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LGC Capital Ltd
Symbol LG
Shares Issued 356,494,266
Close 2018-04-20 C$ 0.16
Market Cap C$ 57,039,083
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LGC Capital completes Global Canna due diligence

2018-04-20 17:00 ET - News Release

Mr. John McMullen reports

LGC CAPITAL COMPLETES DUE DILIGENCE ON GLOBAL CANNA LABS TRANSACTION AND IS PROCEEDING WITH FINAL DOCUMENTATION

LGC Capital Ltd. has successfully completed its due diligence on its proposed investment in Jamaican cannabis company Global Canna Labs Ltd. and will soon be submitting all of the necessary agreements and supporting documentation to the TSX Venture Exchange for approval.

The first 29,000 square feet of greenhouses, of the initial stage 1, 58,000-square-foot buildout, have been constructed at Montego Bay, and a new 2,500-square-foot nursery and mother plant complex is currently under construction. Global Canna Labs has applied for a herb-house licence which enables consumption and sales directly on site. In addition to that, Global Canna Labs has also applied for a Tier 2 processing licence for extraction of cannabinoids.

Global Canna Labs has also advised that the Jamaican government's Cannabis Licensing Authority completed its site inspections of the Montego Bay facilities on Thursday, April 19, for converting its conditional cultivator's licence (Tier 3) (over five acres) to a full unconditional cultivator's licence, and it expects formal approvals for the unconditional licence shortly.

On Jan. 26, 2018, LGC announced that it had signed a letter of intent with Global Canna Labs and one of its major shareholders that provided for LGC subscribing for a $2.5-million secured debenture, convertible into an initial 30-per-cent strategic interest in Global Canna Labs, and to also acquire a 5-per-cent royalty on Global Canna Labs' net sales for $2.4-million, payable in shares of LGC. (Refer to LGC's news release dated Jan. 26, 2018, for full transaction details.)

The letter of intent provided LGC the necessary time to carry out legal and technical due diligence, and this due diligence has now been successfully concluded and formal definitive agreements have now been drafted ready for execution, subject only to TSX Venture Exchange approvals.

John McMullen, chief executive officer of LGC, commented: "I would like to thank our shareholders for their patience and understanding given that it has taken more time than expected to complete the due diligence on this transaction. It was important to get the legal and technical reviews completed to the highest standards possible, especially considering the transaction is in a foreign jurisdiction.

"It is also excellent news that the Jamaican Cannabis Licensing Authority site inspection of Global Canna Labs' Montego Bay facilities went well last week, and we look forward to completing this transaction as soon as possible and moving this into rapid cannabis production."

Paul Glavine, president of Global Canna Labs, said: "We are excited that both Global Canna Labs and LGC Capital have satisfied due diligence on this significant international ganja day. We are excited to build a global organic ganja brand that's deeply rooted to Jamaica's rich history of natural island products."

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 seaport providing logistics access for facilitating global exports.

About LGC Capital Ltd.

Information relating to Global Canna Labs

All information contained in this press release relating to Global Canna Labs has been provided to LGC by Global Canna Labs. 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.

LGC Capital is a Canadian incorporated public company listed on the TSX Venture Exchange. 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.

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