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LGC Capital signed an option with a Quebec-based company to acquire 49 percent interest, and a five percent royalty, for a cannabis processing facility set to be built in Quebec.
LGC Capital (TSXV:LG) signed an option with a Quebec-based company to acquire 49 percent interest, and a five percent royalty, for a cannabis processing facility set to be built in Quebec.
As quoted in the press release:
Subject to permitting, the AAA Trichomes processing facility will be one of the first enclosed multi-level medical cannabis producers in Quebec. Trichomes is scheduled to start operations in 2019 with an initial annual production rate of over 2,500 kilograms reaching a planned production rate of over 20,000 kilograms by 2021.
Under the terms of the exclusive option agreement, LGC plans to fund the building of the facility by way of a $4 million fully secured convertible debenture bearing interest at the rate of 10% per annum. Upon the facility being approved for cannabis cultivation and production, the debenture will automatically be converted to a 49% holding in the issued common share capital of Trichomes as well as a 5% royalty on all net sales of cannabis products.
Click here to read the full press release.
Source: www.newswire.ca
