Settlement amount of $ 68.5 million plus principal and interest

TORONTO, August 07, 2021– (BUSINESS WIRE) – SOL Global Investments Corp. (“SOL Global“or the”Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to announce that the litigation relating to a senior secured non-convertible debenture issued and sold at 1235 Fund LP (“1235“) with a principal amount of C $ 50 million and bearing interest at the rate of 6.0% per annum (the”Debenture“) has been settled. As previously reported, SOL Global had commenced legal proceedings in New York against 1235 and another entity, and 1235 had commenced legal proceedings against SOL Global and others in Ontario. Both legal proceedings concerned l ‘interpretation of the debenture and the agreements and the rights of the parties under such agreements.

Under the settlement, a subsidiary of SOL Global will acquire all of the rights to 1235 under the debenture for C $ 120 million (which is C $ 68.5 million more than the principal and accrued interest of the debenture), which will be paid on September 7, 2021. finance the acquisition, the subsidiary will receive an equity investment from SOL Global which has entered into a loan agreement with an arm’s length private lender for a guaranteed loan with a principal amount of 50 million Canadian dollars (the “To lend“). The Loan will have a term of 12 months and will bear interest at the rate of 9% per annum. The Loan will be guaranteed by a general guarantee contract.

“SOL Global is pleased that the litigation is over,” said Andy DeFrancesco, CEO of SOL Global. “Although the subsidiary of SOL Global has enough stakes to fully fund the acquisition, we have decided to take out a small loan rather than financing the acquisition solely from a sale of our portfolio, as we are seeing an increase of our main holdings. “

“1235 can confirm that the dispute with SOL Global regarding the debenture has been settled on a mutually acceptable basis,” said the director of the general partner of 1235.

About SOL Global Investments Corp. :

SOL Global is a diversified private equity and investment holding company active 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 six main lines of business include retail (QSR and hospitality), agriculture, including cannabis, technology (with a focus on clean tech and electric vehicles), sports electronics and gaming, cryptocurrency and New Age wellness.

Warnings

This press release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained in this document which are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information may be identified by words or expressions such as “may”, “will”, “expect”, “likely”, “should”, “should”, “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” occur, or through discussions of strategy. Forward-looking information contained in this press release includes, without limitation, the acquisition of the rights of 1235 under the debenture by a subsidiary of SOL, the financing of the loan and the use of the proceeds of the loan to partially finance the acquisition of the rights of 1235 under the Debenture.

Forward-looking information is based on certain material assumptions that have been 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 of other considerations which are deemed appropriate in the circumstances. Although we consider these assumptions to be reasonable based on information currently available to management, there can be no assurance that these expectations will prove to be correct.

By their nature, forward-looking information is subject to inherent risks and uncertainties which 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 the assumptions may not be correct and that the 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 contained in this press release, including the inability or failure of the Company to finalize the financing of the loan, changes in national or regional economic, legal, regulatory and competitive conditions and a resurgence of the COVID-19 pandemic. Readers are urged to carefully consider these and other factors, uncertainties and potential events, and not to place undue reliance on forward-looking information.

The forward-looking information contained in this document is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management at the date on which such forward-looking information is made. The Company assumes 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 differences between subsequent actual events and such forward-looking information, except as required by applicable law.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210807005005/en/

Contacts

SOL Global Investments Corp.
Paul Kania, Chief Financial Officer
Telephone: (212) 729-9208
Email: [email protected]

For media inquiries, please contact:
Davis richardson
RP AMW
Phone. : 212.542.3146
E: [email protected]

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