LGC Capital announces construction works have formally begun at Tricho-Med's first 34,000 square feet Medical Cannabis facility in Brownsburg, Quebec
Symbol: TSX-V: LG
MONTREAL, April 30, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that demolition has begun at Tricho-Med's site in Brownsburg, Quebec, to clear the way for construction of their initial 34,000 square feet state-of-the-art multi-level indoor growing facility for Medical Cannabis.
Management from both LGC and Tricho-Med were present to witness the initial work, as well as to walk the additional acreage for expansion.
As previously announced on April 9, the initial Phase-1 facility of 34,000 sq. feet will comprise of 7 air tight, controlled atmosphere flowering chambers. The facility has been designed to ensure it qualifies as a GMP facility. Tricho-Med is targeting to have the steel structure and building envelope completed by the end of October this year. Tricho-Med also plans to increase the scale of its operations, with new land options now signed, to over 2 million square feet of gross building areas (power availability permitting) of controlled atmosphere production capacity.
Tricho-Med is still on track, as per LGC news release of March 28 this year, for its Health Canada inspection by the Fall of this year. Tricho-Med expects to run its two trial harvests as soon as Phase-1 construction is complete, which is a condition to being granted a production license. Tricho-Med is planning to be fully licenced and commercially growing in 2019 from Phase-1, with production increasing progressively as the facilities expands.
Tricho-Med plans to be one of the largest lowest cost producers of high quality Medical Cannabis in Quebec.
Tricho-Med has retained the services of highly experienced growers and regulatory experts to assist with the permitting and approvals processes necessary to commercially produce and sell cannabis in Canada and obtain the necessary GMP certification in order to export internationally.
John McMullen, CEO of LGC Capital stated, "Being at the site at the end of last week to witness the machines starting their work, clearly confirms the me the potential huge size, scope and scale of this exciting project and the bright future ahead for Tricho-Med as their roll-out plans evolve. Once completed, this project will provide our shareholders with ownership in a state-of-the-art facility that is designed to be best-in-class. I personally am proud to know that this project will create many new jobs in the Brownsburg area and in the province of Quebec generally. To invest in and support the Tricho-Med Project gives me great confidence in our combined futures."
LGC entered into a four-year secured convertible loan agreement with Tricho-Med in the amount of CAD $4 million, which is being disbursed in accordance with pre-agreed milestones and related disbursement schedules. Interest on the Loan is fixed at an annual rate of 10% which will be payable from available operational cash flow. Upon Tricho-Med obtaining a license to produce Medical Cannabis from the relevant regulatory authorities, the loan will convert into common shares of Tricho-Med, representing 49% of then-issued and outstanding shares. LGC will also receive a 5% royalty on Tricho-Med's net sales.
LGC Capital is also pleased to announce that it has retained the services of Vertex Strategies Inc. (Vertex) for its investor relations services. Ms. Thaya has extensive knowledge and IR experience in the Medical Cannabis sector in Canada having previously worked with another successful Quebec based Medical Cannabis LP. We welcome her to the LGC team and look forward to increasing industry and market interest in LGC's rapidly growing portfolio of investments.
Effective April, 2018, Vertex will provide marketing and investor relations services to the Company at the initial base rate of $7,500 per month. Vertex has also been granted 500,000 options to purchase common shares in LGC (the "Options") at an exercise price of $0.15. The Options will vest over 18 months. Vertex and its principals will act at arm's length to LGC and currently have no direct or indirect interest in the securities of LGC, or any right or intent to acquire such an interest, with the exception of the above options. The Vertex agreement and grant of the Options are subject to the approval of the TSX Venture Exchange.
About Vertex Strategies Inc.
Vertex Strategies Inc., is a full service communications and investor relations firm supporting public companies to strengthen their investor relations activities and effectively communicate the Company's growth amongst analysts, portfolio managers, stockbrokers, institutional and venture capital investors, individual investors, and the media.
About LGC (www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC's objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services with an emphasis on significant investments in global medical cannabis sector.
Information Relating to Tricho Med, Limited
All information contained in this press release relating to Tricho Med Limited has been provided to LGC by Tricho Med Limited. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Tricho-Med Corporation ("Tricho-Med"), and their respective operations, strategy, investments, financial performance and condition. These statements generally can 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 Tricho-Med 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 fiscal year ended September 30, 2017, 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 Tricho-Med 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
John McMullen, Chief Executive Officer, Tel.: (416) 803-0698, Email: [email protected]; London contact: Anthony Samaha, Chief Financial Officer, Tel.: +44 (0) 20 7440 0640; Shobana Thaya, LGC Capital's Investor Relations, Tel: 416-807-1009, Email: [email protected]; Investor Relations: Dave Burwell, The Howard Group Inc., Tel.: (403) 221-9015, Toll Free: 1-888-221-0915, Email: [email protected]
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