The Company Has Retained The Services Of Duff & Phelps Canada Limited, An Independent Valuation Firm, To Conduct A Full Valuation Of Company's Current Assets
TORONTO, Aug. 8, 2019 /CNW/ - SOL Global Investments Corp. ("SOL Global" or the "Company") (CSE:SOL (OTCPK:SOLCF) ) (Frankfurt:9SB), is pleased to announce today a proposed change of business of SOL Global 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. They have also announced a change in the call-in number of its previously announced conference call to discuss corporate updates and their fiscal 2019 results.
The MSO's 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. The Company 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 the Company's proprietary delivery models across all three (3) states, all while being fully compliant with applicable U.S. state laws and regulations.
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."
Tantamount to the proposed change of business is the proposed change of the Company's name from SOL Global Investments Corp. to Bluma Wellness Inc. ("Bluma Wellness" or "Bluma"). "Bluma" is an ancient Hebrew word which means to flower, bloom or blossom. The Company selected this name based on a key principle of the business: to ensure that our patients and consumers utilize our plant-based products to enhance their daily lives, namely to bloom and thrive.
Mr. Cobb says 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."
As part of the Company's initiative in shifting their focus of business to the vertically integrated expansion of its MSO operations, the Company plans to complete the previously-announced acquisitions of the proposed assets of the MSO ("MSO Assets") which include the licensed dispensaries operated by MCP Wellness in Michigan as announced on April 24, 2019, our California acquisitions which include the famed Humboldt, California-based cultivator "Northern Emeralds" and the California-based dispensary chain "One Plant USA" as were announced on May 16, 2019, in addition to SOL Global's existing vertically integrated license in Florida, 3 Boys Farm. The MSO's resulting products will be powered by Northern Emeralds' genetics and innovative data-driven cultivation and processing techniques. The anchor will be the brands and products that SOL Global has invested in, which will be strategically deployed in the MSO's dispensaries including One Plant's robust retail arm across the states of Florida, Michigan and California (subject to the receipt of all required governmental approvals).
It is expected that the MSO will bridge the gap between traditional THC products and mainstay CPG products. All MSO Assets transactions are expected to close in October 2019, subject to all applicable conditions precedent being satisfied or waived including the receipt of all required governmental approvals.
Completion of the change of business and corporate name change are subject to certain conditions, including requisite shareholder approval and the approval of the Canadian Securities Exchange.
Additional Corporate Updates
Independent Valuation of Existing Investments: SOL Global has decided on a valuation firm to determine a fair market valuation of SOL Global's present assets. The Company has engaged Duff & Phelps Canada Limited, a highly acclaimed internationally-recognized valuation firm that has no prior relationship to SOL Global, its board, or any of its directors. Their independent valuation will begin immediately.
Executive Changes: As part of the Company's transition to Bluma Wellness and the operation of its MSO Assets, shifts in the Company's management are needed to effectively and efficiently operate the MSO Assets. Specifically, the Company is pleased to make the following appointments:
Adam Wilks, a proven retail leader, has been appointed to Chief Operating Officer, effective immediately. Adam joins SOL Global with over 10 years of experience as Director of Operations of well known consumer retail brands like Yogen Fruz, Pinkberry, Cold Stone Creamery, and more. He last served as Chief Operating Officer to One Plant (Three Habitat Consulting) and the chain of dispensaries. As a Co-Founder of Buy N Bulk, he was actively involved in business development from 2013 –2016 and with that brings in-depth operational experience from the beginning of launch phase through to generating revenues. Adam is also on the board of one of California's leading cannabis companies Old Pal and the board of Sacred CBD.
Additionally, Micheal Bondurant, an early leader in the Florida cannabis market, has been appointed to Chief Strategy Officer, effective immediately. As Director and Chief Operating Officer for 3 Boys Farm, LLC, an original Florida Medical Marijuana Licensee, Michael brings with him a wealth of experience in the logistics of implementing large scale grow operations. As a former Director at Sato Global Solutions, Michael provided consultative services for supply chain, inventory management, transportation, packaging, postal, information technology, procurement and retail. His additional focused attention to direct and channel partners, hardware/software platforms, and using active/passive RFID that are all specific to the retail industry will ensure streamlined integration throughout our retail operations. Michael's nearly 20 years in senior banking and finance where he was involved in real estate financing, closely held businesses and money management throughout the eastern United States will be a valuable asset as we continue to scale. We are also proud to be welcoming him on as a veteran of the Armed Services having served in the United States Coast Guard from 1988 -1993.
"We couldn't be more excited to welcome Adam and Michael onto the team as we approach the official launch of our MSO," said Brady Cobb, SOL Global's CEO. "They are joining SOL Global at an exciting time and their retail, operational and logistical qualifications and insights will enhance value for all of SOL Global's shareholders as we continue to execute on our strategy."
Fiscal 2019 Results And Corporate Updates Conference Call Brady Cobb, Chief Executive Officer, will host the SOL Global Fiscal 2019 Results Conference call starting at 4:00 p.m. Eastern Time on August 8, 2019. A question and answer session will immediately follow an initial presentation on SOL Global's fiscal 2019 financial results and a corporate update. Additional participants from SOL Global will include Andy DeFrancesco, Chief Investment Officer and Chairman, Peter Liabotis, Chief Financial Officer and Paul Norman, Chief Executive Officer of SOL Global portfolio company HeavenlyRx.
SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's R&D program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States' medical cannabis industry.
Any securities that may be referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended ("U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent such registration or an applicable exemption from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer for sale of securities, nor a solicitation for offers to buy any securities.
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 include, but are not limited to, statements with respect to: the proposed change of business and corporate name change of the Company, the Company's business and strategic plans and the completion of the previously-announced acquisitions of the proposed assets of the MSO.
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 failure to complete any of the previously-announced acquisitions of the proposed assets of the MSO on the terms and timelines anticipated by the Company or at all, the ability to successfully integrate the proposed businesses and assets of the MSO, the receipt of all necessary corporate, governmental and regulatory approvals and general market, economic and business conditions.
Other risk factors include, but are not limited to: the Company's ability to comply with all applicable governmental regulations in a highly regulated business; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; 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.
SOURCE SOL Global Investments Corp.
For further information: SOL Global Investments Corp.: Brady Cobb, CEO, Phone: (212) 729-9208, Email: [email protected]; For Media Inquiries: Vito Palmeri, AMWPR, P: 212.542.3146, E: [email protected]