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MONTREAL, Nov. 21, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to provide an update on LGC's previously-announced private placement financing and its proposed investment in new Quebec cannabis-focused AAA Trichomes.
Private Placement Financing – Over Subscribed
LGC is pleased to announce that in light of very heavy demand, it has decided to increase the maximum amount of its previously-announced private placement by 62% to CDN $3.25 million. On November 16, 2017, LGC announced a private placement of units in a maximum amount of CDN $2 million. Closing of the private placement is scheduled to take place this week. LGC has increased the financing amount to pursue further cannabis growth opportunities globally currently under consideration.
AAA Trichomes – Quebec, Canada
The previously-announced closing date for the proposed transaction with Tricho-Med Corporation, doing business as AAA Trichomes ("AAA Trichomes"), has been revised from November 24 to November 29, 2017.
As announced on October 31, 2017, LGC signed an option to acquire a 49% interest in Quebec-based AAA Trichomes, plus a 5% royalty on its net sales. AAA Trichomes is planning to build a significant new cannabis processing facility in the Province of Quebec.
All parties are working diligently and LGC is pleased with the progress made to date on this proposed transaction. The parties have mutually agreed to extend the deal closing date to allow for completion of the due diligence review and obtaining the necessary regulatory approvals, including that of the TSX Venture Exchange.
John McMullen, CEO of LGC states, "We are pleased with the size and scope of the transactions currently happening in the cannabis sector and we believe that we are building the next investment opportunity with our international business model. This is evident by the solid uptake in this current private placement. We have received interest and orders from sizable global institutions and high net worth individuals, who I believe will be great partners as we move to the next level as a cannabis investment company. These new funds are targeted at growing the existing investment portfolio and seeking new cannabis opportunities globally."
David Lenigas, Co-Chairman of LGC added, "On behalf of LGC and in recognition of yesterday's announcement by our Swiss strategic partner Creso Pharma, we applaud Creso's achievement in expanding its global footprint and entering the very sizable Chinese market."
As previously announced, LGC and Creso Pharma Limited have entered into a letter of intent for a strategic alliance for the purpose of establishing a vertically-integrated cannabis enterprise with a global footprint spanning cultivation, IP generation, innovative product development and commercialisation.
About AAA Trichomes:
AAA Trichomes was incorporated in 2014 with the objective of becoming a manufacturer and distributor of cannabis products in Canada with an initial focus on the Quebec market. Since November 2016, AAA Trichomes has been in the final review stage with Health Canada for the processing of its application to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations.
About LGC Capital Ltd.:
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC is a diversified investment company with core holdings in businesses that provide shareholders with exposure to a diverse range of high-growth businesses, products and services. To date, LGC has entered into agreements for investments in private cannabis operations in South Africa, Australia and Canada. LGC also has a joint venture with AfriAg (Pty) Ltd. 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, and a strategic alliance with Creso Pharma Limited for the creation of a vertically-integrated cannabis operation, which includes cultivation, IP generation, product development, and commercialization. LGC is headquartered in Montreal, Canada.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), Tricho-Med Corporation ("AAA Trichomes") and Creso Pharma Limited ("Creso") and their respective operations, strategies, 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, AAA Trichomes and Creso, respectively, including the proposed transactions described herein, 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, AAA Trichomes and Creso, as the case may be, and persons acting on their behalf, respectively. 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 AAA Trichomes and Creso:
All information contained in this press release relating to AAA Trichomes and Creso has been provided to LGC by each, respectively. 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
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: email@example.com