LGC Provides Update on Investment in Etea Sicurezza

Increases revenue for 2017 to 10,100,000 USD, an increase of 26.5%
Symbol: TSX-V: LG

MONTREAL, March 1 , 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that Etea Sicurezza Group Ltd ("Etea") beat revenue expectations in 2017, closing the financial year with consolidated revenue of more than USD $10 million, a 26.5% increase over Etea's 2016 consolidated revenue of USD $7.4 million.  Etea has more than 430 clients that include Ferrari, Buhler, L'Oreal, Unilever, Siemens, Petrobras, Ferrero, Coca-Cola, Martini, Heinz, E.On, Luxottica Group, Shell, Michelin and Roche.  As previously announced, LGC holds 3% of Etea's issued and outstanding shares and has entered into a letter of intent with Etea for a potential acquisition by LGC of approximately 20% of Etea.

In partnership with LGC's Merchant Banking division, Etea is developing a high efficiency mist irrigation system for the Medical Cannabis Industry with the Etea Low Pressure Water Mist ("LPWM") system.  LPWM is able to provide drops of 300 microns for uniform irrigation, avoiding soil damage and water waste, important for large greenhouses and plantations in controlling temperature and humidity through water misting.  This is expected to be a major benefit to all global cannabis growing operations in maintaining the consistency of the growing environment.  This environmentally safe alternative system has the potential to improve results, crop yields and potentially an improved bottom line for customers.

In 2017, Etea started the development of advance intelligence for prevention and environmental statistics with a new hardware device and online prevention software, providing real time monitoring data insights and risk assessment, highly-accurate price control and lower premiums, with the capability to be interconnected to multiple data sources (sensors, CCTV, LAN Wi-Fi and Bluetooth devices, meters and drones).  When combined with the proprietary Etea Risk Assessment, the result is a new technological and high-value service for insurance companies and the end customer.

Etea Sicurezza Water Mist is now a consolidated brand of innovative patented water-based fire-fighting systems achieving a highly favourable combination of cost efficiency and water consumption compared to standard sprinkler systems.  Etea Sicurezza Water Mist is 100% more efficient than standard systems, using 50-60% less water, saving 70% of space and having the same cost to the customer.

In 2017, Etea developed an innovative fire protection fully automated monitor technology for tunnels and warehouses (installed by Anas S.p.A & L'Oreal), which manages motorways, freeways and Italy's national roads as Project Zero.  Etea believes that its products have the potential to become the standard for tunnel protection technology.  One client has requested that Etea present bids for four new tunnels using this technology.

In early 2018, Etea entered into a collaboration with designer Chris Bangle, well known for design development in the automotive industry (BMW, Mini, Rolls Royce, Opel and Fiat) and for Samsung. The collaboration aims to develop a new line extension of Etea-patented nozzles for the civil sector targeting specific architectural components.  This new fire safety design concept addresses a problem for architects and designers since classic systems do not take into consideration the esthetics of the building.  The new product line aims to solve three problems with one solution: connectivity (Wi-Fi), safety and esthetics.

Mazen Haddad, Co-Chairman and Lead Manager of LGC Merchant Bank stated, "I congratulate the Etea team of engineers, staff and management for making this a pivotal milestone year of positive revenue for the company.  LGC is proud of our investment in Etea.  We have visibility from Etea's management for future growth within the Fire Safety Market for all of Etea's Global AAA Customers and in the medical cannabis safety industry."

John McMullen, CEO of LGC Capital stated, "The Merchant Bank with our investment in Etea, has now realized significant revenues.  Additionally, we are excited to see Etea expand its portfolio of products to include irrigation solutions for the legal cannabis sector.  LGC shareholders can rest assured that our Merchant Banking division will continue to source compelling global opportunities.  I look forward to Etea's continued success and a long and fruitful business relationship."

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.

Information Relating to Etea Sicurezza Group Ltd

All information contained in this press release relating to Etea has been provided to LGC by Etea. 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 Etea Sicurezza Group Ltd ("Etea"), 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 Etea 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 Etea 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

please contact: John McMullen, Chief Executive Officer, Tel.: [phone], Email: [email protected]; London contact: Anthony Samaha, Chief Financial Officer, Tel.: [phone]; Investor Relations: Dave Burwell, The Howard Group Inc., Tel.: [phone], Toll Free: 1-888-221-0915, Email: [email protected]