SOL Global Closes $10 Million Loan Facility and Reduces Outstanding Principal on Existing Credit Facility

Rhea-AI Summary

SOL Global Investments Corp. has significantly reduced its Old Credit Facility from $50 million to $10.885 million through a new loan agreement with a private lender for CAD$10 million at a 9% interest rate. The company repaid an additional $550,000 towards the Old Credit Facility. SOL Global plans to continue regular principal payments on this facility, ensuring better debt management. The New Loan is backed by a subsidiary and secured by an indirect interest in real estate in Miami, Florida.

Positive

• Reduction of Old Credit Facility from $50 million to $10.885 million, enhancing financial stability.
• Secured a new loan of CAD$10 million at a manageable interest rate of 9%.
• Commitment to regular repayments on the Old Credit Facility indicates proactive debt management.

Negative

• Dependence on new financing to manage existing debt could signal underlying financial instability.

SOL Global Reduces Principal Amount of Old Credit Facility From $50 Million to $10.885 Million and Continues Repayment on a Regular Basis

TORONTO--(BUSINESS WIRE)-- SOL Global Investments Corp. (the “Company” or “SOL Global”) (CSE: SOL) (OTCQ SOLCF) (Frankfurt: 9SB) has entered into a loan agreement with a Canadian arm’s length private lender (“New Lender”) for a secured loan in the principal amount of CAD$10 million (the “New Loan”). The New Loan has a term of 12 months and will bear interest at the rate of 9% per annum. The New Loan is guaranteed by Verano Blocker 1 LLC, a wholly-owned subsidiary of SOL Global, and Blue Sky Holdings USA Inc. (“Blue Sky”), an indirect subsidiary of SOL Global; and is secured with a general security agreement of Blue Sky, which consists primarily of an indirect interest in real estate located in Miami, Florida. The use of proceeds of the New Loan (net of fees and expenses of the New Lender) was to reduce the principal amount of the Old Credit Facility (as defined below).

The Company is also pleased to announce that further to its news release dated May 18, 2022, in addition to the proceeds of the New Loan, SOL Global also paid an additional $550,000, for an aggregate of $10.494 million, as repayment toward its senior secured credit facility (the “Old Credit Facility”) with an original principal amount of $50 million, reducing the principal amount of the Old Credit Facility to CAD$10.885 million. SOL Global intends to continue making principal payments towards the Old Credit Facility on a regular basis and will provide further updates of material changes respecting the Old Credit Facility, including any additional payments.

Cautionary Statements

This press release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. Forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.

By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. There is no assurance that SOL Global will be able to continue to make payments or servicing other obligations under the Credit Facility, or its other current or future debt, on the expected timeline, in the manner described or at all. Additional risk factors respecting SOL Global can also be found in SOL Global’s current Management’s Discussion & Analysis, which has been filed on SEDAR and can be accessed at www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information.

The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. SOL Global undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220607005597/en/

SOL Global Investments Corp.

Paul Kania, CFO

Phone: (212) 729-9208

Email: info@solglobal.com

For media inquiries, please contact:

Angela Trostle Gorman

AMW PR

P: 212.542.3146

E: SOLGlobal@amwpr.com

Source: SOL Global Investments Corp.

FAQ

What recent financial move did SOL Global Investments Corp. announce?

SOL Global announced a reduction of its Old Credit Facility from $50 million to $10.885 million and secured a new loan of CAD$10 million.

What is the interest rate on the new loan secured by SOL Global?

The new loan secured by SOL Global bears an interest rate of 9% per annum.

What will the proceeds from the new loan be used for?

The proceeds from the new loan will primarily be used to reduce the principal amount of the Old Credit Facility.

How much did SOL Global repay on the Old Credit Facility?

SOL Global repaid an additional $550,000 towards the Old Credit Facility, totaling $10.494 million in repayments.

What are the implications of the new loan for SOL Global's financial health?

The new loan may indicate financial strain as it is used to manage existing debt, though the reduction in the Old Credit Facility is a positive development.