Mr. Paul Kania reports

SOL GLOBAL PROVIDES INTERIM UNAUDITED FINANCIALS FOR THE SECOND QUARTER ENDED MAY 2024

SOL Global Investments Corp. has released unaudited financial results for the second quarter ended May 31, 2024. The company has presented a general operational update regarding its assets and investments.

Unaudited results for the six-month period ended May 31, 2024:

• For the six-month period ended May 31, 2024, the company recorded a net loss of ($4.5-million) versus the six-month period ended May 31, 2023, net loss of ($12.2-million). This represents a net change of $7.7-million.
• For the three-month period ended May 31, 2024, the company recorded a net loss of ($3.1-million) versus the three-month period ended May 31, 2023, net loss of ($1.2-million). This represents a net change of $1.9-million.
• Total loss from investments totalled ($20.7-million) for the six-month period ended May 31, 2024, compared with a loss of ($9.4-million) for the six-month period ended May 31, 2023. This represents a net change of $11.3-million between periods.
• Total loss from investments totalled ($21.6-million) for the three-month period ended May 31, 2024, compared with income of $2.8-million for the three-month period ended May 31, 2023. This represents a net change of $24.4-million between periods.
• The unaudited net asset value per share is equal to six cents at May 31, 2024, versus 89 cents at May 31, 2023.

"SOL remains steadfast and continues to assist its core portfolio companies in this volatile market as we do appreciation in the coming quarters," said Paul Kania, chief financial officer and interim chief executive officer.

Portfolio highlights for second quarter 2024:

