SOL Global Archives - Green Market Report

Debra BorchardtDebra BorchardtDecember 2, 2019
hempplant-1.jpg

7min2430

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) delivered its second-quarter results in Canadian dollars with a net loss of $51.3 million loss and no revenues only a loss of $57 million versus last year’s loss of $17 million for the same time period. The second quarter of 2018 also experienced a net income of $179 million due to the gain on the sale of a subsidiary.

In the last six months, SOL Global has recorded a net loss of $94 million or $1.75 per share. The company noted that 78% of this loss is due to SOL Global’s investment in Verano Holdings Inc. “Early in 2019, Verano announced a merger agreement with the public company Harvest Health & Recreation Inc. As a result of this merger agreement, the price of the company’s investment in Verano is linked to the value of the underlying Harvest shares that the company will receive should the publicly announced merger close. As the value of the Harvest shares decreased significantly from April 1, 2019 to September 30, 2019, the company recorded an unrealized loss of $74.2 million on its Verano investment. The remaining loss is primarily attributed to changes in the Company’s other cannabis-related investments.”

“We are disappointed in the volatility of certain core portfolio holdings which had a significant negative impact on our NAV, however, we continue to stand by those investments and their long-term value creation,” said CEO Brady Cobb. “Our stock has had a larger decline than others but traditionally an investment holding company trades at a discount to operating companies. That, coupled with 1 or 2 of our core holdings having larger price declines than expected due to HSR delays has had the majority of impact on our NAV decline.”

Confusing Acquisition Plans

In addition to the big losses, SOL Global has shifted gears with its acquisitions causing investors to lose track of what exactly the company is planning to do. SOL Global stated that it still intends to complete a transaction for the sale of 3 Boys Farms, LLC within 2 years of the closing date of its acquisition. “In the event that a sale of 3 Boys Farms, LLC does not occur within the two-year timeframe, only then would the Company be required to compensate the former CannCure shareholders US$80 million.” SOL was going to sell 3 Boys to Verano, but when Verano said it was buying Harvest Health, it didn’t need a Florida property and so that agreement was terminated.

The company also recently terminated the plan to acquire MCP Wellness, which would have given the company a large presence in Michigan, which just began recreational sales on Dec. 2.

Video Gaming?

Adding to the confusion is the company’s investment in a video game business. Two of SOL Global’s non-cannabis investments, Torque Esports Corp. (TSX-V: GAME) of which the company presently owns 9% of its shares, and Frankly Inc.  (TSX-V: TLK) of which the company presently owns 13.8% of its shares, have agreed to merge with a third company, WinView, Inc. in a triple-merger. The combined entity will be called Engine Media Holdings, Inc. with the plan to form integrated news, gaming, and esports platform. WinView Executive Chairman Tom Rogers, best known for founding CNBC and then CEO of TIVO, will serve as Executive Chairman of the new entity.

If shareholders were wondering whether this should be looked upon as a way to diversify risk, SOL Global shot that down by adding, “There are no assurances that the proposed transaction will be completed or at all.”

More confusing is that SOL Global also filed an early warning report in connection with a disposition of common shares of Frankly Inc. and also stated that it sold 103,500 common shares of Torque Esports resulting in SOL Global becoming a beneficial holder of less than 10% of the shares receiving approximately $ 130,864.

Cobb added, “This deal, which was brought together by our investment team, illustrates our strength in recognizing value in individual assets but also the foresight to cohesively align and bring investments together in order to maximize shareholder value by looking outside of the box. The esports industry marketing size is set to surpass the $1billion dollar revenue mark in 2019 according to NewZoo at a time when streaming is taking over cable providers. I’m personally excited to see this investment play out and am proud of our investment team for finding the opportunity in both Torque and Frankly and bringing them to another level. ”

Heavenly Rx To NASDAQ

SOL Global owns 40.7% of Heavenly Rx Ltd. which has signed a memorandum of understanding with the NASDAQ exchange. Heavenly is supposed to a reverse takeover of Therapix Biosciences Ltd (NASDAQ: TRPX), a specialty clinical-stage pharmaceutical company with a portfolio of technologies and assets based on cannabinoid pharmaceuticals. However, SOL also made sure to note that there also no assurances this deal would come to completion.

In October the company said it was changing its name to Bluma Wellness, but so far the board hasn’t voted to approve the name change.

