LGC Capital Ltd.
Symbol: TSX-V: LG
MONTREAL, Sept. 26, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") announces that its Board of Directors has resolved to immediately exit all current investments, partnerships and joint venture arrangements with companies or entities that have any business activities relating to Cuba.
While LGC continues to be positive towards the investment opportunities in Cuba, regrettably the U.S. government embargo on Cuba places onerous restrictions on LGC's critical ability to transact with key banking and financial market institutions. These restrictions have also severely limited LGC's ability to broaden its investor and shareholder base.
LGC's focus has changed considerably since its initial investment in the legalized Medical Cannabis sector in June 2017. LGC will now continue with its growth strategy of increasing its investment footprint in this fast-growing and globally-expanding sector, with the exception of investments in businesses operating in the United States.
LGC will also review new investment opportunities in other sectors that the Board considers may add value for shareholders. These new investments will not carry the burden of limitations and restrictions from the financial community as Cuban investments and businesses currently do.
John McMullen, LGC's CEO, commented:
"It's now time to open up LGC to the wider investment and banking community outside of Canada by completely exiting our business initiatives and joint ventures in Cuba.
"This move, although regrettable, should enable LGC to broaden its shareholder base and establish corporate advisory and banking relationships in jurisdictions that previously would not deal with LGC due to restrictions placed on these organizations by the U.S. government. This corporate decision should, for the first time, open up LGC to potential U.S. investors. We will now actively engage with our advisors in Canada to notify international brokerage firms, banks and share-clearing agencies of our decision to exit Cuba.
"LGC still sees tremendous investment opportunities in Cuba, but will no longer invest in any company that has activities in Cuba", Mr. McMullen concluded.
LGC cannot proceed with any investment in a business or operation related to the Medical Cannabis industry prior to obtaining formal approval from the TSX Venture Exchange with respect thereto.
About LGC (http://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.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its 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, including any investment in the Medical Cannabis sector, 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 and persons acting on its behalf. 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: 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: firstname.lastname@example.org