SOL Global Investments Corp. (CSE: SOL) (OTC Pink: SOLCF) announced unaudited financial results for the third quarter ending August 31, 2023 in Canadian dollars. Sol Global recorded a net loss of ($6.9) million vs last year’s net loss of ($12.5) million for the same period. This was an improvement of $5.6 million.
The company also reported a total loss from investments of ($6.3) million for the three months ended August 31, 2023, compared to a loss of ($11.2) million for the three months ended August 31, 2022. The unaudited Net Asset Value per share is equal to $0.72 on August 31, 2023, vs. $3.08 on 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.”
The company did not go into very much detail in its filings about its cannabis investments as this part of the company’s portfolio continues to be diminished. As of Aug 31, 2023, the fair value of Sol Global’s investments in cannabis and related investments in the United States of America totaled $18,519,635 (November 30, 2022: $20,477,067). The fair value of non-United States of America cannabis, cannabis-related investments, and non-cannabis investments totaled $103,265,593 (November 30, 2022: $124,546,636).
Sol Global prepared its third-quarter earnings as a going concern, but the quarterly filing also stated that management thinks that it has sufficient working capital available from its financings, its operations, and its divestitures to meet the company’s liabilities and commitments as they become due.
Sol Global noted that at the end of the quarter, the fair value of severance payable to former CEO Andy DeFrancesco was $21,817,301. In the event SOL Global defaults under the Severance Agreement, all of the payments to DeFrancesco are accelerated and become immediately payable, and the obligations of SOL Global shall become immediately secured by all of the assets of Blue Sky Holdings USA Inc., a wholly-owned Florida subsidiary of SOL Global which indirectly holds an approximate 27% interest in Sol Global’s real property investment in North Miami.
The company has also agreed not to incur any new debt except in respect of trade payables in the ordinary course and any indebtedness (up to a maximum of $10 million), and to provide Mr. DeFrancesco participation rights in future offerings of the company in order to maintain his respective proportionate ownership in the company.
As of August 31, 2023, $2,754,980 in bonus payments were paid out and the bonus payable outstanding was $4,829,345. As of the same date, the fair value of the bonus payable was $4,089,040.
In July of this year, Green Market Report wrote that DeFrancesco, received a final judgment on consent from the SEC against DeFrancesco, for his role in a scheme involving false statements and omissions of material information in filings with the commission, as well as a fraudulent pump-and-dump of Cool Holdings’ stock. DeFrancesco founded Sol Global (OTC: SOLCF) but resigned from the company as its CEO and board member in April 2022.
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