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- LGC Capital submits definitive documentation to TSX-Venture
for regulatory approval of its Viridi Unit transaction.
- Viridi successfully harvests 20,000 high-CBD cannabis plants
for distribution of their cannabis flower and cosmetic products
throughout Switzerland and
Europe.
- Europe is a rapidly growing
and underserviced market for legal cannabis products and Viridi
provides LGC Capital direct access in to Europe.
MONTRÉAL, Oct. 29, 2018 /CNW
Telbec/ - LGC Capital Ltd. (TSXV: LG) and (OTC-PINK: LGGCF) ("LGC")
is pleased to announce that it has submitted definitive
documentation to the TSX Venture Exchange (the "TSX-V) in
respect of its investment in Swiss cannabis producer, Viridi Unit
SA ("Viridi"), for regulatory approval. Submission of the
documentation to the TSX-V represents a significant milestone in
the closing process of the transaction. Closing of the transaction
is now only subject to TSX-V approval.
Viridi's Market Presence in Switzerland and Europe
Earlier this month, LGC announced that Viridi is in the process
of harvesting and processing 20,000 plants that were growing at
their Geneva cannabis cultivation
facility, consisting of 108,000 square feet of canopy space.
These plants are expected to yield approximately 3,000 kg of
dried cannabis flowers from this current crop for sale within
Switzerland. Viridi Unit's
high-CBD dry cannabis products are sold under the ØNΞ Premium
Cannabis brand in over 100 retail locations across Switzerland.
LGC Capital's Investment in Viridi
On August 1, 2018, LGC announced a
binding agreement to acquire a 30% interest in Viridi, a vertically
integrated legal cannabis supplier to the Swiss and European
markets.
Under the terms of the agreement, LGC acquires its 30% interest
through the issuance to Viridi of that number of common shares of
LGC for a value corresponding to CHF 3
million ($3,940,498.91
CAD).
The exact number of shares to be issued will be based on the
5-day VWAP of LGC's common shares immediately prior to the closing
date. It is estimated that the shares to be issued will represent
less than 10% of the number of currently outstanding LGC
shares.
LGC will also receive a 5% royalty on Viridi's net sales for a
period of ten years.
For this transaction, a finder's fee of around 2.5% cash and
2.5% in LGC shares will be paid to an arm's length party. This
transaction is subject to review and approval by the TSX-V.
John McMullen, CEO of LGC
stated: "We are very pleased with the work that the LGC and
Viridi teams have been doing to complete and formalize this
investment and having reached this significant milestone. We
have been working extensively with the TSX-Venture on ensuring that
all of our Legal Global Cannabis investments operate with the
highest level of compliance. Europe is a significant growth market for the
legal cannabis industry and partnering with Viridi, given their
production processes, distribution network, and strength in
branding for the European Market, gets LGC firmly established in
this market."
About LGC Capital Ltd (www.lgc-capital.com)
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.
LGC Capital Ltd. is a Canadian incorporated public company listed
on the TSX Venture Exchange (TSXV: LG).
Notice Regarding Forward Looking Statements
This press release may contain forward-looking statements with
respect to LGC and their respective operations, strategy,
investments, financial performance and condition. These statements
can generally 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 Viridi
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 three and nine
months ended June 30, 2018, 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 Viridi has any obligation to update such
statements, except to the extent required by applicable securities
laws. 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