SOL Global Announces Third Quarter 2023 Financial Results

Rhea-AI Summary

SOL Global Investments Corp. announces unaudited financial results for Q3 2023. Net loss decreased by $154.5 million compared to the same period last year. Total loss from investments decreased by $173.0 million. NAV per share is $0.72.

Positive

• Net loss decreased by $154.5 million compared to the same period last year.
• Total loss from investments decreased by $173.0 million.
• NAV per share is $0.72.

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - October 26, 2023) - SOL Global Investments Corp. (CSE: SOL) (OTC Pink: SOLCF) (FSE: 9SB) ("SOL Global" or the "Company") today announced unaudited financial results for the third quarter ended August 31, 2023. The Company is also pleased to present a general operational update regarding its assets and investments. All figures in this press release are in Canadian dollars, unless otherwise indicated.

Unaudited Nine-Month Period Ended Results

• For the nine-months period ended August 31, 2023, the Company recorded a net loss of ($19.1) million vs. nine-months period ended August 31, 2022, net loss of ($173.6) million. This represents a favourable change of $154.5 million.

• For the three-months period ended August 31, 2023, the Company recorded a net loss of ($6.9) million vs the three-months period ended August 31, 2022, net loss of ($12.5) million. This represents a favourable change of $5.6 million.

• Total loss from investments totalled ($15.5) million for the nine-month period ended August 31, 2023, compared to loss of ($188.5) million for the nine-month period ended August 31, 2022. This represents a favourable change of $173.0 million between periods.

• Total loss from investments totalled ($6.3) million for the three-month period ended August 31, 2023, compared to a loss of ($11.2) million for the three-month period ended August 31, 2022. This represents a favourable change of $4.9 million between periods.

• The unaudited Net Asset Value ("NAV") per share is equal to $0.72 at August 31, 2023, vs. $3.08 at August 31, 2022.

"With liquidity events in our portfolio on the horizon, we feel SOL's continued investment approach will provide benefits to all stakeholders," said Paul Kania, Interim CEO. "With concentrated efforts, we believe we will continue to see our portfolio companies succeed."

Portfolio Highlights for Q3 2023

• Damon Motors Inc. ("Damon"), a global technology leader disrupting urban mobility, and makers of the award winning HyperSport electric motorcycle, announced on October 23^rd, 2023, it had entered into a definitive agreement with Inpixon Ltd., to undergo a reverse merger with a proposed spin-off entity of Inpixon, Grafiti Holding Inc., consisting of Inpixon Ltd.'s data analytics division based in the UK. This strategic move aims at listing the company on the Nasdaq, subject to initial listing application approval, reflecting a significant step towards enhancing market visibility and shareholder value. With over $85 million in pre-production reservations, this merger is poised to bolster Damon's financial standing and market presence while aligning with their mission of advancing motorcycle safety and performance through cutting-edge technology. Visit www.damon.com.

• Kiwi Campus Inc. ("Kiwibot"), a robotic last-mile delivery service, is operating more than 550 robots in over 35 locations across the United States as well as in Dubai. Kiwibot also signed an agreement for an additional 1,200 robots with Careem in Dubai for last-mile food delivery services. Careem is Uber's food delivery service in the Middle East. In February, 22, 2023, it announced a deal worth $10 million with Swiss-based Kineo finance to invest in their fleet of autonomous robots. Prior to the deal, Kiwibot signed a $20 million contract with food services giant, Sodexo, to deploy more than 1,200 delivery "Kiwibots" across 50 college campuses in the US. Sodexo is a global food services and facilities company in more than 80 countries that operates in college campuses across the United States. Visit www.kiwibot.com.

• Tevva Motors Ltd. ("Tevva"), a UK-based designer and manufacturer of zero-emission medium-duty trucks with an innovative combination of battery electric and hydrogen fuel-cell range extender technology, is currently launching large-scale commercial production of its fully electric 7.5-ton truck. On March 9, 2023, Tevva secured government plug-in truck grant (PITrG) eligibility for its 7.5-ton battery-electric truck, making it the only battery-electric truck from a British manufacturer to qualify for the award. The grant pays for 20% of the purchase price, representing a £16,000 reduction in the total cost of ownership. Tevva continues to make strides in the hydrogen and electrification systems for commercial vehicles, working towards contributing to the reduction of emissions and advancing zero-emission transportation solutions. Visit www.tevva.com.

