Mr. John McMullen reports

LGC CAPITAL, LTD., UPDATE ON TRICHOMED, QUEBEC

LGC Capital Ltd. has been served by Trichomed Corp. with a motion for a declaratory judgement, whereby Trichomed is seeking the cancellation of the convertible debenture it entered into with the company in December, 2017, and to repay the entire amount advanced by LGC representing $4-million, plus the interest accrued thereon. Under the terms of the debenture, upon Trichomed receiving its licence to cultivate cannabis from Health Canada, the loan amount shall be converted into that number of common shares of Trichomed equivalent to 49 per cent of Trichomed's capital on a fully diluted basis, together with a 5-per-cent net sales royalty on all of Trichomed's future revenues.

Mazen Haddad, chief executive officer, stated: "We believe that this action from Trichomed is without merit and LGC is well within its rights to continue to hold its position with its investment in Trichomed while we await approval from Health Canada. We are confident that we will resolve this matter as quickly as possible and in the best interest of our shareholders."

We seek Safe Harbor.