MONTREAL, March 6, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that it and Global Canna Labs Limited ("Global Canna Labs") have agreed to extend the closing date of their transaction, first announced on January 26, 2018, to the end of March 2018 in order to allow for completion of the corporate structuring of the transaction in compliance with Jamaican law.
LGC's due diligence having been successfully completed, the extension is required in order to establish the appropriate ownership structure for LGC in the context of foreign ownership requirements of Jamaican law. The parties are working towards finalization of the debenture and security documentation, which must be in compliance with Jamaican law.
Global Canna Labs has advised LGC that it has received approval from the Jamaican Ministry of Health for the registering of a "List 4" class of drug for a full spectrum of CBD oils for medical consumption. Global Canna Labs has also advised LGC that all the irrigation for its greenhouses in Montego Bay, Jamaica is in place and that greenhouse coverings for phase one construction are being installed this week.
John McMullen, Chief Executive Officer of LGC commented, "We continue to see good progress with the Global Canna Labs transaction, from building out its growing operations to licensing. We congratulate the entire team as they continue to work diligently toward finalizing this important transaction for both of our companies."
Closing of the transaction with Global Canna Labs is subject to the parties entering into definitive agreements, to standard closing conditions, and to regulatory approval, including that of the TSX Venture Exchange.
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 medical and recreational purposes. Target production is expected to total 1,876 kg in 2018 and rising quickly to 7,741 kg annually by 2021. These production targets can be rapidly expanded from current targets should demand exceed supply.
The Montego Bay site comprises a 22-acre plot with an additional 80-acre expansion opportunity on the same plot. The location is only 10 minutes from the Montego Bay airport and sea port providing logistics access for facilitating global exports.
Global Canna Labs is in the final stages of acquiring a full commercial cannabis license in Jamaica enabling clinical trials, dispensaries, recreational sale, and medical export. On December 20, 2017, the Cannabis Licensing Authority of Jamaica granted conditional approval for a Cultivator's License (Tier 3) (over 5 acres).
Construction of its first 58,000 sq. feet of greenhouses is in progress and is nearing completion, with 4 additional acres of outdoor growth and state-of-the-art processing facility meeting GMP and ISO standards in the current site plan. Security fencing around the initial cultivation site covering 6 acres in total has already been installed.
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 Global Canna Labs Limited
All information contained in this press release relating to Global Canna Labs Limited has been provided to LGC by Global Canna Labs Limited. 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.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Global Canna Labs Limited ("Global Canna Labs"), 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 Global Canna Labs 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 Global Canna Labs has any obligation to update such statements, except to the extent required by applicable securities laws.
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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: please contact: John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: [email protected]; 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 protected]