Symbol: TSX-V: LG
MONTREAL, May 15, 2018 /CNW Telbec/ - LGC Capital Ltd.
(TSXV: LG) ("LGC") is pleased to report that the documentation
for its Global Canna Labs Limited ("Global Canna Labs")
transaction was completed in Kingston,
Jamaica earlier this week and has now been submitted to the
TSXV for review and approval.
The signed contracts provide for LGC subscribing for
a $2.5 million secured debenture, convertible into an
initial 30% strategic interest in Global Canna Labs and to also
acquire a 5% royalty on Global Canna Labs' net sales
for $2.0 million, payable in shares of LGC.
Please note that the terms for the royalty acquisition has
been changed from what was previously announced on April 20, 2018, from $2.4
million (payable in LGC
shares) down to $2.0 million (payable
in LGC shares).
The Jamaican Cannabis Licencing Authority has passed the site
inspection for Global Canna Labs' initial 6.2 acre Montego Bay facility for its Cultivator's
Licence (Tier 3) (over 5 acres), one of the few large acreage
projects in Jamaica.
The construction of the first 27,000 square feet of secured
greenhouse growing space has been completed and all materials are
now on site to commence construction of the next 28,000 square feet
of greenhouses. The second phase of greenhouse construction is
scheduled to commence in the next two weeks. The drying
facilities and packaging and processing areas is currently under
construction.
John McMullen, CEO of LGC
stated, "Global Canna Labs plans to quickly build a
globally recognized Jamaican brand by grown by Jamaicans for the
Jamaican market and soon the global market. Jamaica has one of the most recognised and
understood cannabis brands in the world and to be part of this
exciting venture is a major achievement for LGC
Capital."
Paul Glavine, President of
Global Canna Labs, "We are very excited to establish this
significant investment into the Jamaican economy with this
investment. GCL, with LGC Capital's financial assistance, believes
it will be able to achieve all of its business objectives to build
a strong organic cannabis brand in Jamaica."
Jamaica has a population of 2.9
million (2017) and last year saw a record number of 4.7 million
tourists to the country. This was an increase of over
12% from 2016. The Jamaican Tourist Board is optimistic that
this trend will continue in 2018.
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.
About Global Canna Labs
(www.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 legal
medical and recreational purposes. The Montego Bay site is only 10 minutes from the
Montego Bay airport and sea port
providing logistics access for facilitating global exports.
FORWARD-LOOKING STATEMENTS
This press release may
contain forward-looking statements with respect to LGC Capital Ltd.
("LGC") and Global Canna Labs Limited (GCL), 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 GCL 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 GCL 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