06:47:15 EDT Fri 29 Mar 2024
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or Name
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LGC Capital Ltd
Symbol LG
Shares Issued 357,724,734
Close 2018-05-15 C$ 0.15
Market Cap C$ 53,658,710
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LGC Capital signs final agreement with Global Canna

2018-05-15 10:19 ET - News Release

Mr. John McMullen reports

LGC CAPITAL LTD AND GLOBAL CANNA LABS SIGN FINAL AGREEMENTS FOR JAMAICAN CANNABIS TRANSACTION

LGC Capital Ltd. has confirmed that the documentation for its Global Canna Labs Ltd. transaction was completed in Kingston, Jamaica, earlier this week, and has now been submitted to the TSX Venture Exchange for review and approval.

The signed contracts provide 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 $2.0-million, payable in shares of LGC.

Please note that the terms for the royalty acquisition have been changed from what was previously announced on April 20, 2018, from $2.4-million (payable in LGC shares) down to $2.0-million (payable in LGC shares).

The Jamaican Cannabis Licencing Authority has passed the site inspection for Global Canna Labs' initial 6.2-acre Montego Bay facility for its cultivator's licence (Tier 3 -- more than five acres), one of the few large-acreage projects in Jamaica.

The construction of the first 27,000 square feet of secured greenhouse growing space has been completed and all materials are now on site to commence construction of the next 28,000 square feet of greenhouses. The second phase of greenhouse construction is scheduled to commence in the next two weeks. The drying facilities and packaging and processing areas are currently under construction.

John McMullen, chief executive officer of LGC Capital, stated: "Global Canna Labs plans to quickly build a globally recognized Jamaican brand, grown by Jamaicans for the Jamaican market and soon the global market. Jamaica has one of the most recognized and understood cannabis brands in the world and to be part of this exciting venture is a major achievement for LGC Capital."

Paul Glavine, president of Global Canna Labs, said: "We are very excited to establish this significant investment into the Jamaican economy with this investment. Global Canna, with LGC Capital's financial assistance, believes it will be able to achieve all of its business objectives to build a strong organic cannabis brand in Jamaica."

Jamaica has a population of 2.9 million (2017) and last year saw a record 4.7 million tourists visit the country. This was an increase of more than 12 per cent from 2016. The Jamaican Tourist Board is optimistic that this trend will continue in 2018.

About LGC Capital Ltd.

LGC Capital's objective is to become a diversified business group with core business divisions which provide shareholders with exposure to a diverse range of businesses, products and services, with an emphasis on significant investments in global medical cannabis sector.

We seek Safe Harbor.

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