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House of Lithium to Invest Up to an Additional US$15 Million in Award Winning EV Motorcycle Manufacturer, Damon Motors
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Rhea-AI Summary
SOL Global Investments Corp. has announced the commencement of principal repayments on its $50 million credit facility, having repaid $2.5 million as of November 19, 2021. The company is also collaborating with House of Lithium Ltd., which plans to invest up to US$15 million in Damon Motors Inc.. Following this investment, House of Lithium is expected to hold over 10% equity in Damon, known for its innovative electric motorcycles. The investment is scheduled for completion by December 23, 2021.
Positive
SOL Global has repaid $2.5 million towards its $50 million credit facility.
House of Lithium's investment of up to $15 million in Damon Motors can enhance growth opportunities.
The partnership with House of Lithium may strengthen SOL Global's position in the electric vehicle market.
Negative
None.
SOL Global Commences Principal Re-Payments Towards $50 Million Credit Facility
TORONTO--(BUSINESS WIRE)--
SOL Global Investments Corp. (“SOL Global”) (CSE: SOL) (OTCQ: SOLCF) (Frankfurt: 9SB) and House of Lithium Ltd. (“House of Lithium”) are pleased to announce that House of Lithium has entered into an agreement (the “Investment Agreement”) to invest (the “Investment”) up to US$15 million in Damon Motors Inc. (“Damon”) through the purchase of preferred shares of Damon, adding to the already CDN$6,088,000 in securities of Damon which House of Lithium held prior to making the Investment.
House of Lithium expects to close the Investment on or before December 23, 2021. If the Investment is completed in full, House of Lithium will hold greater than 10% of the equity in Damon.
“Andy DeFrancesco’s House of Lithium is one of the most visionary and innovative venture firms we have ever had the pleasure of working with. We’re thrilled to join their portfolio and usher in a new future for motorcycling together,” said Jay Giraud, Damon Co-Founder and CEO.
Based in Vancouver, British Columbia, Damon is an electric motorcycle manufacturer founded in 2017 and creator of the world’s first all-electric multi-variant powertrain platform. With its HyperDrive™ proprietary electric powertrain, Damon has developed the world’s safest, smartest, fully connected electric motorcycles employing sensor fusion, robotics and artificial intelligence. All of Damon’s motorcycles come equipped with a variety of unique safety and rider comfort features, including CoPilot, a 360° advanced warning system utilizing a combination of cameras, radar, and non-visual sensors to inform the rider of impending obstacles, and Shift, which enables a rider to adjust handlebar and peg positions while their ride is underway. Damon’s investors include Round13 Capital, Techstars, Fontinalis Partners, Extreme Venture Partners, Benevolent Capital Partners and Pallasite Ventures.
SOL Global is also pleased to announce that on November 19, 2021 SOL Global has repaid $2.5 million toward its $50 million credit facility with an arm’s length lender (the “CreditFacility”). As disclosed in SOL Global’s news release dated August 7, 2021, the Credit Facility was obtained to partially fund the acquisition of a non-convertible debenture pursuant to a settlement in a previously disclosed dispute. SOL Global intends to make additional principal payments towards the Credit Facility on a regular basis and to continue to notify shareholders accordingly.
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. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. There is no assurance that the transactions described herein will occur on the expected timeline, in the manner described, or at all.
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.
Other risk factors include: the risks resulting from investing in the U.S. marijuana industry, which may be legal under certain state and local laws but is currently illegal under U.S. federal law; the risks of investing in securities of private companies which may limit the SOL Global’s or House of Lithium’s ability to sell or otherwise liquidate those securities and realize value; reliance on management; the ability of SOL Global and House of Lithium to service its current or future debt; SOL Global’s and House of Lithium’s ability to obtain additional financing from time to time to pursue its business objectives; competition; litigation; inconsistent public opinion and perception regarding the medical-use and adult-use marijuana industry; and regulatory or political change. 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. Neither SOL Global nor House of Lithium undertakes any obligation to update nor 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.
