LGC Provides Update On Quebec-Based AAA Trichomes - Secures Contractors and Ground Breaking Date

Symbol: TSX-V: LG

MONTREAL, March 28, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to provide an update on its investment in Tricho-Med Corporation (doing business as "AAA Trichomes") in Quebec, Canada.

AAA Trichomes has hired NGA as its general contractor and steel structure manfacturer for the construction of its phase-1 34,000 square foot state-of-the-art facility in Brownsburg, Quebec.  NGA has more than 27 years of expertise in industrial and commercial construction and is a leading contractor in Quebec.

NGA will oversee every detail of the construction of AAA Trichomes' new facility. This will encompass the architectural design, engineering plans, fabrication of steel structures and complete construction.  For further information please refer to NGA's website: http://nga.qc.ca/

AAA Trichomes has also extended a contract for HVAC installation and design to Leprohon. Leprohon has been servicing industrial customers since 1930, with more than 200 employees, a fleet of a 100 trucks and a culture of engineering and technical excellence. For furhter information please refer to Leprohon's website: https://www.leprohon.com/

Executives at AAA Trichomes also secured an agreement with Hydro Quebec for the provision of electricity to the facility. Electricity rates in Quebec are among the lowest in Canada and will support AAA Trichomes' goal of being one of the lowest cost cannabis producers in the country. 

LGC is also pleased to announce that the official ground-breaking for the facility located in Brownsburg, Quebec, will occur in April 2018.

As stated in prior news releases, AAA Trichomes is on track for its Health Canada inspection by the Fall of this year.  AAA Trichomes 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. Full scale commercial production is expected to begin in early 2019.

AAA Trichomes has already commenced detailed planning for its Phase-2 and Phase-3 expansions, which are targeting a capacity of over one million square feet of cultivating and processing space by 2020.

LGC entered into a four-year secured convertible loan agreement with AAA Trichomes in the amount of CAD $4 million, which will be disbursed in accordance with a pre-agreed milestone disbursement schedule.  Upon AAA Trichomes obtaining a license to produce medical cannabis from the relevant regulatory authorities, the loan will convert into common shares of AAA Trichomes representing 49% of then-issued and outstanding shares.  LGC will also receive a 5% royalty on AAA Trichomes' net sales.

John McMullen, CEO of LGC Capital stated, 

"Milestones are being met on time at AAA Trichomes. Turn-Key builders and Air and Lighting Installation Companies have been engaged and are moving forward.  LGC is seeing, firsthand, AAA allocating our investment into the project.  What I appreciate is that AAA is making improvements on the project without expanding the budget. By speaking with AAA management weekly, LGC has complete visibility to the project.  AAA will also be launching its website as well to illustrate their project.  Once ground breaking has commenced, it is AAA's goal is to have the physical building completed within four months. 

AAA is taking all the required steps to ensure that this state-of-the-art facility complies with all ACMPR requirements to grow, and process, high quality medical cannabis for the Consumer.  I look forward to attending the ground breaking event and applaud the efforts of the entire team at AAA, and their consultants, to build this opportunity for LGC Shareholders and the Cannabis Sector."

About LGC (http://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 Tricho-Med Corporation (doing business as "AAA Trichomes")

All information contained in this press release relating to AAA Trichomes has been provided to LGC by AAA Trichomes. 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 (doing business as "AAA Trichomes"), 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 AAA Trichomes 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 AAA Trichomes 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.: [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]