Elixxer Ltd V.ELXR

LGC Capital expects further share price gains

[Kevelle]

LGC Capital CEO John McMullen said, “We are very confident that the beverages that are developed through this joint venture with Creso Pharma will be well received. The worldwide commercialization plan is aggressive, and I fully expect it will have a positive impact on the revenue stream for all parties involved.”

An investment company with interests in diversified businesses including oil, travel, and coffee, LGC Capital is actively seeking to expand into the global medical cannabis and hemp sector. Earlier this month LGC Capital made its first investment into the Canadian cannabis sector by entering into a four-year $4.0 million secured convertible loan agreement with AAA Trichomes. While the Canadian investment will enable the Company to capture domestic medical cannabis market, the new JV will help it to enter the rapidly-growing cannabis and hemp-derived beverage market globally. The recent edits that will legalize Cannabinoid-Infused Beverages along with recreational cannabis in July 2018, would also open up domestic market for the new JV. As the global alcohol and non-alcoholic beverages market moves towards cannabinoid-infused varieties, there is tremendous pressure and threat to the traditional beverage companies. To counter this threat, alcohol giant Constellation Brands Inc. bought a 9.9% equity stake of Canopy Growth (TSX:WEED) for $245 million in October 2017.

LGC Capital stock has increased over the past three months driven primarily by news announcements related to the Company’s entry into the cannabis business. LGC Capital expects further share price gains as the overall cannabis sector continues to witness tremendous investor interest going into the recreational market legalization in Canada in the summer of 2018.