NEWS Repost of news from Friday for those who missed it:
Mr. John McMullen reports
LGC CAPITAL COMPLETES $8 MILLION BOUGHT-DEAL PRIVATE PLACEMENT
LGC Capital Ltd. has completed its previously announced bought deal private placement, including a partial exercise of the underwriter's option, by issuing 18.51 million units at a price of 43.5 cents per unit for gross proceeds of $8.05-million. The units were sold to accredited investors in Canada and internationally through Cormark Securities Inc. as underwriter. Each of the units comprises one common share and one common share purchase warrant. Each full warrant entitles its holder to subscribe for one additional LGC common share at an exercise price of 49 cents per share for 36 months from the closing date. In the event that the volume weighted average trading price of LGC's shares on the TSX Venture Exchange for a period of 20 consecutive trading days commencing four months from the closing date is at least 65 cents, LGC will be entitled to send a notice to the holders of the warrants accelerating the expiry date of the warrants to a date not less than 30 trading days after the date of such notice.
As previously announced, LGC will use the net proceeds from the private placement to meet its obligations within LGC's current cannabis investment portfolio, for further investments, and for working capital.
John McMullen, chief executive officer of LGC, commented: "LGC would like to thank the banking and legal teams for their tireless efforts to close this financing into LGC from a major international institutional investor in the global cannabis sector. We now have more than $16.4-million on hand and are well financed to execute our already announced growth strategy with respect to current investments and build outs. This new financing adds considerable financial capabilities for LGC to seek additional investments for our portfolio in the legalized medical cannabis sector globally, with the intended focus of leading to revenue-generating activities for LGC and its shareholders."
At closing, LGC paid a cash commission to Cormark Securities, as underwriter, in an amount equal to 6 per cent of the gross proceeds from the private placement. In addition, LGC issued 1.11 million broker warrants to Cormark Securities, representing 6 per cent of the number of units issued and sold in the private placement. Each of the broker warrants entitles its holder to purchase one additional unit at the offering price of 43.5 cents for a period of three years from the closing date of the private placement.
The securities issued at the closing are subject to a hold period which expires on June 17, 2018.
In connection with the private placement, each of LGC's six directors and officers has entered into a lock-up agreement with Cormark Securities under which they have agreed not to sell any LGC common shares or any securities convertible or exchangeable into LGC common shares for a period of 120 days from the closing date of the private placement without the prior consent of Cormark Securities, subject to limited exceptions.
LGC also announces that it has loaned an aggregate of $210,328 to three of LGC's directors and/or officers in order to finance the exercise by them of LGC stock options and an additional $442,853 to finance the payment by them of related taxes. The loans, which do not bear interest, must be repaid within two years and are subject to approval by the TSX-V.
About LGC Capital Ltd
LGC is a Canadian incorporated public company listed on the TSX-V. 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.
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