MONTRÉAL, Jan. 28, 2019 /CNW Telbec/ - LGC Capital Ltd. (the "Corporation" or "LGC") (TSXV: LG) has delayed the filing of its audited annual financial statements for the year ended September 30, 2018, its related Management's Discussion and Analysis, and the Chief Executive Officer and Chief Financial Officer certifications (the "Required Filings"). The Corporation anticipates to be in a position to file the Required Filings no later than February 15, 2019.
Many of LGC's investments are in the form of convertible debentures and net sales royalties in private cannabis companies. The principle reason behind the Corporation's delay in meeting its reporting deadline can be directly attributable to the complexities of establishing the fair values under IFRS of these financial instruments in respect to the these private cannabis companies.
The Corporation's Required Filings will be made as soon as the Board of Directors has approved the financial statements and its auditors have delivered their final audit report.
Application for Management Cease Trade Order
The Corporation has made an application to the Autorité des marchés financiers for a management cease trade order ("MCTO"), which would restrict all trading in securities of the Corporation, whether direct or indirect, by the Chief Executive Officer, Chief Financial Officer and directors of the Corporation. There is no guarantee that an MCTO will be granted. The issuance of an MCTO does not generally affect the ability of persons who are not executive officers or directors of LGC to trade in securities of the Corporation.
If the MCTO is granted, the Corporation intends to comply with the provisions of the alternative information guidelines as set out in the Policy Statement 12-203 respecting Management Cease Trade Orders for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release. The Corporation will also continue to disclose any other material information concerning its affairs and ongoing business activities.
LGC Capital is a leading cannabis investment firm with a focus on the Legal Global Cannabis market. Through its growing portfolio investment companies, LGC is building a vertically integrated system of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy, and Canada serving domestic and export markets. LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange.
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC presently will have interests in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia. That is expected to increase to over 2,100,000 square feet by 2021, as its portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med's operations in Quebec, Canada.
LGC partners currently sell cannabis products in over 1,000 points of sale across Switzerland and Italy under the ONE Premium Cannabis and EasyJoint brands as well as medical cannabis oils in Australia under the Little Green Pharma brand. LGC's partners' branded products are available in a variety of formats including dry cannabis flower, tinctures, oils, seeds, and beverages.
Neither the TSX Venture Exchange nor its Regulation Services 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: Chief Executive Officer, John McMullen, +1-416-803-0698, [email protected]; Chief Financial Officer, Anthony Samaha, +44-20-7440-0640, [email protected]; Investor Relations, Dave Burwell, +1-403-221-0915, [email protected]