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SOL Global Investments Corp
Symbol SOL
Shares Issued 54,327,020
Close 2020-02-21 C$ 0.34
Market Cap C$ 18,471,187
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SOL portfolio company receives $15M (U.S.) loan

2020-02-21 10:30 ET - News Release

Mr. Brady Cobb reports

SOL GLOBAL PORTFOLIO COMPANY CANNCURE CLOSES $15 MILLION USD CONSTRUCTION LOAN TO EXPAND ONE PLANT FLORIDA

SOL Global Investments Corp.'s portfolio company, CannCure Investments Inc., has secured a $15-million (U.S.) construction loan from Advanced Flower Capital to finance the construction and development of a new, state-of-the-art, 88,327-square-foot tilt-up indoor cultivation, processing and lab facility in Indiantown, Fla., for CannCure's One Plant Florida (formerly 3 Boys Farm LLC). One Plant is a medical marijuana treatment centre in Florida licensed by the Florida Department of Health, Office of Medical Marijuana Use. The construction loan will be secured by a mortgage and other commercially common security interests.

The new indoor facility, to be located on One Plant's existing Indiantown, Fla., property, will include individual flowering rooms, postharvest processing rooms, advanced curing rooms, a full extraction and research and development lab, a kitchen, trim and packaging rooms, research and development cultivation rooms, and storage and administrative space. The new facility will be directly adjacent to One Plant's 54,000-square-foot Nexus greenhouse in Indiantown. One Plant anticipates the greenhouse will commence full operations before the end of the first quarter of 2020, subject to the receipt of all required regulatory approvals from the Florida Office of Medical Marijuana Use.

Nexus greenhouses, manufactured by the renowned Colorado-based company Nexus Greenhouse Systems, utilize modern, state-of-the-art agricultural technology combined with a high-yield growing approach to produce indoor-style cultivated flower with less demand on energy resources. One Plant Florida's own 54,000-square-foot Nexus greenhouse was designed to include 10 separate cultivation rooms and will employ separate heating and cooling systems for each room, shade control and light deprivation systems, and state-of-the-art automation, irrigation and fertigation systems, all to enhance One Plant's continued production of the highest-quality cannabis flower in Florida.

"I am very excited about having Advanced Flower Capital as a capital partner as we scale up our operations as a premium flower company in Florida," said Brady Cobb, chief executive officer. "The entire One Plant Florida team is committed to our mission and purpose of cultivating and delivering world-class flower and flower-derived products to Florida's patients, and this construction loan will allow us to continue to execute on our plans to build and develop a state-of-the-art indoor facility to facilitate expansion and the acquisition of additional market share in the budding Florida marketplace."

Obtaining the construction loan satisfies one of the conditions under the previously announced business combination agreement between CannCure, Goldstream Minerals Inc. and a wholly owned subsidiary of Goldstream, which will result in the reverse takeover of Goldstream by the shareholders of CannCure. If the RTO is completed, then the issuer resulting from the RTO will carry on the business of CannCure as a U.S. multistate cannabis company initially operating in Florida through One Plant. The completion of the RTO is subject to a number of other conditions, including the receipt of all requisite shareholder and regulatory approvals including, without limitation, the delisting of Goldstream from the NEX board of the TSX Venture Exchange, the listing of the resulting issuer's common shares for trading on the Canadian Securities Exchange and all necessary approvals from the Florida Office of Medical Marijuana Use. There can be no assurance that the RTO will be completed as proposed or at all.

Construction loan terms

The construction loan consists of a five-year $15-million (U.S.) loan, with year-one interest only on the amount outstanding, future advances not to exceed $20-million (U.S.) in total, and an interest rate of 13.5 per cent. The construction loan is secured by a mortgage, and other commercially common security interests and instruments.

Operational update

One Plant Florida continues to establish itself as a producer of the highest-quality cannabis products in Florida and, when its current operations are compared against more established medical marijuana treatment centers in Florida, the power of premium flower can be seen. According to the weekly report dated Feb. 14, 2020, from Florida's Office of Medical Marijuana Use:

  • One Plant Florida's cannabis flower products accounted for 1.26 per cent of all cannabis flower sold in the state in the last reporting period, during which time the company accounted for only 0.434 per cent of the state's dispensaries.
  • One Plant Florida sold 77.3 per cent as much flower as Curaleaf, with only 3.57 per cent as many dispensaries as Curaleaf.
  • One Plant Florida sold 12.35 per cent as much flower as Liberty Health Sciences, with only 4.34 per cent as many dispensaries as Liberty Health Sciences.
  • One Plant Florida sold 73.2 per cent as much flower as Green Thumb Industries, with only 16 per cent as many dispensaries as Green Thumb Industries.
  • One Plant Florida sold 134.7 per cent as much flower as Harvest Health and Recreation, with only 16 per cent as many dispensaries as Harvest Health and Recreation.
  • One Plant Florida sold 14.5 per cent as much flower as Surterra, with only 2.63 per cent as many dispensaries as Surterra.
  • One Plant Florida sold 12.7 per cent as much flower as Altmed, with only 5.88 per cent as many dispensaries as Altmed.

One Plant Florida has accomplished this growth and market penetration through the continued, consistent production of its premium cannabis flower strains, including the popular indica-dominant hybrid M.A.C. 1, the highly potent indica-dominant hybrid Chem D, the citrusy sativa-dominant hybrid Sherb D #1, the subtle and relaxing indica-dominant hybrid Vanilla Berry Pie, the earthy and fruity indica-dominant hybrid Darth Revan, and the euphoric indica-dominant hybrid Mandarin Triangle Kush, among numerous others.

One Plant's planned new product offerings include solventless bubble hash and other solventless cannabis concentrates, One Plant-branded tinctures and salve creams, and GPen GioPods. All planned product offerings remain subject to regulatory approval. One Plant Florida is also rolling out its dispensary footprint (and delivery model with each store acting as a delivery hub) and expects to open nine planned dispensary locations in 2020 throughout the state, including its Jacksonville Beach location (expected to open on or before March 1, 2020), its St. Petersburg location (expected to open on or before March 20, 2020), and its Bonita Springs location (expected to open on or before April 14, 2020). Other planned dispensary locations that are currently either in permitting or under construction in Florida include the Fort Lauderdale, North Miami, Oakland Park, Orlando, Ft. Myers, Port St. Lucie, Tallahassee, Avon Park and Pensacola areas.

One Plant California update

Finally, SOL Global announces that the previously announced binding letter of intent between Three Habitat Consulting HoldCo Inc., a Delaware corporation doing business as One Plant California, and CannCure has been terminated at the mutual wishes of the parties following a re-evaluation of the transaction in light of current market conditions. The parties have since entered into a long-term licence agreement whereby One Plant Florida will retain exclusive use of all One Plant intellectual property within Florida. The parties remain interested in future transactions and will evaluate them as market conditions continue to improve.

About SOL Global Investments Corp.

SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis-related companies in legal U.S. states, the hemp and cannabidiol marketplaces, and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's research and development program with the University of Miami.

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