LGC Capital Provides 2018 Year in Review and Goals for 2019

LGC Capital Provides 2018 Year in Review and Goals for 2019

PR Newswire

MONTRÉAL, December 27, 2018

MONTRÉAL, December 27, 2018 /PRNewswire/ --


LGC Capital Ltd. (TSXV: LG) is pleased to announce that this year has seen a lot of positive developments in the cannabis industry and LGC has been at the forefront of some very important milestones for the industry, particularly overseas. We, the management team at LGC have prepared this letter to you, our valued shareholders, to give an update on the milestones that we have achieved in 2018 as well as operational updates of our investments and what is planned for 2019. LGC has grown rapidly in the global arena, and we will continue to seek investments in new and exciting frontiers from growing, processing and through to sales and distribution of a broad range of legal cannabis products.

Overview of 2018 

At the outset of 2018, the goal for LGC was to lay the groundwork for a system of interconnected cannabis companies in the legal global cannabis market in a diverse country spread. To achieve this, LGC secured and announced a number of investments into various cannabis operators which span the supply chain from production, processing, distribution, and retail. In addition to the new investments announced, a major goal of LGC was to continue to strengthen its cannabis investments which had been announced in 2017.

Over the course of this year LGC officially closed three investments into cannabis operations with full regulatory approval from the TSX Venture Exchange, these being Tricho-Med in Quebec, Canada, Global Canna Labs in Jamaica, and Viridi Unit in Switzerland. In 2018 we also announced two new strategic investments with fast growing cannabis operations on Italy, Evolution Bnk and EasyJoint. Closing of these transactions are still subject to regulatory approval from the TSX-V and we are working closely with the TSX-V to close these transactions. This year we have also seen major operational updates from our investment from 2017, Little Green Pharma in Australia.

Where LGC stands today through our partners (assuming pending transactions under review by the TSXV are approved), LGC has now interests in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia, with that number expected to increase to over 2,100,000 square feet by 2021, as our portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med's operations in Quebec, Canada.

Our 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, cosmetics, seeds, and beverages.

Here is a summary of our investment and operational updates that we have achieved in 2018:

Investment Updates 

Operational Updates 

"During 2018, LGC strengthened its team with industry professionals from the cannabis and international tobacco sectors. These individuals are advancing our corporate goal of creating a solid footprint for our global operations," stated John McMullen, CEO of LGC Capital. "The aggressive investment strategy adopted by LGC in 2018 has positioned LGC as a recognized global leader and as such we are now being approached by numerous potential strategic partners wanting to align with us. We believe that this coming year will see our investee companies announce many supply agreements, expand their growing operations and ultimately accelerate revenue and profits. We also envisage a number of investee companies getting listed on various stock exchanges. I wish all of you a safe and enjoyable holiday."  

Summary of LGC's investment portfolio 

          Company             Location              Description           LGC Ownership
                                             Over 270,000 square feet
                                             of cultivation in Montego
                                             Bay. Global Canna Labs'
                                             license allows for         30% equity through
                                             unlimited expansion        convertible debt +
                                             through multiple site      5% royalty on net
     Global Canna Labs  Montego Bay, Jamaica locations in Jamaica.      sales
                                             Premium low-cost producer
                                             of medical cannabis
                                             products. Trico-Med's
                                             facility will be one of
                                             the first enclosed,
                                             multi-level GMP cannabis   49% equity through
                                             producers in Quebec with   convertible debt +
                                             the lowest input costs in  5% royalty on net
        Tricho-Med      Montreal, Quebec     Canada.                    sales
                                             Evolution BNK is high-tech
                                             cannabis producer with
                                             indoor production
                                             facilities in Pavia, Italy 49% equity through
                                             as well as greenhouse      convertible debt +
                                             production in Sanremo,     5% royalty on net
       Evolution Bnk    Sanremo, Italy       Italy.                     sales
                                             Viridi Unit is a
                                             vertically integrated
                                             cannabis company with over
                                             100,000 sq st of
                                             cultivation and selling in
                                             over 80 shops in the
                                             fast-growing legal         30% equity + 5%
                                             cannabis market in         royalty on net
        Viridi Unit     Geneva, Switzerland  Switzerland and the EU.    sales
                                             Easyjoint is the
                                             undisputed Italian market
                                             leader with approximately
                                             85% of the distribution of
                                             the "legal weed" industry
                                             and has established itself 47% of common
         EasyJoint      Parma, Italy         as a well-known brand      equity
                                             Little Green Pharma is the
                                             first and only Australian
                                             licensed cannabis producer
                                             that is permitted to grow
                                             and sell Australian grown
    Little Green Pharma Perth, Australia     medical cannabis products  15% common equity

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. 

Chief Executive Officer
John McMullen

Chief Financial Officer
Anthony Samaha

Investor Relations
Dave Burwell

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