Shareholders are apparently comfortable with the losses as the stock moved higher by 3% to trade at roughly 34 cents.


Debra BorchardtDebra BorchardtNovember 27, 2019
stop_sign_ss.jpg

6min4040

The bear market for the cannabis industry is leading to the unwinding of deals that had great promise. Cannabis companies are no longer willing to write big checks with fingers crossed that the market will just continue to boom. Two of these deals were terminated after great fanfare.

Cresco Labs

Cresco Labs (CSE:CL) (OTCQX:CRLBF)  said it was ending its plan to acquire Florida-based VidaCann Ltd. which was originally announced on March 18, 2019. It was valued at $120 million when it was first announced.

“We recognize that responsibly allocating our shareholders’ capital is fundamental to long-term success. While it sometimes means making tough decisions, we are committed to executing on a superior capital agenda, responsibly accelerating the top and bottom-line, executing thoughtful and accretive M&A transactions, and generating efficiencies as we scale,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “With the flexibility to continue to leverage non-dilutive funding options like sale-lease-back agreements, we are well-positioned to continue executing on our strategy to build the most important, enduring company in U.S. cannabis.”

In March, VidaCann was said to have plans to have 20 operating dispensaries by the end of 2019 and licenses for up to 30 in the state. It was to be Cresco’s entry into the lucrative market and another state to plant the Cresco Flag.

Separately, the company also announced the signing of a binding agreement for the sale-and-leaseback of two properties in Ohio and Michigan, for total additional funding of approximately $38 million.

Mr. Bachtell continued, “With these two announcements, we have effectively strengthened our balance sheet to the tune of nearly $158 million between new non-dilutive funding and the elimination of a significant near-term cash outlay earmarked for the Transaction. The team and operations at VidaCann are phenomenal, but with a focus on managing our cost of capital, and ensuring the most efficient and highest return on invested capital, the ability to deploy resources to other, existing, Cresco markets that are widely considered some of the top markets in the US, like Illinois, Pennsylvania, California and Nevada, has to take priority.  We believe it’s in the best interest of our shareholders to re-allocate resources to these existing higher return opportunities with a view to looking for a more capital efficient way to enter the Florida market over the longer term.”

Cresco Labs stock was up slightly by four cents to lately trade at $5.79, down from its 52-week high of $40.63.

SOL Global

SOL Global Investments Corp.’s (CSE: SOL) (OTCPK: SOLCF) said it decided against its deal with MCP Wellness to that was agreed to on April 23, 2019. SOL was to buy MCP Wellness for $35 million in cash and S$115 million in equity consideration in CannCure.

MCP is the Merida Capital Partners affiliate that owns the rights to own three Michigan cultivation licenses, a processing license, 9 licensed and operating dispensaries and 6 additional dispensary licenses, giving it the largest retail footprint in the state of Michigan.

According to the statement, both MCP and SOL Global said that “current market conditions do not support a transaction of this size, and both parties and their respective shareholders are better served focusing capital and resources on building out their respective businesses.” SOL Global said it will remain focused on the scale-up of its rapidly expanding Florida operations via One Plant Florida, and MCP said it will focus on opening additional dispensaries and launching a cultivation facility in Michigan.

While the acquisition is off, MCP Wellness may use Northern Emeralds (which SOL Global has proposed to buy)  to provide cultivation and processing standard operating procedures to MCP for a to be agreed upon royalty. The statement said that the $12.5 million advanced by SOL Global to MCP Wellness will be repaid in full over the next 12 months in monthly installments and 2 balloon payments at the 6 and 12 month time frames. In addition to that, CannCure, which is SOL Global’s portfolio company,  will have the option to acquire certain assets from MCP Wellness, convert any amounts due into stock in the Michigan operator, or complete the originally contemplated transaction on substantially similar terms.


Debra BorchardtDebra BorchardtAugust 30, 2019
stocks.jpg

6min8550

 SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) reported a loss of $43.5 million for the first fiscal quarter versus a loss of $2.9 million for the same period in 2018.  The loss came to 81 cents per share for the quarter. The company attributed the loss to a devaluation of cannabis stocks totaling $33.5 million and expenses, with total expenses coming to $10.9 million for the quarter.

The main culprit was Sol Global’s investment in Verano Holdings, which is set to be acquired by Harvest Health & Recreation. As such, the Verano share price is linked to Harvest’s share price which has decreased significantly. In just that quarter the company experienced an unrealized loss of $55.9 million.