• Damon Motors Inc., a global technology leader disrupting urban mobility and maker of the award-winning HyperSport electric motorcycle: Anchored by its proprietary electric powertrain, HyperDrive, Damon aims to set a new standard for motorcycle safety and sustainability worldwide. On Oct. 23, 2023, Damon announced 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 analytic division based in the United Kingdom. On June 24, 2024, Damon provided an update on its business combination. The merger will enhance Damon's capabilities and market reach, positioning the company for further growth in the electric motorcycle sector. The combined entity aims to leverage Grafiti's strengths to accelerate the development and production of Damon's high performance electric motorcycles. With over $88-million (U.S.) in preproduction reservations, this strategic move is expected to drive innovation and expand Damon's presence in the global market. In March, 2024, Damon announced that it had taken a significant step toward full-scale commercialization by partnering with Swiss die-casting company Aluwag AG and Taiwan-based advanced manufacturing company, Fukuta Elec & Mach Co. Together, these companies will help Damon produce its innovative die-cast battery case and compact motor gearbox at scale.
• 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 has 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. In April, 2024, Kiwibot acquired Auto Mobility Solutions, a Taipei-based company specializing in chips for robotics and autonomous driving. Kiwibot aims to enhance its capabilities by integrating Auto's technology into its artificial-intelligence-powered robotics and expand into Asia, leveraging Auto's presence in Taiwan and China, to extend beyond college campuses. In December, 2023, it announced a $10-million deal 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 service giant Sodexo to deploy more than 1,200 delivery Kiwibots across 50 college campuses in the United States. Sodexo is a global food service and facility company in more than 80 countries that operates in college campuses across the United States.
• Onet Global Inc., 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 Cambridge-based co-creator of the Android operating system Rich Miner and Google co-founder Sergey Brin. Tesla chief executive officer 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. In January, 2024, Navier announced a new partnership with Stripe. Under the agreement, Stripe will pay Navier to shuttle employees from Larkspur to its office near Oyster Point, both reducing emissions and hours of commuting time. The Bay Area pilot program shows how smaller hydrofoil vehicles can ease traffic jams in coastal cities in a cheaper and more efficient way than traditional ferry systems. Navier has also partnered with the U.S. Department of Defence to provide cutting-edge technologies for maritime applications.
• Core Scientific Inc., the Texas-based bitcoin mining firm announced on Jan. 23, 2024, that it had completed its Chapter 11 reorganization, re-emerging with a strengthened balance sheet. The listing of its common stock, tranche 1 warrants and tranche 2 warrants on the Nasdaq under the symbols CORZ, CORZW and CORZZ, respectively, occurred on Jan. 24, 2024. Over the first half of 2024, Core Scientific's management has made progress to diversify its revenue streams into the secured high-powered computing segment, providing hosting services for digital infrastructure. In June, 2024, it signed an agreement with CoreWeave for $4.7-billion over a 12-year period to host 200 megawatts of alternative computing power at its Austin, Tex., facility. Core Scientific will modify existing sites to host CoreWeave's Nvidia GPUs and allow for AI and other applications with demanding energy requirements. In September, 2022, SOL Global invested $11.3-million (U.S.) in senior secured convertible notes. As part of the restructuring plan, SOL Global received convertible notes and stock valued at approximately $1.203 (U.S.) for every $1 (U.S.) of principal, comprising a mix of common shares and convertible notes. In total, SOL Global received 1,470,838 shares and convertible notes with a principal value of $6,333,067 (U.S.). Additionally, SOL Global obtained 1,455,396 units of contingent liability rights, tradable under the symbol CORZR.
• Zapata Computing Holdings Inc.: On July 14, 2024, Zapata AI announced its expansion into the automotive sector through a strategic partnership with Andretti Autosport. This collaboration aims to leverage Zapata AI's advanced generative AI capabilities to enhance performance and efficiency in Andretti's racing operations. The partnership highlights a significant step in integrating cutting-edge AI technology with high performance automotive applications, promising innovative advancements in the racing industry. Zapata AI is an industrial generative AI 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.
• Build a Rocket Boy Ltd., a Scotland-headquartered game development company founded by former lead developer of the Grand Theft Auto franchise Leslie Benzies, announced Jan. 17, 2024, that it had raised $110-million in a Series D round of financing ahead of commercial launch. The company has pitched community-driven gaming with an immersive open-world platform. Build a Rocket Boy's Series D round was led by New York-based investment firm RedBird Capital Partners, with participation from NetEase Games, Galaxy Interactive, Endeavor, Alignment Growth, Woodline Partners and Gtam Partners, among others. SOL Global participated in the Series C round in January, 2022, through an investment in the amount of $2-million (U.S.) through a third party limited partnership.
• Jones Soda Co.: On March 14, 2024, Jones Soda announced its financial results for the first quarter of 2024. The company continued to gain market share in its core soda business with the addition of new partners across its distribution. Revenue increased 29 per cent to $5.0-million compared with $3.9-million year over year. Net loss improved to ($1.2-million), or (one cent) per share, compared with a net loss of ($1.4-million), or (one cent) per share. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved to ($1.0-million) compared with ($1.1-million) in the same period.
• Simply Better Brands Corp.: On July 11, 2024, Simply Better increased its revenue guidance for Trubar and secured new financing to support the brand's market expansion. This strategic move aims to enhance Trubar's market presence and growth potential, leveraging the new funds to bolster distribution and marketing efforts. The updated revenue forecast reflects the company's confidence in Trubar's performance and future prospects in the health and wellness sector. As a result of Trubar exceeding the bar category sales velocities at Costco, Trubar was able to access national distribution at Costco during the previous quarter.

Real estate update:

• The 2400 to 2500 North Miami Ave. is set to be the most prestigious residential address in Wynwood with a thoughtful and diverse unit mix, an abundance of amenities, significant office space in a submarket eager for continued deliveries, and activated ground-floor destination retail space. The project includes total floor area of 900,000-plus 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. The company owns 28.12 per cent of the project indirectly.

Debenture:

• As of June 30, 2024, the company reduced the debenture balance to $18,896,029 from $20,610,880. The company has repaid $1,714,851 in debenture loan for the current fiscal year.

About SOL Global Investments Corp.

SOL Global is a diversified international investment and private equity holding company. Its investment partnerships range from minority positions to large strategic holdings and advisory mandates. Key business segments include electric mobility, digital asset technology, e-sports and gaming, New Age wellness, and residential commercial real estate.

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