- TSX Venture Exchange authorizes LGC to proceed to closing
of the transaction, scheduled for Tuesday, October 10,
2017
MONTREAL, Oct. 5, 2017
/CNW/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to
announce that it has entered into a definitive Subscription
Agreement with licenced Australian Medical Cannabis company Habi
Pharma Pty Ltd of Perth,
Australia, doing business as "Little Green Pharma", for the
acquisition of a strategic interest in Little Green Pharma, as
announced on September 26, 2017. LGC is also pleased to
announce that the TSX Venture Exchange has authorized LGC to
proceed to the closing of the transaction, which is scheduled to
take place on Tuesday, October 10, 2017.
Little Green Pharma is one of the few licenced companies in
Australia authorized to cultivate
and produce Medical Cannabis within Australia.
Little Green Pharma (www.lgpharma.com.au)
has advised LGC that it plans to commence cultivation and
production of one of the first clean locally-grown Medical Cannabis
products for use solely within Australia, giving hope and relief to those
suffering from certain debilitating illnesses. Little Green
Pharma's patented technology aims to control the medicinal cannabis
particle size encapsulated in the liposomes to optimise the
bio-availability so the cannabinoids are readily absorbed into the
bloodstream. This enables the resulting preparation to achieve
desired therapeutic results with significantly lower cannabinoid
doses, when compared to other forms of medicinal cannabis. Little
Green Pharma's patented process significantly reduces production
costs, enabling Little Green Pharma to be more competitive in the
market.
"The signing of a definitive Subscription Agreement and
approval by the TSX Venture Exchange to acquire this strategic
initial interest in Little Green Pharma in Australia are truly landmarks for LGC Capital,
as we seek to expand the Company's global footprint in the
fast-growing legalized medical cannabis industry" John McMullen, LGC's CEO commented. "We are
pleased to be given the opportunity to be a key strategic
shareholder of Little Green Pharma as it moves towards commercial
production in the highly regulated and blue-chip Australian market.
We are also very excited about Little Green Pharma's advanced
patented technology."
Fleta Solomon, Little Green
Pharma's Managing Director, commented; "There is no doubt that LGC
Capital is going to be a strong strategic partner as we expand the
company and its opportunities."
The details of LGC's agreement to invest in Little Green Pharma
are as follows:
- At closing, LGC will subscribe for 2,161,091 shares of Little
Green Pharma, representing an initial 4.99% of its issued and
outstanding shares, by paying AUD $432,218 and issuing 5,660,000 LGC common shares
to Little Green Pharma at a deemed issue price of $0.11 per share.
- Subject to the issuance by Little Green Pharma of shares to
various third parties, LGC will subscribe for a further 752,937
shares of Little Green Pharma for cash consideration of
AUD $150,587, so as to maintain its shareholding of 4.99% in
Little Green Pharma.
- Subject to certain Australian regulatory approvals, which are
currently in progress, and subject to approval by Little Green
Pharma in its sole discretion, LGC may further subscribe, at its
option, for additional shares of Little Green Pharma in order to
increase its shareholding to a maximum of 19.03%. In the event that
this option is exercised, LGC will subscribe for a maximum of
4,585,972 shares of Little Green Pharma for maximum cash
consideration of AUD $917,194.
Note: On October 4, 2017, the Bank of Canada's daily average exchange rate for the
Australian dollar was AUD $1.00 = CAD
$0.9802.
Closing of the transaction with Little Green Pharma is subject
to standard conditions.
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.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with
respect to LGC Capital Ltd. ("LGC"), its proposed investment in
Little Green Pharma, and LGC's 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 its proposed
investment in Little Green Pharma, 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.
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.
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