“It was a tough quarter for the Cannabis sector and that’s the primary reason for our unrealized loss.  The positive is that’s exactly what it was, unrealized. Brady continues to execute with tremendous success on CannCure and its transformation to Bluma Wellness while strategically building out his operational team and The Bluma Board. Paul Norman has built the foundation of an executive team and board that is simply unprecedented in this newly pioneered sector and their execution is what you would expect from a team of this caliber.” said SOL Global’s Chief Investment Officer Andrew DeFrancesco. “The investment team and I continue to provide the financing for growth while continuing to provide guidance toward strategy and execution for those core holdings. ”

The downturn hasn’t slowed the company. Last month, SOL Global bought 42% of Heavenly Rx Ltd. at a price of approximately $0.40 per share. The company also signed an agreement to acquire ECD, Inc., which operates as Humboldt County’s Northern Emeralds for $120 million payable in common shares. Northern Emeralds is expected to operate under Bluma Wellness.

SOL Global also plans to buy the Michigan-based MCP Wellness Inc. for a total of $35 million in cash and $115 million in common shock. MCP Wellness is presently operating three dispensaries in the Detroit area, is opening a fourth dispensary in Ann Arbor, and is finalizing plans to construct a cultivation facility.

In addition to that acquisition, SOL Global has signed a binding LOI to acquire six licensed cannabis dispensary companies and all One Plant intellectual property in California for $17 million, payable by $5 million in cash and $12 million in common shares, from Three Habitat Consulting Holdco Inc. that will subsequently operate under the nationally recognized “One Plant” brand. One Plant is expected to be the brand name of all of Bluma Wellnesses anticipated 49 retail stores spread throughout Florida, Michigan and California.


William SumnerWilliam SumnerAugust 8, 2019
daily_hit004-1280x533.png

5min5620

It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the second quarter and first-half ending June 30, 2019, with net revenue climbing 202% to $10.2 million over last year’s $3.4 million. The revenue increased 58% sequentially from $6.5 million in the first quarter of 2019. The company attributed the increase to sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower.

GrowGeneration

Today, GrowGeneration Corp. (OTCQX: GRWG) announced the release of the financial results for the fiscal quarter ending on June 30, 2019. Net revenue for the quarter was $19.48 million, up from $7.15 million in the same period of the previous year. The company attributes the increase in revenue to the addition of 14 new retail stores

SOL Global

SOL Global Investments (CSE: SOL)(OTCPK: SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

In Other News

Diego Pellicer

Diego Pellicer Worldwide, Inc. (OTCQB: DPWW) announced that its Denver licensee reported record sales for the month of July and that its sales average has risen by 8.56%. “Diego Pellicer – Colorado has clearly proven that premium products plus outstanding customer service and a world-class shopping experience is a winning formula for success,” said Diego Pellicer CEO Ron Throgmartin.

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) announced that in July it served on average 1,937 customers per day with an average sale of $90.41 from the Planet 13 Las Vegas Cannabis Entertainment Complex. In May, the company accounted for roughly 10% of all cannabis sales in the state of Nevada, with a customer conversion rate of 60%. “We continue to drive impressive results from the SuperStore’s original 16,000 sq. ft. dispensary footprint in advance of the Phase II,” said Larry Scheffler, Co-CEO of Planet 13. “In May we reached an impressive milestone, the SuperStore accounted for 10% of all dispensary sales in Nevada. I’m optimistic we will see this trend continue once the department of taxation releases June and July numbers.”

C21 Investments

C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) released its unaudited financial results for the quarter ending on July 31, 2019. Unaudited revenue grew from $7.7 million to $9.8 million, representing a quarter-over-quarter increase of 27%. The unaudited gross margin rose from 43% to 49%. The company will release its certified financial results on or around September 12, 2019.

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced that it has received approval to acquire 100% 100% of the membership interests of Gloucester Street Capital, LLC, the parent company of Valley Agriceuticals (Valley AG). Valley AG is one of ten vertically integrated medical cannabis license holders in the state of New York. The license will give Cresco the right to operate one cultivation facility and four dispensaries in the state. The acquisition is expected to close by the end of the August.


Debra BorchardtDebra BorchardtAugust 8, 2019
hempplant-1.jpg

3min7220

SOL Global Investments (CSE:SOL)(OTCPK:SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

The company explained that “Bluma” is an ancient Hebrew word which means to flower, bloom or blossom. It selected this name based on a key principle of the business: to ensure that its patients and consumers utilize the plant-based products to enhance their daily lives, namely to bloom and thrive.

