SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to present its investors with select unaudited financial results and highlights for the three and nine-month period ended August 31, 2021.
All figures in this press release are in Canadian dollars, unless otherwise indicated.
Unaudited Nine-Month Period Ended Results
- For the nine-months ended August 31, 2021, the Company recorded a positive net income of $210.4 million VS nine-months ended August 31, 2020, of $47.9 million. This represents a favourable change of $160.7 million.
- For the three-months ended August 31, 2021, the Company recorded a loss of $(62.4) million VS income for the three-months ended August 31, 2020, of $43.7 million. This represents a negative change of $106.1 million. This is due to the one-time expense related to the settlement agreement with the Company’s former lender of $68.5 million.
- Total gain from investments totalled $347.4 million for the nine-months ended August 31, 2021, compared to $90.3 million for the nine-months ended August 31, 2020. This represents a favourable change of $257.1 million between periods.
- Total gain from investments for the three-months ended August 31, 2021, totalled $12.5 million, compared to $60.3 million for the three-months ended August 31, 2020. This represents a negative change of $47.8 million between periods. This is due to overall weakness in the market.
- The net asset value per share is equal to $6.44 at August 31, 2021 VS $2.79 at August 31, 2020, representing an increase of 131% for the twelve month period. The net asset value per share at May 31, 2021 was $7.43, representing a decrease of 13% for the three month period.
- Adjusting for the one-time expense related to the settlement agreement with the Company’s former lender, net asset value per share at August 31, 2021, was $7.63, representing an adjusted increase of 3% and 173% for the three and twelve-month periods respectively.
- SOL Global has diversified and rebalanced a portion of its portfolio following liquidity events in its largest core assets. In doing so, it has managed to create incredible value for shareholders by investing in new and exciting opportunities in both the public and private markets. The Company has been effective in managing its portfolio and identifying those opportunities that continue to show strong growth both within and outside of the cannabis industry.
- On September 13, 2021, SOL Global announced the launch of its new electric vehicle and green technology focused investment company, House of Lithium. Through this new entity, SOL Global shareholders will benefit from opportunities in new high growth sectors.
“Managing small cap and cannabis investments from the long side during third quarter was like playing tag in a mine field,” said Andy DeFrancesco, SOL Global’s Chairman and CEO.
“Even positive news saw stock prices continue to drop. Once again my team battled through and we outperformed in our sectors. We remain extremely confident in our underlying holdings and will not transact from the pressures of short term price fluctuations. We will stick to our 2 to 5 year time horizons on core positions which allow for smaller companies to properly execute on the business models we are backing. I’m proud and grateful to be surrounded by an awesome team and excited for what the next few quarters will bring to SOL Global’s stockholders and partners.”
- In August 2021, SOL Global participated in a private placement for US$20 million in Common C Holdings LP, a leading Michigan-based partnership that provides support services for state-compliant cannabis operators.
- In Q3 2021, SOL Global participated in a private placement for UK-based electric truck company, Tevva Motors Inc. The Company invested US$12.5 million and subsequent to the quarter end invested an additional US$2 million under the same terms.
- SOL Global participated in a private placement for US$2.5 million in the series B-1 round for cutting edge 3D printing company, Arevo Inc. The round was led by Khosla Ventures and included participation from Founders Fund.
- On July 15, 2021, SOL Global purchased convertible debentures from Jones Soda Co. (OTCQB:JSDA) for US$2 million. The Company also increased its ownership to 11.9% of the partially diluted shares outstanding.
- On July 20, 2021, SOL Global invested US$2.5 million in the Series A financing of CITYROW Holdings Inc.
- Average sales of Verano Holdings LLC (CSE:VRNO) (OTCQX:VRNOF) were done at $20.61, a significant premium to today’s trading range.
The financial results reported in this press release are based on the unaudited consolidated interim financial statements of SOL Global and related management’s discussion and analysis (“MD&A”) for the three and nine-month period ended August 31, 2021, both of which are available under the Company’s profile on SEDAR at www.sedar.com. All financial results contained in this press release are qualified in their entirety with reference to such financial statements and MD&A.