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AfriAg Global Plc (AFRI)

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Monday 26 June, 2017

AfriAg Global Plc

Strategic alliance to enter Medical Cannabis Sector

26 June 2017

AfriAg Global PLC

(“AfriAg Global” or the “Company”)

 Strategic alliance to enter Medical Cannabis Sector

AfriAg Global PLC, the London listed global food and logistics group announces that its 40% owned subsidiary, AfriAg (Pty) Ltd (“AfriAg”), has entered into a strategic alliance with Canadian listed LGC Capital Limited (TSX-V: QBA-V)(“LGC”) to create a new 50/50 Joint Venture to grow and distribute medical and recreational cannabis products in the southern African region for export to regulated and certified end users around the world.

Any future contracts to be entered into will be drawn up in compliance with the local jurisdiction’s governing rules and laws.

AfriAg has extensive experience with managing agriculture operations including greenhouse cultivation. It also owns and manages certified facilities and is one of the largest distributers of perishable food products by airfreight to the world from the southern African region.

The new Joint Venture will aim to develop a fully-regulated cannabis growing and processing industry in the southern African region for export to certified end users world-wide. AfriAg will assist LGC with securing significant agricultural land packages and processing facilities in the region to grow cannabis crops and produce, including seeds, cannabis extracted oils, dried marijuana leafs, cigarettes and vapours.

Related Party Transaction

David Lenigas serves as the Chairman of AfriAg, AfriAg Global and LGC. Pursuant to the NEX Exchange Growth Market Rules for Issuers, the transaction with AfriAg constitutes a related party transaction.

John McMullen, LGC Capital’s CEO, commented; “LGC, in conjunction with AfriAg, will now be actively pursuing this first of its kind opportunity in the southern African region, which expands LGC's focus into a truly international investment company. AfriAg is a great development partner for a venture such as this and this opportunity is unique. If successful, we will make LGC the first and only Canadian publicly-traded company to be licenced to grow and export recreational and medical cannabis on a global basis.”

David Lenigas, AfriAg Global’s Chairman commented; “The global cannabis industry is a fast growing sector with many international governments legalising the use of cannabis products for medical and recreational use. AfriAg can bring a tremendous amount of growing, manufacturing and global logistics expertise to this partnership. Southern Africa has the commercial advantage of very competitive labour rate, a highly-skilled agriculture workforce, excellent climatic conditions, and rich soils that are well suited to outdoor and indoor crop production.”

About LGC Capital

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSX-V: QBA.V). 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, many of which have some exposure to high growth Cuban business opportunities and some that have no exposure to Cuba at all. LGC now plans to enter into the agricultural space in southern Africa through its new alliance with AfriAg.

The directors of the Company accept responsibility for the contents of this announcement.


AfriAg Global Plc:                              
David Lenigas (Executive Chairman)
Anthony Samaha (Finance Director)
Hamish Harris
Donald Strang
+44 (0)20 7440 0640
Peterhouse Corporate Finance Limited
Guy Miller
Fungai Ndoro
+44 (0)20 7469 0930

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