Brady Cobb, the CEO of SOL Global, says the timing of the proposed change of business is strategic, stating: “One of the innate strengths of SOL Global’s management is knowing when to enter a market, as is evidenced with our early success in Canada and Florida. We have planned this transition and the market entrance of our MSO to coincide with the rapid growth of the legal U.S. cannabis marketplace amid a presumptive tail wind from federal policy reform initiatives related to cannabis, a process I’ve been deeply involved with. We believe that the timing of our MSO’s entrance to the market will position us well to capture that growth.”

The company said in a statement that its initial operations will include assets in three (3) of the top ten (10) cannabis markets by revenue in the U.S., as forecasted by ArcView market research – Florida, Michigan and California.  SOL GLobal, now Bluma, said that it has focused in on a path to profitability by keeping the capital expense and the operating expense low with an efficiency-driven model of integrating operations and streamlining management, brand deployment and its  proprietary delivery models across all three states.

Mr. Cobb said that the new name was chosen to be synergistic with the company’s new direction, stating that “We chose the name Bluma Wellness, as an appropriate way to honor the true intent of each seed that we cultivate, harvest, and deliver as a product to ensure that every single one of our customers has a consistent and enriching experience that allows them to flourish.” He added: “We also look forward to bringing investors a new kind of MSO, one that is focused on profitability in the short term through operational and logistical efficiencies and a keen eye on the bottom line.”


Debra BorchardtDebra BorchardtJuly 30, 2019
3Boys.jpg

9min5140

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF)  released its financial results for the year ending March 31, 2019 with net income of $94.9 million or $2.30 per diluted share.

Most of the income was based on a September 2018 sale of its LATAM investment to Aphria. The fair market value of the transaction was $297 million and the cost related to the investment was $93 million leaving a gain on the sale of $204 million. The company disclosed that it was aware of two legal actions relating to the disposal of the LATAM assets but noted that no amounts have been accrued in the financial statements. SOL Global almost doubled its payroll costs going from $6.7 million in 2018 to $13.3 million in 2019.

SOL Global’s Chief Investments Officer Andy DeFrancesco believes that the fiscal-year results validate the strategic creation and direction of the company, “Brady Cobb, SOL Global’s CEO, has been by my side since building the foundation of the US Cannabis Market since 2015. Specifically, Brady worked with the state of Florida to shape the legal and regulatory structure of one of the most coveted markets in the cannabis sector, while I built a structure and strategy around partnerships and financing.”

DeFrancesco added, “After early success in Canada, and followed by early success in the state of Florida, it was clear that the US cannabis market was poised for a strong run and incredible growth.  We took control of a faltering and nearly insolvent single-focused biotech venture and created what SOL Global has become, by assembling one of the best THC and CBD portfolios in the sector.”

DeFrancesco concluded “We moved quickly with our second Florida acquisition, 3 Boys Farm, as well as key investments in leading THC and CBD brands and operators throughout the US and California. We implemented a vision for growth in multiple verticals within the Cannabis sector and used our deep roots into the quickly evolving US Cannabis legislative reform efforts (where Brady is a huge contributor) to stay two steps ahead of our competition. We also looked to what we saw as related businesses, outside the box and towards the future.  It’s now time for SOL Global to focus on the growth of its THC operations via our new MSO and to foster the expansion of our vertically integrated Hemp & CBD Operations throughout the U.S., as well as Italy, the United Kingdom and Brazil under the most amazing teams we have assembled.”

Post Fiscal 2019

On April 8, 2019, SOL Global acquired CannCure, an entity that indirectly holds a 100% interest in 3 Boys Farms, LLC for C$55,128,200 or $41,207,519) which was partially satisfied by the issuance of 7,317,500 of the company’s common shares at a negotiated price of CAD $4.00 per share totaling $29,270,000 (USD$21,878,878).

There is a unique footnote with regards to 3 Boys Farms. If SOL Global agrees to sell 3 Boys within two years of the closing date, it will pay an earn-out structured as follows according to the company: (i) the company and the sellers will each receive funds from the sale proceeds as reimbursement of the amounts each had invested into 3 Boys; and (ii) any remaining amount from such sale proceeds would be split, with 42% of any additional proceeds being earned by the Company and 58% of any additional proceeds being earned by the sellers. If SOL Global doesn’t sell 3 Boys within two years of the closing date, it will be required to pay the sellers $107,025,000 (USD$80,000,000).

