MONTRÉAL, Québec, January 24, 2019 /PRNewswire/ --
Not for Distribution in the United States
LGC Capital Ltd. ("LGC") is pleased to announce that it has received a binding commitment from Arlington Capital Inc., a private London based investment company for a private placement of 80,000,000 common shares in the capital of LGC at a price of $0.10 per share for aggregate proceeds of $8,000,000.
John McMullen, CEO of LGC Capital stated: "We are pleased to welcome Arlington Capital as a strategic investor in our company. This funding significantly boosts our company's balance sheet, and LGC is now fully funded to complete all of the cannabis acquisitions announced in 2018. Our focus will forthwith shift on driving revenues and revenue growth throughout 2019 from our growing footprint of cannabis investments throughout Canada, Australia, Jamaica and Europe. This funding will also allow LGC the necessary capital to consider significantly increasing our ownership in a number of our key investments and pursue new growth opportunities."
Closing of this non-brokered private placement is subject to customary closing conditions including, but not limited to, approval from the TSX Venture Exchange. On closing of the private placement, LGC will pay a 3% finder's fee to an arms-length third party. Upon closing of the private placement, Arlington Capital will become an insider as they will hold a greater than 10% in LGC and will be entitled to appoint a representative to its board of directors.
About LGC Capital Ltd. (www.lgc-capital.com [http://www.lgc-capital.com ]) LGC Capital 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 Canada, Australia, Jamaica, Switzerland, and Italy serving domestic and export markets. LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange .
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC presently will have interests in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia. That is expected to increase to over 2,100,000 square feet by 2021, as its portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med's operations in Quebec, Canada.
LGC partners currently sell cannabis products in over 1,000 points of sale across Switzerland and Italy under the ONE Premium Cannabis and EasyJoint brands as well as medical cannabis oils in Australia under the Little Green Pharma brand. LGC's partners' branded products are available in a variety of formats including dry cannabis flower, tinctures, oils, seeds, and beverages.
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 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 LGC has no 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.
For further information please contact: Chief Executive Officer, John McMullen, +1-416-803-0698, email@example.com
Chief Financial Officer, Anthony Samaha, +44-20-7440-0640, firstname.lastname@example.org
Investor Relations, Dave Burwell, +1-403-221-0915, email@example.com