Mr. John McMullen reports

LGC CAPITAL COMPLETES CONVERTIBLE LOAN TRANSACTION FOR US$2,340,000

Following receipt of conditional approval from the TSX Venture Exchange, LGC Capital Ltd. has now closed its previously announced convertible loan transaction with international investors YA II PN Ltd. and RiverFort Global Opportunities PLC, pursuant to which they have loaned to LGC an aggregate amount of $2.34-million (U.S.). The proceeds of the loan have been be used to refinance existing debt maturity.

The loan has a term of 12 months with one-half of the principal amount outstanding payable in six equal monthly instalments beginning on the date falling six months from the date of closing and the remaining outstanding amount payable in a single instalment at maturity. The loan bears interest at an annual rate of 12 per cent, payable in cash on the date which is three months from the date of closing and, thereafter, on each date on which a repayment of principal is made.

The principal amount of the loan may be convertible into common shares of LGC at the option of the lenders at a price per share equal to the lesser of (i) 9.12 U.S. cents, representing the United-States-dollar equivalent of 120 per cent of 10 Canadian cents; and (ii) 90 per cent of the lowest daily volume weighted average price during the five trading days immediately preceding the date of the conversion notice from the lenders, subject to a minimum conversion price of 7.6 U.S. cents, representing the U.S.-dollar equivalent of 10 Canadian cents.

At closing, the corporation issued an aggregate of 12,048,055 common share purchase warrants to the lenders, representing an amount equal to 45 per cent of the principal amount of the loan divided by 8.74 U.S. cents, representing the U.S.-dollar equivalent of 11.5 Canadian cents. Each warrant entitles the holder thereof to acquire one share at an exercise price of 11.5 Canadian cents for a period of one year from the date of issuance.

In connection with the transaction, LGC paid a cash due diligence fee of $13,100 (U.S.) to RiverFort Global Capital Ltd. of London, England.

The securities issued by the corporation at the closing of the transaction, or upon conversion of the loan or upon exercise of the warrants, are subject to restrictions on resale for a period of four months and one day from the date of closing. LGC is at arm's length to both of the lenders and to RiverFort.

About LGC Capital Ltd.

LGC is a leading cannabis investment firm with a focus on the legal global cannabis market. Through its growing portfolio investment companies, LGC is building a 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. LGC is a Canadian incorporated public company listed on the TSX-V.

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