MONTREAL, Dec. 14, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that it has now received confirmation from the Australian Government's Office of Drug Control to increase its interest in licenced Australian Medical Cannabis company Habi Pharma Pty Ltd of Perth, Australia, doing business as Little Green Pharma ("Little Green Pharma"), above 4.99% and is now increasing its strategic interest to 11.91%.
"WA first – Perth company starts growing medicinal cannabis
Little Green Pharma grows the first ever medicinal cannabis in WA
Local product expected to be available for WA patients early next year
The first crop of medicinal cannabis is being cultivated in Western Australia by a Perth based phytopharmaceuticalcompany. Little Green Pharma, a private entity specialising in the cultivation and production of high quality, locally grown medicinal cannabis, today announced it is cultivating its first plants at its secure growing facility south of Perth.
The event marks the first time medicinal cannabis has been cultivated locally and the company aims to have product available for patients within the first few months of 2018.
Little Green Pharma Managing Director, Fleta Solomon, said the company had been working steadily towards the goal of producing clean, southwest grown medicinal cannabis products and reaching the cultivation stage was a major milestone.
"Medicinal cannabis is relatively new and strictly controlled in Australia. Companies wanting to produce it have to obtain licences and permits from both federal and state government agencies," Ms Solomon said. "We were the first WA company to be granted a licence earlier this year to cultivate and produce medicinal cannabis and it has taken six months of hard work to reach the cultivation stage this week.
We are very excited about the future of our medicinal cannabis products."
Ms Solomon said strict controls around the production of medicinal cannabis meant the company could not reveal the location of its secure hydroponic growing facilityalthough the plants being cultivated had lower levels of the psychoactive THC cannabinoid and higher levels of the non-psychoactive CBD cannabinoid compared to recreational marijuana.
Ms Solomon said Little Green Pharma had developed a novel delivery system enabling a micro dose to be taken by patients. Little Green Pharma products will be manufactured in a local licensed facility monitored by the Therapeutic Goods Administration (TGA) and the WA Department of Health.
"Medicinal cannabis has been shown to have a role in chronic pain management and some neurological conditions including childhood epilepsy," she said. "More research is needed into its effectiveness in treating other conditions." Ms Solomon said Little Green Pharma planned to participate in medical research on medicinal cannabis and was in end stage talks with reputable research institutions in WA and overseas.
There are 13 companies licensed to produce medicinal cannabis in Australia but only a few of those have a permit to commence production.
Little Green Pharma is the only company in WA with a licence and permit from the Office of Drug Control to commence growing locally.
Medicinal cannabis is available for patients only via a doctor's prescription."
"The news that Little Green Pharma has now moved to commercial production with the planting of its first crop is excellent news." John McMullen, LGC CEO commented. "We are pleased that the Australian Government's Office of Drug Control has allowed LGC to move to over the 5% shareholding threshold in Little Green Pharma, and that we have been given this opportunity to increase our strategic shareholding as Little Green Pharma moves into commercial production in the highly regulated and blue-chip Australian market. We are keen to increase our interest in Little Green Pharma further and negotiations are well underway to achieve this."
Fleta Solomon, Little Green Pharma's Managing Director commented; "We are thrilled that LGC Capital has been approved by the authorities to cement its position as a cornerstone investor raising its interest to 11.91%. This greatly assists Little Green Pharma in its intention to participate in medical research relating to cannabis strain profiles and the effect on various medical conditions. Discussions are currently underway with reputable research institutions and specialist doctors around the world."
As previously agreed in October 2017, LGC will now increase its holding to 11.91% by subscribing for an additional 4,585,972 new shares at AUD $0.20 per share for a cash consideration of AUD $917,194. Closing of the transaction with Little Green Pharma is subject to standard conditions. Negotiations are also now currently underway with Little Green Pharma to further increase LCG's interest, and the market will be updated as to the outcome of these negotiations.
Note: On December 13, 2017, the Bank of Canada's daily average exchange rate for the Australian dollar was AUD $1.00 = CAD $0.9780.
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.
Information Relating to Little Green Pharma
All information contained in this press release relating to Little Green Pharma has been provided to LGC by Little Green Pharma. 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.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its operations, strategy, investments, financial performance and condition, including its investment in Habi Pharma Pty Ltd. 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 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
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