Following the end of the fiscal year, SOL Global completed a $50,000,000 private placement financing on July 8, 2019 by way of the issue and sale of a senior secured non-convertible debenture. In addition to the deal, the company announced that its President Jonathan Gilbert was resigning as the President of the wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.).

On July 29, 2019, the company announced a further investment into Heavenly Rx, bringing its total investment to $23,909,00.

Cobb went on to add, “By the end of 2019, the companies we’ve founded and have built from the ground up — our CBD-focused HeavenlyRx and our soon to launch multi state operator, 3 Emeralds — are expected to be operating independently, bringing months of hard work to fruition.”

HeavenlyRx

HeavenlyRx Ltd is planning to list publicly as an independent operating CBD, Hemp and Wellness company in the U.S. which could happen in August 2019. HeavenlyRx, is under the leadership of former Kellogg’s North America President Paul Norman, who is performing a strategic review of the board and management and the team will be announced once this has been completed.  Additionally, as the company previously released, HeavenlyRx has closed on several of its key portfolio company investments including Blühen Botanicals (cultivation, processing and oil/isolate processing and production), Jones Soda (a leading premium soda-maker based in Seattle, Washington), TRU Brands (emerging health and wellness-focused food company), and Airganics (a company that develops high-performance wellness products). These portfolio companies consist of established brands that are generating revenue and soon to launch, innovative products, all of which have a unique application for the use of CBD.


Debra BorchardtDebra BorchardtJuly 29, 2019
daily_hit004-1280x533.png

4min4980

It’s time for your Daily Hit of cannabis financial news for July 29, 2019.

On The Site

Nextleaf Solutions
Extraction technology company Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) said that its common shares will begin trading today on the OTCQB Market. Nextleaf will trade on the OTCQB under the symbol “OILFF” and the company’s common shares will continue to trade on the Canadian Securities Exchange under the symbol “OILS”. Nextleaf owns a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of extraction and purification of cannabinoids.

CannBioRx
Special Purpose Acquisition Company (SPAC) KBL Merger Corp. IV (NASDAQ: KBLM) signed a definitive agreement for the merger of a wholly-owned subsidiary of KBLM with CannBioRx Life Sciences Corp., a drug development company focused on treating inflammatory diseases. It began trading last Friday as a NASDAQ-listed cannabis biotech.

Fake CBD
Hundreds of people have been benefited from using Cannabidiol (CBD) – a substance scientifically proven to be safe for human consumption – even for children!
It not only has a wide range of therapeutic benefits but also has been useful for treating numerous serious ailments and disorders. However, not all products touted as “natural CBD oil” are actually as natural they claim to be.

In Other News

SOL Global Investments Corp. (SOL.CN) (SOLCF) has purchased an additional 16,766,250 common shares in the capital of HeavenlyRx Ltd. at a price of $0.40 for an aggregate subscription amount of CAD$23,909,000.
The subscription is part of a larger private offering by HeavenlyRx of Heavenly Shares. As a result of this subscription, SOL Global now holds 44.53% of the issued and outstanding Heavenly Shares and the other shareholders of Heavenly Rx collectively hold the remaining 55.47%. The Heavenly Shares are subject to an indefinite hold period under applicable Canadian securities laws.

Radient Technologies Inc. (TSX Venture: RTI)(OTCQX: RDDTF) has issued an aggregate of 93,151 common shares to a third-party consultant for services provided during the quarter ended June 30, 2019, pursuant to the shares for service agreement previously approved by the TSX Venture Exchange. The common shares were issued at the TSX Venture Exchange 15 day VWAP share price of CAD $0.87.

Iconic Northern California cannabis company Harborside Inc. (CSE: HBOR) has appointed Mattio Communications as its investor relations advisors. Mattio is a New York-based communications firm which provides public and private cannabis companies with an array of services designed to maximize shareholder value through customized strategic investor relations programs (see https://www.mattio.com/). Harborside has also engaged Mattio to provide media and public relations support in an effort to build awareness of the Harborside brand and to capitalize on the company’s heritage as one of the oldest, largest and most respected cannabis retailers in the world.


