Corporate Presentation November 2017

Transcription

1 Investing In High Yield Businesses Around The Globe Corporate Presentation November 2017

2 Disclaimer This presentation ( Presentation ) is provided on the basis that neither LGC Capital Ltd) (the Company or LGC ), nor its officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives or advisors make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliability, relevance, currency or completeness of the material contained in the Presentation and no responsibility is taken for any errors or omissions. Nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. LGC excludes all warranties (including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature (including that arising from negligence) arising out of the Presentation (or any accompanying or other information) whatsoever, or by reason of any reliance upon it. LGC accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this Presentation or any other information made available to a person or any obligation to furnish the person with any further information. This Presentation includes certain statements that may be considered forward-looking information within the meaning of applicable Canadian securities regulations and forwarding-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements ). All statements in this Presentation (other than statements of historical facts) are forward- looking statements. The forward-looking statements contained in this document are made as of the date of this document. Except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events. The forward-looking statements in this document reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Where such statements expressly or impliedly relate to future events, expectations and/or belief as to future events or results, involve known and unknown risks and uncertainties such expectation or belief is expressed in good faith and is believed to have a reasonable basis. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may vary or differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include prevailing and projected market prices, continued availability of capital and financing, and general economic, market or business conditions. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. This Presentation references other corporations and provides certain information in relation to these corporations. All such information was obtained from the public record. The Company provides no assurances as to the accuracy or completeness of such information and readers are cautioned not to place any undue reliance on such information. All persons should seek appropriate professional advice in reviewing or considering the Presentation and all other information with respect to LGC and evaluating the business, financial performance and operations of LGC. Neither the provision of the Presentation nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment or financial product advice to any person in respect of dealing in LGC securities, and no such information should be taken to constitute a recommendation or statement of opinion that is intended to influence a person in making a decision to deal in LGC securities. Some photos and pictures in this Presentation are for illustration purposes only and do not depict current LGC operations. This Presentation does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant in determining whether to deal in LGC securities, including but not limited to any person's objectives, financial situation or needs. Each person must not rely on the information provided but should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this Presentation and other matters that may be relevant to it in considering whether to deal in LGC securities. The information contained in the Presentation is not intended to be an offer for subscription, invitation or recommendation with respect to the shares in any jurisdiction and neither this document nor its contents shall form the basis of any contract or commitment. LGC owns the copyright in this Presentation. No part of this Presentation may be shown or distributed to third parties or reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of LGC.

3 Company Overview LGC Capital provides a unique, first mover advantage for investors. All investments and joint venture businesses have been operating in target countries for years. LGC s interests have fully operational offices in Toronto, Montreal, London and South Africa. Highly experienced on the ground local expertise. Relationships with a number of Government entities. Good potential to expand through investment and partnering in many more sectors globally. Opportunity to cross-sell through various business units.

4 Worldwide Presence TORONTO MONTREAL LONDON MONACO ZURICH DUBAI DURBAN PERTH

5 LGC Capital Is Positioned To Enter The Cannabis Market In South Africa In Partnership with June 26, 2017 LGC Capital and AfriAg Global PLC announce a 50/50 Joint Venture between LGC Capital and AfriAg (Pty) Ltd., 40% owned by AfriAg Global PLC, to grow and distribute medical and recreational cannabis products in South Africa. * Joint Venture intends to grow, manufacture and export cannabis products to regulated and certified global end users. * To view LGC Capital s news release, click here.

6 AfriAg Global is a company listed on the NEX Growth Market in London. Provides global logistics solutions, food marketing and distribution services to a number of the world s major food retailing and wholesale corporations. Extensive experience with managing agriculture operations including greenhouse cultivation. It also owns and manages certified facilities and is one of the largest distributors of perishable food products by airfreight to the world from the southern African region 24 hours, 7 days a week. AfriAg operates in the following countries: South Africa, Mozambique, Zimbabwe, Zambia, The DRC, and Malawi.

7 LGC Capital Is Positioned To Enter The Cannabis Market In South Africa In Partnership with July 18, 2017 LGC Capital and AfriAg Global PLC announce that LGC Capital and its joint venture partner AfriAg (Pty) Ltd., 40% owned by AfriAg Global PLC, signed an agreement with South Africa s House of Hemp under which the joint venture has the sole and exclusive right to acquire a 60% economic and beneficial interest in House of Hemp.* * To view LGC Capital s news release, click here.

