LGC Capital (TSXV:LG) announced a new agreement for the acquisition in a stake of Viridi Unit SA of Switzerland, a cannabis supplier in Europe.
As quoted in the press release:
VIRIDI is a vertically integrated legal cannabis supplier to the Swiss and European markets, growing its own seeds and flowers, producing and developing a wide range of cosmetics, cigarettes and natural wellness Swiss authorized products amongst many of its diversified products and activities.
Under the terms of the agreement, LGC acquire its 30 [percent] interest through the issuance to Viridi of that number of common shares of LGC for a value corresponding to CHF 3 million ($3,940,498.91 CAD). The exact number of shares to be issued will be based on the 5 day WVAP of LGC common shares immediately prior to the closing date. It is estimated that the shares to be issued will represent less than 10 [percent] of the number of currently outstanding LGC shares. LGC will also receive a 5 [percent] lifetime royalty on VIRIDI’s net sales. For this transaction, a finder’s fee of around 3 [percent] cash and 3 [percent] in shares will be paid to an arm’s length party. This transaction will be subject to review and approval by TSXV.
John McMullen, CEO of LGC stated, “We see Europe as one of the most exciting markets for legal cannabis in the world, and to have this new business partnership and investment in VIRIDI reflects yet another valuable cannabis producing company joining LGC’s legal global cannabis investment portfolio. We believe that a team such as VIRIDI, will excel in the European Cannabis market, where projections for the overall market are currently estimated to be around €38 Billion (57.88 Billion CAD) per year growing to over €50 Billion (76.16 Billion CAD) in annual sales over time.“