MONTREAL, July 12, 2019 (GLOBE NEWSWIRE) -- LGC Capital Ltd. (TSX-V: LG / OTCQB: LGGCF)
LGC Capital Ltd. (“LGC” or the “Company”), has been advised that it has been served by Trichomed Corporation ("Trichomed") with a motion for a declaratory judgement whereby Trichomed is seeking the cancellation of the convertible debenture (the "Debenture") it entered into with the Company in December of 2017 and to repay the entire amount advanced by LGC representing four million dollars plus the interest accrued thereon. Under the terms of the Debenture, upon Trichomed receiving its license to cultivate cannabis from Health Canada, the loan amount shall be converted into that number of common shares of Trichomed equivalent to 49% of Trichomed's capital on a fully diluted basis together with a 5% net sales royalty on all of Trichomed's future revenues.
Mazen Haddad, CEO stated, “We believe that this action from Trichomed is without merit and LGC is well within its rights to continue to hold its position with its investment in Trichomed while we await approval from Health Canada. We are confident that we will resolve this matter as quickly as possible and in the best interest of our shareholders.”
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