SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB), an international company focused on cannabis and cannabis-related ventures, released its financial results for the year ended March 31, 2019, and provided a general corporate update, including a management-prepared internal net asset value calculation. All figures are reported in Canadian dollars ($), unless otherwise indicated.

Financial Highlights For Fiscal Year 2019 Under The New Management Team:

• Net asset value per share based on the July 26, 2019 closing prices is $4.01*;
• Income before income taxes for the year ended March 31, 2019 of $110.7 million, on income from investments of $152.4 million, compared to a loss of $25.8 million a year earlier;
• Book value per share stands at $4.02* based on the March 31, 2019, audited financial statements as compared to a loss of $1.01 in 2018 (calculated at net equity divided by ending non-diluted shares issued and outstanding);
• Total assets of $224.1 million as compared to $35.1 million in 2018, an increase of 538%;
• Net income per share of $2.38, compared to a loss of $1.61 per share from a year earlier under previous management;
• Net realized gain on investments of $142.8 million, compared to $Nil in 2018; and
• Net unrealized gain on investments of $8.9 million, compared to $0.2 million loss in 2018.

(*Non-IFRS measures –  see “Non-IFRS Financial Measures“ below)

Executive Commentary
SOL Global’s Chief Investments Officer Andy DeFrancesco believes that the fiscal-year results validate the strategic creation and direction of the company, “Brady Cobb, SOL Global’s CEO, has been by my side since building the foundation of the US Cannabis Market since 2015. Specifically, Brady worked with the state of Florida to shape the legal and regulatory structure of one of the most coveted markets in the cannabis sector, while I built a structure and strategy around partnerships and financing.”

DeFrancesco adds, “After early success in Canada, and followed by early success in the state of Florida, it was clear that the US cannabis market was poised for a strong run and incredible growth.  We took control of a faltering and nearly insolvent single-focused biotech venture and created what SOL Global has become, by assembling one of the best THC and CBD portfolios in the sector.”

DeFrancesco concluded “We moved quickly with our second Florida acquisition, 3 Boys Farm, as well as key investments in leading THC and CBD brands and operators throughout the US and California. We implemented a vision for growth in multiple verticals within the Cannabis sector and used our deep roots into the quickly evolving US Cannabis legislative reform efforts (where Brady is a huge contributor) to stay two steps ahead of our competition. We also looked to what we saw as related businesses, outside the box and towards the future.  It’s now time for SOL Global to focus on the growth of its THC operations via our new MSO and to foster the expansion of our vertically integrated Hemp & CBD Operations throughout the U.S., as well as Italy, the United Kingdom and Brazil under the most amazing teams we have assembled.”

Brady Cobb, the Chief Executive Officer of SOL Global, says “that the financial results validate managements’ efforts over the past year to transform the company from a research and development company into an investment company with a thriving portfolio of cannabis-related operators. ”

“When you look at our earnings and our value per share, it shows our impressive track record of performance in the space,” Cobb says. “While the publicly listed cannabis companies have lost significant shareholder value over the last number of months, we have managed to maintain our NAV at $4.01, only a $0.01 decrease from our March 31, 2019 book value per share of $4.02.  In the last year SOL Global has aggressively been executing on a strategy that will solidify our leadership position and in return bring additional value to our company.  By the end of 2019, the companies we’ve founded and have built from the ground up — our CBD-focused HeavenlyRx and our soon to launch multi state operator (“MSO“), 3 Emeralds — are expected to be operating independently, bringing months of hard work to fruition.”

SOME UPCOMING CORPORATE EVENTS

SOL Global Investee Company To Go Public:
HeavenlyRx Ltd (“HeavenlyRx”) has commenced negotiations and due diligence on opportunities to list publicly as an independent operating CBD, Hemp and Wellness company in the U.S. HeavenlyRx, under the leadership of former Kellogg’s North America President Paul Norman, is performing a strategic review of the board and management and the team will be announced once this has been completed.  Additionally, as was previously released, HeavenlyRx has closed on several of its key portfolio company investments including Blühen Botanicals (cultivation, processing and oil/isolate processing and production), Jones Soda (a leading premium soda-maker based in Seattle, Washington), TRU Brands (emerging health and wellness focused food company), and Airganics (a company that develops high-performance wellness products). These portfolio companies consist of established brands that are generating revenue and soon to launch, innovative products, all of which have a unique application for the use of CBD. Formal details surrounding HeavenlyRx’s U.S. listing will be announced upon conclusion of its due diligence which is projected to be in August 2019.

SOL Global Terminates Transaction Between Goldstream and CannCure:
SOL Global has terminated the transaction between Goldstream Minerals (NEX: GSX) and CannCure. As part of the new strategic direction, SOL Global will acquire the remaining stock in CannCure, and close on 100% of MCP Wellness, 100% of Northern Emeralds, and 100% of One Plant. See below for additional detail.

Coast to Coast Cannabis – Guidance on SOL Global‘s MSO:
It is expected that SOL Global will shortly be completing the purchase of the previously announced licensed dispensaries operated by MCP Wellness in Michigan¹ which generated over 3.5 million in sales in June of 2019, the famed Humboldt, California based cultivator Northern Emeralds², the California-based dispensary chain One Plant USA³, in addition to SOL Global’s existing vertically integrated license in Florida, 3 Boys Farm.  Along with the closings of these four entities, SOL Global will pay out the earn out owing to the former shareholders of CannCure, completing the transaction with the original CannCure investors.  All transactions are expected to close before or during the month of October 2019 and once complete will be combined into one entity. SOL Global will own 100% of the MSO through its portfolio company CannCure upon closing. The MSO’s products will be powered by Northern Emeralds’ genetics and innovative data-driven cultivation and processing techniques.  The anchor will be the brands and products that SOL Global has invested in, that will be strategically deployed in the MSO’s dispensaries, including One Plant’s robust retail arm, across the states of Florida, Michigan and California (subject to the receipt of all required governmental approvals) including. SOL Global’s investment holdings include G Pen, Old Pal, Honey vapes, Venice Cookie Company, Plus Products, among others. It is expected that the combined entity will bridge the gap between traditional THC products and mainstay CPG products.

Independent Valuation of SOL‘s Existing Investments 
As SOL Global works through its strategic review, the board of SOL Global is in the process of finalizing the engagement with an independent, internationally recognized valuation firm with no prior relationship to SOL Global, its board, or any of its directors to determine a fair market valuation of SOL Global’s present assets, and net asset value.

SOL Global Management Changes
SOL Global is undertaking a strategic review of the management and board to consider necessary changes and reorganization to further maximize value. The changes are expected to be announced once the strategic review is completed.

SOURCE SOL Global Investments Corp.