SOL Global Raises $50 Million in Debt at 6%

SOL Global Completes $50 Million Debenture Financing and Announces Corporate Update

TORONTO, July 8, 2019 /CNW/ – SOL Global Investments Corp. (“SOL Global” or the “Company”) (CSE: SOL) (OTCQB: SOLCF) (Frankfurt: 9SB) is pleased to announce that it has completed a $50,000,000 private placement financing (the “Transaction”) by way of the issue and sale of a senior secured non-convertible debenture (the “Debenture”) to an arm’s length institutional investor (the “Lender”).

The Company intends 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 Florida, Michigan and California for its previously-announced, new cannabis multi-state operator. The funds are expected to help ensure the execution of the Company’s long term vision, strategic acquisitions and its ongoing investment in top-tier talent and operations across both its hemp/CBD and THC operations.

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.

A director and senior officer of the Company and certain other shareholders (collectively, the “Guarantors”) each provided guarantees to the Lender of the Company’s obligations under the Debenture. The Company is not compensating the Guarantors for providing such guarantees or assuming or otherwise becoming subject to any liabilities of the Guarantors in connection with them providing these guarantees.  The director and officer disclosed his interest in the Transaction as a result of the guarantee and did not participate in the board of directors’ deliberations relating to the delivery of such guarantee and did not vote on the resolutions approving the Transaction. The provision of these guarantees by the director and officer and by the other Guarantors did not constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

Corporate Update

SOL Global today announces that Mr. Jonathan Gilbert has resigned as the President of the Company’s wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.) (“Impact”). In addition, the Company has discontinued its previously-announced plans to spin off Impact into a new, independent public company. Impact will 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.

About SOL Global Investments Corp.

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.

Original press release

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