SOL Global Announces First Closing of Fully Subscribed $4 Million Debenture Unit Financing

Rhea-AI Summary

SOL Global Investments Corp. (CSE: SOL, OTC: SOLCF) has completed the first tranche of its private placement offering, raising C$1,000,000 through the sale of 1,000 units at C$1,000 per unit. Each unit includes a convertible debenture and 1,818 warrants. The company will receive three additional tranches of C$1,000,000 each, totaling C$4,000,000 in aggregate proceeds.

The convertible debentures can be converted into common shares at C$0.40 per share until January 21, 2026. Warrants are exercisable at C$0.55 per share for 12 months. Notably, 75% of the net proceeds will be used to purchase Solana Tokens at market prices, with the remainder allocated to working capital and general corporate purposes.

Positive

• Secured full subscription of C$4 million financing
• 75% of proceeds dedicated to Solana Token purchases
• Strategic conversion price set at C$0.40 per share
• Structured release of funds in four tranches provides steady capital flow

Negative

• Potential dilution for existing shareholders through convertible debentures and warrants
• High concentration (75%) of proceeds in single crypto asset poses risk
• Relatively short warrant exercise period of 12 months

75% of Net Proceeds Will Be Used for Additional Solana Purchases

First C$1M of the Four Equal Tranches Has Been Released to SOL with the Balance Released Every 15 Days

Toronto, Ontario--(Newsfile Corp. - January 21, 2025) - SOL Global Investments Corp. (CSE: SOL) (OTC Pink: SOLCF) (FSE: 9SB) ("SOL Global" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced private placement offering whereby the Company sold 1,000 units of the Company (each a "Unit" and collectively, the "Units") at a price of C$1,000 per Unit for aggregate gross proceeds to the Company of C$1,000,000 (the "Offering"). Each Unit consists of (i) one C$1,000 principal amount unsecured convertible debenture of the Company (each, a "Convertible Debenture" and collectively, the "Convertible Debentures"), and (ii) 1,818 common share purchase warrants of the Company (each, a "Warrant" and, collectively, the "Warrants"). Each Convertible Debenture is convertible into common shares of the Company (each, a "Common Share") at the option of the holder at any time prior to January 21, 2026 (the "Maturity Date"), unless otherwise redeemed by the Company pursuant to the terms of the Convertible Debentures, at a conversion price of C$0.40 per Common Share (the "Conversion Price"). Each Convertible Debenture may also be forced to convert into Common Shares at the option of the Company at any time following the first four months after the issue date of the Convertible Debenture and prior to the Maturity Date at the Conversion Price in the event that the volume-weighted average trading price of the Company's Common Shares is equal to or greater than C$0.55 per Common Share for ten consecutive trading days.

Each Convertible Debenture may be redeemed by the Company at any time prior to the Maturity Date in the event that the volume-weighted average trading price of the Common Shares is equal to or greater than C$0.52 per Common Share for ten consecutive trading days. Redemption by the Company may be satisfied by way of cash or Common Shares ("Redemption Shares") and where the Company elects to satisfy the redemption by way of Redemption Shares, such redemption shall be satisfied at a redemption price (the "Redemption Price") equal to 95% of the volume-weighted average trading price for the 10 consecutive trading days ending on the fifth trading day preceding the date of redemption provided that such Redemption Price shall not be less than C$0.05 per Common Share.

Each Warrant entitles the holder to purchase one Common Share at an exercise price of C$0.55 per Common Share for a period of 12 months following the closing of the Offering (the "Warrant Expiry Date"). In the event that the volume-weighted average trading price of the Common Shares is equal to or greater than C$0.88 per Common Share for five consecutive trading days, then the Company may accelerate the Warrant Expiry Date by providing written notice to the warrant agent, whereupon the Warrant Expiry Date will be the date specified in such notice, which date shall not be less than 30 days following delivery of such notice.

