LGC Capital Announces First Commercial Sales of Medical Cannabis in Jamaica From Global Canna Labs
MONTRÉAL, April 04, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSXV: LG, OTCQB: LGGCF) (“LGC”) is pleased to announce that is has been advised that Global Canna Labs has now received their formal approvals late in March from the Jamaican Cannabis Licensing Agency (CLA) to commence commercial medical cannabis sales domestically to licensed dispensaries.
As of today, Global Canna Labs has now sold a total of 46.5 kilograms of dried medical cannabis products in to the local dispensaries. It is now receiving regular domestic sales inquiries and demand for Global Canna Labs’ products is expected to accelerate from here.
LGC also advises that Global Canna Labs has now planted out the majority of its 6.2 acre site in Montego Bay and expects to commence harvesting, under CLA supervision, two sectional harvests per months from various phases of crop growth and various Cannabis strains, with the first of these bi-monthly harvests scheduled for April 10.
Global Canna Labs is one of the very few Tier-3 licences in Jamaica for the cultivation and production of medical cannabis (licensed to cultivate and produce over 5 acres), after formally receiving its full approval for a Tier-3 cultivation license from the Jamaican Cannabis Licensing Agency ("CLA") in July 2018. This license allows GCL to cultivate medical cannabis at its 6.23 acres site in Montego Bay in Jamaica. GCL is planning on opening 2 Dispensaries and an Extraction facility in the very near future.
Mazen Haddad, Co-Chairman and CEO of LGC Capital, stated:
This is a tremendous achievement for the team in Jamaica. We have seen many achievements within Global Canna Labs since LGC became a cornerstone funder of this exciting company. We see them continuing to expand and grow at their facility in Montego Bay, as the market demand grows. Senior LGC management recently toured the Montego Bay facility to witness operations almost at full planting capacity and witnessed the results of the first harvests. There is still scope to infill sections of the 6.2 acre site before looking to expand beyond the existing secured growing areas. We see Jamaica as a very key growth market in the area and can see considerable expansion opportunities for Global Canna Labs as a Jamaican leader in their field, as the domestic and internal markets for Jamaica’s special brand of organic sativa strains and find their place in the market.
LGC has a secured debenture, convertible into a 30% strategic interest in Global Canna Labs and a 5% royalty on Global Canna Labs' net sales.
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 in over 1,000 points of sale 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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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, 2018, 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 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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Resource: LGC Capital