William SumnerWilliam SumnerJuly 17, 2019
daily_hit004-1280x533.png

8min4980

It’s time for your Daily Hit of cannabis financial news for July 17, 2019.

On the Site

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) plans to acquire all of the shares of privately-held Toronto-based Truverra Inc. in a deal valued at $20 million. Truverra is known for its wholly-owned subsidiaries, Canadian Clinical Cannabinoids Inc. (CCC) and Truverra (Europe) B.V. The move is intended to boost Supreme’s extract offering for later this year when Canada’s market will open up to such products.

SOL Global

SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California… CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms,  a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment.

Curaleaf

Curaleaf Holdings Inc. (NURLF) stock popped almost 20% on the news it was acquiring privately-held multi-state operator Grassroots or GR Companies Inc. in a deal valued at $875 million. The deal will be made up of 108.8 million shares and $75 million at the closing which is expected in early 2020. If the deal is completed, Curaleaf’s footprint grows from 12 states to 19 states and putting it within reach of Acreage Holding’s (ACRG.U) size.

In Other News

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) announced revealed the rebranding of its line of low-dose cannabis edibles. Guiding the rebrand was research conducted by Henry J. Rak Associates and designed by Partners & Spade. “Cannabis can be confusing. We hope our new system will help reduce some of that confusion,” said Jake Heimark, Plus Products CEO and Co-founder. “We worked with experienced market researchers to find out why people use cannabis, then translated those findings into an easy-to-use system of cannabis. We are excited to help our customers Uplift their experiences, bring Balance to their everyday, and Unwind without getting unwound.”

PHILTER Labs

The technology company PHILTER Labs, Inc. announced that it has raised $3 million in growth funding. The company specializes in crafting vaporizer products and accessories. Leading the fundraise was Bravos Capital, Explorer Equity, and an undisclosed cannabis-focused private equity firm. “The proprietary technology behind PHILTER made it a very attractive investment opportunity for us; the company’s future product roadmap clearly represents a revolutionary step forward in vape filtration technology, as opposed to the more incremental steps that most vape hardware companies are working on,” said Jeff Kendig, Managing Partner of Bravos Capital.


Debra BorchardtDebra BorchardtJuly 17, 2019
3Boys.jpg

2min5700

SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) ) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California.

“SOL’s $6.5 million investment into CannCure is to continue strengthening our foundation and positioning the company as a leader in the dominant markets of Florida, Michigan, and California,” said Andy DeFrancesco, SOL Global’s Chairman, and Chief Investment Officer. “CannCure’s expansion is an integral part of SOL Global’s overall strategy and our goal to dominate all aspects of the legal cannabis, hemp and CBD markets here in North America and Europe.”

CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms,  a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment. The investment brings SOL Global’s ownership of CannCure to 97.8%.

CannCure said it will use the investment to complete the agreements it has in place for acquiring MCP Wellness, giving the company the rights to two Michigan cannabis cultivation licenses, a Michigan cannabis processing license, and three fully licensed cannabis provisioning centers in Michigan. It would also complete the Northern Emeralds deal and the Three Habitat Holdings acquisition.

Once these acquisitions are complete, Canncure will combine them into one multistate operator that will have operations in three of the top 10 state cannabis markets by revenue, with vertically integrated operations across all three states and approximately 46 retail locations in operation by the end of 2020.

In a statement, the company said that when CannCure completes the acquisitions in California and Michigan, as well as paying $80 million to the former owners of CannCure,  SOL Global expects to own approximately 20.5% of the resulting business.

 


Debra BorchardtDebra BorchardtJuly 8, 2019
shutterstock_751259302.jpg

7min9350

SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) completed a $50 million private placement financing by issuing and selling a senior secured non-convertible debenture to an arm’s length institutional investor. In addition to the deal, the company announced that its President Jonathan Gilbert was resigning as the President of the wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.).

The company also stated that it no longer planned to spin off Impact into a new, independent public company. In a statement, SOL Global said that Impact would continue to assess its options in regard to the continuing research and development of its proprietary Cannabinoid combination drug candidate for the treatment of concussions and traumatic brain injury, which is being conducted by the University of Miami and its world-renowned neuroscientific team. The mission of the study is to bring to market the first accepted cannabinoid drug regimen for concussive treatment.

Plans For Proceeds

SOL Global said that it plans to use the net proceeds for working capital and general corporate purposes and to primarily finance the continued build-out of SOL Global’s robust hemp and CBD strategy via Heavenly Rx Ltd. and the build-out and acquisition of additional assets in FloridaMichigan, and California for its previously-announced, new cannabis multi-state operator.

