Early Warning Press Release in Respect of KWESST Micro Systems Inc.

Rhea-AI Summary

SOL Global Investments Corp. (CSE: SOL, OTCQ: SOLCF) announced on March 4, 2022, the sale of 170,000 common shares of KWESST Micro Systems Inc. Following this transaction, SOL Global's stake in KWESST fell to approximately 9.95%, down from 10.29%. As a result, SOL Global is no longer obligated to file early warning reports under National Instrument 62-103 unless its holding exceeds 10% again. The filing delay was due to an administrative error. SOL Global operates in various sectors including retail, agriculture, and media technology.

Positive

• Reduced obligation to file early warning reports enhances operational efficiency.

Negative

• Decrease in ownership percentage below 10% may indicate reduced confidence in KWESST.

TORONTO--(BUSINESS WIRE)-- SOL Global Investments Corp. (the “Company” or “SOL Global”) (CSE: SOL) (OTCQ SOLCF) (Frankfurt: 9SB) announces that on March 4, 2022, the Company disposed of an aggregate of 170,000 common shares (each a “Common Share”) of KWESST Micro Systems Inc. (“KWESST”) (the “Disposition”). As a result of the Disposition, SOL Global now holds less than 10% of the issued and outstanding Common Shares on a partially diluted basis.

Immediately prior to the Disposition, SOL Global held 4,770,000 Common Shares and 370,000 Common Share purchase warrants of KWESST (“Warrants”), representing 10.29% of the issued and outstanding Common Shares on a partially diluted basis. Immediately following the Disposition, SOL Global held a remaining 4,600,000 Common Shares and 370,000 Warrants, representing approximately 9.95% of the issued and outstanding Common Shares on a partially diluted basis.

SOL Global may, depending on market and other conditions, increase or decrease its beneficial ownership in KWESST’s securities, whether in transactions on the open market, by privately negotiated arrangements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

As of the date hereof, SOL Global no longer beneficially owns nor controls 10% or more of the issued and outstanding Common Shares. Accordingly, SOL Global is no longer required to file early warning reports pursuant to the requirements of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues unless SOL Global’s beneficial ownership or control of the Common Shares again increases above 10% of the issued and outstanding Common Shares of the Company.

This news release, and the early warning report filed in connection with the Disposition, was filed late due to administrative error.

An early warning report prepared pursuant to the requirements of National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues by SOL Global has been filed on SEDAR at www.sedar.com under the KWESST’s profile. To obtain more information or to obtain a copy of the early warning report to be filed in respect of this news release, please contact SOL Global at the contact details noted below.

About SOL Global Investments Corp.

SOL Global is a diversified investment and private equity holding company engaged in the small and mid-cap sectors. SOL Global’s investment partnerships range from minority positions to large strategic holdings with active advisory mandates. The Company’s seven primary business segments include Retail, Agriculture, QSR & Hospitality, Media Technology & Gaming, and New Age Wellness.

The Company’s head office is located at 100 King Street West, Suite 5600, Toronto, Ontario, M5X 1C9.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220309006042/en/

SOL Global Investments Corp.

Paul Kania, Chief Financial Officer

Phone: (212) 729-9208

Email: info@solglobal.com

Source: SOL Global Investments Corp.

FAQ

What recent transaction did SOL Global Investments complete involving KWESST Micro Systems?

On March 4, 2022, SOL Global disposed of 170,000 common shares of KWESST, reducing its ownership to approximately 9.95%.

Why is SOL Global no longer required to file early warning reports?

SOL Global's ownership in KWESST fell below 10%, eliminating the need for mandatory early warning filings unless ownership increases again.

What is the current ownership percentage of SOL Global in KWESST Micro Systems?

SOL Global now holds approximately 9.95% of KWESST's issued and outstanding common shares.

What segments does SOL Global operate in?

SOL Global operates in retail, agriculture, QSR & hospitality, media technology, gaming, and wellness sectors.

When was the disposition of KWESST shares announced?

The disposition was announced on March 4, 2022.