LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSX-V: 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.
Leni Gas Cuba Limited was incorporated in the BVI on the 3 March 2015 as an Investment Vehicle for the purpose of making investments and/or acquisitions in Cuba.
It is intended that the Company will invest, acquire an appropriate percentage holding possibly including management of a company or companies and businesses with part or whole connection or relationship to Cuba’s oil and gas, agribusiness, manufacturing, industrial, transport and logistics, biotech, construction, utilities, business services, support services, retail, and/ or tourism sectors. It is the Directors’ belief that these sectors offer opportunities to create significant value.
The Company has recruited a Board it believes is well suited for the purposes of implementing its Investing Policy mixing a strong track record of growing diversified investment groups in both the resource and non-resource sectors (including health and wellness, energy, media, real estate, finance, logistics and leisure), considerable public company experience and a wide network of global contacts. As further investment opportunities are identified the Company may consider utilizing outside consultants and advisers as the situation demand.
In June 2016, LGC acquired a 10% interest in The Cuba Mountain Coffee Company Ltd (“CMC”), an English company founded in 2013 to promote, on a worldwide basis, single-origin gourmet coffee from Cuba’s famous Guantanamo Region, both as green beans and also via CMC’s own bespoke coffee brand, “Alma de Cuba”.
CMC has signed a Letter of Intent, in April 2015, and an International Economic Association Contract (“IEA”) has been discussed and is going through the various stages of Cuban government approval with Grupo Agro Forrestal and Empresa Procesadora de Café Asdrúbal López Vazquez (“AL”) for green bean coffee supplies. AL is a part of the Ministry of Agriculture/Grupo Agro Forrestal, which controls the majority of the green coffee processing in Cuba.
CMC is working towards formalising a definitive ten-year (extendable) IEA with AL in the Guantanamo Province that will provide, over a five-year period, capital and equipment to improve the processing and quality of green beans from the region. In return, CMC will obtain the rights to an increasing proportion of this production for global marketing. CMC is working towards finalising the definitive IEA by the end of 2016.
CMC has already established an E-commerce website (www.almacuba.com) for its Gourmet coffee brand, “Alma de Cuba” and retails its coffee through major retail outlets.
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GROOMBRIDGE TRADING CORP. JOINT VENTURE
In November 2015, LGC entered into an agreement with Cuban-centric trading company Groombridge Trading Corp. (“GTC”) to form a 50/50 joint venture (the “GTC JV”) designed to expand GTC’s existing business of supplying products, machinery and equipment to the fast-growing Cuban tourism sector and exporting agricultural products from Cuba.
GTC, established in 2013, is a Canadian corporation that is approved to trade in Cuba by the Cuban Ministry of Foreign Trade and Investment and the Ministry of Agriculture and is further authorized to trade with other Cuban Government entities.
The GTC JV assists GTC with its existing order book of imports for the hotel and tourism sector and will become a financial partner in new business moving forward. The GTC JV has an exclusive, first right of refusal to participate on a deal-by-deal 50/50 basis in any current and new transactions originated and operated by GTC. In addition to growing GTC’s current trading activities, the GTC JV also works with GTC to develop a number of agricultural projects and initiatives currently under negotiation in Cuba and assist with new export orders of agricultural products to Europe and Canada.
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Oil and Gas
MELBANA ENERGY LIMITED
In February 2016, LGC made a strategic investment in Cuban oil explorer Melbana Energy Limited a company incorporated under the laws of Australia and listed on the Australian Securities Exchange (ASX), as a result of which LGC became the single largest shareholder of MEO, with a 15.8% interest.
Melbana Energy is pre-qualified as a foreign onshore and shallow water operator in Cuba and in September 2015 was awarded a 100% interest in the 2,380 km2 onshore oil block, Block 9 Production Sharing Contract (“Block 9 PSC”), located on the north coast of Cuba, 140 km east of Havana and along trend with the multi-billion barrel Varadero oil field. As LGC also holds a 15.14% interest in Petro Australis, which holds a conditional 40% back-in option to Block 9 PSC, the investment by LGC in MEO significantly increased LGC’s underlying interest in Block 9 PSC.
In July 2016, Melbana Energy reported on the significant potential of Block 9 PSC for Cuba: “The first of three identified oil plays on Block 9 has been assessed by Melbana Energy to contain 8.183 billion barrels of Oil-in-Place with a Prospective (Recoverable) Resource of 395 million barrels (Best Estimate, 100% basis) of potentially high quality light oil. Further work on the other, shallower oil plays, which also have significant oil potential, is continuing and will be reported on as available.”
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PETRO AUSTRALIS LIMITED
LGC owns approximately 15.14% of the outstanding shares of Petro Australis Limited (“Petro Australis”), an unlisted public company incorporated in Australia. Petro Australis’ principal activity is sourcing oil and gas opportunities in the Americas with a focus on Latin America (including Cuba). Petro Australis holds a conditional 40% back-in option to the onshore oil block, Block 9 PSC in Cuba.
