LGC Capital Ltd.
Symbol: TSX-V: LG
MONTREAL, Feb. 5, 2018 /CNW Telbec/ - LGC Capital
Ltd. (TSXV: LG) ("LGC") is pleased to provide an update
on its proposed investment in Jamaican cannabis company Global
Canna Labs Limited ("Global Canna Labs").
Senior LGC management has now completed an on-site inspection of
the Global Canna Labs' facilities in Montego Bay, Jamaica, as part of the
investment due diligence process.
Greenhouse frames are installed for the first 28,000 sq. feet
with all materials now on site to complete the initial 58,000 sq.
feet build-out to full operating status. Installation of the
greenhouse irrigation system has commenced, and the 6-acre security
fencing and the security CCTV network is now fully operational.
(See Figures 1 and 2)
LGC considers that the timelines for Global Canna Labs
converting its conditional Cultivator's Licence (Tier 3) (over 5
acres) to a full unconditional Cultivator's Licence and the
planting of its first commercial crop by April 1, 2018 are
achievable and may be completed before that date.
LGC management was also shown a number of suitable retail sites
in Montego Bay and Negril that are
under negotiation to launch Global Canna Labs' first Jamaican
dispensaries.
John McMullen, CEO of LGC
commented, "Jamaica has
a well-established cannabis brand with its Rastafarian culture
deeply entrenched in the country. Jamaica has the ideal climate, soils and water
for the production of a natural "sun grown" medical cannabis
product range and Global Canna Labs' operations at Montego Bay are well situated to enable
exports to anywhere in the world through Montego Bay's international airport. The Tier
3 Cultivator's Licence, once granted, will put Global Canna Labs in
a strong growth position in Jamaica, as its Tier 3 status will allow for
expansion opportunities well beyond the 102 acres currently being
considered in the Montego Bay area
and the 7 acres already secured at Kingston. LGC sees this investment as a very
exciting, short-term commercialization opportunity and we look
forward to completing the remaining due diligence and moving to
close this transaction."
Transaction Details:
On January 26, 2018, LGC announced
that it had signed a Letter of Intent with Global Canna Labs and
one of its major shareholders, which provides that LGC will
subscribe for a $2.5 million
secured debenture, convertible into an initial 30% strategic
interest in Global Canna Labs, and that LGC will also acquire a 5%
royalty on Global Canna Labs' net sales for $2 million,
payable in shares of LGC.
The Letter of Intent provides that LGC will carry out an
accelerated due diligence review, to be completed by
February 15, 2018, and that upon successful completion of due
diligence, the parties will enter into definitive agreements by
February 25, 2018.
Closing of the transaction with Global Canna Labs is also
subject to the parties entering into definitive agreements, to
standard closing conditions, and to regulatory approval, including
that of the TSX Venture Exchange.
About Global Canna Labs
(http://globalcannalabs.com)
Global Canna Labs is a Jamaican entity with its head office
located in Kingston, Jamaica, with
operations based in Montego Bay,
with plans to become one of the leading cultivators and processors
in Jamaica of cannabis for medical
and recreational purposes. Target production is expected to total
1,876 kg in 2018 and rising quickly to 7,741 kg annually by 2021.
These production targets can be rapidly expanded from current
targets should demand exceed supply.
The Montego Bay site comprises
a 22-acre plot with an additional 80-acre expansion opportunity on
the same plot. The location is only 10 minutes from the
Montego Bay airport and sea port
providing logistics access for facilitating global exports.
Global Canna Labs is in the final stages of acquiring a full
commercial cannabis license in Jamaica enabling clinical trials,
dispensaries, recreational sale, and medical export. On
December 20, 2017, the Cannabis
Licencing Authority of Jamaica
granted conditional approval for a Cultivator's Licence (Tier 3)
(over 5 acres).
Construction of its first 58,000 sq. feet of greenhouses is in
progress and is nearing completion, with 4 additional acres of
outdoor growth and state-of-the-art processing facility meeting GMP
and ISO standards in the current site plan. Security fencing around
the initial cultivation site covering 6 acres in total has already
been installed.
Construction of Global Canna Labs' first dispensary is expected
to start in Q1 2018 in Montego
Bay's Hip Strip. Plans are also in place for Global Canna
Labs to open an on-site farm store and its first dispensary in
Kingston by the end of 2018.
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 Global Canna Labs Limited
All information contained in this press release relating to
Global Canna Labs Limited has been provided to LGC by Global Canna
Labs Limited. 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 Global Canna Labs Limited, 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 Global Canna Labs Limited 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
neither LGC nor Global Canna Labs Limited 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