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LGC Capital Signs First Canadian Cannabis Deal In Quebec
LGC Capital Signs First Canadian Cannabis Deal In Quebec Canada NewsWire MONTREA...
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[{"type":"text","content":"\n\n\n\nLGC Capital Signs First Canadian Cannabis Deal In Quebec\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. 31, 2017\n\n\n\nMONTREAL, Oct. 31, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) (\"LGC\") is pleased to announce that it has signed an option with Quebec based Tricho-Med Corporation, doing business as AAA Trichomes (AAA Trichomes) to acquire a 49% interest (plus a 5% royalty) in a new cannabis processing facility to be built in the Province of Quebec.\n\nSubject to permitting, the AAA Trichomes processing facility will be one of the first enclosed multi-level medical cannabis producers in Quebec. Trichomes is scheduled to start operations in 2019 with an initial annual production rate of over 2,500 kilograms reaching a planned production rate of over 20,000 kilograms by 2021.\n\n\"This is LGC's first deal directly in the Canadian cannabis sector and hopefully the first of a number of Canadian deals the Company is looking at taking a strategic investment.\" Commented John McMullen, LGC Capital's CEO. \"This deal is on the back of our recent investment in Little Green Pharma, one of Australia's fully licensed and permitted medical cannabis companies that is moving rapidly towards planting its first commercial crop (/or - has just planted its first commercial crop). We are also progressing well with our due diligence process on our potential investment in South Africa's House of Hemp, having now completed 3 months of the due diligence on this exciting business.\"\n\nUnder the terms of the exclusive option agreement, LGC plans to fund the building of the facility by way of a $4 million fully secured convertible debenture bearing interest at the rate of 10% per annum. Upon the facility being approved for cannabis cultivation and production, the debenture will automatically be converted to a 49% holding in the issued common share capital of Trichomes as well as a 5% royalty on all net sales of cannabis products. \n\nAAA Trichomes was incorporated in 2014 with the objective of becoming a manufacturer and distributor of canna...