Elixxer Ltd. V.QBA

LG PAID 2ND TRANCHE IN ACQUIRING FREIA FARMACEUTICI ITALY

[Humanist]

EU Licensed European Pharmaceutical Company, Freia Farmaceutici Srl NEWSFLASH
 
by @nasdaq on 22 Jul 2019, 10:51

MONTRAL, July 22, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSXV: LG and OTC-QB: LGGCF) (“LGC”) is pleased to announce that it has paid the 2^nd Tranche, as contractually agreed, in acquiring an equity interest in the Italian pharmaceutical company, Freia Farmaceutici Srl (“Freia”).

Freia (www.freiafarmaceutici.it) was founded in 2009 and is presently the only company in Italy and one of few in Europe, to have created and are marketing hemp based pharmaceutical products approved by the Italian Ministry of Health and licensed for sale throughout the EU. It should be noted that Freia's products are currently authorized under the framework of pharmaceutical law and not subject to the evolving, provisional regulation of cannabis.

This EU pharmaceutical entity is an optimal addition to LGC. Freia has a very powerful and respected leadership team that has created a visionary company and an interesting product portfolio. LGC and its investors will benefit from a substantial competitive advantage through their knowledge and clinical trial capacity and its capacity to handle the regulatory compliance process for pharmaceuticals and food products," said Mazen Haddad, CEO of LGC. The investment by LGC will allow Freia to achieve its complete potential through global expansion and the creation of hemp and cannabis-derived products. Having Freia´s distinctive products on the market today without explicit competing offers, affording LGC a sustainable company proposition and a global competitive advantage.

Benefits of the Transaction

• The investment provides revenue and positive EBITDA immediately 
• LGC to become an innovation leader in the cannabis industry
• Accelerate Freia’s growth and expansion

The Transaction
LGC and Freia’s existing shareholders have entered into an investment agreement whereby LGC will acquire a 35% equity interest in Freia for a total cash consideration of $4,847,033 CAD, with two installments already made to date and the final installment to be made later in 2019.
The investment agreement contains standard representations, warranties and covenants of the parties, and closing of the transaction is subject to standard closing conditions and final acceptance by the TSX Venture Exchange.  LGC has also appointed two members to Freia’s board of directors.

About LGC Capital Ltd (www.lgc-capital.com)
LGC Capital is a leading cannabis investment firm with a focus on the legal global cannabis market. Through its growing portfolio of investment companies, LGC is building a transversal integrated organization of interconnected legal cannabis companies with cultivation, processing and distribution in Australia, Jamaica, Switzerland, Italy, and Canada serving domestic and export markets. LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG) and the US OTC-QB exchange (OTCQB: LGGCF).