Symbol: TSX-V: LG
MONTREAL, May 15, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to report that the documentation for its Global Canna Labs Limited ("Global Canna Labs") transaction was completed in Kingston, Jamaica earlier this week and has now been submitted to the TSXV for review and approval.
The signed contracts provide for LGC subscribing for a $2.5 million secured debenture, convertible into an initial 30% strategic interest in Global Canna Labs and to also acquire a 5% royalty on Global Canna Labs' net sales for $2.0 million, payable in shares of LGC.
Please note that the terms for the royalty acquisition has been changed from what was previously announced on April 20, 2018, from $2.4 million (payable in LGC shares) down to $2.0 million (payable in LGC shares).
The Jamaican Cannabis Licencing Authority has passed the site inspection for Global Canna Labs' initial 6.2 acre Montego Bay facility for its Cultivator's Licence (Tier 3) (over 5 acres), one of the few large acreage projects in Jamaica.
The construction of the first 27,000 square feet of secured greenhouse growing space has been completed and all materials are now on site to commence construction of the next 28,000 square feet of greenhouses. The second phase of greenhouse construction is scheduled to commence in the next two weeks. The drying facilities and packaging and processing areas is currently under construction.
John McMullen, CEO of LGC stated, "Global Canna Labs plans to quickly build a globally recognized Jamaican brand by grown by Jamaicans for the Jamaican market and soon the global market. Jamaica has one of the most recognised and understood cannabis brands in the world and to be part of this exciting venture is a major achievement for LGC Capital."
Paul Glavine, President of Global Canna Labs, "We are very excited to establish this significant investment into the Jamaican economy with this investment. GCL, with LGC Capital's financial assistance, believes it will be able to achieve all of its business objectives to build a strong organic cannabis brand in Jamaica."
Jamaica has a population of 2.9 million (2017) and last year saw a record number of 4.7 million tourists to the country. This was an increase of over 12% from 2016. The Jamaican Tourist Board is optimistic that this trend will continue in 2018.
About LGC (www.lgc-capital.com)
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.
About Global Canna Labs (www.globalcannalabs.com)
Global Canna Labs is a Jamaican entity with its head office located in Kingston, Jamaica, with operations based in Montego Bay, with plans to become one of the leading cultivators and processors in Jamaica of cannabis for legal medical and recreational purposes. The Montego Bay site is only 10 minutes from the Montego Bay airport and sea port providing logistics access for facilitating global exports.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Global Canna Labs Limited (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.
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SOURCE LGC Capital Ltd
For further information: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: John@lgc-capital.com; Shobana Thaya, LGC Capital's Investor Relations, Tel: 416-807-1009, Email: firstname.lastname@example.org; 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@example.com