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MONTREAL, Nov. 30, 2017
/CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") announces
that it will close its previously-announced private placement of
units, at an issue price of $0.15 per
unit, in an amount of $3,727,872 in
order to comply with the policies of the TSX Venture Exchange
relating to the pricing of private placements, rather than in an
amount of approximately $4.265 million as announced by LGC on
November 28, 2017. LGC expects to complete the private
placement this week.
Each of the units to be issued by LGC will be comprised of one
common share and one common share purchase warrant; each warrant
will entitle 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, the
warrants will expire, at the sole discretion of LGC, on the
30th day after the date on which LGC sends a notice in
prescribed form to the holders of the warrants.
The units are being offered to "accredited investors" in
Canada and internationally. 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.
LGC also wishes to provide an update on its previously-announced
binding Letter of Intent with Creso Pharma Limited (Australia and Switzerland) and Baltic Beer Company Ltd (UK),
to develop and market a bespoke portfolio of cannabis and
hemp-derived alcoholic and non-alcoholic beverages. The portfolio
of beverages will contain various ingredients including seeds,
extracts and terpenes from hemp and cannabis plants. LGC and
Creso Pharma will each make an initial investment in the joint
venture of € 150,000 (approximately CAD $225,000) for
research and development, brand development and testing, which will
be carried out by Baltic Beer. Each party will have a 33% interest
in the joint venture.
About LGC Capital (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company
listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified
investment company with core holdings in businesses that provide
shareholders with exposure to a diverse range of high-growth
businesses, products and services. To date, LGC has entered into
agreements for investments in private cannabis operations in
South Africa, Australia and Canada. LGC also has a joint venture with
AfriAg (Pty) Ltd. to grow and distribute medical and recreational
cannabis products in the southern African region for export to
regulated and certified end users around the world, and a strategic
alliance with Creso Pharma Limited for the creation of a
vertically-integrated cannabis operation, which includes
cultivation, IP generation, product development, and
commercialization. LGC is headquartered in Montreal, Canada.
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, and the private
placement and joint venture referred to above. 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 or the joint
venture 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