MONTRÉAL, May 22, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) ("LGC" or the “Corporation”) announces that after much negotiation, it has successfully acquired, from a non-executive founder, additional shares in Australia’s licensed medical cannabis producer Little Green Pharma (LGP) bringing its ownership from 14.1% up to 40.4%.
LGP was the first, and is currently the only, domestic cannabis company in Australia producing a locally grown medicinal cannabis medicine for patients. LGC believes the opportunity to increase its ownership in LGP creates significant value for its shareholders and enables the Corporation to further take part in the rapidly expanding Australian medical cannabis market.
Little Green Pharma has had over 400 patients approved in Australia, with new patients increasing exponentially month-over-month. The Australian industry represents one of the fastest growing international medical cannabis markets globally, with approximately 6,400 SAS B forms approved to the end of April 2019 of which 1,110 occurred in April alone. Prohibition Partners estimates that the Australian medical cannabis market could be worth US$2 billion by 2028 and US$8.7 billion if adult use was to become legal.
Little Green Pharma produces its products in compliance with Australia’s strict Therapeutic Goods Order 93 Standard for Medicinal Cannabis and is one of only a handful of companies with an EU GMP recognised medical cannabis facility.
Expansion plans for LGP‘s cultivation facility have been submitted to Australia’s Office of Drug Control to increase production capacity in order to supply the Company’s growing demand for its products in Australia as well as to export product via its new distribution agreements in Germany, the United Kingdom, Canada and New Zealand.
Mazen Haddad, CEO of LGC Capital, stated; “Little Green Pharma was one of our first investments and as its business and opportunities expanded, and the opportunity to increase our shareholding to over 40% is a significant move for the Company. To be the first in Australia to grow and produce a full line of Medical THC Cannabis products, in accordance with both Australian and European standards, represents a great opportunity for LGC and its global initiatives. We look forward to expanding Little Green Pharma‘s production capacity and help growing its reach throughout the globe."
Terms of the transaction:
Subject to TSXV approval, LGC Capital will pay to the vendor of the shares, AUS$5.5M. Closing of this transaction is expected to be within 95 days of signing the agreement.
Statutory information: For the financial year end 30 June 2018, Little Green Pharma generated Revenue of AUS$8,337 and had a net loss for the period of AUS$3,757,810. This was first year that the company was operational as a legal cannabis business.
About LGC Capital Ltd (www.lgc-capital.com)
LGC Capital is a leading cannabis investment firm with a focus on the legal global cannabis market. Through its growing portfolio of investment companies, LGC is building a transversal integrated organization of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy, and Canada serving domestic and export markets. LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG) and the US OTC-QB exchange (OTCQB: LGGCF).
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC has interests in Jamaica, Switzerland, Italy, Canada and Australia.
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 medicines, cosmetics, dry cannabis flower, tinctures, oils and seeds.
About Little Green Pharma, Perth Australia (https://lgpharma.com.au):
LGP was the first Australian company to locally-grow and produce medicinal cannabis products for sale to Australian patients. The medicines are cultivated, without pesticides, in a hydroponic facility in Western Australia's southwest region and processed in a manufacturing facility near Perth. LGP products have been subject to extensive assessment and testing based on the Australian TGA regulation, before being distributed under Australia's tightly controlled medical prescription system. Under the Australian system, medicinal cannabis products must be prescribed by medical practitioners and sold by registered pharmacists. Medicinal cannabis has been prescribed in Australia for over 51 conditions.
For further information please contact:
President, John McMullen, +1-416-803-0698, john@lgc-capital.com
Chief Financial Officer, Mark Shinners, mark@lgc-capital.com
Caution Regarding Press Releases
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.
Notice Regarding Forward Looking Statements
This press release may contain forward-looking statements with respect to 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 LGP 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 three months ended December 31, 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 LGP 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.