LGC Capital Raises $3 Million to Fund Global Medical Cannabis Expansion Plans
MONTREAL, Sept. 5, 2017 /CNW/ - LGC Capital Ltd. (TSXV: QBA) ("LGC" or "LGC Capital) is pleased to announce that the subscription agreements received to date totals $3.0 million for its private placement of a maximum of 30,000,000 units, which has conditional approval from the TSX Venture Exchange, at a price of $0.10 per unit, for maximum gross proceeds to LGC of $3.0 million.
LGC has now received additional signed subscription agreements and subscription funds for a total aggregate amount of $3,000,000, which represents 30,000,000 units, of which senior management and directors are contributing $477,636. Due to the long weekend LGC announces that the TSX Venture Exchange has set Friday, September 8, 2017 as the deadline for closing of the private placement.
John McMullen, LGC's CEO, comments:
"On behalf of LGC I would like to personally thank our new investors and the company's insiders for investing in LGC's global strategy. This money will rapidly advance our legal medical cannabis initiatives not only in southern Africa but will and also the Company to pursue new investment initiatives in the Asian Pacific region where we see accretive legal cannabis opportunities."
Each of the units will be comprised of one common share and one common share purchase warrant; each warrant will entitle its holder to acquire one additional LGC common share at a price of $0.15 for a period of one year from the closing date. In the event that the closing price of LGC's common shares on the TSX Venture Exchange is at least $0.20 for a period of not less than 20 consecutive trading days, the warrants will expire, at the sole discretion of LGC, on the 30th day after the date on which LGC sends a notice in prescribed form to the holders of the warrants.
The units are being offered to "accredited investors" in some or all of the provinces of Canada and in other global jurisdictions, if any, determined by LGC.
At the closing of the private placement, LGC will pay cash commissions to various securities dealers in an amount equal to 8% of the proceeds from the sale of units sold through such dealers. In addition, LGC will issue "broker warrants" to such dealers in an amount equal to 8% of the number of units sold through them. Each of the broker warrants will entitle the holder to purchase one additional LGC common share at a price of $0.10 for a period of six months from the closing date of the private placement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.
About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: QBA). LGC Capital'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, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC Capital has now entered into the agricultural space and the medical cannabis sector in southern Africa through its new joint venture with AfriAg and is seeking new investments opportunities in this sector not only in southern Africa but also elsewhere in the world.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its Joint Venture with AfriAg, its investment in House of Hemp, and LGC's 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, the Joint Venture with AfriAg and the investment in House of Hemp 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, changes in 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, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC, the Joint Venture, and persons acting on their respective behalves. 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.
SOURCE LGC Capital Ltd
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LGC Capital: John McMullen, Chief Executive Officer, Tel: +1(416) 803-0698, Email: [email protected]; Or for Investor Relations please contact: The Howard Group Inc., Dave Burwell, Vice President, Tel: +1(403) 221-9015, Toll Free in Canada: 1-888-221-0915, Email: [email protected]
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