LGC Capital Ltd.
Symbol: TSX-V: LG
MONTREAL,
Sept. 26, 2017 /CNW Telbec/ - LGC Capital Ltd.
(TSXV: LG) ("LGC") announces that its Board of Directors
has resolved to immediately exit all current investments,
partnerships and joint venture arrangements with companies or
entities that have any business activities relating to Cuba.
While LGC continues to be positive towards the investment
opportunities in Cuba, regrettably
the U.S. government embargo on Cuba places onerous restrictions on LGC's
critical ability to transact with key banking and financial market
institutions. These restrictions have also severely limited LGC's
ability to broaden its investor and shareholder base.
LGC's focus has changed considerably since its initial
investment in the legalized Medical Cannabis sector in June 2017. LGC will now continue with its growth
strategy of increasing its investment footprint in this
fast-growing and globally-expanding sector, with the exception of
investments in businesses operating in the United States.
LGC will also review new investment opportunities in other
sectors that the Board considers may add value for shareholders.
These new investments will not carry the burden of limitations and
restrictions from the financial community as Cuban investments and
businesses currently do.
John McMullen, LGC's CEO,
commented:
"It's now time to open up LGC to the wider
investment and banking community outside of Canada by completely exiting our business
initiatives and joint ventures in Cuba.
"This move, although regrettable, should enable LGC to
broaden its shareholder base and establish corporate advisory and
banking relationships in jurisdictions that previously would not
deal with LGC due to restrictions placed on these organizations by
the U.S. government. This corporate decision should, for the first
time, open up LGC to potential U.S. investors. We will now actively
engage with our advisors in Canada
to notify international brokerage firms, banks and share-clearing
agencies of our decision to exit Cuba.
"LGC still sees tremendous investment opportunities in
Cuba, but will no longer invest in
any company that has activities in Cuba", Mr. McMullen concluded.
LGC cannot proceed with any investment in a business or
operation related to the Medical Cannabis industry prior to
obtaining formal approval from the TSX Venture Exchange with
respect thereto.
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.
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. 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
any investment in the Medical Cannabis sector, 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