Symbol: TSX-V: LG
MONTREAL,
Dec. 14, 2017 /CNW Telbec/ - LGC Capital Ltd.
(TSXV: LG) ("LGC") is pleased to announce that it has
now received confirmation from the Australian Government's Office
of Drug Control to increase its interest in licenced Australian
Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as Little
Green Pharma ("Little Green Pharma"), above 4.99% and is now
increasing its strategic interest to 11.91%.
In addition, LGC is also pleased to advise that Little Green
Pharma yesterday commenced planting its first medical cannabis crop
in Australia. Little Green Pharma
made the following announcement today (refer to
https://lgpharma.com.au/news/wa-first-little-green-pharma-starts-growing-medicinal-cannabis/):
"WA first – Perth company starts growing medicinal
cannabis
- Little Green Pharma grows the first ever medicinal
cannabis in WA
- Local product expected to be available for WA patients
early next year
The first crop of medicinal cannabis is being cultivated in
Western Australia by a
Perth based
phytopharmaceutical company. Little Green Pharma, a
private entity specialising in the cultivation and production of
high quality, locally grown medicinal cannabis, today announced it
is cultivating its first plants at its secure growing facility
south of Perth.
The event marks the first time medicinal cannabis has been
cultivated locally and the company aims to have product available
for patients within the first few months of 2018.
Little Green Pharma Managing Director, Fleta Solomon, said the company had been working
steadily towards the goal of producing clean, southwest grown
medicinal cannabis products and reaching the cultivation stage was
a major milestone.
"Medicinal cannabis is relatively new and strictly controlled
in Australia. Companies wanting to
produce it have to obtain licences and permits from both federal
and state government agencies," Ms Solomon said. "We were the first
WA company to be granted a licence earlier this year to cultivate
and produce medicinal cannabis and it has taken six months of hard
work to reach the cultivation stage this week.
We are very excited about the future of our medicinal
cannabis products."
Ms Solomon said strict controls around the production of
medicinal cannabis meant the company could not reveal the location
of its secure hydroponic growing facility although the
plants being cultivated had lower levels of the psychoactive THC
cannabinoid and higher levels of the non-psychoactive CBD
cannabinoid compared to recreational marijuana.
Ms Solomon said Little Green Pharma had developed a novel
delivery system enabling a micro dose to be taken by patients.
Little Green Pharma products will be manufactured in a local
licensed facility monitored by the Therapeutic Goods Administration
(TGA) and the WA Department of Health.
"Medicinal cannabis has been shown to have a role in chronic
pain management and some neurological conditions including
childhood epilepsy," she said. "More research is needed into its
effectiveness in treating other conditions." Ms Solomon said Little
Green Pharma planned to participate in medical research on
medicinal cannabis and was in end stage talks with reputable
research institutions in WA and overseas.
Fact summary
- There are 13 companies licensed to produce medicinal
cannabis in Australia but only a
few of those have a permit to commence production.
- Little Green Pharma is the only company in WA with a
licence and permit from the Office of Drug Control to commence
growing locally.
- Medicinal cannabis is available for patients only via a
doctor's prescription."
"The news that Little Green Pharma has now moved to
commercial production with the planting of its first crop is
excellent news." John McMullen, LGC
CEO commented. "We are pleased that the Australian
Government's Office of Drug Control has allowed LGC to move to over
the 5% shareholding threshold in Little Green Pharma, and that we
have been given this opportunity to increase our strategic
shareholding as Little Green Pharma moves into commercial
production in the highly regulated and blue-chip Australian market.
We are keen to increase our interest in Little Green Pharma further
and negotiations are well underway to achieve this."
Fleta Solomon, Little Green
Pharma's Managing Director commented; "We are thrilled that LGC
Capital has been approved by the authorities to cement its position
as a cornerstone investor raising its interest to 11.91%. This
greatly assists Little Green Pharma in its intention to participate
in medical research relating to cannabis strain profiles and the
effect on various medical conditions. Discussions are currently
underway with reputable research institutions and specialist
doctors around the world."
As previously agreed in October
2017, LGC will now increase its holding to 11.91% by
subscribing for an additional 4,585,972 new shares at
AUD $0.20 per share for a cash consideration of
AUD $917,194. Closing of the transaction with Little Green
Pharma is subject to standard conditions. Negotiations are also now
currently underway with Little Green Pharma to further increase
LCG's interest, and the market will be updated as to the outcome of
these negotiations.
Note: On December 13, 2017, the Bank
of Canada's daily average exchange rate for the
Australian dollar was AUD $1.00 = CAD $0.9780.
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"), its operations, strategy,
investments, financial performance and condition, including its
investment in Habi Pharma Pty Ltd. 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 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