SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to provide its investors with unaudited financials for the first quarter ended February 28, 2021 and a general operational update concerning the Company’s assets and investments. All figures in this press release are in Canadian dollars, unless otherwise indicated.
Unaudited Quarter-End Results
- For the quarter-ended February 28, 2021, the Company recorded a positive net income of $208 million VS quarter-end February 29, 2020 of $2.9 million. This represents a favourable change of $205.2 million.
- Total gain from investments totalled $244 million for the quarter-ended February 28, 2021, compared to $2.6 million for the quarter-ended February 29, 2020. This represents a favourable change of $241.5 million between periods.
- The Net Asset Value (“NAV”) per share is equal to $7.12 at February 28, 2021 VS $1.98 at February 29, 2020.
- SOL Global has significantly strengthened its asset base as compared to previous quarters when market multiples were higher. The gains reported in the financial statements are reflective of material operational improvements and growth in the underlying investments. Core portfolio investments have either completed or entered into agreements to complete liquidity events that may unlock value for investors.
“I’m pumped for our stockholders and beyond proud of my team and partners for today’s results,” said SOL Global’s Chairman and CEO, Andy DeFrancesco. “Our year end results were strong, but we shattered expectations with this most recent quarter. Going forward, our sectors and holdings may change but our strategy, risk management and dedication to our stockholders will not.”
The Company’s financial statements for the quarter ended May 31, 2021 will be released on July 30, 2021
- Forward looking guidance into the Company’s Q2 results:
- Bluma Wellness Inc. (“Bluma”) was acquired by Cresco Labs Inc. (“Cresco Labs”) in an all stock transaction valued at USD$213 million.
- The Company announced its intention to increase its ownership interest in Captor Capital (the parent company of One Plant California) to 15.7%.
- The Company co-led Fyllo’s $30 million dollar Series B Financing, with a USD$4 million investment.
- The Company made its first investment in the psychedelic sector, investing $2.6 million into Wesana Health.
- The Company structured and led a recent financing into Green Scientific Labs, LLC (“GSL”), investing approximately $2.84 million for a 14.5% interest. The Company intends to increase its ownership in GSL by investing further into its RTO financing round, which is imminent.
Verano Operational Update
On March 31, 2021, Verano Holdings Corp. (“Verano”) announced it had entered into a definitive agreement to acquire all of the issued and outstanding equity interests of The Healing Center, LLC, adding three highly productive, award-winning dispensaries in the Pittsburgh-metro area.
On April 6, 2021, Verano announced its full year results for the year ended December 31, 2020. Highlights include:
- 2020 revenue of $355 million, growth of approximately 200%
- Gross profit margin of 63% for full year 2020
- 2020 net income of $245 million
- 2020 adjusted EBITDA of $170 million, 48% margin
On April 22, 2021, Verano announced it had entered into definitive agreements for all of the issued and outstanding equity interests in Agri-Kind, LLC, Agronomed Holdings Inc. and Agronomed Biologics, LLC, which collectively will add the equity in two cultivation licenses (one active location plus another facility for additional cultivation and production that is currently under construction) and the equity in a permit to add six dispensaries (non-active, to be developed) in Pennsylvania. These equity transactions will enhance Verano’s presence in Pennsylvania and further the Company’s position as a U.S. market leader.
Bluma Wellness Operational Update
On April 14, 2021, Cresco Labs closed its acquisition of Bluma. As a result of the acquisition, Bluma is now a wholly-owned subsidiary of Cresco Labs.
On April 12, 2021, Cresco launched a new brand of branded gummies under the name Wonder Wellness Gummies.
On April 22, 2021, Cresco announced the appointment of Tarik Brooks to its board of directors and the retirement of Dominic Sergi.
Other Highlights for Q2
- On March 15, 2021, the Company announced its first green tech investment in award-winning electric motorcycle company Damon Motorcycles (“Damon”). Damon recently raised USD$30 million after completing a bridge financing round led by SOL Global, Benevolent Capital Partners, LLC, Zirmania Investments Limited, and other investors. SOL Global invested CAD$6.1 million into Damon.
- Update on Litigation with lender, 1235 Fund LP: As previously disclosed, the Company commenced litigation in New York against its lender seeking, among other relief, a declaration that the lender is only entitled to have a $50 million non-convertible debenture (the “Debenture”) repaid in cash, and not in Verano shares owned by the Company with a current market value of more than $350 million. Subsequently, the lender issued a claim against the Company and others in Ontario for repayment of the Debenture through Verano shares or in the alternative damages of not less than $550 million. The Company will be asking to stay the Ontario claim on the basis that the issues are already before the New York courts. The lender has asked that the proceedings in New York be stayed or dismissed, arguing that these matters should be decided by a court in Ontario.
- As announced on March 2, 2021, the Company commenced a normal course issuer bid on April 1, 2021 (the “NCIB”). Under the NCIB, the Company may purchase up to 2,737,805 of the Company’s common shares (the “Common Shares”), representing approximately 5% of its issued and outstanding Common Shares on the date the NCIB was initiated. All Common Shares purchased under the NCIB will be purchased on the open market through the facilities of the Canadian Securities Exchange (the “CSE”) and will be at the prevailing CSE market price for the Common Shares at the time of purchase. Common Shares acquired by the Company under the NCIB are being purchased for cancellation.
