis in Australia for medical
or scientific purposes.
As the first-ever White Paper that analyses the medicinal
cannabis industry in Australia,
the paper examines international experiences and approaches, supply
chain economics, quantities of cannabis required and potential
regulatory dynamics. It also serves as a framework for the industry
to commence engaging key stakeholders such as the Australian
Government and the medical community.
The University of Sydney summary of
the White Paper can be viewed via the below link:
http://sydney.edu.au/news-opinion/news/2016/03/29/legalising-medicinal-cannabis-would-create--100-million-industry.html
The White paper can be viewed at:
http://mgcpharma.com.au/wp-content/uploads/2016/03/mgc_whitepaper_final-sml.pdf
Highlights of the White Paper:
- Australia would need to
produce 8,000 kg of medicinal cannabis per year to service the
existing market.
- Australian market currently estimated to be worth AUD
$100 million to AUD $150 million per annum, and is likely to grow
significantly in the next decade.
- Medical Cannabis has the potential to help tens of thousands of
patients suffering from a wide range of medical conditions such as
Multiple Sclerosis, Epilepsy, Cancer, and Severe and Chronic
Pain.
- Up to 51,000 square metres of greenhouse space - almost three
times the size of the Sydney Cricket Ground - would be needed to
produce the amount of cannabis required to meet demand.
Further investment stages of the Little Green Pharma
acquisition:
As previously announced, the subscription agreement between LGC
and Little Green Pharma provides that subject to the issuance by
Little Green Pharma of shares to various third parties, LGC will
subscribe for a further 752,937 shares of Little Green Pharma
for cash consideration of AUD $150,587, so as to maintain its
shareholding in Little Green Pharma of 4.99%. In addition, subject
to certain Australian regulatory approvals, which are currently in
progress, and subject to approval by Little Green Pharma in its
sole discretion, LGC may further subscribe, at its option, for
additional shares of Little Green Pharma in order to increase its
shareholding to a maximum of 19.03%. In the event that this option
is exercised, LGC will subscribe for a maximum of 4,585,972 shares
of Little Green Pharma for maximum cash consideration of AUD
$917,194.
Note: On October 11, 2017, the Bank of Canada's daily average exchange rate for the
Australian dollar was AUD $1.00 = CAD
$0.9728.
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.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with
respect to LGC Capital Ltd. ("LGC"), its investment in Little Green
Pharma, and LGC's 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, including its proposed
investment in Little Green 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,
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.
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.
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