Mr. John McMullen reports

LGC CAPITAL REACHES SIGNIFICANT MILESTONE IN CLOSING PROCESS OF ITS INVESTMENT IN SWISS CANNABIS PRODUCER, VIRIDI UNIT SA

LGC Capital Ltd. has submitted definitive documentation to the TSX Venture Exchange in respect of its investment in Swiss cannabis producer Viridi Unit SA for regulatory approval. Submission of the documentation to the TSX Venture Exchange represents a significant milestone in the closing process of the transaction. Closing of the transaction is now only subject to TSX-V approval.

Viridi's market presence in Switzerland and Europe

Earlier this month, LGC announced that Viridi is in the process of harvesting and processing 20,000 plants that were growing at its Geneva cannabis cultivation facility, consisting of 108,000 square feet of canopy space.

These plants are expected to yield approximately 3,000 kilograms of dried cannabis flowers from this current crop for sale within Switzerland. Viridi Unit's high-CBD dry cannabis products are sold under the One premium cannabis brand in over 100 retail locations across Switzerland.

LGC Capital's investment in Viridi

On Aug. 1, 2018, LGC announced a binding agreement to acquire a 30-per-cent interest in Viridi, a vertically integrated legal cannabis supplier to the Swiss and European markets.

Under the terms of the agreement, LGC acquires 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's 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 royalty on Viridi's net sales for a period of 10 years.

For this transaction, a finder's fee of around 2.5 per cent cash and 2.5 per cent in LGC shares will be paid to an arm's-length party. This transaction is subject to review and approval by the TSX-V.

John McMullen, chief executive officer of LGC, stated: "We are very pleased with the work that the LGC and Viridi teams have been doing to complete and formalize this investment and having reached this significant milestone. We have been working extensively with the TSX Venture on ensuring that all of our legal global cannabis investments operate with the highest level of compliance. Europe is a significant growth market for the legal cannabis industry and partnering with Viridi, given their production processes, distribution network and strength in branding for the European market, gets LGC firmly established in this market."

About LGC Capital Ltd.

LGC Capital is a leading investment firm with a focus on the legal global cannabis market. Through its portfolio investment companies, LGC is building a world-leading, vertically integrated system of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy and Canada serving domestic and export markets.

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