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LGC Capital Announces Merchant Banking Division and New Opportunity
LGC Capital Announces Merchant Banking Division and New Opportunity Canada NewsWir...
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[{"type":"text","content":"\n\n\n\nLGC Capital Announces Merchant Banking Division and New Opportunity\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTREAL, Oct. 10, 2017\n\n\n\nLGC Capital Ltd.Symbol: TSX-V: LG\n\n\n\nMONTREAL, Oct. 10, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) (\"LGC\") is pleased to announce that it has formally established a merchant banking division within its business, which will pursue global high-yield investment opportunities. This new division will run parallel with and will not deter efforts from LGC's cannabis investments and the pursuit of additional cannabis opportunities.\n\n\"The merchant banking side of LGC Capital is an outstanding opportunity for the company and its shareholders,\" commented John McMullen, CEO of LGC. \"I will remain 100% committed and focused on building our global cannabis footprint, while LGC's Co-Chairman Mazen Haddad will head up this division and continue to pursue large high-yield investment opportunities for LGC. Mazen has a successful history and track record with sourcing funding and executing these types of transactions.\"\n\nAs part of this announcement, LGC announces that it has entered into an agreement with a Toronto-based investment firm whereby LGC will guarantee repayment by Etea Sicurezza Group Ltd (\"Etea Sicurezza\") of notes issued by Etea Sicurezza in an aggregate principal amount of USD $1,000,000 (\"Notes\"). The Notes have a term of two years, bear interest at a rate equal to LIBOR + 8%, and are secured by the assets of Etea Sicurezza and by a pledge of shares by Etea Sicurezza's principal shareholder.\n\nAs consideration for the guarantee, Etea Sicurezza will issue shares to LGC representing 3% of its outstanding shares and pay an annual cash fee to LGC.\n\nLGC and Etea Sicurezza are also negotiating a transaction whereby LGC will acquire all of the outstanding shares of Etea Sicurezza and distribute a portion of the shares to LGC's shareholders, with the intention of Etea Sicurezza becoming a public listed company. At such time, if any...