MONTREAL, Aug. 1, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC")LGC is pleased to announce it has entered into a binding agreement to acquire 30% of the capital of Viridi Unit SA ("VIRIDI") of Switzerland. VIRIDI is a vertically integrated legal cannabis supplier to the Swiss and European markets, growing its own seeds and flowers, producing and developing a wide range of cosmetics, cigarettes and natural wellness Swiss authorized products amongst many of its diversified products and activities. For more information please visit www.viridi-unit.com
Under the terms of the agreement, LGC acquire its 30% interest through the issuance to Viridi of that number of common shares of LGC for a value corresponding to CHF 3 million ($3,940,498.91 CAD). The exact number of shares to be issued will be based on the 5 day WVAP of LGC common shares immediately prior to the closing date. It is estimated that the shares to be issued will represent less than 10% of the number of currently outstanding LGC shares. LGC will also receive a 5% lifetime royalty on VIRIDI's net sales. For this transaction, a finder's fee of around 3% cash and 3% in shares will be paid to an arm's length party. This transaction will be subject to review and approval by TSXV.
Cannabis was legalized in Switzerland for both medicinal and recreational use, in 2011. The date of this agreement was signed July 1st, 2018, and since then, LGC has been carrying out a due diligence process to satisfy the Company and its regulators.
Currently, Viridi has 20,000 specialty plants growing that are expected to yield 3,000 kg of dried flowers from this current crop. In addition, this current 2018 crop is expected to generate around 1 million seeds for sale in Europe. The "ONE Premium Cannabis" brand products are currently available throughout Switzerland in 85 locations.
To have full control of its final products, VIRIDI cultivates and processes its own flowers through various production areas. VIRIDI operates a farm in Switzerland, consisting of 1 hectare (100,000 square feet) of cultivation in both hoophouses and greenhouses. VIRIDI also has direct access to 5 hectares of cultivation, where they are currently growing their proprietary CBD genetics, distributed between Switzerland, and Europe and producing all the necessary flowers.
ONE CBD SEED:
ONE CBD SEED is a division aimed at creating and developing cutting edge Cannabis based solutions to the world's problems. Throughout our operational facilities, rigorous testing and production is carried out, in order to deliver elite genetics a multitude of applications including high grade extraction products that adhere to regulatory requirements. See One CBD SEED website for further details https://www.onecbdseeds.ch
VIRIDI Care Cosmetics Range:
What is VIRIDI Care?
VIRIDI Care is a revolutionary range of CBD and Hemp cosmetics.
An extensive range of high-end skincare products that are manufactured following the strictest aesthetic medicinal protocols.
All VIRIDI Care cosmetics are developed and manufactured in Switzerland.
ONE Premium Cannabis Range:
ONE Premium Cannabis is a premium collection of in-house varieties of superior CBD strains. Uniquely chosen for their combination of flavours and diverse range of terpenes, to create the best smokable flower, while sourcing the best CBD profiles for therapeutic properties. All products produced and sold are Swiss made and comply with Swiss laws.
The Naïv Range:
Naïv is a brand dedicated to natural wellness and relaxation. Naïv selects the best varieties of hemp and cannabis to create high-end natural products for targeted needs, including, cosmetics, sport's care, pet care, food and drink, fashion and home design.
VIRIDI provides Cannabis consulting services from prefeasibility studies to strategic opportunities.
Pricing analysis of both flower and extraction market
Identifying EU current market prices
Risk assessment in launching new Cannabis business in Europe
John McMullen, CEO of LGC stated, "We see Europe as one of the most exciting markets for legal cannabis in the world, and to have this new business partnership and investment in VIRIDI reflects yet another valuable cannabis producing company joining LGC's legal global cannabis investment portfolio. We believe that a team such as VIRIDI, will excel in the European Cannabis market, where projections for the overall market are currently estimated to be around €38 Billion (57.88 Billion CAD)* per year growing to over €50 Billion (76.16 Billion CAD)* in annual sales over time." * source European Cannabis Report Prohibition Partners
Mathieu Marcoulides, CEO of VIRIDI stated, "We are very excited to welcome LGC Capital as a core shareholder of our company as we strongly believe in the great value of our future synergies. We have positioned VIRIDI to be a premium manufacturer of various products that will be enhanced with the distribution capacities coming from the various JVs and investments within the LGC portfolio. It is certain that this will be a tremendous value creator for shareholders of both companies. The Canadian market opening on the 17th of October 2018 and LGC positioning will allow, to promote swiftly VIRIDI Swiss made products to a very promising and quality demanding market."
Closing of the transaction is subject to completion of due diligence and the TSXV granting final approval.
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.
FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Global Canna Labs (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
For further information: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: [email protected]; London contact: Anthony Samaha, Chief Financial Officer, Tel.: +44 (0) 20 7440 0640; Investor Relations: Dave Burwell, The Howard Group Inc., Tel.: (403) 221-9015, Toll Free: 1-888-221-0915, Email: [email protected]