Mr. John McMullen reports

LGC CAPITAL DELAYS FILING OF ITS ANNUAL AUDITED FINANCIAL STATEMENTS AND HAS APPLIED FOR A MANAGEMENT CEASE TRADE ORDER

LGC Capital Ltd. has delayed the filing of its audited annual financial statements for the year ended Sept. 30, 2018, its related management's discussion and analysis, and the chief executive officer and chief financial officer certifications. The corporation anticipates to be in a position to file the required filings no later than Feb. 15, 2019.

Many of LGC Capital's investments are in the form of convertible debentures and net sales royalties in private cannabis companies. The principle reason behind the corporation's delay in meeting its reporting deadline can be directly attributable to the complexities of establishing the fair values under international financial reporting standards of these financial instruments in respect to the these private cannabis companies.

The corporation's required filings will be made as soon as the board of directors has approved the financial statements and its auditors have delivered their final audit report.

Application for management cease trade order

The corporation has made an application to the Autorite des marches financiers for a management cease trade order, which would restrict all trading in securities of the corporation, whether direct or indirect, by the chief executive officer, chief financial officer and directors of the corporation. There is no guarantee that an MCTO will be granted. The issuance of an MCTO does not generally affect the ability of persons who are not executive officers or directors of LGC to trade in securities of the corporation.

If the MCTO is granted, the corporation intends to comply with the provisions of the alternative information guidelines as set out in the policy statement 12-203 respecting management cease trade orders for as long as it remains in default, including the issuance of biweekly default status reports, each of which will be issued in the form of a news release. The corporation will also continue to disclose any other material information concerning its affairs and continuing business activities.

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.