LGC Capital (TSXV:LG) completed a transaction with Habi Pharma Pty, a licensed Australian medical cannabis company, in which LGC increased its strategic interest in Little Green Pharma to 14.99 percent from 11.91.
As quoted in the press release:
John McMullen, CEO of LGC commented, “We are very much looking forward to Little Green Pharma cultivating its first crop over the coming months and producing its first medical cannabis products for commercial sale in Australia. The funding provided by LGC over the past few months has provided Little Green Pharma with working capital to enable it to start its first commercial production. LGC’s objective is to fund many of our other investment initiatives around the world to achieve the same goal over the coming year.”
At closing, Little Green Pharma issued 2,283,495 additional shares to LGC at a deemed issue price of AUD $1.16398 per share for a total consideration of approximately AUD $2,657,950. LGC paid for the shares by issuing 5,000,000 LGC shares to Little Green Pharma at a deemed issue price of CAD $0.53 per share, representing the closing price of LGC’s shares on the TSX Venture Exchange on January 19, 2018, for a total consideration of CAD $2,650,000, equivalent to AUD $2,679,150 based on the Bank of Canada exchange rate on February 14, 2018. The 5,000,000 LGC shares are subject to a “hold period” which expires on June 15, 2018.