8 Dr. Thandeka Ruth Kunene, founder of House of Hemp House of Hemp operates at the Dube Tradeport Agrizone. Opened in 2012, this fully automated, fully secured, growing complex is where House of Hemp s initial massive 40,000m 2 (420,000 square feet) glasshouse complex will be housed. Located at the South African Durban Airport, doorstep to the Global Cannabis Markets. House of Hemp has the only certified Cannabis growing and processing facility in South Africa. Authorized since 2010 to grow hemp and cannabis for research and development (R&D). It is ideal for large scale cultivation and processing of Cannabis with its humidity and temperature controlled environments. Extensive knowledge of producing seeds, oils, edibles, leaves for Medicinal Markets. South Africa has a highly skilled labour force and the unit costs of electricity, water, labour and fertilizer are globally very competitive. The House of Hemp has a long and established history of top quality R&D in the hemp and cannabis fields in South Africa and we plan to leverage this superior knowledge to use its skills to grow our medical cannabis initiative elsewhere in Southern Africa and beyond.

9 420,000 Square Feet, Fully Secure, Greenhouse Facility South African Durban Airport, South Africa

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12 Business Plan South Africa Expected production for 1st cycle is 7,000 Kilograms at a net cost of $1.10 CDN per gram. Costs are expected to go down as growing efficiency improves. Estimated production 2 nd cycle is expected to expand to 19,000 Kilograms. Low input of costs of power, water and labour. Net positive EBITDA by 5 th month of production. Growing facility is currently 405,000 sq. ft. LGC s partners AfriAg and House of Hemp are experts in their respective fields. AfriAg possesses a massive worldwide distribution network. House of Hemp are master growers.

13 LGC Capital Is Positioned To Enter The Cannabis Market In Australia On October 12, 2017 LGC Capital acquired 5% of Australian medical cannabis company Little Green Pharma. LGC has the right to increase its interest to 19.03%. Little Green Pharma is one of the few companies in Australia licensed to cultivate and produce Medical Cannabis. Unique manufacturing technology aims for high bio-availability of active cannabinoids thereby resulting in therapeutic effect can be (subject to certain conditions) achieved with very low dosage rates combined with precise dosage control.

14 LGC Capital Is Positioned To Enter The Cannabis Market In Canada On October 31, 2017 LGC Capital signed an option agreement to acquire 49% (plus a 5% royalty) of Quebecbased medical cannabis company, AAA Trichomes. Subject to permitting, the AAA Trichomes processing facility will be one of the first enclosed multilevel medical cannabis producers in Quebec. Growing operations is scheduled to begin in Initial production rate to achieve over 2,756 kg. Anticipated to scale up to 24,682 kg by Advantages low cost electricity, in Canada, close proximity to Montreal

15 LGC Capital & Creso Pharma Form Strategic Alliance The strategic alliance creates a vertically-integrated cannabis operation with a global footprint spanning cultivation, IP generation, innovative product development and commercialization. In anticipation of the imminent launch of Creso's first pioneering animal health product anibidiol in Switzerland and Lichtenstein as well as the upcoming launch of its human health product cannaqix in Q1 2018, Creso is looking to aggressively expand its market reach. Creso and LGC will engage in developing sales and distribution of products jointly in Europe, Canada, Latin America, Africa, Japan and the Asia-Pacific region. Together, Creso and LGC will develop, produce and market innovative human and animal health solutions addressing the growing demand for cannabis and hemp-derived therapeutics, cosmetics, nutraceuticals and lifestyle products.

16 LGC Capital Merchant Banking Division Pursuing High Yield, Global Investment Opportunities October 10, LGC Capital announced its first merchant banking investment. LGC will guarantee a $1 million USD loan to Etea Sicurezza. November 1, 2017 LGC Capital announced it signed a letter of intent with Etea Sicurezza to acquire 20% of the company. Etea Sicurezza is a London, England based private company that specializes in fire safety and security. Clients include: L Oreal, Coca Cola, BASF, Doha Metra and others. Revenues in excess of $14 million CDN with margins of 27%.

17 Capital Structure LGC Capital Ltd. Shares Issued: Exchange: Ticker Symbol: Status: Website: Offices: (Operations and Investments) ~264 Million TSX Venture (TSX:V) LG Tier-2 Investment Issuer London, Toronto, Montreal, Australia 17

18 Management & Board of Directors John A.D. McMullen - Anthony Samaha - David Lenigas - Mazen Haddad - Rafi Hazan - Mohammed Ghafari - Chief Executive Officer Chief Financial Officer Co-Chairman Co-Chairman Secretary Independent Director 18

19 Contacts Canada: UK: Investor Relations: John McMullen, Chief Executive Officer Phone: (416) Anthony Samaha, Chief Financial Officer Phone: +44 (0) The Howard Group Inc. Contact: Dave Burwell - Vice President Phone: (888) dave@howardgroupinc.com