The following was shared with me by another party:
"February 7 complaint in NY Supreme Court (650858/2021) references a demand letter from 1235. The complaint reads, in part: "Seeking to exploit this turn of events, Defendants have claimed that 1235 Fund has an unconditional right to require SGI to repay the Debenture, in lieu of cash, in the form of more than 1.7 million shares in Verano, which, after the going-public transaction, will be worth, at a conservative estimate, nearly three times the principal amount of the loan. (nb. loan was CDN$50,000,000). $SOLCF's lead counsel in the matter is Elon Musk's preferred attorney - he's quite good at this...."
Given this, the 1.7MM Shares is in lieu of the debenture/cash, which is better than I may have thought initially.
1.7MM Shares is the equivalent of ~$43MM USD in total (which implies about the same amount as the cash owed).
What is interesting, is SolCF could simply make the transfers to 1235, and then use the cash originally allocated to pay down the debt by July to repurchase the Verano shares in the open market (granted, the float/volume is low, and it will take some time to execute that without driving Verano's price up dramatically), but it could actually net SolCF a small positive gain by doing it if executed right and avoid litigation costs and end the "drama" which may be weighing down on SolCF shares.
In the end though, based on where Verano is currently trading, and the amounts in question, its really a negligible impact to current valuations and far better than I was expecting.
So at existing Verano price levels (i.e., $25.5/Verano Share USD), this is effectively a wash.
As such, the post-tax fair market value of the company, based on my prior posts, is north of $8/Sol Share 25.2MM Verano Shares X $25.5/Verano Share X 0.8 (after-Tax deduction) +
~$75MM Post-tax Value of Bluma proceeds and economic interest +
~$28MM Post-tax Value of remaining portfolio -
-$44MM USDin Debt+accrued interest
= $569MM in USD
Divided by a Fully Diluted ~72MM Shares for SolCF
= ~$8/Sol Share
On a pre-tax basis this equates to ~$10/SolCF Share
implying an 85% to 130% potential return given the existing share price of $4.3/Sol Share
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