MONTREAL, April 9, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV:LG) ("LGC") is pleased to announce that Tricho-Med Corporation ("Tricho-Med") in Quebec, Canada now plans to increase the scale of its operations with new land options to over 2 million square feet of gross building areas, power availability permitting, of controlled atmosphere production capacity. Official ground-breaking for the first phase of 34,000 square feet is expected to occur in the next few weeks, with the steel structure and building envelope planned for completion October 2018.
Tricho-Med is currently embarking on the first phase of its development with the construction of its state-of-the-art 34,000 square foot fully enclosed growing facility, in Brownsburg, Quebec, located 25 miles north west of Montreal.
Stage One will comprise of 7 air tight, controlled atmosphere flowering chambers. The design and roll-out is to eventually qualify as a GMP facility, with a selection of materials to the highest International norms and a planned growing production in 2019 from Stage One and increasing progressively as the facilities expand.
Tricho-Med plans to be one of the largest controlled atmosphere producers in air controlled growing chambers of high-quality cannabis. In addition, it's production costs are targeted to be within the lowest quartile production costs range in the industry, due to its low power costs.
Tricho-Med has retained the services of experienced growers and regulatory experts in order to assist in the efficient evolution of its application to produce and sell cannabis in Canada and obtain GMP certification in order to export internationally.
LGC entered into a four-year secured convertible loan agreement with Tricho-Med in the amount of CAD $4 million, which will be disbursed in accordance with a pre-agreed milestone disbursement schedule. Interest on the Loan is fixed at an annual rate of 10% which will be payable from available operational cash flow. Upon Tricho-Med obtaining a license to produce medical cannabis from the relevant regulatory authorities, the loan will convert into common shares of Tricho-Med representing 49% of then-issued and outstanding shares. LGC will also receive a 5% royalty on Tricho-Med's net sales.
John McMullen, CEO of LGC Capital stated,
"Tricho-Med is aiming to be one of the largest controlled atmosphere producers of high quality medical cannabis in air controlled growing chambers in Canada. In addition, it's production costs should be within the lowest quartile production costs range in the industry, due to some of the lowest power costs in North America. Tricho-Med has retained the services of experienced growers and regulatory experts to assist with the construction and expansion of its start-of-the-art enclosed facilities with the aim of producing and selling medical cannabis in Canada and obtain GMP certification in order to export internationally. We are looking forward to the ground breaking ceremony at Brownsburg shortly. Senior Tricho-Med management will be attending LGC Capital's Annual General Meeting today in Montreal today to outline to shareholders their plans for growth."
About LGC (http://www.lgc-capital.com)
LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC'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.
Information Relating to Tricho-Med Corporation ("Tricho-Med")
All information contained in this press release relating to Tricho-Med has been provided to LGC by Tricho-Mec. LGC has relied upon this information without having made independent inquiries as to its accuracy or completeness and assumes no responsibility for any inaccuracy or incompleteness of such information.
This press release may contain forward-looking statements with respect to LGC Capital Ltd. ("LGC") and Tricho-Med Corporation ("Tricho-Med"), and their respective 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 and Tricho-Med 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 fiscal year ended September 30, 2017, 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 Tricho-Med has any 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.