Terms

The Debenture bears an interest rate of 6.0% per annum and will mature two (2) years from the date of closing unless such maturity date is otherwise shortened due to the occurrence of certain independent milestones as set out within the terms and conditions of the Debenture. The Debenture may be repaid by the Company in cash or in-kind with securities held within the Company’s investment portfolio. The Debenture is not dilutive to the Company’s shareholders.

Controversy

SOL Global is losing its President at a time when the company is facing distractions from its Chairman Andy Defrancesco. The Chairman was the subject of an investigative piece by Teri Buhl that questioned whether DeFrancesco adequately disclosed the nature of a transaction and whether it involved related parties. DeFrancesco then sent a derogatory text, which Buhl made public.

DeFrancesco’s battle with Teri Buhl isn’ the only controversy he is facing. Defrancesco has been sued for defamation, conspiracy to defame and tortious interference in a business relationship by New Frontier Data’s Giadha Aquirre De Carcer. Merida Capital is also an investor in New Frontier Data. Defrancesco has said he is an investor in Prohibition Partners, a research company that had a falling out with New Frontier over a report the two companies agree to create jointly.

When the relationship was terminated, both companies released a report with similar sounding titles within a week of each other. Both companies have accused the other of borrowing intellectual property and threatened lawsuits. Merida has defended New Frontier and the spat doesn’t seem to be having any effect on the relationship with SOL Global. Merida agreed to sell its Michigan subsidiary MCP Wellness, Inc. to SOL Global in a deal valued at $150 million.

SOL Global seems to experience a great deal of turnover in the C-suite.  The company released this list of changes in December:

The following changes to management and Board have occurred during the past 12 months:
 On November 1, 2018, Andy DeFrancesco was appointed Chief Investment Officer.
 On October 3, 2018, Brady Cobb was appointed Chief Executive Officer replacing Rob Reid who remains an
active member of the Board.
 On September 4, 2018 Andy DeFrancesco was appointed to the title of Chairman of the Board.
 On September 28, 2018, Peter Liabotis was appointed Chief Financial Officer replacing Jonathan Held.
 On July 30, 2018, Brady Cobb was appointed to the Board.
 On July 26, 2018, George Scorsis resigned from the Board.
 On August 1, 2018, Jonathan Gilbert resigned from the Board.
 On April 25, 2018, Rob Reid was appointed Chief Executive Officer
 On April 25, 2018, Roger Rai rejoined the Board.
 On April 25, 2018, Renah Persofsky and Vic Neufeld resigned from the Board and Jonathan Gilbert stepped
down as Chief Executive Officer.
 On March 7, 2018, Renah Persofsky and Rob Reid joined the Board and Roger Rai and Gary Leong resigned
from the Board.
 On February 15, 2018, the Company appointed Professor Michael Barnes as its Chief Medical Officer.
 On January 15, 2018, the Company announced the appointment of Vic Neufeld, CEO of Aphria Inc. (TSX: APH),
and George Scorsis, CEO of Liberty Health Sciences Inc. (CSE: LHS) to the Board. The Company also announced
Renah Persofsky joined its advisory board and that Peter Benz and Michael Petter had resigned from its Board.

SOL Global Plans

Last month SOL Global had announced it was acquiring California-based ECD, Inc., which operates as Northern Emeralds in a deal valued at $120 million. The purchase price will be satisfied by the issuance of common shares in CannCure Investments Inc. and the deal is expected to close on or before August 1.

Northern Emeralds is located in Humboldt County, California and is a cannabis cultivation, processing, and distribution company that has six licensed dispensary companies in the state that will operate under the nationally recognized “One Plant” brand. SOL Global said it intends to open One Plant-branded dispensaries throughout California (a total of 20 operating and licensed dispensary companies), Florida, and Michigan.

 

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 19 hours

Our biggest fans this week: WallandBroad, buhlreports, RosieMattio. Thank you! via

@GreenMarketRpt – 20 hours

Green Market Report’s Marijuana Money December 6, 2019

@GreenMarketRpt – 1 day

My week on Twitter 🎉: 6 Mentions, 108 Mention Reach, 15 Likes, 6 Retweets, 26.8K Retweet Reach. See yours with…

Back to Top

You have Successfully Subscribed!