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SOL Global Investments Corp
Symbol SOL
Shares Issued 54,109,614
Close 2020-10-30 C$ 1.34
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SOL Global earns $62M in nine months ended Aug. 31

2020-11-02 11:06 ET - News Release

Mr. Paul Kania reports


SOL Global Investments Corp. has released its financial results as at and for three and nine months ended Aug. 31, 2020.

The three-month and nine-month period ended Aug. 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 Aug. 31, 2020, was $62-million compared with a net loss for the nine-month period ended Sept. 30, 2019, of $95.8-million.
  • Net gain per share stands at 89 cents based on Aug. 31, 2020, balances compared with a net loss of 82 cents for the nine-month period ended Sept. 30, 2019.
  • Total assets of $252.3-million as compared with $178.5-million for the eight-month period ended Nov. 30, 2019.
  • Investments of $234.1-million as compared with $138.2-million for the eight-month period ended Nov. 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 Aug. 31, 2020, is 54,109,614 compared with 54,629,256 at Sept. 30, 2019.

Executive commentary

Paul Kania, SOL Global's chief financial officer, 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 continuing 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 on-line 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 non-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 remains in good standing. The debenture bears an interest rate of 6 per cent 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-cap and mid-cap sectors. Its 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 and hospitality, media technology and gaming, energy, and new-age wellness.

We seek Safe Harbor.

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