LGC CAPITAL announces conditional approval of an amended private placement financing of $10,400,000 with Arlington Capital LP
MONTRÉAL, April 25, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) ("LGC") is pleased to announce that it has obtained conditional approval from the TSX Venture Exchange for its previously announced financing with Arlington Capital (please refer to LGC’s press release dated January 24, 2019). Since that announcement, both parties have agreed to increase the financing to $10.4 million from the previously announced $8 million. Pursuant to the private placement, Arlington Capital will subscribe for a total of 104,000,000 common shares of LGC at a price of $0.10 per share. As a result of this private placement, Arlington Capital will, on closing, become LGC’s largest shareholder holding 19.97% of LGC’s issued and outstanding common shares. There are no warrants with this financing. Use of proceeds are to accelerate LGC’s group of companies’ business plan for the current calendar year. As previously announced, on closing of the private placement, LGC will pay a 3% finder's fee to an arms-length third party, and Arlington Capital will be entitled to appoint a representative to LGC’s board of directors.
Closing of this transaction is expected within the next week.
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC presently will have interests in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia. That is expected to increase to over 2,100,000 square feet by 2021, as its portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med’s operations in Quebec, Canada.
LGC partners currently sell cannabis products across Switzerland and Italy under the ONE Premium Cannabis and EasyJoint brands as well as medical cannabis oils in Australia under the Little Green Pharma brand. LGC’s partners’ branded products are available in a variety of formats including dry cannabis flower, tinctures, oils, seeds, and beverages.
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