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LGC Capital Closes Investment Into Quebec-Based Future Medicinal Cannabis Grower AAA Trichomes
LGC Capital Closes Investment Into Quebec-Based Future Medicinal Cannabis Grower AAA Trich...
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[{"type":"text","content":"\n\n\n\nLGC Capital Closes Investment Into Quebec-Based Future Medicinal Cannabis Grower AAA Trichomes\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, Jan. 8, 2018\n\n\n\nMONTREAL, Jan. 8, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) (\"LGC\") is pleased to announce that it has successfully finalized the transaction with Québec-based Tricho-Med Corporation (doing business as \"AAA Trichomes\"). As reported in prior news releases, LGC entered into a four-year secured convertible loan agreement with AAA Trichomes in an amount of $4 million CDN (the \"Loan\"), which will be disbursed in accordance with a pre-agreed milestone disbursement schedule. Upon AAA Trichomes obtaining a license to produce medical cannabis from the relevant regulatory authorities, the Loan will convert into common shares of AAA Trichomes representing 49% of AAA's then-issued and outstanding shares. LGC will also receive a 5% royalty on AAA Trichomes' net sales.\n\n\n \n \n\n \nThis transaction represents LGC's first investment into the Canadian cannabis sector and paves the way for further related opportunities in Canada. Weather permitting, excavation and foundation work of Phase 1 will begin within weeks of this closing and the 30,000 square foot state of the art growing and processing facility is expected to be completed by the fall of 2018. While construction is underway, plans for Phase 2 and Phase 3 expansions will be taking shape with a view to and will lead to having in excess of a million square feet of cultivating and processing capacity within a few years. Key elements of this expansion are already in place, including signed land purchase options, favorable zoning, as well as a 25KVA power line running over the properties.\n\nJohn McMullen, CEO of LGC Capital states, \"We have learned throughout our due diligence process that AAA is not just a solid investment for LGC shareholders, but an excellent one. The team at AAA Trichomes has laid the foundation to establish itself as one of the largest growing operations of medical cannabis in Quebec and Cana...