Mr. Paul Kania reports

SOL GLOBAL ANNOUNCES PORTFOLIO COMPANY ANDRETTI ACQUISITION TO ENTER INTO BUSINESS COMBINATION WITH ZAPATA AI

SOL Global Investments Corp. portfolio company Andretti Acquisition Corp., a publicly traded special purpose acquisition company, has entered into a definitive business combination agreement with Zapata Computing Inc. (Zapata AI) which will result in Zapata AI becoming a U.S. publicly listed company.

SOL Global, a founding investor in Andretti Acquisition, invested $3,456,000 (U.S.) and currently holds 1.43 million shares. Post completion of the transaction, SOL Global will hold 1,208,000 shares net of agreements to assign shares to other investors, and 3.45 million warrants exercisable at $11.50 (U.S.)/share that expire five years from completion of the business combination.

Andretti Acquisition and Zapata AI have jointly announced the business combination today. Zapata AI is an industrial generative artificial intelligence software company using advanced algorithms that leverage quantum techniques and have the potential to revolutionize existing AI solutions. Zapata AI currently has a commercial partnership with Andretti Autosport, in which Zapata AI's Orquestra platform provides the Andretti Indycar team with real-time analytics to inform race strategy and deliver performance edges.

The pro forma equity value of the combined company (inclusive of the remaining cash in trust at Andretti Acquisition after redemptions) is expected to be between $281-million and $365-million, depending on the level of redemptions. The transaction is expected to close in the first quarter of 2024, subject to the satisfaction of customary closing conditions (including the approval of the shareholders of Andretti Acquisition). Upon closing of the transaction, the combined company is expected to be listed on the New York Stock Exchange under the new ticker symbol ZPTA.

Portfolio company Tevva to complete business combination with ElectraMeccanica

The company also reports that a second portfolio company, Tevva Motors Ltd., announced a proposed merger with ElectraMeccanica on Aug. 15, 2023. SOL Global invested $14.5-million (U.S.) and, through its investment in House of Lithium, holds 547,170 common shares.

Tevva is a leading pioneer in electric medium- and heavy-duty commercial vehicles with proprietary electric truck technology. The proposed combination between Tevva and ElectraMeccanica is expected to accelerate Tevva's growth in the United Kingdom, Europe and entry into the U.S. market by leveraging ElectraMeccanica's U.S. manufacturing facility and supply chain.

Both of the foregoing transactions are expected to close by the first quarter of 2024. SOL Global expects to update its shareholders with additional corporate updates on its portfolio companies in the coming months.

We seek Safe Harbor.