*LGC Capital is a leading investment firm specializing in the legal global cannabis market. Through its portfolio companies, LGC is building a leading global, vertically integrated system of affiliate legal cannabis companies for cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy and Canada serving domestic and export markets. LGC Capital Ltd . is a Canadian-listed, listed company listed on the TSX Venture Exchange (TSXV: LG).
* Viridi successfully harvests 20,000 high CBD cannabis plants for the distribution of its cannabis and cosmetics products in Switzerland and Europe.
* Europe is a fast-growing and underserved market for legal cannabis products, and Viridi offers LGC Capital direct access to the European market.
Not for distribution in the United States
LGC Capital Ltd . (TSXV: LG and OTC-PINK: LGGCF) (“LGC”) is pleased to announce that the TSX Venture Exchange company (the “TSX-V”) has finalized the contract documents regarding its investment in the Swiss cannabis maker, Viridi Unit SA (“Viridi”) for regulatory approval. Submitting documents to the TSX-V represents an important milestone in the closing process of the transaction. Closing the transaction now only depends on the approval of the TSX-V.
Market presence of Viridi in Switzerland and Europe
Earlier this month, LGC announced that Viridi is harvesting and processing 20,000 plants grown on the Company’s over 108,000 square foot (10,000 square meter) covered cannabis plant in Geneva.
It is expected that the plants from this harvest will yield around 3,000 kg of dried cannabis flowers for distribution in Switzerland. Viridi Unit’s high CBD dried cannabis products are sold under the brand name ØNΞ Premium Cannabis at over 100 retail locations in Switzerland.
Investment of LGC Capital in Viridi
On August 1, 2018, LGC announced a binding agreement to acquire a 30 percent interest in Viridi, a vertically integrated legal cannabis supplier to the Swiss and European markets.
Under the terms of the agreement, LGC will acquire a 30 percent interest by issuing a number of ordinary shares of LGC to Viridi worth CHF 3 million ($ 3,940,498.91).
The exact number of shares to be issued will be based on the 5-day VWAP of LGC ordinary shares immediately before the balance sheet date. It is expected that the shares to be issued will be less than 10% of the number of currently outstanding LGC shares.
In addition, LGC will receive a royalty of 5% on Viridi’s net sales for a period of ten years.
For the transaction, a brokerage fee of approximately 2.5% in cash and 2.5% in LGC shares will be paid to an independent party. This transaction is subject to review and approval by the TSX-V.
LGC CEO John McMullen said: “We are very pleased with the work the LGC and Viridi teams have done to complete and formalize this investment, and we are pleased to have reached this important milestone the TSX-venture worked together to ensure that all our legal cannabis investments comply with the highest standards in force Europe is an important growth market for legal. cannabis – industry , and cooperation with Viridi helps LGC thanks to its production processes, its distribution network and its strength in brand development in Europe, to firmly establish itself in this market. “
For more information, please contact:
Chief Executive Officer, John McMullen, + 1-416-803-0698, [email protected]
Chief Financial Officer, Anthony Samaha, + 44-20-7440 0640, [email protected]
Investor Relations, Dave Burwell, 1-403-221-0915, [email protected]