SOL Global Provides Update on Operations, Strategy and Financials
www.prnewswire.com/news-releases/sol-global-provides-update-on-operations-strategy-and-financials-300764201.html
Announces Upcoming Hemp Strategy and Investment in OG DNA Genetics Inc.
TORONTO, Dec. 12, 2018 /PRNewswire/ - SOL Global Investments Corp. ("SOL" or the "Company") (CSE:SOL) (Frankfurt:9SB) (OTCQB:SOLCF) is pleased to provide a corporate update on its operations, strategy and current financial position including the announcement of a strategic partnership with one of the most widely recognized and acclaimed global brands in cannabis breeding and genetics, OG DNA Genetics Inc. ("DNA Genetics").
CEO and CIO Statements on the closing of Investment in DNA Genetics and the launch of Global Hemp & CBD Strategy
"Our commitment to becoming one of the leading private equity cannabis investors globally is evidenced by our proven track record of identifying and investing in all-star teams, cutting-edge brands and the most promising companies. The transaction with DNA Genetics is yet another strategic investment that further enhances our U.S. cannabis portfolio," said SOL Chief Investment Officer Andy DeFrancesco.
"With the news that the Farm Bill is likely to be passed this week by the U.S. Congress and the legalization of hemp cultivation a close reality, we are more excited than ever to continue to build our portfolio of strategic transactions," said SOL Chief Executive Officer Brady Cobb. "Further, our investment team, led by Chief Investment Officer Andy DeFrancesco, has identified key market players and strategy in hemp cultivation that will ensure SOL maintains its leadership position as the cannabis industry continues to evolve. Our NAV, as listed below, exemplifies why SOL had encouraged Andy to take roles both as Chief Investment Officer and as a member of the Company's board. Andy's continuous foresight and penchant for being early to market is evidenced by his track record of being first to market in Latin America's cannabis and hemp marketplace, a trailblazer in the Canadian, U.S. and European cannabis markets, and now the global hemp & CBD industry. We are energized by the opportunities in this still-evolving industry and look forward to updating our shareholders with our comprehensive hemp strategy in the days to come."
Driving Growth For Shareholders
Below are internal unaudited management calculations of SOL's net asset value based on the investments that we have made and the cash and liabilities that we have. Investments made in private companies are presented at the amount that SOL paid for these investments.
The table below is expressed in Canadian Dollars.
Net working capital
65.5 million
Total private company investments, at cost
160.3 million
Estimated tax liability
25.6 million
Net assets
200.2 million
Shares Outstanding
48,562,881
Net Assets per share
4.12
Notes:
The above table represents value as of December 11, 2018
Net working capital noted above consists of cash, cash equivalents, prepayments and other receivables and investments in public companies less accounts payable and accrued liabilities
Estimated tax liability is as per SOL's September 30, 2018 financial statements
With each new partnership, acquisition and divestment, SOL is motivated to create synergistic value by investing in companies with meaningful products that bring a holistic approach to health and wellness. In keeping with this ethos SOL has created tremendous value for our shareholders. SOL's estimated net assets per share value significantly exceeds (by 2.44 times) the current trading price of the Company's stock which closed at $1.69 CAD on December 11, 2018. We look forward to continuing the expansion of our footprint into the vast and ever-growing industry of cannabis. With our soon to be realized hemp strategy, SOL has never been better positioned to realize the potential of this industry.
In addition, SOL continues to use its cash and cash equivalents to buy back its common shares in the open market. As of November 30, 2018, a total of 944,000 shares have been bought back at an average share price of $2.68.
Strategic Partnership with DNA Genetics
DNA Genetics is recognized worldwide for its highly selective, genetics-based approach to cannabis cultivation, earning the company more than 200 international awards and establishing DNA Genetics as a global powerhouse for breeding and growing truly best-in-class strains. DNA Genetics is firmly established in the U.S. cannabis marketplace, co-operating two million square feet of medical canopy in California, where the company began developing its high-quality cannabis seeds for the global market. DNA Genetics is also the exclusive provider of DNA certified products to a wholly owned Ontario-based subsidiary of one of the world's largest diversified cannabis and hemp companies.
SOL will leverage DNA Genetics' retail and cultivation expertise as well as their best in class genetics to strengthen the Company's investments and plans for further expansion across the U.S., an effort complimented by SOL's recent partnership with Verano Holdings ("Verano"), announced on Oct. 23, 2018. This arm's length collaboration will see DNA Genetics provide its highly sought-after consulting services and product line to SOL as the Company continues to identify key partners and markets within the U.S. and international cannabis industry.
CannCure Investments Inc.
In October, SOL announced an USD$88 million investment in Class B units of Verano Holdings, LLC ("Verano"), on a brokered private placement basis. Verano is a privately held, licensed operator of cannabis cultivation, manufacturing and retail facilities in four U.S. states (Illinois, Maryland, Nevada, and Florida) with 35+ additional licenses under development in Maryland, Michigan, Ohio, Florida and Puerto Rico. SOL concurrently announced the entering into of a definitive share purchase agreement to acquire all of the issued and outstanding common shares of CannCure Investments Inc. ("CannCure"). CannCure indirectly owns 60% of the membership interests of 3 Boys Farms LLC ("3 Boys"), a Florida-based limited liability company with authorization to cultivate, process and dispense medical cannabis as a licensed medical marijuana treatment center in the State of Florida. Sol is pleased to announce that as of December 11, 2018, Canncure closed on its acquisition of the remaining remaining 40% of the membership interests of 3 Boys. SOL also announced the entering into of an agreement to sell, subject to the completion of the acquisition of CannCure, its entire interest in 3 Boys to Verano in exchange for USD$100 million in additional Class B units. The closing of all transactions related to 3 Boys and CannCure is subject to the receipt of all required governmental approvals including from the Florida Department of Health, Office of Medical Marijuana Use.
Verano is a privately held, vertically integrated cannabis company, aiming to become one of the largest U.S. cannabis businesses in 2019. Along with SOL's investment, Verano owns and/or manages nine licensed cannabis facilities in the United States, reaching a population of over 42 million. The Company's strategic investment will give SOL an approximate 28% stake in Verano and expand its investments in key U.S. markets. SOL's interest in Verano will further strengthen the Company's position as a leading investor in the U.S. cannabis industry.
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 CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's R&D program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States' medical cannabis industry.
