Mr. Paul Kania reports

SOL GLOBAL ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS

SOL Global Investments Corp. has released unaudited financial results for the third quarter ended Aug. 31, 2023. The company has also provided a general operational update regarding its assets and investments. All figures in this press release are in Canadian dollars, unless otherwise indicated.

Unaudited nine-month period ended results:

• For the nine-month period ended Aug. 31, 2023, the company recorded a net loss of ($19.1-million) versus the nine-month period ended Aug. 31, 2022, net loss of ($173.6-million). This represents a favourable change of $154.5-million.
• For the three-month period ended Aug. 31, 2023, the company recorded a net loss of ($6.9-million) versus the three-month period ended Aug. 31, 2022, net loss of ($12.5-million). This represents a favourable change of $5.6-million.
• Total loss from investments totalled ($15.5-million) for the nine-month period ended Aug. 31, 2023, compared with loss of ($188.5-million) for the nine-month period ended Aug. 31, 2022. This represents a favourable change of $173-million between periods.
• Total loss from investments totalled ($6.3-million) for the three-month period ended Aug. 31, 2023, compared with a loss of ($11.2-million) for the three-month period ended Aug. 31, 2022. This represents a favourable change of $4.9-million between periods.
• The unaudited net asset value (NAV) per share is equal to 72 cents at Aug. 31, 2023, versus $3.08 at Aug. 31, 2022.

"With liquidity events in our portfolio on the horizon, we feel SOL's continued investment approach will provide benefits to all stakeholders," said Paul Kania, interim chief executive officer. "With concentrated efforts, we believe we will continue to see our portfolio companies succeed."

Portfolio highlights for Q3 2023:

• Damon Motors Inc., a global technology leader disrupting urban mobility, and makers of the award-winning HyperSport electric motorcycle, announced on Oct. 23, 2023, it had entered into a definitive agreement with Inpixon Ltd. to undergo a reverse merger with a proposed spinoff entity of Inpixon, Grafiti Holding Inc., consisting of Inpixon's data analytics division based in the United Kingdom. This strategic move aims at listing the company on the Nasdaq, subject to initial listing application approval, reflecting a significant step toward enhancing market visibility and shareholder value. With over $85-million in preproduction reservations, this merger is poised to bolster Damon's financial standing and market presence while aligning with its mission of advancing motorcycle safety and performance through cutting-edge technology.
• Kiwi Campus Inc. (Kiwibot), a robotic last-mile delivery service, is operating more than 550 robots in over 35 locations across the United States as well as in Dubai. Kiwibot also signed an agreement for an additional 1,200 robots with Careem in Dubai for last-mile food delivery services. Careem is Uber's food delivery service in the Middle East. On Feb. 22, 2023, it announced a deal worth $10-million with Swiss-based Kineo finance to invest in its fleet of autonomous robots. Prior to the deal, Kiwibot signed a $20-million contract with food services giant, Sodexo, to deploy more than 1,200 delivery Kiwibots across 50 college campuses in the U.S. Sodexo is a global food services and facilities company in more than 80 countries that operates in college campuses across the United States.
• Tevva Motors Ltd., a U.K.-based designer and manufacturer of zero-emission medium-duty trucks with an innovative combination of battery electric and hydrogen fuel cell range extender technology, is currently launching large-scale commercial production of its fully electric 7.5-ton truck. On March 9, 2023, Tevva secured government plug-in truck grant (PITrG) eligibility for its 7.5-ton battery-electric truck, making it the only battery-electric truck from a British manufacturer to qualify for the award. The grant pays for 20 per cent of the purchase price, representing a 16,000-pound-sterling reduction in the total cost of ownership. Tevva continues to make strides in the hydrogen and electrification systems for commercial vehicles, working toward contributing to the reduction of emissions and advancing zero-emission transportation solutions.
• Onet Global Inc. (Navier), a long-range, high-speed electric hydrofoiling boat manufacturer, is beginning production on its 30-foot, all-electric Navier 30 model for direct consumer sales. Investors include Boston-based NextView Ventures and Propeller VC, as well as individuals like Rich Miner, the Cambridge-based co-creator of the Android operating system, and Google co-founder Sergey Brin. Tesla CEO Elon Musk was recently spotted taking the sleek-looking Navier prototype for a test drive in San Francisco Bay. In 2023, Navier announced the start of its pilot program with San Francisco Water Taxi. It will be deploying boats to ferry people around the Bay Area as a demonstration of how smaller hydrofoil craft can help reduce traffic congestion in coastal cities at a fraction of the cost and with much lower emissions than large ferries.
• Core Scientific Inc., a large bitcoin miner and hosting platform, has presented a plan to emerge from Chapter 11 Bankruptcy in Q4 2023, after entering in November, 2022. Following operational improvements and a sustained increase in the price of bitcoin, Core Scientific has returned to profitability and experienced an 800-plus-per-cent year-to-date increase in its share price. The company, through an external investment vehicle, has exposure to secured convertible notes in Core Scientific and currently expects a full recovery of value and accrued interest if Core Scientific continues to post strong results.
• Simply Better Brands Corp. (SBBC) announced on Aug. 31, 2023, second quarter sales of $23.6-million, while investing in brand growth and capability expansion. On Feb. 22, 2023, SBBC announced the successful closing of a $2-million second tranche to fully complete its $7-million non-brokered private placement offering of units at a price of 25 cents per unit to be used for new product development, channel expansion, debt reduction and general working capital purposes.
• SBBC 2023 outlook:
  • Expected consolidated net sales to exceed $80-million;
  • Expected gross margin as a percentage of net sales to be between 58 per cent and 60 per cent.
• Jones Soda Co. announced on Aug. 9, 2023, its Q2 2023 results. Gross margin expanded by 440 basis points to 32.4 per cent as Jones Soda continued to gain market share in its core soda business with the addition of new partners across its distribution channels.
• Second quarter 2023 financial summary versus year-ago quarter:
  • Revenue was $4.8-million compared with $6-million;
  • Net loss improved to $1-million, or (one cent) per share, compared with a net loss of $1.4-million, or (two cents) per share;
  • Adjusted earnings before interest, taxes, depreciation and amortization were approximately $(729,000) compared with $(1.1-million).

House of Lithium update:

• House of Lithium Ltd. is the company's electric mobility platform and climate-tech-focused portfolio investment. It continues to support its portfolio companies and monitor the capital markets landscape for opportunities to maximize shareholder value. The company is confident that House of Lithium is poised for significant growth given the long-term tailwinds for the electric mobility and climate technology industries as the world continues to electrify to support the transition to lower-emission transportation and energy. Its portfolio companies have performed well and are growing rapidly.

Real estate update:

• The project includes total floor area of 936,573 square feet and a total residential unit count of 542 apartments, including a mix of unit types ranging from studios to two-plus bedrooms with 196 units under 650 square feet and 346 units that exceed 650 square feet. The project is designed to incorporate a wide array of indoor and outdoor amenities, reflecting the unique scale and culture of the Wynwood area. The prime location of the site provides residents with immediate access to beautifully landscaped parks, a variety of indoor and outdoor dining options, including food halls, and top-tier shopping destinations.

About SOL Global Investments Corp.

SOL Global is a diversified international investment and private equity holding company engaged in the small-cap and mid-cap sectors. The company's investment partnerships range from minority positions to large strategic holdings with active advisory mandates. The company's primary business segments include retail (quick-service restaurants and hospitality), technology (with a focus on clean-tech and electric vehicles), e-sports and gaming, new-age wellness, and commercial real estate.

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