LGC Capital Announces $8 Million Bought Deal Private Placement

MONTREAL, QUEBEC–(Marketwired – Jan. 29, 2018) –

NOT FOR DISTRIBUTION TO UNITED STATED NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES AND DOES NOT CONSTITUTE AN OFFER IN THE UNITED STATES OF THE SECURITIES DESCRIBED HEREIN

LGC Capital Ltd. (TSX VENTURE:LG) (“LGC” or the “Company”) is pleased to announce that it has entered into an agreement with Cormark Securities Inc. (the “Underwriter”) pursuant to which the Underwriter has agreed to purchase 18,400,000 units (“Units”) of the Company on a bought deal private placement basis at a price of {$content}.435 per Unit (the “Offering Price”), for gross proceeds of approximately million (the “Offering”).

Each Unit shall consist of one common share (a “Common Share”) of the Company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one Common Share at a price equal to {$content}.49 for a period of 36 months following Closing. If at any time following the date that is four months and one day from Closing of the Offering and prior to the expiry date of the Warrants, the volume weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds {$content}.65 for 20 consecutive trading days, the Company shall have the right to accelerate the expiry date of the Warrants upon not less than 30 trading days’ notice.

In addition, LGC has granted the Underwriter an option to purchase up to an additional 25% of the Offering at the Offering Price exercisable, in whole or in part, at any time up the closing of the Offering.

The Offering is scheduled to close on February 16, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The Offering will be effected pursuant to prospectus exemptions under applicable securities legislation. The securities issued by LGC in the Offering will be subject to a hold period of four months and one day in Canada from the closing date of the Offering.

LGC will use the net proceeds from the Offering to meet its obligations within LGC’s current cannabis investment portfolio, for further investments, and for working capital.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States unless registered under the U.S. Securities Act or unless an exemption from registration is available.

About LGC (http://www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSX VENTURE:LG). 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.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements with respect to LGC Capital Ltd. (“LGC”) and its operations, strategy, investments, financial performance and condition, as well as the “bought-deal” private placement referred to above. These statements generally can be identified by use of forward- looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of LGC, including completion of the “bought-deal” private placement referred to above, could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, government regulation and the factors described under “Risk Factors and Risk Management” in LGC’s Management’s Discussion and Analysis for the fiscal year ended September 30, 2017, as filed on SEDAR (www.sedar.com). The cautionary statements qualify all forward-looking statements attributable to LGC and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and LGC does not have any obligation to update such statements, except to the extent required by applicable securities laws.

Caution Regarding Press Releases

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.