SOL Global Investments Corp. ("SOL Global" or the "Company") (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to announce its financial results as at and for three and nine-months ended August 31, 2020. All funds are reported in Canadian dollars ($), unless otherwise indicated.
The Three-Month and Nine-Month Period Ended August 31, 2020 Financial Details:
SOL Global reports as an investment company reporting under International Financial Reporting Standards (IFRS). As such, all investments, regardless of the ownership percentage held by SOL Global, are marked to market for every reporting period. SOL Global’s gains or losses reflect changes in the values of its underlying investments and are not directly a result of the actual financial results of the underlying investee companies.
Gain before income taxes for the nine-month period ended August 31, 2020 was $62.0 million compared to a net loss for the nine-month period ended September 30, 2019 of ($95.8) million.
Net gain per share stands at $0.89 based on August 31, 2020 balances compared to a net loss of ($0.82) for the nine-month ended September 30, 2019.
Total assets of $252.3 million as compared to $178.5 million for the eight-month period ended November 30, 2019.
Investments of $234.1 million as compared to $138.2 million for the eight-month period ended November 30, 2019. The gain is attributable to certain private and public investments that are core to the Company’s portfolio.
Weighted average number of basic shares outstanding at August 31, 2020 is 54,109,614 compared to 54,629,256 at September 30, 2019.
Paul Kania, SOL Global’s CFO, provides insight on the latest quarter: "SGI’s team has made strategic decisions over the last two quarters which have factored in the current market climate and we believe we have positioned ourselves appropriately. We continue to make changes which include divesting of certain non-core holdings we feel do not fit into SOL’s future strategy. The team continues to focus on our large core portfolio companies, while only exploring strategic market opportunities to our current holdings.
"SOL remains committed to work with the management and boards of our core investment companies to help facilitate and recognize full value, in the coming quarters."
Corporate Update and Outlook Amid COVID-19 Pandemic
SOL Global and its investments and portfolio companies have continued to deliver for both clients and shareholders despite challenges in the overall cannabis space and uncertain market conditions caused by the ongoing COVID-19 pandemic. SOL Global’s portfolio companies have adapted to the current environment through the continued scale-up of existing Florida cannabis production facilities, the continued expansion of One Plant Florida’s already robust home- and curbside-delivery network and online ordering system, and the continued oversight of strategic business opportunities, including the Torque Esports-Frankly-WinView merger. SOL Global remains confident that it will continue to weather the COVID-19 storm and will emerge from the pandemic as a strengthened diversified investment management company. For some none-core privately-held holdings including DNA Genetics, the Company will continue to consult outside counsel in order to address management and Board’s conduct as it relates to minority shareholders.
SOL Global’s previously announced $50 million senior secured non-convertible debenture (the "Debenture") remains in good standing. The Debenture bears an interest rate of 6.0% per annum and will not mature until July of 2021. The Company has taken the necessary steps to ensure its obligation will be satisfied on or before the maturity date.
SOL Global retains sufficient liquidity to continue to meet its obligations under the Debenture, as well as the repayment of the principal through its significant assets and ownership positions in Verano Holdings LLC, Bluma Wellness Inc., Torque Esports Corp., and the Company’s other public and private investments within its portfolio.
About SOL Global Investments Corp.:
SOL Global is a diversified investment and private equity holding company engaged in the small and mid-cap sectors. Our investment partnerships range from minority positions to large strategic holdings with active advisory mandates. SOL Global’ s seven primary business segments include Retail, Agriculture, QSR & Hospitality, Media Technology & Gaming, Energy, and New Age Wellness.
This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. The forward-looking information contained herein include, but are not limited to, information relating to the Company’s ability to repay the Debenture and the Company’s business and strategic plans..
By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release, including the Company’s ability to sell or otherwise monetize the securities of one of more of its privately held portfolio companies on a timely basis, potential litigation, investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal laws; changes in laws; reliance on management; requirements for additional financing; competition; inconsistent public opinion and perception regarding the medical-use and adult-use marijuana industry; regulatory or political change and further impact from the continuing COVID-19 pandemic. Additional risk factors can also be found in the Company's current MD&A which has been filed on SEDAR and can be accessed at www.sedar.com.
Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOL Global Investments Corp.
Paul Kania, CFO
Phone: (212) 729-9208
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