SOL Global Provides Interim Unaudited Financials for the Third Quarter Ended August 2024

Rhea-AI Summary

SOL Global reported unaudited financial results for Q3 2024, showing a net loss of ($2.9) million for the nine-month period ended August 31, 2024, compared to ($19.1) million in the same period of 2023. Total loss from investments was ($22.3) million for the nine-month period. The company's Net Asset Value (NAV) per share decreased to $0.09 from $0.72 year-over-year. The report highlights key portfolio developments, including Damon Motors' reverse merger agreement with Inpixon, Kiwibot's acquisition of an ad startup, and Navier's delivery of America's first all-electric hydrofoiling boat. Core Scientific successfully completed Chapter 11 reorganization, and House of Lithium won a favorable ruling in the Reby lawsuit.

Positive

• Net loss improved by $16.2 million compared to previous year
• Core Scientific successfully emerged from Chapter 11 with strengthened balance sheet
• Favorable legal victory in Reby lawsuit with reduced settlement of $675,000
• Portfolio company Jones Soda reported 49% revenue increase to $7.2 million

Negative

• Net loss of $2.9 million for nine-month period
• Total loss from investments increased by $6.8 million to $22.3 million
• NAV per share declined significantly from $0.72 to $0.09

Toronto, Ontario--(Newsfile Corp. - October 29, 2024) - SOL Global Investments Corp. (CSE: SOL) (OTC Pink: SOLCF) (FSE: 9SB) ("SOL Global" or the "Company")  today reported unaudited financial results for the third quarter ended August 31, 2024. 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 Results for the Nine-Month Period Ended August 31, 2024

• For the nine-month period ended August 31, 2024, the Company recorded a net loss of ($2.9) million vs. nine-month period ended August 31, 2023, net loss of ($19.1) million. This represents a net change of $16.2 million.

• For the three-month period ended August 31, 2024, the Company recorded a net loss of ($3.0) million vs the three-month period ended August 31, 2023, net loss of ($6.9) million. This represents a net change of $3.9 million.

• Total loss from investments totalled ($22.3) million for the nine-month period ended August 31, 2024, compared to loss of ($15.5) million for the nine-month period ended August 31, 2023. This represents a net change of $6.8 million between periods.

• Total loss from investments totalled ($1.6) million for the three-month period ended August 31, 2024, compared to loss of ($6.0) million for the three-month period ended August 31, 2023. This represents a net change of $4.4 million between periods.

• The unaudited Net Asset Value ("NAV") per share is equal to $0.09 at August 31, 2024, vs. $0.72 at August 31, 2023.

Portfolio Highlights for Q3 2024

• Damon Motors Inc. ("Damon"), a global technology leader disrupting urban mobility, and makers of the award winning HyperSport electric motorcycle. Anchored by its proprietary electric powertrain, HyperDrive, Damon aims to set a new standard for motorcycle safety and sustainability worldwide. On October 23^rd, 2023, Damon announced it had entered into a definitive agreement with Inpixon Ltd., (NASDAQ:INPX) 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. On June 24, 2024, Damon Motors provided an update on its business combination. The merger will enhance Damon's capabilities and market reach, positioning the company for further growth in the electric motorcycle sector. The combined entity aims to leverage Grafiti's strengths to accelerate the development and production of Damon's high-performance electric motorcycles. With over US$88 million in pre-production reservations, this strategic move is expected to drive innovation and expand Damon's presence in the global market. In March 2024, Damon announced that it had taken a significant step towards full-scale commercialization by partnering with Swiss die casting company, Aluwag AG and Taiwan-based advanced manufacturing company, Fukuta Elec & Mach. Co. Together, these companies will help Damon produce its innovative die-cast battery case and compact motor-gearbox at scale. Visit www.damon.com.
  
  
• Kiwi Campus Inc. ("Kiwibot"). On September 19, 2024, Kiwibot announced its acquisition of an ad startup, transforming its delivery robots into mobile billboards. This move aims to monetize its fleet of robots by integrating advertising technology, allowing brands to display ads on the robots as they deliver products. The initiative is expected to provide a new revenue stream for Kiwibot while expanding its presence in urban spaces, blending robotics with innovative advertising. The 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 has 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 April 2024, Kiwibot acquired Auto Mobility Solutions, a Taipei-based company specializing in chips for robotics and autonomous driving. Kiwibot aims to enhance its capabilities by integrating Auto's technology into its AI-powered robotics and expand into Asia, leveraging Auto's presence in Taiwan and China to extend beyond college campuses. In 2023, 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. 
  
