Mr. John McMullen reports

LGC ANNOUNCES BINDING AGREEMENT WITH A VERTICALLY INTEGRATED SWISS CANNABIS COMPANY FROM SEED TO AN EXISTING BROAD RANGE OF PRODUCT AND SALES STREAMS

LGC Capital Ltd. has entered into a binding agreement to acquire 30 per cent of the capital of Viridi Unit SA of Switzerland. Viridi is a vertically integrated legal cannabis supplier to the Swiss and European markets, growing its own seeds and flowers, producing and developing a wide range of cosmetics, cigarettes and natural wellness Swiss-authorized products amongst many of its diversified products and activities.

Under the terms of the agreement, LGC will acquire its 30-per-cent interest through the issuance to Viridi of that number of common shares of LGC for a value corresponding to three million Swiss francs ($3,940,498.91). The exact number of shares to be issued will be based on the five-day volume-weighted average price of LGC common shares immediately prior to the closing date. It is estimated that the shares to be issued will represent less than 10 per cent of the number of currently outstanding LGC shares. LGC will also receive a 5-per-cent lifetime royalty on Viridi's net sales. For this transaction, a finder's fee of around 3 per cent cash and 3 per cent in shares will be paid to an arm's-length party. This transaction will be subject to review and approval by the TSX Venture Exchange.

Cannabis was legalized in Switzerland for both medicinal and recreational use in 2011. The date of this agreement was signed July 1, 2018, and, since then, LGC has been carrying out a due diligence process to satisfy the company and its regulators.

Currently, Viridi has 20,000 specialty plants growing that are expected to yield 3,000 kilograms of dried flowers from this current crop. In addition, this current 2018 crop is expected to generate around one million seeds for sale in Europe. The One Premium Cannabis brand products are currently available throughout Switzerland in 85 locations.

To have full control of its final products, Viridi cultivates and processes its own flowers through various production areas. Viridi operates a farm in Switzerland, consisting of one hectare (100,000 square feet) of cultivation in both hoophouses and greenhouses. Viridi also has direct access to five hectares of cultivation, where it is currently growing their proprietary CBD (cannabidiol) genetics, distributed between Switzerland, and Europe, and producing all the necessary flowers.

One CBD Seed

One CBD Seed is a division aimed at creating and developing cutting-edge cannabis-based solutions to the world's problems. Throughout its operational facilities, rigorous testing and production are carried out in order to deliver elite genetics a multitude of applications, including high-grade extraction products that adhere to regulatory requirements.

Viridi Care cosmetics range

Viridi Care is a revolutionary range of CBD and hemp cosmetics -- an extensive range of high-end skin care products that are manufactured following the strictest aesthetic medicinal protocols. All Viridi Care cosmetics are developed and manufactured in Switzerland.

One Premium Cannabis range

ONE Premium Cannabis is a premium collection of in-house varieties of superior CBD strains -- uniquely chosen for their combination of flavours and diverse range of terpenes to create the best smokable flower while sourcing the best CBD profiles for therapeutic properties. All products produced and sold are Swiss made and comply with Swiss laws.

The Naiv range

Naiv is a brand dedicated to natural wellness and relaxation. Naiv selects the best varieties of hemp and cannabis to create high-end natural products for targeted needs, including cosmetics, sports care, pet care, food and drink, fashion, and home design.

Viridi Consulting

Viridi provides cannabis consulting services from prefeasibility studies to strategic opportunities.

Technical consulting:

• Indoor/greenhouse/outdoor farm project implementation;
• CBD genetic advisory;
• Set-up of high-end protocols;
• Staff training: growers, extraction technicians and bud tenders.

Sales and strategic consulting:

• Pricing analysis of both flower and extraction market;
• Identifying European Union current market prices;
• Risk assessment in launching new cannabis business in Europe.

John McMullen, chief executive officer of LGC, stated: "We see Europe as one of the most exciting markets for legal cannabis in the world, and to have this new business partnership and investment in Viridi reflects yet another valuable cannabis producing company joining LGC's legal global cannabis investment portfolio. We believe that a team such as Viridi will excel in the European cannabis market, where projections for the overall market are currently estimated to be around 38 billion euros ($57.88-billion) per year, growing to over 50 billion euros ($76.16-billion) in annual sales over time."

Mathieu Marcoulides, chief executive officer of Viridi, stated: "We are very excited to welcome LGC Capital as a core shareholder of our company as we strongly believe in the great value of our future synergies. We have positioned Viridi to be a premium manufacturer of various products that will be enhanced with the distribution capacities coming from the various JVs [joint ventures] and investments within the LGC portfolio. It is certain that this will be a tremendous value creator for shareholders of both companies. The Canadian market opening on Oct. 17, 2018, and LGC positioning will allow to promote swiftly Viridi Swiss-made products to a very promising and quality-demanding market."

Closing of the transaction is subject to completion of due diligence and the TSX Venture Exchange granting final approval.

About LGC Capital Ltd.

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.

We seek Safe Harbor.