Mr. John McMullen reports

LGC CAPITAL GRANTED MANAGEMENT CEASE TRADE ORDER

LGC Capital Ltd.'s principal regulator, the Autorite des marches financiers, has accepted the corporation's request for, and the AMF has granted, a management cease trade order. As previously announced on Jan. 28, 2019, the application for the MCTO was made by the corporation due to a delay in the filing of the corporation's annual audited financial statements for the financial year ended Sept. 30, 2018, the accompanying management's discussion and analysis, and the related chief executive officer and chief financial officer certifications.

The MCTO restricts all trading in securities of the corporation, whether direct or indirect, by the chief executive officer, the chief financial officer and the directors of the corporation until such time as the required filings have been filed by the corporation and the MCTO has been lifted. The MCTO does not affect the ability of shareholders who are not insiders of the corporation to trade their securities. However, the applicable Canadian securities regulatory authorities could determine, in their discretion, that it would be appropriate to issue a general cease trade order against the corporation affecting all of the securities of the corporation.

As previously announced, the corporation was not in a position to timely file the required filings. LGC's board of directors and its management confirm that they are working expeditiously to meet the corporation's obligations relating to the filing of the required filings, and the corporation continues to expect to file the required filings no later than Feb. 15, 2019.

During the MCTO, the corporation confirms that it will comply with the provisions of the alternative information guidelines set out in 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 also confirms that there is no other material information concerning the affairs of the corporation that has not been generally disclosed as of the date of this press release.

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.