SOL Global Announces Portfolio Company Damon Motors Entered into Business Combination to List on Nasdaq

Rhea-AI Summary

Damon Motors, a portfolio company of SOL Global Investments, is set to list on the Nasdaq after completing a reverse merger with Inpixon's spin-off entity, Grafiti Holding. The enterprise value of Damon is estimated to be between $224 million and $284 million. Damon has received $85 million in pre-production consumer reservations for its HyperSport motorcycles.

Positive

• Damon Motors to list on Nasdaq after reverse merger with Grafiti Holding
• Damon's enterprise value estimated between $224 million and $284 million
• Damon receives $85 million in pre-production consumer reservations

Negative

• None.

Damon, maker of the 200 mph HyperSport and HyperFighter EV Motorcycles with patented rider safety features, is expected to list early 2024

Toronto, Ontario--(Newsfile Corp. - October 24, 2023) - SOL Global Investments Corp. (CSE: SOL) (OTC Pink: SOLCF) (FSE: 9SB) ("SOL Global" or the "Company"), a global asset manager, announced that Damon Motors Inc. ("Damon"), a portfolio company of SOL Global's Greentech-focused investment, House of Lithium, signed a definitive agreement with Inpixon (NASDAQ: INPX) to complete a reverse merger (the "Business Combination") with a proposed spin-off entity of Inpixon, Grafiti Holding Inc. Upon the completion of the Business Combination, the combined company will be listed on the Nasdaq Capital Market, subject to the approval of an initial listing application, and will be focused on the development of Damon's famed HyperFighter and HyperSport motorcycles.

The Company invested CDN$6 million in Damon in February 2021 and made a further investment in Damon in December 2021 of US$14.25 million prior to SOL Contributing its shares in Damon to House of Lithium in November, 2021. SOL, via House of Lithium, expects to realize a material return on investment for shareholders, further supporting its thesis for the Greentech space. SOL Global currently holds 63.06% of the equity in House of Lithium on an undiluted basis.

Inpixon and Damon each issued a press release announcing the Business Combination on October 23, 2023. It was reported that the enterprise value of Damon was ascertained by Inpixon's independent financial advisory firm to be within the range of $224 million and $284 million.

Founded in 2017, Damon has captured the attention of motorcycling enthusiasts by delivering 200 hp, a top speed of 200 mph, 200 miles of range, innovative design, and new safety features. The Damon HyperSport is expected to be one of the safest, smartest, and most powerful electric motorcycles in the market. Damon announced today that it has obtained approximately $85 million in pre-production consumer reservations for its motorcycles. Damon aims to set a new standard for motorcycle safety and sustainability and holds the potential to replace combustion motorcycles.

Paul Kania, Interim CEO of SOL Global, said: "We believe Damon has the right assets, technology, and team to be one of the leaders in electric motorcycles and to be able to deliver a globally effective solution, and work sustainably to reduce hydrocarbon emissions."

Disclaimer for Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this press release includes, without limitation, statements relating to the proposed Business Combination and the potential benefits to the Company, the reservation orders of Damon, the potential of Damon's motorcycles and the proposed listing of the combined entity following the Business Combination on the Nasdaq.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to the ability of the Company to execute its business plan and gain liquidity from the Business Combination, continuing favourable business and economic conditions of the industries and countries in which Damon operates, the general market conditions and that Damon shareholders will view the Business Combination favorably and vote in favor of the transaction. The Company considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation:

• the risk that the proposed Business Combination may not be completed in a timely manner or at all;
• the risk that the public market valuation of the combined company following the consummation of the Business Combination may differ from the valuation range ascertained by the parties to the Business Combination and their respective financial advisors;
• the failure to satisfy the conditions to the consummation of the Business Combination, including receiving the necessary approvals from the Damon securityholders and other necessary approvals;
• the inability to satisfy the initial listing criteria of Nasdaq or obtain Nasdaq approval of the initial listing of the combined company on Nasdaq;
• the risk that Damon has a limited operating history, has not achieved sufficient sales and production capacity at a mass-production facility, and Damon and its current and future collaborators may be unable to successfully develop and market Damon's motorcycles or solutions, or may experience significant delays in doing so;
• the risk that the combined company may never achieve or sustain profitability;
• the risk that Damon and the combined company may be unable to raise additional capital on acceptable terms to finance its operations and remain a going concern;
• the risk that Damon's $85 million of non-binding reservations are canceled, modified, delayed or not placed and that Damon must return the refundable deposits and such reservations are not converted into sales; and
• any adverse changes in U.S. or Canadian general economic, business, market, financial, political or legal conditions, including as a consequence of the ongoing uncertainties relating to inflation and interest rates.

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. The Company 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.

CONTACT INFORMATION

SOL Global Investments Corp.
Paul Kania, Interim CEO, CFO
Phone: (212) 729-9208
Email: info@solglobal.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/185068

FAQ

When will Damon Motors list on the Nasdaq?

Damon Motors is expected to list on the Nasdaq after completing a reverse merger with Grafiti Holding.

What is the estimated enterprise value of Damon Motors?

The enterprise value of Damon Motors is estimated to be between $224 million and $284 million.

How much in pre-production consumer reservations has Damon Motors received?

Damon Motors has received $85 million in pre-production consumer reservations for its HyperSport motorcycles.