MONTREAL and JOHANNESBURG, South Africa, June 26, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: QBA) ("LGC") is pleased to announce that it has entered into a strategic alliance with AfriAg (Pty) Ltd to create a new 50/50 Joint Venture to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world.
AfriAg has extensive experience with managing agriculture operations including greenhouse cultivation. It also owns and manages certified facilities and is one of the largest distributers of perishable food products by airfreight to the world from the southern African region.
The new Joint Venture will aim to develop a fully-regulated cannabis growing and processing industry in the southern African region for export to certified end users world-wide. AfriAg will assist LGC with securing significant agricultural land packages and processing facilities in the region to grow cannabis crops and produce, including seeds, cannabis extracted oils, dried marijuana leafs, cigarettes and vapours.
"LGC, in conjunction with AfriAg, will now be actively pursuing this first of its kind opportunity in the southern African region, which expands LGC's focus into a truly international investment company," said John McMullen, CEO of LGC. "AfriAg is a great development partner for a venture such as this and this opportunity is unique. If successful, we will make LGC the first and only Canadian publicly-traded company to be licenced to grow and export recreational and medical cannabis on a global basis."
"AfriAg can bring a tremendous amount of growing, manufacturing and global logistics expertise to this partnership", said Paul de Robillard from AfriAg. "Southern Africa has the commercial advantage of very competitive labour rate, a highly-skilled agriculture workforce, excellent climatic conditions, and rich soils that are well suited to outdoor and indoor crop production. We look forward to working with LGC on this new venture."
About LGC Capital
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSX-V: QBA.V). 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 now plans to enter into the agricultural space in southern Africa through its new joint venture with AfriAg.
AfriAg (Pty) Ltd is a global agriculture and agri-logistics specialist, and provides crop growing and logistics solutions, food marketing and bespoke distribution services, by road, air and sea, to many major food retailing and wholesale corporations around the world. AfriAg (Pty) Ltd is 40% owned by London listed AfriAg Global PLC.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its Joint Venture with AfriAg, 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 and the Joint Venture with AfriAg 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.
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SOURCE LGC Capital Ltd
For further information: Canada Contact: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: [email protected]; London Office 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: [email protected]