Symbol: TSX-V: LG
MONTREAL, April 30, 2018 /CNW Telbec/ - LGC Capital
Ltd. (TSXV: LG) ("LGC") is pleased to announce that
demolition has begun at Tricho-Med's site in Brownsburg, Quebec, to clear the way for
construction of their initial 34,000 square feet state-of-the-art
multi-level indoor growing facility for Medical Cannabis.
Management from both LGC and Tricho-Med were present to witness
the initial work, as well as to walk the additional acreage for
expansion.
As previously announced on April
9, the initial Phase-1 facility of 34,000 sq. feet will
comprise of 7 air tight, controlled atmosphere flowering
chambers. The facility has been designed to ensure it qualifies as
a GMP facility. Tricho-Med is targeting to have the steel structure
and building envelope completed by the end of October this year.
Tricho-Med also plans to increase the scale of its operations, with
new land options now signed, to over 2 million square feet of gross
building areas (power availability permitting) of controlled
atmosphere production capacity.
Tricho-Med is still on track, as per LGC news release of
March 28 this year, for its Health
Canada inspection by the Fall of this year. Tricho-Med expects
to run its two trial harvests as soon as Phase-1 construction is
complete, which is a condition to being granted a production
license. Tricho-Med is planning to be fully licenced and
commercially growing in 2019 from Phase-1, with production
increasing progressively as the facilities expands.
Tricho-Med plans to be one of the largest lowest cost producers
of high quality Medical Cannabis in Quebec.
Tricho-Med has retained the services of highly experienced
growers and regulatory experts to assist with the permitting and
approvals processes necessary to commercially produce and sell
cannabis in Canada and obtain the
necessary GMP certification in order to export internationally.
John McMullen, CEO of LGC
Capital stated, "Being at the site at the end of last week
to witness the machines starting their work, clearly confirms the
me the potential huge size, scope and scale of this exciting
project and the bright future ahead for Tricho-Med as their
roll-out plans evolve. Once completed, this project will
provide our shareholders with ownership in a state-of-the-art
facility that is designed to be best-in-class. I personally am
proud to know that this project will create many new jobs in the
Brownsburg area and in the
province of Quebec generally.
To invest in and support the Tricho-Med Project gives me
great confidence in our combined futures."
LGC entered into a four-year secured convertible loan agreement
with Tricho-Med in the amount of CAD $4 million, which is
being disbursed in accordance with pre-agreed milestones and
related disbursement schedules. Interest on the Loan is fixed
at an annual rate of 10% which will be payable from available
operational cash flow. Upon Tricho-Med obtaining a license to
produce Medical Cannabis from the relevant regulatory authorities,
the loan will convert into common shares of Tricho-Med,
representing 49% of then-issued and outstanding shares. LGC
will also receive a 5% royalty on Tricho-Med's net sales.
LGC Capital is also pleased to announce that it has retained the
services of Vertex Strategies Inc. (Vertex) for its investor
relations services. Ms. Thaya has extensive knowledge and IR
experience in the Medical Cannabis sector in Canada having previously worked with another
successful Quebec based Medical
Cannabis LP. We welcome her to the LGC team and look forward
to increasing industry and market interest in LGC's rapidly growing
portfolio of investments.
Effective April, 2018, Vertex will provide marketing and
investor relations services to the Company at the initial base rate
of $7,500 per month. Vertex has also
been granted 500,000 options to purchase common shares in LGC (the
"Options") at an exercise price of $0.15. The Options will vest over 18 months.
Vertex and its principals will act at arm's length to LGC and
currently have no direct or indirect interest in the securities of
LGC, or any right or intent to acquire such an interest, with the
exception of the above options. The Vertex agreement and grant of
the Options are subject to the approval of the TSX Venture
Exchange.
About Vertex Strategies Inc.
Vertex Strategies Inc., is a full service communications and
investor relations firm supporting public companies to strengthen
their investor relations activities and effectively communicate the
Company's growth amongst analysts, portfolio managers,
stockbrokers, institutional and venture capital investors,
individual investors, and the media.
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 with an emphasis on significant
investments in global medical cannabis sector.
Information Relating to Tricho Med, Limited
All information contained in this press release relating to
Tricho Med Limited has been provided to LGC by Tricho Med 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 Tricho-Med Corporation
("Tricho-Med"), 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
Tricho-Med 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,
2017, 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 Tricho-Med 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