- LGC Capital completes all-stock transaction for 30% of
Viridi's stock plus 5% royalty on Viridi's net sales.
/NOT FOR DISTRIBUTION IN THE UNITED STATES/
MONTRÉAL, Dec. 12, 2018 /CNW
Telbec/ - LGC Capital Ltd. (TSXV: LG) (OTC-PINK: LGGCF)
("LGC") is pleased to announce that it has closed its previously
announced transaction with Swiss cannabis producer, Viridi Unit SA
("Viridi"). LGC has issued 35,167,001 shares of its common
stock at a price of $0.1143 each to
Viridi in exchange for a 30% equity interest in Viridi plus a 5%
royalty on Viridi's net sales over ten years. All final
documentation in respect of the transaction will be submitted today
to the TSX Venture Exchange.
Viridi's Market Presence in Switzerland and Europe
Viridi produces, processes, and distributes high-CBD legal
cannabis products under the ØNΞ Premium Cannabis brand in over 500
retail locations across Switzerland.
Recently in October, LGC announced that Viridi had harvested and
processed 20,000 plants that were growing at their Geneva cannabis cultivation facility,
consisting of 65,000 square feet of canopy space. This recent
harvest yielded 2,700 kg of high-CBD dried cannabis flowers to be
used as inputs to the ØNΞ Premium Cannabis products as well as for
wholesale markets across Europe.
Viridi uses a proprietary breeding system for its high quality,
high-CBD strains and seeds that comply with the Swiss regulations
of <1% THC and European Union regulations of <0.02%
THC. Viridi will also be launching its CBD cosmetics line
called Viridi Care for the global market in early 2019.
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 has acquired its 30%
interest through the issuance to Viridi of 35,167,001 common shares
of LGC at an issue price of $0.1143
each for a total consideration corresponding to CHF 3 million ($4,019,588.22).
The number of shares issued is based on the 5-day VWAP of LGC's
common shares at close of markets on December 5, 2018. The shares issued to Viridi
represent approximately 8.45% of the number of issued and
outstanding LGC shares on a post-closing basis.
LGC has also been granted a 5% royalty on Viridi's net sales for
a period of ten years.
For this transaction, LGC has paid a finder's fee to an arm's
length party equal to 3% of the total consideration in cash and 2%
of the total consideration by the issuance of 703,340 common shares
of LGC.
All common shares issued by LGC in connection with the
transaction are subject to a four-month hold period.
John McMullen, CEO of LGC
stated: "The LGC team and I are very pleased with the
closing of our strategic investment in Viridi. With partners like
Viridi in Switzerland, we at LGC
are solidifying our presence in the legal European cannabis market
which is estimated to grow upwards of $98
billion by 2025 according to a recent BMO report. As the
cannabis market grows rapidly inside Switzerland and the European Union, Viridi and
its ØNΞ Premium Cannabis are building a strong name as a
leading provider of high quality, high CBD, compliant cannabis
products in Europe.
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 investment companies, LGC is building a 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).
Through its partners and assuming pending transactions under
review by the TSXV are approved, LGC currently will have 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 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 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.
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.
SOURCE LGC Capital Ltd