MONTREAL, April 20, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce it has successfully completed its due diligence on its proposed investment in Jamaican cannabis company Global Canna Labs Limited ("Global Canna Labs") and will soon be submitting all of the necessary agreements and supporting documentation to the TSX Venture Exchange for their approval.

The first 29,000 sq. feet of greenhouses, of the initial Stage 1 58,000 sq. feet build-out have been constructed at Montego Bay and a new 2,500 sq. feet nursey and mother plant complex is currently under construction. Global Canna Labs has applied for a Herbhouse license which enables  consumption and sales directly onsite. In addition to that Global Canna Labs have also applied for a Tier-2 processing license for extraction of cannabinoids.

Global Canna Labs have also advised that the Jamaican Government's Cannabis Licensing Authority have completed their site inspections of the Montego Bay facilities on Thursday April 19 for converting their conditional Cultivator's Licence (Tier 3) (over 5 acres) to a full unconditional Cultivator's Licence and they expect formal approvals for the unconditional licence shortly.

On January 26, 2018, LGC announced that it had signed a Letter of Intent with Global Canna Labs and one of its major shareholders that provided for LGC subscribing for a $2.5 million secured debenture, convertible into an initial 30% strategic interest in Global Canna Labs and to also acquire a 5% royalty on Global Canna Labs' net sales for $2.4 million, payable in shares of LGC. (Refer to LGC's news release dated January 26, 2018 for full transaction details)

The Letter of Intent provided LGC the necessary time to carry out legal and technical due diligence, and this due diligence has now been successfully concluded and formal definitive agreements have now been drafted ready for execution, subject only to TSX Venture Exchange approvals.

John McMullen, CEO of LGC commented, "I would like to thank our shareholders for their  patience and understanding given that it has taken more time than expected to complete the due diligence on this transaction. It was important to get the legal and technical reviews completed to the highest standards possible, especially considering the transaction it is in a foreign jurisdiction. It is also excellent news that the Jamaican Cannabis Licensing Authority site inspection of Global Canna Labs' Montego Bay facilities went well last week and we look forward to completing this transaction as soon as possible and moving this into rapid cannabis production." 

Paul Glavine, President of Global Canna Labs, "We are excited that both Global Canna Labs and LGC Capital have satisfied due dillegence on this significant international Ganja day.  We are excited to build a global organic ganja brand that's deeply rooted to Jamaica's rich history of natural island products"

About Global Canna Labs (http://globalcannalabs.com)

Global Canna Labs is a Jamaican entity with its head office located in Kingston, Jamaica, with operations based in Montego Bay, with plans to become one of the leading cultivators and processors in Jamaica of cannabis for legal medical and recreational purposes. The Montego Bay site is only 10 minutes from the Montego Bay airport and sea port providing logistics access for facilitating global exports.

About LGC (www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC's objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services with an emphasis on significant investments in global medical cannabis sector.

Information Relating to Global Canna Labs Limited

All information contained in this press release relating to Global Canna Labs Limited has been provided to LGC by Global Canna Labs Limited. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.

FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Global Canna Labs Limited ("Global Canna Labs"), and their respective operations, strategy, investments, financial performance and condition. These statements generally can be identified by use of forward- looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of LGC and Global Canna Labs could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under "Risk Factors and Risk Management" in LGC's Management's Discussion and Analysis for the fiscal year ended September 30, 2017, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and neither LGC nor Global Canna Labs has any obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE LGC Capital Ltd