SOL Global's Stock Rises Slightly After Announcement To Invest $20M In Michigan Cannabis Operator

SOL Global Investments Corp. SOL SOLCF 9SB has completed a $20 million investment in Common C Holdings LP.

The Toronto-based company acquired 1.4 million class B common units of Common C Holdings as part of the deal.

“We reviewed a number of Michigan opportunities over the last 24 months knowing it was a state we wanted to be in,” Andy DeFrancesco, SOL Global CEO, disclosed Tuesday. “Common C Holdings is the perfect fit for our portfolio.”

Common C Holdings, formed in 2018 and based in Michigan, provides support services to state-compliant licensed cannabis operators.

Apart from supporting more than 170,000 square feet of cultivation in current production, which yields over 60,000 pounds of annual output, Common C runs five retail operations, with plans to launch additional stores by 2022.

“This investment reminds me of many of our previous winning bets in the space, where we were able to identify a business in hypergrowth phase with world-class management ready to scale,” DeFrancesco added. “Common C Holdings simply checked all of the boxes, and SOL Global is proud to have led this round of financing.”

Price action: SOL Global’s shares traded 7.2% higher at $2.97 per share at the time of writing Tuesday morning.

Photo: Courtesy of Esteban Lopez on Unsplash