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COMMERCIAL FUNDED SOLAR JOINT VENTURE
In May 2016, LGC entered into an agreement with UK Solar power and storage specialists, Commercial Funded Solar Ltd (“CFS”), designed to assess the potential for installing and operating renewable energy and hybrid power solutions (solar power, energy storage and integrated power management systems) in Cuba. In 2014, Cuba set a target of producing 24 percent of its electricity from renewable sources by 2030. Solar is a big part of this initiative due to the abundance of sunshine in the country.
CFS is a UK based muti-national company with operations in the UK, Africa and South America specialising in the installation of medium sized, commercially funded renewable power and storage systems of between 30kw and 1MW each. CFS is currently focused on delivering a large number of investor funded commercial systems to Academy and School Groups in the UK public and private education sector as well as providing a commercially funded model for investors wanting a higher return, short term (1-3 year) investment in countries with supportive governments with immediate requirements to replace diesel generation, such as in Cuba.
CFS and LGC intend to lead the development and construction of each project with the funding coming from external investors. Under the terms of the agreement, CFS and LGC will share on a 50/50 basis the development, funding and construction revenues for each renewable power plant built, and share on a 75/25 basis the 10-20 year operational contracts for all the systems.
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RUSHMANS JOINT VENTURE
In April 2016, LGC entered into a 50/50 joint venture with Rushmans Ltd (the “Rushmans JV”) to explore the opportunities available for international entities to participate in the development funding for Cuban sport. Rushmans (http://rushmans.com/) has more than 25 years experience in world sport and has advised and supported sports governing bodies and played a key role in planning and delivering a host of major events including European Championships in Football and World Cups in Cricket and Rugby. Rushmans has also acted as a strategic advisor to sport and corporations worldwide.
Cuba has a rich sporting heritage. Its baseball players, boxers and athletes have achieved international acclaim and status while the passion of its people for sport is reflected in the enthusiasm for the number of teams visiting to play exhibition games.
The Rushmans JV an exclusive licence to use the Rushmans’ brand and intellectual property in respect to Cuban sporting opportunities, including assisting Cuban sport build upon its massive potential from social / grassroots to international competition level.
Tourisom and Culture
In March 2016, LGC secured a 49% equity interest in Cuba Professionals Inc. (“Cuba Professionals”) , a company operating in Cuba that specializes in providing human resources, mainly in the field of culture, and also consulting services. Established in 2009, Panama-registered Cuba Professionals has offices in Havana and Spain. Cuba Professionals contracts Cuban artists in the field of music, dance, circus and fully-choreographed productions to clients around the world, and provides logistical support and production services for visiting companies and individuals, as well as consultancy services and business analysis to foreign entities exploring the possibility of investing and conducting business within Cuba.
LGC has provided funding to enable Cuba Professionals to grow significantly by assisting in establishing larger offices in Havana and employing more specialized management staff in the entertainment and consultancy sectors.
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TRAVELWELCOME LTD. AND THE INCLOUD9 GROUP
In September 2015, LGC acquired 40% of the issued share capital of Travelwelcome Ltd. (“Travelwelcome”), a private company incorporated in the United Kingdom. Through its representative ofﬁce in Havana, Travelwelcome provides the services of a specialist Cuban ground handler which works with other specialist travel companies around the world to assist with tailor-made trips to Cuba for their clients. This includes booking local hotels, transport, local tours and guides as well as other specialist activities such as art tours, horse riding, deep sea ﬁshing, ﬂy ﬁshing and scuba diving. In addition, Travelwelcome has the capacity to assist with the organization of special events such as conferences, weddings and group activities around Cuban festivals such as the Cigar Festival and Film Festival.
In November 2015, LGC announced that it had finalized arrangements for Travelwelcome to combine with the Cuban music, TV and film industry specialist InCloud9 group of companies in Havana. LGC’s interest in the combined Travelwelcome and InCloud9 group remains at 40%.
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DAVID LENIGAS – CO-CHAIRMAN AND DIRECTOR
David Lenigas has extensive experience operating in global public markets having served in a senior executive capacity on many public company boards. He served as the executive chairman of Rare Earth Minerals Plc until December 2015, and was responsible for the company’s significant involvement in the discovery of the Sonora Lithium Project in Northern Mexico with its joint venture partner Bacanora Minerals Limited. Mr. Lenigas also served as executive chairman of London main board listed Lonrho plc for six years until September 2012 and was responsible for its expansion into more than 17 countries in Africa in sectors covering agriculture, infrastructure, hotels, IT and aviation. In addition, he served as the executive chairman of LGO Energy plc, leading the company from its creation as an investment company through a series of acquisitions (including a reverse take-over) acquiring projects in the Gulf of Mexico, Malta, Spain and Trinidad. Mr. Lenigas identiﬁed the investment opportunity in Trinidad for LGO Energy Plc and then built a management team to assist him in negotiating the terms of the investment with the local Trinidadian partners.
