Sol Global Completes Strategic Reorganization of Non-solana Assets and Removes All Encumbered Debt
Toronto, CA, March 4th, 2025, Chainwire
The Company has successfully strengthened their ability to focus entirely on opportunities within the Solana ecosystem
SOL Global Investments Corp. (CSE: SOL) (FSE: 9SB) (“SOL Global” or the “Company”), one of the first publicly traded companies focused on institutional Solana investments, is pleased to announce the completion of its previously announced reorganization of assets and liabilities, whereby, among other things, the Company has transferred all of its assets other than its native Solana token assets (“Solana”), together with certain of its liabilities, into a newly formed entity (the “Reorganization”). The Company’s strategic reorganization is designed to enhance business focus on blockchain innovation, including its significant position in Solana, and decouple its new strategic approach from its historical liability.
Completion of the Reorganization
Pursuant to the terms of the Reorganization, SOL Global has transferred all of its assets other than Solana assets (collectively the “Transferred Assets”) together with certain of its liabilities (collectively, the “Transferred Liabilities”, and together with the Transferred Assets, the “Vehicle Portfolio”), into a newly created special purpose vehicle (the “Asset Vehicle”) in exchange for non-voting common shares in the capital of the Asset Vehicle (the “Non-Voting Common Shares”). In connection with the Reorganization, all secured liabilities, secured obligations and other security interests granted in favour of Braebeacon Holdings Inc. (the “Secured Party”) by SOL Global and a former partially-owned subsidiary, House of Lithium Ltd. (“HOL”), were assumed by the Asset Vehicle together with the Vehicle Portfolio in accordance with the terms and conditions of an assumption and amending agreement dated February 28, 2025 between, among others, the Company, the Secured Party, the Asset Vehicle and HOL (the “Assumption Agreement”) with respect to a loan that had been granted by the Secured Party to SOL and HOL in accordance with the terms of a loan agreement dated August 6, 2021, as amended from time to time (the “Loan Agreement”).
After giving effect to the Reorganization, SOL is the sole holder of all Non-Voting Common Shares, and the second lien lender under the Loan Agreement (the “Second Lien Lender”), is the sole holder of all voting common shares in the capital of the Asset Vehicle (the “Voting Shares”). As a result of SOL Global holding all of the Non-Voting Common Shares of the Asset Vehicle, any possible gain in the Transferred Assets will be largely held by SOL Global, however, SOL Global will not hold any voting rights in the Asset Vehicle. All of the Voting Shares issued and outstanding after giving effect to the Reorganization are held by the Second Lien Lender.
In accordance with the terms of the Assumption Agreement, the Asset Vehicle will operate as an independent entity, SOL Global will no longer be liable for the Transferred Liabilities, and such Transferred Liabilities will no longer appear on SOL Global’s balance sheet. The Company intends to invest the remaining cash following the disposition of the Vehicle Portfolio for additional Solana tokens.
Following the completion of the Reorganization, the only assets held in SOL Global’s portfolio will be its Solana assets and its equity position in the Asset Vehicle. SOL Global is an investment issuer listed on the Canadian Securities Exchange (the “CSE”) that has applied to list on the Nasdaq exchange in order to expand its investor base and access to new capital and financing opportunities. SOL Global holds certain portfolio assets which, after giving effect to the Reorganization, consist predominately of blockchain tokens, initially consisting only of Solana tokens. The Transferred Assets consist of securities of mainly electric vehicle companies together with certain real estate assets. While the change in focus of portfolio assets does represent a new strategic direction of the Company to increase the value of its portfolio, SOL Global will continue to be an investment issuer and may change the strategic focus of its portfolio at any time, including investing in portfolio assets other than blockchain tokens.
Strategic Investment in Blockchain Innovation
SOL Global’s investment strategy is centered on strategic positioning for long-term success, including leveraging blockchain’s growth trajectory in this rapidly evolving sector.
Solana’s competitive advantage lies in its scalability and efficiency, offering high-speed transactions with low fees. Its integration with major platforms, wallets, and blockchain networks enhances interoperability, driving broader adoption.
For Further Information Users Can Contact:
SOL Global Investments Corp.
Paul Kania, Interim CEO, CFO
Tel: (212) 729-9208
Email: info@solglobal.com
Website: https://solglobal.com/
About SOL Global Investments Corp.
SOL Global is pioneering institutional investment in the Solana ecosystem. As one of the first publicly traded companies globally focused on Solana investment, SOL Global aims to provide unprecedented public exposure to the Solana blockchain through token acquisition, staking for yield generation, and investments in early-stage ventures being built on Solana.
Caution Regarding Forward-Looking Information
This press release includes certain “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements herein, other than statements of historical fact, constitute forward-looking information. Forward-looking information is frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. Forward-looking information in this press release includes, but is not limited to, the Company’s expectations related to its Solana assets, liabilities and equity position following the completion of the Reorganization; the Company’s expectations regarding blockchain technology, including Solana blockchain and technologies, and the expected yield associated therewith; the Company’s investment strategies; statements related to investor interest and confidence in digital assets, in particular in Solana; and statements related to the expected growth and adoption of the Solana ecosystem and decentralized finance. Forward-looking information reflects the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, technical, economic, and competitive uncertainties and contingencies, including the speculative nature of cryptocurrencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation, the Company’s ability to execute on its business and investment plans; the Company’s ability to raise debt or equity through future financing activities; the Company’s ability to increase its investments in the Solana blockchain and Solana-based technologies; any adverse changes and developments in the Solana blockchain and ecosystem; the growth and development of decentralized finance and the digital asset sector; any new rules and regulations with respect to decentralized finance and digital assets; the inherent volatility in the prices of certain cryptocurrencies including Solana tokens; increasing competition in the crypto and blockchain industries; general economic, political and social uncertainties in Canada and the United States; currency exchange rates and interest rates; the limited resources of the Company; the Company’s reliance on the expertise and judgment of senior management and the Company’s ability to attract and retain key personnel; the speculative nature of cryptocurrencies in general; and the Company’s ability to continue as a going concern. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on the forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
