MONTRÉAL, September 20, 2018 /PRNewswire/ --
- TSX Venture Exchange provides final approval bulletin for Global Canna Labs
- Plans are still on schedule to have around 220,000 square feet of premium Jamaican cannabis planted at its Montego Bay site by end of October
- This will make GCL the current market leader by size in Jamaica as per the local regulators
- GCL is on target to harvest its first cannabis in November
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LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that it has today received the final approval bulletin from the TSX Venture Exchange in respect of LGC's investment into Global Canna Labs Limited ("GCL") in Jamaica which closed on August 30, 2018. As previously announced, LGC subscribed for a $2.5 million secured debenture, convertible into an initial 30% strategic interest in GCL and also acquired a 5% royalty on GCL's net sales for $2.0 million, payable by way of 15,854,141 shares of LGC. The transaction is now fully completed.
In July 2018, Global Canna Labs formally received its full approval for a Tier-3 cultivation licence from the Jamaican Cannabis Licensing Agency. This licence allows GCL to cultivate medical cannabis at its 270,000 square foot facility within its 6.23 acres site in Montego Bay, Jamaica.
GCL is on track to have 220,000 square feet planted by the end of October 2018 from its Montego Bay site. The premium strains of organic Jamaican cannabis will be grown in a combination of greenhouse (31,000 sq ft) and outdoor (189,000 sq ft). GCL plans to expand its greenhouse portion to 58,000 sq ft by the end of 2018.
The first cycle of a continuous harvest program is anticipated to start in early November 2018.
As previously announced, the 220,000 square foot of planted area is expected to yield over 22,000 kg equivalent per year of dry cannabis and extracted products, based on actual industry observed yields of 25 grams per square foot per cycle when using the same production methods being adopted by Global Canna Labs.
GCL is one of the very few Tier-3 licences in Jamaica (licensed to cultivate and produce over 5 acres), and as such GCL plans to expand over 300 acres of new land that has been arranged to add to the portfolio by the end of the year.
About LGC (http://www.lgc-capital.com)
LGC Capital is a leading investment firm with a focus on the Legal Global Cannabis market. Through its portfolio investment companies, LGC is building a world-leading, vertically integrated system of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy, and Canada serving domestic and export markets. LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG).
Notice Regarding Forward Looking Statements
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and their respective operations, strategy, investments, financial performance and condition. These statements can generally 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 Global Canna Labs ("GCL") 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 (http://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 GCL has any obligation to update such statements, except to the extent required by applicable securities laws. 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.
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SOURCE LGC Capital Ltd.