Subscribers under the Offering have agreed to purchase an additional C$3,000,000 of Debenture Units in three tranches of C$1,000,000 each, expected to close on February 4, 2025, February 18, 2025 and March 4, 2025, resulting in total combined aggregate gross proceeds of C$4,000,000 to the Company.

The Offering was conducted on a brokered private placement "best efforts" agency basis, by Canaccord Genuity Corp. and Clarus Securities Inc., on behalf of a syndicate of agents (collectively, the "Agents"). Gowling WLG (Canada) LLP acted as legal counsel to SOL Global and Wildeboer Dellelce LLP acted as legal counsel to the Agents in respect of the Offering.

In connection with the Offering, the Company has paid the Agents a cash fee of C$52,500, representing an amount equal to 7.0% of the aggregate gross proceeds of the first tranche of the Offering (the "Cash Commission"), other than from the sale to certain purchasers designated by the Company (the "President's List") for which a 3.5% Cash Commission was paid. In addition to the Cash Commission, the Company has issued 53 non-transferable compensation options (each, a "Compensation Option" and collectively, the "Compensation Options") to the Agents, such number of Compensation Options being equal to 7.0% of the number of Units sold under the first tranche of the Offering, other than from the sale of Units to purchasers on the President's List, for which the number of Compensation Options issued was 3.5% of the number of Units sold to such purchasers. Each Compensation Option is exercisable for one Compensation Unit at any time prior to January 21, 2026, at an exercise price equal to C$1,000 per Compensation Unit. Each Compensation Unit is comprised of 2,500 Common Shares and 1,818 Warrants (each, a "Compensation Warrant"). Each Compensation Warrant is exercisable for one Common Share at an exercise price of C$0.55 per Common Share until the Warrant Expiry Date. Additional Cash Commission is payable and Compensation Options are issuable to the Agents on the closing of each subsequent tranche.

The Convertible Debentures and Warrants issued today are subject to a hold period of four months plus one day pursuant to applicable securities laws in Canada.

The Company intends to use 75% of the net proceeds of the Offering to purchase Solana Tokens at prevailing market prices through reputable cryptocurrency exchanges, and will use the remaining net proceeds for working capital and general corporate purposes.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

For Further Information Please 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 a diversified international investment and private equity holding company. The Company is in the process of divesting its current investment partnerships and minority holdings. SOL Global recently announced the transition of investments to focus exclusively on digital asset technology, primarily on Solana and Solana based technologies.

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 closing of additional tranches of the Offering; the proposed use of proceeds of the Offering; the Company's intention to increase its investments in Solana; the Company's expectations related to divestitures of its current investment partnerships and minority holdings and the completion and expected benefits thereof; and the Company's business and investment strategies. 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 and divest its current investment partnerships and minority holdings; the Company's ability to increase its investments in the Solana blockchain and Solana-based technologies; changes in technology in the decentralized finance and the digital asset sector; changes in the laws and regulations governing cryptocurrencies, 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 its ability to attract and retain key personnel; timely receipt of any applicable governmental approvals, licences and permits (and renewals thereof); 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.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237975

FAQ

How much did SOL Global (SOLCF) raise in its January 2025 debenture financing?

SOL Global raised C$4 million in total, with the first tranche of C$1 million closed and three additional tranches of C$1 million each scheduled for February and March 2025.

What is the conversion price for SOLCF's January 2025 convertible debentures?

The convertible debentures can be converted into common shares at C$0.40 per share until January 21, 2026.

How will SOLCF use the proceeds from its January 2025 debenture offering?

75% of the net proceeds will be used to purchase Solana Tokens at market prices, with the remaining 25% allocated to working capital and general corporate purposes.

What are the terms of the warrants issued in SOLCF's January 2025 financing?

Each warrant entitles the holder to purchase one common share at C$0.55 per share for a 12-month period, with potential acceleration if share price reaches C$0.88 for five consecutive trading days.