• Onet Global Inc. ("Navier"), a long-range, high-speed electric hydrofoiling boat manufacturer is beginning production on its 30-foot, all-electric Navier 30 model for direct consumer sales. Investors include Boston-based NextView Ventures and Propeller VC, as well as individuals like Rich Miner, the Cambridge-based co-creator of the Android operating system, and Google co-founder Sergey Brin. Tesla CEO Elon Musk was recently spotted taking the sleek-looking Navier prototype for a test drive in San Francisco Bay. In 2023, Navier announced the start of its pilot program with San Francisco Water Taxi. It will be deploying boats to ferry people around the Bay Area as a demonstration of how smaller hydrofoil craft can help reduce traffic congestion in coastal cities at a fraction of the cost and with much lower emissions than large ferries. Visit www.navierboat.com.

• Core Scientific, Inc. ("Core Scientific"), a large bitcoin miner and hosting platform has presented a plan to emerge from Chapter 11 Bankruptcy in Q4 2023, after entering in November 2022. Following operational improvements and a sustained increase in the price of bitcoin, Core Scientific has returned to profitability and experienced an 800%+ YTD increase in its share price. The Company, through an external investment vehicle, has exposure to secured convertible notes in Core Scientific and currently expects a full recovery of value and accrued interest if Core Scientific continues to post strong results. Visit www.corescientific.com.

• Simply Better Brands Corp. ("SBBC") announced on August 31, 2023, second quarter sales of $23.6 million, while investing in brand growth and capability expansion. On February 22, 2023, SBBC announced the successful closing of a $2 million second tranche to fully complete its $7 million non-brokered private placement offering of units at a price of $0.25 per unit to be used for new product development, channel expansion, debt reduction, and general working capital purposes. Visit www.simplybetterbrands.com.
  
  SBBC 2023 Outlook:

  • Expected consolidated net sales to exceed $80 million.

  • Expected gross margin as a percentage of net sales to be between 58% and 60%

• Jones Soda Co. ("Jones Soda") announced on August 9, 2023, its Q2 2023 results. Gross margin expanded by 440 basis points to 32.4% as Jones Soda continued to gain market share in its core soda business with the addition of new partners across its distribution channels. Visit www.jonessoda.com.
  
  Second Quarter 2023 Financial Summary vs. Year-Ago Quarter

  • Revenue was $4.8 million compared to $6.0 million.

  • Net loss improved to $1.0 million, or $(0.01) per share, compared to a net loss of $1.4 million, or $(0.02) per share.

  • Adjusted EBITDA was approximately $(729,000) compared to $(1.1) million.

House of Lithium Update

• House of Lithium Ltd. ("House of Lithium") is the Company's electric mobility platform and climate tech focused portfolio investment. It continues to support its portfolio companies and monitor the capital markets landscape for opportunities to maximize shareholder value. The Company is confident that House of Lithium is poised for significant growth given the long-term tailwinds for the electric mobility and climate technology industries as the world continues to electrify to support the transition to lower-emission transportation and energy. Its portfolio companies have performed well and are growing rapidly.

Real Estate Update

• The project includes total floor area of 936,573 square feet and a total residential unit count of 542 apartments, including a mix of unit types ranging from Studios to 2+ Bedrooms with 196 units under 650 square feet and 346 units that exceed 650 square feet. The project is designed to incorporate a wide array of indoor and outdoor amenities, reflecting the unique scale and culture of the Wynwood area. The prime location of the site provides residents with immediate access to beautifully landscaped parks, a variety of indoor and outdoor dining options including food halls, and top-tier shopping destinations. Visit www.livwrk.com.

About SOL Global Investments Corp.

