MONTREAL, May 29, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (LG.V) (LGGCF) ("LGC" or the “Corporation”) announces it has closed its previously announced transaction with 9379-1432 Québec Inc., the Canadian incorporated parent company of Evolution BNK and Evolution ATM (collectively referred to as “Evolution”).
On 13 August 2018, LGC and Evolution entered into a convertible debenture indenture agreement (the “Loan”) for Euro 3 million. The Loan, the proceeds of which have been paid over to Evolution, is convertible into a 49% equity interest in Evolution and bears interest at the rate of 10%.
Evolution is a legal cannabis (less than 0.2% THC) cultivation facility based in Pavia, Italy. Evolution is completing the retrofit of its 22,000 sq. ft. indoor facility within their 70,000 sq. ft. compound in Pavia, Italy for the production of high CBD, low (<0.2%) THC cannabis. Tests have been consistently positive as the product is well within the legal THC content set by the Italian Ministry of Health. Estimated margins will be greater than 50% due to its patented energy usage technology and is well placed for any margin compression expected in Europe.
Mazen Haddad, CEO LGC Capital “The value driver for Evolution is its low cost cultivation capacity which may offer synergistic benefits for other LGC investee companies like Viridi and announced investee, EasyJoint who will require high quality, compliant product to meet the estimated demands from the European cannabis light and CBD markets.”
About LGC Capital Ltd (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 of investment companies, LGC is building a transversal integrated organization 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 (LG.V) and the US OTC-QB exchange (LGGCF).
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC presently will have interests in Jamaica, Switzerland, Italy, Canada and Australia.
LGC partners currently sell cannabis or cannabis-derived products 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 and Hemp-seeds based Medical devices class IIa and Nutritional supplements under Freia Farmaceutici Brands. LGC’s partners’ branded products are available in a variety of formats including medicines, Cosmetics, dry cannabis flower, tinctures, oils and seeds.
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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 Evolution Bnk 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 months ended December 31, 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 Freia 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.