MONTRÉAL, October 29, 2018 /PRNewswire/ --
- 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.
Not for Distribution in the United States
LGC Capital Ltd. ("LGC") is pleased to announce that it has submitted definitive documentation to the TSX Venture Exchange 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 ØNXI 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 (http://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 .
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 (http://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.
For further information please contact:
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