  
• Onet Global Inc. ("Navier"), On September 19, 2024, Navier made history by delivering America's first all-electric hydrofoiling boat and the world's longest range electric boat to its first customer marking the beginning of transforming the maritime industry towards sustainability and technological excellence.. Investors include Boston-based NextView Ventures and Propeller VC, as well as Cambridge-based co-creator of the Android operating system Rich Miner, 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. In January 2024, Navier announced a new partnership with Stripe. Under the agreement, Stripe will pay Navier to shuttle employees from Larkspur to its office near Oyster Point, both reducing emissions and hours of commuting time. The Bay Area pilot program shows how smaller hydrofoil vehicles can ease traffic jams in coastal cities in a cheaper and more efficient way than traditional ferry systems. Navier has also partnered with the United States Department of Defense to provide cutting edge technologies for maritime applications. Visit www.navierboat.com.
  
  
• Core Scientific, Inc. ("Core Scientific"), the Texas-based bitcoin mining firm announced on January 23, 2024, that it had successfully completed its Chapter 11 reorganization, re-emerging with a strengthened balance sheet. The listing of its common stock, tranche 1 warrants and tranche 2 warrants on the NASDAQ under the symbols CORZ, CORZW, and CORZZ, respectively, occurred on January 24, 2024. Over the first half of 2024, Core Scientific's management has made progress to diversify its revenue streams into the Secured High-Powered Computing segment, providing hosting services for digital infrastructure. In June 2024, it signed an agreement with CoreWeave for $4.7B over a 12-year period to host 200MW of alternative computing power at its Austin, Texas facility. Core Scientific will modify existing sites to host CoreWeave's NVIDIA GPUs and allow for AI and other applications with demanding energy requirements. On July 11, 2024, Core Scientific announced the extension of its option agreement with CoreWeave for an additional 118 megawatts of infrastructure to support high-performance computing. This extension is intended to enhance Core Scientific's infrastructure for advanced computing tasks, including AI and machine learning applications, further strengthening its capacity in these areas. In September 2022, SOL Global invested US$11.3 million in senior secured convertible notes. As part of the restructuring plan, SOL received convertible notes and stock valued at approximately US$1.203 for every US$1.00 of principal, comprising a mix of common shares and convertible notes. In total, SOL Global received 1,470,838 shares and convertible notes with a principal value of US$6,333,067. Additionally, SOL Global obtained 1,455,396 units of contingent liability rights, tradable under the symbol CORZR. Visit www.corescientific.com.
  
  
• Build a Rocket Boy Ltd., a Scotland-headquartered game development company founded by former lead developer of the Grand Theft Auto franchise Leslie Benzies, announced on October 16, 2024, a partnership with IO Interactive, the developer behind the Hitman series. This collaboration will focus on publishing Mindseye, a highly anticipated game from Build a Rocket Boy. IO Interactive is working closely with the studio on plans for the release date announcement, marking a significant step in their publishing ventures. On January 17, 2024, it announced that it had raised $110 million in a Series D round of funding ahead of commercial launch. The company has pitched community-driven gaming with an immersive open-world platform. Build a Rocket Boy's Series D round was led by New York-based investment firm RedBird Capital Partners, with participation from NetEase Games, Galaxy Interactive, Endeavor, Alignment Growth, Woodline Partners and GTAM Partners, among others. SOL Global participated in the Series C round in January 2022, through an investment in the amount of US$2 million through a third-party LP. Visit www.buildarocketboy.com.
  
  
• Jones Soda Co. ("Jones Soda") announced its financial results for the second quarter of 2024. The company continued to gain market share in its core soda business with the addition of new partners across its distribution. Revenue increased 49% to $7.2 million compared to $4.8 million. The second quarter of 2024 included approximately $1.2 million in revenue from the company's Mary Jones business compared to approximately $400,000 in the second quarter of 2023. Gross profit as a percentage of revenue increased 340 basis points to 35.8% compared to 32.4%. Net loss was $1.6 million, or $(0.02) per share, compared to a net loss of $1.0 million, or $(0.01) per share. Visit www.jonessoda.com. 
  
  
• Simply Better Brands Corp. ("SBBC") reported its Q2 2024 financial results, highlighting growth in revenue and profitability. The company's performance was driven by strong consumer demand across its product portfolio, particularly in the health and wellness categories. SBBC also announced expansion plans for TRUBAR™ following positive sales momentum. Despite challenges in the broader market, the company remains focused on scaling its brands and improving operational efficiency. Visit www.simplybetterbrands.com. 
  
