Mr. Mazen Haddad reports

LGC CAPITAL ANNOUNCES THAT IT HAS INCREASED ITS OWNERSHIP TO 40.4% OF LITTLE GREEN PHARMA IN AUSTRALIA

After much negotiation, LGC Capital Ltd. has successfully acquired, from a non-executive founder, additional shares in Australian licensed medical cannabis producer Little Green Pharma (LGP), bringing its ownership from 14.1 per cent up to 40.4 per cent.

Little Green Pharma was the first, and is currently the only, domestic cannabis company in Australia producing a locally grown medicinal cannabis medicine for patients. LGC believes the opportunity to increase its ownership in Little Green Pharma creates significant value for its shareholders and enables the corporation to further take part in the rapidly expanding Australian medical cannabis market.

Little Green Pharma has had over 400 patients approved in Australia, with new patients increasing exponentially month over month. The Australian industry represents one of the fastest-growing international medical cannabis markets globally, with approximately 6,400 SAS B forms approved to the end of April, 2019, of which 1,110 occurred in April alone. Prohibition Partners estimates that the Australian medical cannabis market could be worth $2-billion (U.S.) by 2028 and $8.7-billion (U.S.) if adult use was to become legal.

Little Green Pharma produces its products in compliance with Australia's strict Therapeutic Goods Order 93 (Standard for Medicinal Cannabis) and is one of only a handful of companies with an EU GMP-recognized (European Union good manufacturing practice) medical cannabis facility.

Expansion plans for Little Green Pharma's cultivation facility have been submitted to Australia's Office of Drug Control to increase production capacity in order to supply the company's growing demand for its products in Australia as well as to export product through its new distribution agreements in Germany, the United Kingdom, Canada and New Zealand.

Mazen Haddad, chief executive officer of LGC Capital, stated: "Little Green Pharma was one of our first investments and as its business and opportunities expanded, and the opportunity to increase our shareholding to over 40 per cent is a significant move for the company. To be the first in Australia to grow and produce a full line of medical THC [tetrahydrocannabinol] cannabis products, in accordance with both Australian and European standards, represents a great opportunity for LGC and its global initiatives. We look forward to expanding Little Green Pharma's production capacity and help growing its reach throughout the globe."

Terms of the transaction

Subject to TSX Venture Exchange approval, LGC Capital will pay to the vendor of the shares $5.5-million (Australian). Closing of this transaction is expected to be within 95 days of signing the agreement.

Statutory information

For the financial year ended June 30, 2018, Little Green Pharma generated revenue of $8,337 (Australian) and had a net loss for the period of $3,757,810 (Australian). This was first year that the company was operational as a legal cannabis business.

About LGC Capital Ltd.

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

Through its partners and assuming pending transactions under review by the TSX-V are approved, LGC has interests in Jamaica, Switzerland, Italy, Canada and Australia.

About Little Green Pharma

Little Green Pharma was the first Australian company to locally grow and produce medicinal cannabis products for sale to Australian patients. The medicines are cultivated, without pesticides, in a hydroponic facility in Western Australia's southwest region and processed in a manufacturing facility near Perth.

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