SOL Global Q3 Revenue Plummets YoY, Continues Reducing Exposure To The Cannabis Sector

SOL Global Investments Corp. SOL SOLCF (Frankfurt:9SB) released its unaudited financials for the third quarter ended August 31, 2022, revealing total revenue was a loss of CA$11.2 million ($8.2 million), an unfavorable decrease of 174% compared to a gain of CA$15 million in Q3 2021. Net loss was CA$12.5 million, compared to net loss of CA$62.4 million in Q3 2021. This represents a favorable change of CA$49.9 million.

Nine-Month Period Ended Results

• For the nine-months period ended August 31, 2022, the company recorded a net loss of CA$173.6 million vs. nine-months period ended August 31, 2021, net income of CA$210.4 million. This represents an unfavorable change of CA$384.0 million. A challenging environment for high growth venture investments decreased valuations across the market. However, the company’s positions in businesses such as Damon Motors Inc., Tevva Motors Ltd., and Kiwi Campus Inc. through its subsidiary, House of Lithium Ltd., continue to grow and perform above expectations.

• Total loss from investments totaled CA$190.7 million for the nine-month period ended August 31, 2022, compared to a gain of CA$341.0 million for the nine-month period ended August 31, 2021. This represents an unfavorable change of (CA$531.7) million between periods.

• The unaudited net asset value per share is equal to CA$3.08 at August 31, 2022, vs. CA$6.44 at August 31, 2021.

• The company made principal payments of CA$44.0 million towards its CA$50 million credit facility over the nine-month period, reducing the outstanding principal to CA$6.618 million as of August 31, 2022. It made additional payments following the quarter end resulting in a remaining principal balance of CA$5.518 million as of October 31, 2022.

• During the nine-month period ending August 31, 2022, the company reduced its exposure to the cannabis sector as a percentage of its NAV from 18% to 14% as it continued to diversify into new themes with strong tailwinds and attractive prospects.

“SOL’s solid portfolio foundation continues to show resilience despite market volatility”, stated Kevin Taylor, SOL Global’s chairman and CEO. “We continue to monitor market headwinds as we oversee and adjust our portfolio to maximize returns.”

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Photo by Mackenzie Marco on Unsplash

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