LGC Capital shares rocked after milestone first import deal

Shares in LGC Capital Ltd (CVE:QBA) skyrocketed as it announced a first contract for its 50:50 Groombridge Trading Corp joint venture worth $2.2mln.

Groombridge has inked an import deal for the delivery of construction equipment, spare parts, equipment and food into Cuba.

It comes at a timer when the Cuban economy is growing.

• READ – LGC Capital expecting big things from Cuba

LGC Capital will finance the opportunity, and it is secured by a Tier 1 Canadian bank, it said.

“Securing and executing this first contract is a tremendous achievement for the joint venture between LGC and GTC as it seeks to rapidly grow its business,” said John McMullen, LGC Capital’s chief executive.

“LGC and GTC work together to supply Canadian and third-country products to the US$15billion Cuban import market at a time when the country is opening up to the world.

“As the Cuban economy grows, the pipeline of import opportunities and the range of products that can be supplied are accelerating for GTC.”

The first delivery, under the terms, must occur within 60 days, and it includes equipment and spare parts, the firm said.

LGC Capital has investments and joint ventures in international companies with Cuban ties that are well positioned to grow.

Sectors  in which it is involved include oil and gas, sports management, consulting, travel and tourism, film production, renewable energy, and import and export.

LGC Capital shares gained over 33% to stand at $0.04 each.

Story by ProactiveInvestors