Mr. Lenigas holds a Bachelor of Applied Science (Mining Engineering) with Distinction from Curtin University’s Western Australian Kalgoorlie School of Mines and also holds an unrestricted ﬁrst class mine manager’s certiﬁcate from the Western Australian Government.
MAZEN HADDAD – CO-CHAIRMAN AND DIRECTOR
Mazen Haddad is a private investor and previously held the positions of Chairman, President and Chief Executive Officer of the Company. Mr. Haddad holds a B.A. degree in economics from Emory University of Atlanta, Georgia.
Mr. Haddad is Interim President and Chief Executive Officer and a director of Argex Titanium Inc., a company listed on the Toronto Stock Exchange. Mr. Haddad was President of Township Capital Inc., a private company whose primary role was to act as a consultant for Palos Capital Pool, L.P., from 2006 until 2010. Prior to that, he served as Chairman of SGI Properties Canada Fund L.P., a private real estate investment trust (REIT) focused on residential real estate in Montreal, Québec, and as Vice-President of SGI Capital Corp., a private investment company.
ANTHONY SAMAHA – CHIEF FINANCIAL OFFICER AND DIRECTOR
Anthony Samaha is a Chartered Accountant (Australia) with more than 20 years’ experience in accounting and corporate finance. Mr. Samaha worked for more than ten years with international accounting firms, including Ernst & Young, principally in corporate finance, gaining significant experience in valuations, IPOs, independent expert reports, and mergers and acquisitions. Mr. Samaha’s experience includes more than ten years as Finance Director for several companies listed on AIM; he also served as Chief Financial Officer of a TSXV listed resource company.
RAFI HAZAN – CORPORATE SECRETARY AND DIRECTOR
Rafi Hazan previously held the positon of Chief Financial Officer of the Company. Prior thereto, he co-founded Buzz Telecommunications Services Inc., a company listed on the TSX Venture Exchange, and served as its Chairman, President and Chief Executive Officer from 2006 until its privatization in 2012. Prior to that position, he co-founded and was the Chief Operating Officer of Cartel International Inc., a company specialized in the distribution of prepaid calling cards and other services via electronic terminals (POS). He also co-developed one of the first prepaid switching platforms for the telephone calling card industry in Canada. For more than 15 years, Mr. Hazan held various positions in both engineering and management in the telecom industry at companies such as SR Telecom, NHC Communications Inc. and Israel Aircraft Industry.
Mr. Hazan holds a Bachelor of Science degree from the Technion, Israel Institute of Technology in Aerospace and Telecommunications, an MBA from Paris-Dauphine University in France and an MBA from Université du Québec à Montréal (UQAM). Mr. Hazan is a member of the Ordre des Ingénieurs du Québec.
GUY CHARETTE – DIRECTOR
Guy Charette has been Interim Chief Executive Officer of Carpathian Gold Inc., an exploration and development company listed on the Toronto Stock Exchange, since January 2014. Prior thereto, Mr. Charette was Executive Vice-President, Corporate, of Carpathian Gold Inc., from September 2010. Mr. Charette has been a director of Carpathian Gold Inc. since 2003. Mr. Charette has more than 25 years’ experience in securities law with an emphasis on structuring resource industry transactions as well as exploration and development finance in North America, Europe and in developing nations. Before joining Carpathian Gold Inc., Mr. Charette worked as a lawyer and independent consultant.
SEBASTIEN BELLEFLEUR – DIRECTOR
Sébastien Bellefleur is a business lawyer in the Montreal office of Fasken Martineau DuMoulin LLP. Mr. Bellefleur specializes in business law, more specifically in securities, mergers, acquisitions, corporate governance and mining law. He also helps set up funding, whether in the form of loans or equity financings. He has implemented a number of complex transactions on behalf of public and private corporations, such as the purchase, sale, funding and restructuring of businesses throughout Canada and abroad. He has represented issuers and brokers in connection with initial public offerings and other distributions of equity securities and debt instruments, as well as securities investments such as prospectus offerings and private placements. He has played a role in several corporate reorganizations, restructurings, takeover bids and proxy solicitations for shareholders’ meetings. A major portion of his practice consists of advising public corporations of the obligations imposed on them by regulatory authorities, such as corporate governance, and assisting them in their interactions with the market and securities authorities. Over the course of his practice, he has also acquired specific expertise on legal issues relating to the mining industry. Mr. Bellefleur is regularly called upon to represent mining exploration companies, and advises them through the process of discovering deposits in Canada and elsewhere, as well as selling mines or bringing them into production. He is a specialist in the legal issues with which mining exploration companies are often faced. Before joining Fasken Martineau in February 2014, Mr. Bellefleur practiced with another national and international law firm, where he worked on many major financial transactions.
800 Place Victoria
Contact: Rafi Hazan
Secretary and Director
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