TORONTO–()–SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE: SOL) (OTCPK: SOLCF) (Frankfurt: 9SB) is pleased to announce that Verano Holdings, LLC (“Verano”), the Company’s largest core funding holding, introduced at the moment the signing of a definitive merger settlement to accumulate and mix operations with Alternative Medical Enterprises, LLC, Plants of Ruskin, LLC, and affiliated firms (collectively, “AltMed”), vertically-integrated medical hashish firms that apply pharmaceutical {industry} requirements to creating, cultivating, producing, and meting out medical hashish and medical hashish merchandise in Florida and Arizona. The transaction is predicted to end in a highly-accretive mixture of Verano and AltMed with the ensuing firm working below the Verano identify.

The transaction can have a major optimistic influence on the Company’s just lately introduced internet asset worth and the Company will replace the market repeatedly as info is accessible.

The Company owns roughly 12.6% of Verano as of the date of signing of the merger settlement.

Verano is a number one multi-state proprietor, developer, operator, and supervisor of hashish cultivation, manufacturing, and meting out licenses providing progressive merchandise to the discerning, high-end buyer market. Verano produces a full suite of premium, artisanal hashish merchandise offered below its shopper manufacturers, together with Encore™ Edibles, Avexia™ and Verano™. Verano’s distinctive Zen Leaf™ branded dispensary environments ship an elevated hashish purchasing expertise in each medical and adult-use markets. Active in 12 U.S. states, with 17 energetic retail places and roughly 440,000 sq. ft of cultivation services, Verano has been worthwhile every year since its founding.

AltMed, based in 2014 and worthwhile in recent times, is a fully-integrated medical hashish firm recognized for its strong analysis and growth pipeline exemplified by its award-winning MÜV™ merchandise and dispensaries. AltMed provides a full vary of premium hashish choices developed in its vertically-integrated operations in Arizona and Florida. With 27 energetic retail places, AltMed has 220,000 sq. ft of cultivation services in Florida, and 30,000 sq. ft in Arizona, which is quickly increasing by an extra 50,000 sq. ft to fulfill elevated demand.

This transformative transaction is predicted to create a market chief within the United States by combining two worthwhile, fully-integrated platforms with the power to scale by coming into new markets and increasing deeper into present key markets. The mixture will speed up Verano’s growth into Florida and Arizona, presently among the many largest and fastest-growing hashish markets within the United States. Following the consummation of the transaction, the mixed group of firms will function below the Verano identify and can have the power to function in 14 states, with eight cultivation services and 44 energetic retail places. Approximately 32 further retail places are deliberate.

The mixture is predicted to end in substantial advantages to AltMed and Verano, together with the next causes for the transaction:

  • Establishes Verano as one of many three largest MSOs within the United States primarily based on 2021 inside projections in comparison with present FactSet 2021 consensus estimates for income and EBITDA.
  • Creates a scale market chief properly positioned for progress and accelerates growth in restricted license, high-growth markets – particularly Florida and Arizona.
  • Includes a premium, complete product providing encompassing each medically-focused and life-style. Four product manufacturers: Verano™, Avexia™, Encore™, and MÜV™; and two retail manufacturers: Zen Leaf™ and MÜV™.
  • Joins firms with aligned cultures, industry-leading administration groups, and best-in-class core competencies of individuals, processes, analysis and merchandise.
  • Increases Verano’s status as a producer of high-quality merchandise on a big scale by including comparable capabilities in new states.
  • Enhances each firms’ skills to supply a superior, affected person and customer-focused hashish expertise.
  • Combines skilled administration groups with important and various {industry} experience together with pharmaceutical, actual property, manufacturing, agriculture and hospitality, with a confirmed observe document as disciplined hashish {industry} operators and good stewards of capital.
  • Increases the mixed firm’s monetary profile with industry-leading margins and profitability.

“We are very excited to see Verano Holdings enter into a highly-accretive business combination,” mentioned SOL Global CFO Paul Kania. “The transaction will allow for two profitable entities to continue their successes together as a leading multi-state operator in high-growth US markets. As our largest core holding, the announced transaction is a positive development for SOL Global shareholders.”

For additional info on the transaction, please seek advice from the press launch of Verano Holdings dated November 11, 2020.1 There might be no assurances that the proposed transaction between Verano and AltMed might be accomplished as proposed or in any respect.

