Symbol: TSX-V: QBA
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Sept. 12, 2017 /CNW Telbec/ - LGC Capital Ltd. (TSXV: QBA) ("LGC") is pleased to announce that it completed its previously-announced private placement by issuing 3,693,840 units for gross proceeds of $369,384 at a second closing held today. Of these, a director and senior officer of LGC subscribed for 1,443,840 units ($144,384).
As a result, LGC raised the maximum amount of $3 million in the private placement by issuing an aggregate of 30 million units, each comprised of one common share and one common share purchase warrant; each warrant entitles its holder to acquire one additional LGC common share at a price of $0.15 for a period of one year from the closing date.
As previously announced, LGC will use the net proceeds from the private placement to assist with the funding of LGC's new joint venture with AfriAg (Pty) Ltd and the investment by the joint venture in the House of Hemp (Pty) Ltd in South Africa. The net proceeds may also be used for new medical cannabis investment opportunities elsewhere in southern Africa and in the Asia Pacific Region.
At the second closing, LGC paid a cash commission to a securities dealer in an amount of $6,000, representing 8% of the proceeds from the sale of units sold through such dealer. In addition, LGC issued 60,000 "broker warrants" to such dealer, representing an amount equal to 8% of the number of units sold through it. Each of the broker warrants will entitle the holder to purchase one additional LGC common share at a price of $0.10 for a period of six months from the closing date of the private placement.
The securities issued at the second closing are subject to a "hold period" which expires on January 13, 2018.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, and these securities will not be offered or sold in any jurisdiction in which their offer or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws of the United States. Accordingly, these securities will not be offered or sold to persons within the United States unless an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.
About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: QBA). LGC Capital's objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC Capital has now entered into the agricultural space and the medical cannabis sector in southern Africa through its new joint venture with AfriAg and is seeking new investments opportunities in this sector.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC"), its Joint Venture with AfriAg, its investment in House of Hemp, and LGC's operations, strategy, investments, financial performance and condition. These statements generally can 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, the Joint Venture with AfriAg and the investment in House of Hemp 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, changes in 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, 2016, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC, the Joint Venture, and persons acting on their respective behalfs. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC has no obligation to update such statements, except to the extent required by applicable securities laws.
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.
SOURCE LGC Capital Ltd
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