LGC Capital Ltd. announced that it is launching a new subsidiary company to specifically engage in the development of an efficient global marketplace technology platform designed to help producers, value-added processors and retailers in selling, and consumers in accessing, cannabis product. LGC will focus on providing a traceable and verifiable platform, thereby enabling producers to have an efficient payment mechanism that replaces current ad hoc cash-based payments and that will be fully compliant with all relevant jurisdictional regulations. The platform will utilize the latest blockchain technologies to create a reliable and verifiable purchase and payment system and use Internet of Things ("IOT") technologies to track cannabis product shipments so as to provide assurance to consumers regarding the sourcing and quality of products. LGC Global Cannabis Marketplace Platform Initiative: As a fast-growing globally focused investment company with expertise in the cannabis supply chain, LGC is well placed to combine its capital resources and expertise in order to develop a global e-commerce framework to support the legal cannabis industry and to ensure it is integrated with the global banking system in a manner that is compliant with international and local regulations. Many global technology companies as well as niche IOT and blockchain companies are advancing technology solutions to address the challenges outlined above. LGC intends to engage with industry and technology stakeholders to develop and deliver a global industry solution through a combination of its partnerships and access to capital. LGC will work to develop an open-sourced framework-based distributed ledger, smart contracts and IOT designed to provide a business framework and supporting technology stack that can be used by producers, value-added processors, retailers and consumers in the cannabis sector. Over the short to medium term, LGC intends to release a whitepaper for industry comment. This whitepaper will seek global consensus within the cannabis industry. In parallel, LGC intends to establish technology partnerships with key blockchain and IOT companies and systems integrators to implement the recommendations of the whitepaper when industry consensus has been achieved. Global Marketplace Platform for Cannabis Consumers and Producers: Payment companies are providing limited payment capabilities, often requiring the legal cannabis supply chain to resort to cash-based transactions. The lack of a convenient payment infrastructure limits consumer and retailer adoption. Many global banking institutions are disinclined to support cannabis-related companies, thereby limiting them in raising growth capital and causing significant audit and regulatory issues. Lack of reliable accounting and transaction recording due to the cash nature of the business can lead to "bad actors" engaging in the legal cannabis market. Lack of appropriate e-commerce infrastructure limits advertising and consumption and thus market growth potential. Lack of clear physical tracking capabilities and transparent and reliable records significantly limits consumer confidence in product sourcing and quality.