26 June
2017
AfriAg Global
PLC
(“AfriAg Global”
or the “Company”)
Strategic
alliance to enter Medical Cannabis Sector
AfriAg Global PLC, the London
listed global food and logistics group announces that its 40% owned
subsidiary, AfriAg (Pty) Ltd (“AfriAg”), has entered into a
strategic alliance with Canadian listed LGC Capital Limited (TSX-V:
QBA-V)(“LGC”) to create a new 50/50 Joint Venture to grow and
distribute medical and recreational cannabis products in the
southern African region for export to regulated and certified end
users around the world.
Any future contracts to be entered into will be drawn up in
compliance with the local jurisdiction’s governing rules and
laws.
AfriAg has extensive experience with managing agriculture
operations including greenhouse cultivation. It also owns and
manages certified facilities and is one of the largest distributers
of perishable food products by airfreight to the world from the
southern African region.
The new Joint Venture will aim to develop a fully-regulated
cannabis growing and processing industry in the southern African
region for export to certified end users world-wide. AfriAg will
assist LGC with securing significant agricultural land packages and
processing facilities in the region to grow cannabis crops and
produce, including seeds, cannabis extracted oils, dried marijuana
leafs, cigarettes and vapours.
Related Party Transaction
David Lenigas serves as the Chairman of AfriAg, AfriAg Global
and LGC. Pursuant to the NEX Exchange Growth Market Rules for
Issuers, the transaction with AfriAg constitutes a related party
transaction.
John McMullen, LGC Capital’s
CEO, commented; “LGC, in conjunction with AfriAg, will now be
actively pursuing this first of its kind opportunity in the
southern African region, which expands LGC's focus into a truly
international investment company. AfriAg is a great development
partner for a venture such as this and this opportunity is unique.
If successful, we will make LGC the first and only Canadian
publicly-traded company to be licenced to grow and export
recreational and medical cannabis on a global basis.”
David Lenigas, AfriAg Global’s Chairman commented; “The
global cannabis industry is a fast growing sector with many
international governments legalising the use of cannabis products
for medical and recreational use. AfriAg can bring a tremendous
amount of growing, manufacturing and global logistics expertise to
this partnership. Southern Africa
has the commercial advantage of very competitive labour rate, a
highly-skilled agriculture workforce, excellent climatic
conditions, and rich soils that are well suited to outdoor and
indoor crop production.”
About LGC Capital
LGC Capital Ltd. is a Canadian incorporated public company
listed on the TSX Venture Exchange (TSX-V: QBA.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, many of which have some
exposure to high growth Cuban business opportunities and some that
have no exposure to Cuba at all.
LGC now plans to enter into the agricultural space in southern
Africa through its new alliance
with AfriAg.
The directors of the Company accept responsibility for the
contents of this announcement.
-ENDS-
AfriAg Global Plc:
David Lenigas (Executive Chairman)
Anthony Samaha (Finance Director)
Hamish Harris
Donald Strang |
+44 (0)20 7440
0640 |
Peterhouse Corporate
Finance Limited
Guy Miller
Fungai Ndoro |
+44 (0)20 7469
0930 |