SOL Global is a diversified international investment and private equity holding company engaged in the small and mid-cap sectors. The Company's investment partnerships range from minority positions to large strategic holdings with active advisory mandates. The Company's primary business segments include Retail (QSR & Hospitality), Technology (with a focus on Clean-Tech and Electric Vehicles), Esports and Gaming, New Age Wellness and commercial real estate.

CONTACT INFORMATION

SOL Global Investments Corp.
Paul Kania, Interim CEO, 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

Non-IFRS Financial Measures

This press release includes references to net asset value, which is a financial measure that does not have a standardized meaning prescribed by IFRS. Net asset value is calculated as the value of total assets less the value of total liabilities at a specific date. The Company believes this non-IFRS measure does not only provide management with comparable financial data for internal financial analysis but also provides meaningful supplemental information to investors. In particular, management believes this financial measure can provide information useful to its shareholders in understanding the performance of the Company and may assist in the evaluation of its business relative to that of its peers. Investors are cautioned that this non-IFRS measure should not be construed as an alternative to the measurements calculated in accordance with IFRS as, given the non- standardized meaning, it may not be comparable to similar measures presented by other issuers.

NAV Breakdown Summary

		31-Aug-23		31-Aug-22
	Investments includes Conv Debt & Prom Note	123,642,495		195,169,406
	Cash	242,647		697,652
	Other Assets	2,131,701		5,090,407
	Net Deferred Tax Asset	-		29,755,603
	Severance payable	(25,906,341)		(22,089,993)
	Taxes payable	(18,561,300)		(5,579,538)
	Debenture	(13,789,536)		-
	Non-revolving loan term facility			(11,953,008)
	New debt	(9,928,863)	-	10,093,425
	Other Liabilities	(18,026,292)		(25,832,431)
	Total	39,804,511		155,164,673
	Diluted Shares	55,273,981		50,440,129
	NAV	0.72		3.08

 

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. The forward-looking information contained in this press release includes, without limitation, the estimated NAV of the Company in the Company's financial statements, future operational plans of House of Lithium, strategic plans for House of Lithium to go public, and the Company's expectations regarding its ability to operate and emerge from the COVID-19 pandemic.

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 including the inability or failure of the Company's portfolio companies to execute their business and strategic plans as contemplated or at all, inability or failure of House of Lithium to complete a going public transaction as planned or at all, the receipt of all applicable stock exchange and regulatory approvals for House of Lithium's go-public transaction, the inability or failure of the Company's or House of Lithium's portfolio companies to execute their business and strategic plans as contemplated or at all, changes in national or regional economic, legal, regulatory and competitive conditions and a resurgence in the COVID-19 pandemic.

Other risk factors include: the risks resulting from investing in the US 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 Company's ability to sell or otherwise liquidate those securities and realize value; reliance on management; the ability of the Company to service its debt; the Company'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 can also be found in the Company's current MD&A, 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. 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.

Financial Outlook

The Company and its management believe that the estimated NAV contained in this press release is reasonable as of the date hereof and is based on management's current views, strategies, expectations, assumptions and forecasts, and have been calculated using accounting policies that are generally consistent with the Company's current accounting policies. This estimate is considered future-oriented financial outlook and financial information (collectively, "FOFI") under applicable securities laws. This estimate has been approved by management of the Company as of the date hereof. Such FOFI is provided for the purposes of presenting information about management's current expectations and goals in determining the intrinsic value of the Company's aggregate investments. However, because this information is highly subjective and subject to numerous risks, including the risks discussed above under "Cautionary Statements". The FOFI should not be relied on as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the FOFI prove incorrect, then the actual results could vary materially from the estimate. Although management of the Company has attempted to identify important risks factors, other uncertainties and factors not known to the Company could cause actual results to differ materially from the estimate. The Company disclaims any intention or obligation to update or revise any FOFI, whether as a result of new information, future events or otherwise, except as required by securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/185297

FAQ

What were the financial results for Q3 2023?

The net loss decreased by $154.5 million compared to the same period last year. The total loss from investments decreased by $173.0 million. The NAV per share is $0.72.

What is the NAV per share?

The NAV per share is $0.72.