TORONTO, July 25, 2019 /CNW/ - PRESS RELEASE - SOL Global Investments Corp. has announced a US$2 million capital infusion in its portfolio company CannCure Investments Inc. This investment will put a focus on the development of SOL Global's California acquisitions, namely One Plant Dispensaries and Northern Emeralds. The infusion is intended to accelerate the construction and store opening process for One Plant dispensaries in California as well as to complete planned upgrades for Northern Emerald's cultivation facilities and to enhance Northern Emeralds distribution network and systems. CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100 percent of 3 Boys Farms, LLC, which is a holder of one of Florida's original vertically integrated medical marijuana treatment center licenses.
As it was previously announced, CannCure intends to combine Northern Emeralds, the preeminent cannabis cultivator based in Humboldt County, California, that is one of the leading cannabis flower cultivators in California boasting award-winning premium flower strains, Three Habitat Holdings, which owns and operates One Plant dispensaries in California, and MCP Wellness, which owns (subject to regulatory approval for the transfer of licenses within Michigan) the rights to two Michigan cannabis cultivation licenses, a Michigan cannabis processing license, and three fully licensed cannabis provisioning centers in Michigan, into one multistate operator (MSO) that will have robust operations in three of the top 10 state cannabis markets by revenue, with integrated operations across all three states and approximately 46 One Plant Dispensary locations in service across Florida, Michigan and California by the end of 2020.
As a result of the additional US$2,000,000 (CAD$2,628,960.00) investment into CannCure, SOL Global's current ownership has increased to 97.9 percent. Upon CannCure's completion of its previously announced acquisitions in California and Michigan, as well as completing the payment of the USD$80,000,000 earn out to the former owners of CannCure, as previously announced on April 1, 2019, SOL Global expects to own approximately 20.6 percent of the resulting business.
While CannCure is majority-owned by SOL Global, the additional investment by SOL Global into CannCure was a "downstream transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and, accordingly, was not subject to related party transaction requirements. In addition, the investment was part of a larger private offering of securities of CannCure in which other arm's length investors participated on the same terms and conditions as SOL Global.
SOL Global expects to provide a corporate update regarding its investment activity in the coming days.
