LGC Capital Ltd. Raises $2,630,616 at First Closing of Private Placement

Not for distribution to United States newswire services or for dissemination in the United States

Symbol: TSX-V: QBA

MONTREAL, Sept.11, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: QBA) ("LGC") is pleased to announce that it has raised gross proceeds of $2,630,616 at a first closing of its previously-announced private placement by issuing 26,306,160 units at a price of $0.10 per unit. LGC expects to hold a final closing for the balance of 3,693,840 units ($369,384) by Wednesday, September 13, which will bring the total amount raised in the private placement to the previously-announced maximum of $3 million.  The units were sold to "accredited investors" in Canada and internationally; LGC's senior management and directors subscribed for an aggregate of 3,355,900 units ($335,590).

Each of the units is comprised of one common share and one common share purchase warrant; each warrant entitles its holder to acquire one additional LGC common share at a price of $0.15 for a period of one year from the closing date.  In the event that the closing price of LGC's common shares on the TSX Venture Exchange is at least $0.20 for a period of not less than 20 consecutive trading days, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.

As previously announced, LGC will use the net proceeds from the private placement to assist with the funding of LGC's new joint venture with AfriAg (Pty) Ltd and the investment by the joint venture in the House of Hemp (Pty) Ltd in South Africa.  The net proceeds may also be used for new medical cannabis investment opportunities elsewhere in southern Africa and in the Asia Pacific Region.

At the first closing, LGC paid cash commissions to various securities dealers in an aggregate amount of $93,200, representing 8% of the proceeds from the sale of units sold through such dealers.  In addition, LGC issued an aggregate of 932,000 "broker warrants" to such dealers, representing an amount equal to 8% of the number of units sold through them.  Each of the broker warrants will entitle the holder to purchase one additional LGC common share at a price of $0.10 for a period of six months from the closing date of the private placement.

The securities issued at the first closing are subject to a "hold period" which expires on January 12, 2018.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws of the United States.  Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: QBA). LGC Capital'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, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC Capital has now entered into the agricultural space and the medical cannabis sector in southern Africa through its new joint venture with AfriAg and is seeking new investments opportunities in this sector.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its Joint Venture with AfriAg, its investment in House of Hemp, 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, the Joint Venture with AfriAg and the investment in House of Hemp 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, changes in 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, the Joint Venture, and persons acting on their respective behalfs. 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

For further information: Company & Media Contacts, Canada contact: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: John@lgc-capital.com; London contact: Anthony Samaha, Chief Financial Officer, Tel.: +44 (0) 20 7440 0640; Investor Relations contact: Dave Burwell, The Howard Group Inc., Tel.: (403) 221-9015, Toll Free: 1-888-221-0915, Email: dave@howardgroupinc.com


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