  
• Semasio Inc. (Casters Holdings Inc.) - In October 2024, Semasio entered into an agreement with Samba TV to be acquired via a merger. This partnership marks a significant step forward for both companies, as they align their strengths and resources to deliver enhanced services and innovation to their audiences. Samba TV, Inc., formerly Free Stream Media Corp., specializes in transforming internet-connected televisions (CTVs) into platforms that enable advertisers, brands, and content providers to build targeted, engaged audiences. Its AI-driven content identification software is embedded in CTVs from leading manufacturers worldwide, allowing Samba to collect viewer data with consent helping its customers optimize advertising strategies and measure campaign effectiveness across devices. Visit www.semasio.com.

Real Estate Update

• The newly passed amendments to the Live Local Act (SB 328) in Miami, Florida, bring significant changes to zoning regulations and tax benefits to support affordable housing development. Plans for multiple Live Local towers are emerging throughout Miami-Dade, aiming to boost affordable housing in the area. These developments are part of a broader initiative to address the housing shortage by increasing the supply of affordable rental units. These projects can utilize the highest permitted density and height within a one-mile radius and have reduced parking requirements near transit hubs. Additionally, height, density, and FAR bonuses are administratively approved to streamline the process. Substantial property tax exemptions are provided for affordable units, overseen by the Florida Housing Finance Corporation, and granted by local appraisers. The 2400-2500 North Miami Avenue is set to be the most prestigious residential address in Wynwood with a thoughtful and diverse unit mix, an abundance of amenities. The Company owns 28% of the property indirectly. Visit www.livwrk.com.

Reby Lawsuit Update - Delaware Supreme Court rules in favour of House of Lithium

• SOL Global is pleased to announce a decisive legal victory in the case of RESTANCA, LLC, a Delaware limited liability company, on its own behalf and in its capacity as Sellers' Representative, and REBY, Inc., a Delaware corporation, Plaintiffs/Appellants, against HOUSE OF LITHIUM, LTD., a foreign corporation, Defendant/Appellee. After a thorough review of the facts, The Supreme Court of the State of Delaware, by Order dated October 9, 2024, ruled in favor of HOUSE OF LITHIUM, LTD., affirming The Court of Chancery in its Memorandum Opinion dated June 30, 2023, its Order Addressing Applications for Attorney's Fees and Expenses dated December 8, 2023, and its Final Order and Judgment dated January 8, 2024. Final judgment was entered in favor of House of Lithium and against Restanca and Reby on Plaintiffs' First Cause of Action (Breach of Contract and Specific Performance) and Second Cause of Action Breach of the Implied Covenant of Good Faith and Fair Dealing). House of Lithium was awarded $2,781,804 in costs and expenses, including reasonable attorneys' fees, incurred up to the date of the Order. This amount was settled for $675,000.

About SOL Global Investments Corp.

SOL Global is a diversified international investment and private equity holding company. Its investment partnerships range from minority positions to large strategic holdings and advisory mandates. Key business segments include electric mobility, digital asset technology, esports & gaming, new age wellness, and residential commercial real estate.

CONTACT INFORMATION
SOL Global Investments Corp.
Paul Kania, Interim CEO, CFO
Phone: (212) 729-9208
Email: info@solglobal.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-24			31-Aug-23
	Investments includes Convertible Debt & Prom Note			69,322,909			123,642,495
	Cash			25,354			242,647
	Other Assets			3,645,211			2,131,701
	Income tax recovery			9,406,083			-
	Severance payable			(24,916,712	)		(25,906,341	)
	Taxes payable			(6,478,744	)		(18,561,300	)
	Debenture			(16,823,746	)		(13,789,536	)
	Term Loan			(11,142,929	)		(9,928,863	)
	Other Liabilities			(18,113,405	)		(18,026,292	)
	Total			4,924,021			39,804,511
	Diluted Shares			55,979,981			55,273,981
	NAV			0.09			0.72

 

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.

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 go-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.

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.sedarplus.ca. 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/228102

FAQ

What was SOL Global's (SOLCF) net loss for Q3 2024?

SOL Global reported a net loss of $3.0 million for the three-month period ended August 31, 2024, compared to a $6.9 million loss in the same period of 2023.

How much did SOL Global's (SOLCF) NAV per share change in August 2024?

SOL Global's Net Asset Value (NAV) per share decreased to $0.09 as of August 31, 2024, compared to $0.72 on August 31, 2023.

What was the total investment loss for SOL Global (SOLCF) in the nine months ended August 2024?

SOL Global recorded a total loss from investments of $22.3 million for the nine-month period ended August 31, 2024.