About SOL Global Investments Corp.:

SOL Global is a diversified funding and personal fairness holding firm engaged within the small and mid-cap sectors. Our funding partnerships vary from minority positions to massive strategic holdings with energetic advisory mandates. SOL Global’s seven major enterprise segments embody Retail, Agriculture, QSR & Hospitality, Media Technology & Gaming, Energy, and New Age Wellness.

Non-IFRS Financial Measures

This press launch consists of reference to internet asset worth, which is a monetary measure that doesn’t have a standardized which means prescribed by IFRS. Net asset worth is calculated as the worth of whole property much less the worth of whole liabilities at a selected date. The Company believes this non-IFRS monetary measure not solely supplies administration with comparable monetary knowledge for inside monetary evaluation but additionally supplies significant supplemental info to buyers. In specific, administration believes this monetary measure can present info helpful to its shareholders in understanding the efficiency of the Company and might help within the analysis of its enterprise relative to that of its friends. Investors are cautioned that this non-IFRS measure shouldn’t be construed as an alternative choice to the measurements calculated in accordance with IFRS as, given its non-standardized which means, it is probably not corresponding to comparable measures introduced by different issuers.

Forward-Looking Statements

This information launch incorporates “forward-looking information” inside the which means of relevant securities legal guidelines. All statements contained herein that aren’t clearly historic in nature might represent forward-looking info. In some instances, forward-looking info might be recognized by phrases or phrases reminiscent of “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the destructive of those phrases, or different comparable phrases, expressions and grammatical variations thereof, or statements that sure occasions or circumstances “may” or “will” occur, or by discussions of technique.

The forward-looking info contained on this press launch consists of, with out limitation, the completion of the merger transaction between Verano and AltMed, the transaction leading to a extremely accretive enterprise mixture, the anticipation that the transaction will create a market main multi-state hashish operator within the United States, the strategic enterprise and growth plans of the ensuing entity and the anticipated impact of the transaction on the Company’s internet asset worth. Forward-looking info relies upon sure materials assumptions that had been utilized in drawing a conclusion or making a forecast or projection, together with administration’s perceptions of historic developments, present circumstances and anticipated future developments, in addition to different issues which are believed to be acceptable within the circumstances. While we think about these assumptions to be affordable primarily based on info presently out there to administration, there isn’t a assurance that such expectations will show to be appropriate.

By their nature, forward-looking info is topic to inherent dangers and uncertainties which may be basic or particular and which give rise to the chance that expectations, forecasts, predictions, projections or conclusions won’t show to be correct, that assumptions is probably not appropriate and that aims, strategic objectives and priorities won’t be achieved. A wide range of elements, together with recognized and unknown dangers, a lot of that are past our management, may trigger precise outcomes to vary materially from the forward-looking info on this press launch together with the failure by Verano or Altmed to acquire all crucial company and regulatory approvals, nationwide or regional financial, authorized, regulatory and aggressive circumstances, plans for commercialization, adjustments in relationships with distributors, entry to capital and expectations concerning market acceptance. Other danger elements embody: the dangers ensuing from investing within the US marijuana {industry}, which can be authorized below sure state and native legal guidelines however is presently unlawful below U.S. federal legislation; the dangers of investing in securities of personal firms which can restrict the Company’s capacity to promote or in any other case liquidate these securities and notice worth; reliance on administration; the power of the Company to service its debt; the Company’s capacity to acquire further financing every now and then to pursue its enterprise aims; competitors; litigation; inconsistent public opinion and notion concerning the medical-use and adult-use marijuana {industry}; and regulatory or political change. Additional danger elements may also be discovered within the Company’s present MD&A, which has been filed on SEDAR and might be accessed at www.sedar.com.

Readers are cautioned to think about these and different elements, uncertainties and potential occasions rigorously and to not put undue reliance on forward-looking info. The forward-looking info contained herein is made as of the date of this press launch and relies on the beliefs, estimates, expectations and opinions of administration on the date such forward-looking info is made. The Company undertakes no obligation to replace or revise any forward-looking info, whether or not on account of new info, estimates or opinions, future occasions or outcomes or in any other case or to elucidate any materials distinction between subsequent precise occasions and such forward-looking info, besides as required by relevant legislation.


1https://www.globenewswire.com/news-release/2020/11/11/2124578/0/en/Verano-Holdings-Announces-Agreement-to-Acquire-and-Combine-Operations-with-AltMed-in-Florida-and-Arizona-Creating-One-of-the-Largest-U-S-Private-Cannabis-Companies.html

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