Mr. John McMullen reports

LGC CAPITAL ANNOUNCES CLOSING OF INVESTMENT IN ITALIAN CANNABIS PRODUCER, EVOLUTION

LGC Capital Ltd. has closed its previously announced transaction with 9379-1432 Quebec Inc., the Canadian incorporated parent company of Evolution BNK and Evolution ATM.

On Aug. 13, 2018, LGC and Evolution entered into a convertible debenture indenture agreement for three million euros. The loan, the proceeds of which have been paid over to Evolution, is convertible into a 49-per-cent equity interest in Evolution and bears interest at the rate of 10 per cent.

Evolution is a legal cannabis (less than 0.2 per cent tetrahydrocannabinol) cultivation facility based in Pavia, Italy. Evolution is completing the retrofit of its 22,000-square-foot indoor facility within their 70,000-square-foot compound in Pavia, Italy, for the production of high-cannabidiol, low (less than 0.2 per cent) THC cannabis. Tests have been consistently positive as the product is well within the legal THC content set by the Italian Ministry of Health. Estimated margins will be greater than 50 per cent due to its patented energy-usage technology and is well placed for any margin compression expected in Europe.

Mazen Haddad, chief executive officer of LGC Capital, stated, "The value driver for Evolution is its low-cost cultivation capacity which may offer synergistic benefits for other LGC investee companies, like Viridi and announced investee EasyJoint, who will require high-quality, compliant product to meet the estimated demands from the European cannabis light and CBD markets."

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.

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