MONTREAL, Dec. 6, 2017
/CNW Telbec/ - As per previously announced press release on
October 31st,LGC
Capital Ltd. (TSXV: LG) ("LGC") is pleased to
announce that the TSX Venture Exchange has conditionally approved
LGC's proposed transaction with Québec-based Tricho-Med Corporation
(doing business as AAA Trichomes).
LGC wishes to report that its due diligence review of AAA
Trichomes has been completed, all major deal points have been
agreed upon, and the remaining technical details are being
finalized. Closing documentation is being prepared and LGC expects
to sign the principal loan documentation with AAA Trichomes in the
next few days, which will then be held in trust pending final
TSX Venture Exchange approval. In order to obtain final
approval for the transaction from the TSX Venture Exchange,
LGC must file various documents, which it expects to do within the
next few days.
At the closing of the transaction, LGC will subscribe for a
convertible debenture of AAA Trichomes in an amount of
$4,000,000 (the "Debenture").
The Debenture will bear interest at an annual rate of 10%, have a
term of four years and be secured by first-ranking security on all
of AAA Trichomes' assets. Upon AAA Trichomes obtaining a licence to
cultivate marijuana from the relevant regulatory authorities, the
Debenture will convert into common shares of AAA Trichomes,
representing 49% of the then-issued and outstanding shares, and a
5% royalty on AAA Trichomes' net sales. In the event that
AAA Trichomes does not become a publicly-listed company within
twelve months of having obtained the licence, LGC will receive such
number of shares so that it owns 54% of the then-issued and
outstanding shares of AAA Trichomes, subject to approval by
the TSX Venture Exchange.
AAA Trichomes is planning to build a large new cannabis
processing facility in the Province of Québec, to be built in three
phases. Construction is expected to start within a few weeks of the
closing of the transaction with LGC.
John McMullen, CEO of LGC
stated, "LGC Capital is a Canadian investment company with a global
perspective. We are very pleased to have the opportunity to invest
in a Canadian-based company. We are very impressed with the
AAA Trichomes management team as they are moving as quickly as
possible towards production."
Subject to AAA Trichomes becoming a licensed producer, the
AAA Trichomes processing facility will be an enclosed
multi-level medical cannabis production operation.
AAA Trichomes is scheduled to start operations in 2019 with an
initial annual production rate of more than 2,500 kilograms
reaching a planned production rate of more than
20,000 kilograms by 2021.
About AAA Trichomes
AAA Trichomes was incorporated in 2014 with the objective
of becoming a manufacturer and distributor of cannabis products in
Canada with an initial focus on
the Québec market. Since November 2016, AAA Trichomes has
been in the final review stage with Health Canada for the
processing of its application to become a licensed producer under
the Access to Cannabis for Medical Purposes Regulations.
About LGC Capital Ltd.:
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 strategic alliances
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
with Creso Pharma Limited for the creation of a
vertically-integrated cannabis operation, which includes
cultivation, IP generation, product development, and
commercialization. LGC Capital Ltd. is headquartered in
Montreal, Canada.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with
respect to LGC Capital Ltd. ("LGC"), its proposed investment in
AAA Trichomes, 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 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, 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 AAA Trichomes:
All information contained in this press release relating to
Tricho-Med Corporation (doing business as 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.
SOURCE LGC Capital Ltd