LGC Capital Announces Closing of Investment in Italian Cannabis Producer, Evolution
MONTREAL, May 29, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) ("LGC" or the “Corporation”) announces it has closed its previously announced transaction with 9379-1432 Qubec Inc., the Canadian incorporated parent company of Evolution BNK and Evolution ATM (collectively referred to as “Evolution”).
On 13 August 2018, LGC and Evolution entered into a convertible debenture indenture agreement (the “Loan”) for Euro 3 million. The Loan, the proceeds of which have been paid over to Evolution, is convertible into a 49% equity interest in Evolution and bears interest at the rate of 10%.
Evolution is a legal cannabis (less than 0.2% THC) cultivation facility based in Pavia, Italy. Evolution is completing the retrofit of its 22,000 sq. ft. indoor facility within their 70,000 sq. ft. compound in Pavia, Italy for the production of high CBD, low (<0.2%) THC cannabis. Tests have been consistently positive as the product is well within the legal THC content set by the Italian Ministry of Health. Estimated margins will be greater than 50% due to its patented energy usage technology and is well placed for any margin compression expected in Europe.
Mazen Haddad, CEO LGC Capital “The value driver for Evolution is its low cost cultivation capacity which may offer synergistic benefits for other LGC investee companies like Viridi and announced investee, EasyJoint who will require high quality, compliant product to meet the estimated demands from the European cannabis light and CBD markets.”