SOL Global Announces Appointment of Kevin Taylor as CEO and President
THE COMPANY WILL LOOK FOR STRATEGIC ALTERNATIVES TO REDUCE THE GAP BETWEEN ITS STOCK PRICE AND ITS ‘NAV’ TO MAXIMIZE SHAREHOLDER VALUE
ANDY DEFRANCESCO WILL LEAVE HIS ROLE AS CHIEF EXECUTIVE OFFICER
TORONTO, April 25, 2022–(BUSINESS WIRE)–SOL Global Investments Corp. (“Global SOIL“or the”Company“) (CSE: SOL) (OTCQ: SOLCF) (Frankfurt: 9SB) today announces the appointment of Mr. Kevin Taylor as Chief Executive Officer and Chairman of the Board of SOL Global.
Kevin Taylor is a seasoned executive with 30 years of experience operating Fortune 500 companies based in North and South America. For the past 14 years, Kevin was President and Chief Executive Officer of TEReI International Limited, a merchant bank focused on debt and equity opportunities in the North American small and mid cap markets and from South. Mr. Taylor acts as a director for a number of companies listed on the Canadian Stock Exchange, the Toronto Stock Exchange and the TSX Venture Exchange.
The Company, its Board of Directors and its management are considering potential strategic alternatives aimed at enhancing SOL Global’s growth and maximizing shareholder value. The Company is expected to consider various strategies to close the gap between its share price and its net asset value (“NAV“), capital return strategies, potential strategic transactions and development of other strategic initiatives to complement SOL Global’s existing portfolio and overall business.
Effective today, SOL Global’s founder, Andy DeFrancesco, ceased to be the CEO and a director of the company, but will continue to work with management to transfer responsibilities, including decisions on investment related to the management of portfolio companies.
“I am incredibly proud of what we have built at SOL Global and what my team has accomplished since I founded the company. I am excited about our next phase of growth as the company continues to incubate and favor our portfolio companies to extract maximum shareholder value,” Andy DeFrancesco said. “It’s amazing to have Kevin Taylor, a seasoned executive with a great track record and a trusted member of the team of SOL Global, as the new CEO. I am confident that SOL Global will continue to grow under his leadership.”
“On behalf of SOL Global, we thank Andy for his vision, leadership and most importantly his portfolio management strategy, which has positioned SOL Global favorably with a high quality asset base that will continue to generate growth in the future. said Kevin Taylor, Director and new Chief Executive Officer and Chairman of the Company. “Andy’s strategic vision has left the company in a strong financial position; he has built an incredible portfolio with a focus on long-term shareholder value. Andy is still leading the pack towards the next big ones emerging sectors and has consistently positioned SOL to capitalize on these industry trends before they become mainstream.Despite the leadership change, SOL plans to continue operating with this philosophy and looks forward to working with entrepreneurs innovations that push the boundaries to generate an industry-leading return on investment.
SOL Global has entered into an agreement (the “Deal“) with Mr. DeFrancesco dated April 24, 2022 pursuant to which Mr. DeFrancesco agreed to receive less compensation than he would otherwise have been entitled to under his employment contract, which amount will be paid over six years. In the event SOL Global is in default under the Agreement, all payments to DeFrancesco shall be accelerated and immediately due and payable, and SOL Global’s obligations shall become immediately secured by all assets of Blue Sky Holdings USA Inc., a subsidiary in wholly-owned Florida property of SOL Global, which indirectly owns an approximate 68% interest in SOL Global’s real estate investment in North Miami.SOL Global has also covenanted: (i) not to incur any new debt except in with respect to normal course trade indebtedness and any indebtedness (up to a maximum of $10 million) to reduce the indebtedness of an existing lender of the Company; and (ii) to provide DeFrancesco rights to participate in future Company offerings in order to retain their respective ownership interests in the Company.
This press release contains “forward-looking information” within the meaning of applicable securities laws. Any statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some instances, forward-looking information may be identified by words or phrases such as “may”, “will”, “expect”, “probable”, “should”, “would”, “expect”, ” anticipates”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative form of these terms, or other similar words, phrases and grammatical variations, or statements that certain events or conditions “can” or “will” happen, or through discussions of strategy. Forward-looking information contained herein includes statements regarding Mr. Taylor in his new roles with the Company and the future success of the Company under his leadership; statements regarding the Company’s future strategic plans and initiatives and the expected benefits thereof; opinions, beliefs and expectations regarding the Company’s business strategy, development and opportunities, and the plans and objectives for managing the Company’s operations. There is no guarantee that the results described herein will occur in the manner described, within the expected time frame or at all.
Forward-looking information is based on certain significant assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, and other considerations deemed appropriate in the circumstances. Although we consider these assumptions to be reasonable based on information currently available to management, there can be no assurance that these expectations will prove to be correct.
By its nature, forward-looking information is subject to inherent risks and uncertainties which may be general or specific and which give rise to the possibility that the expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that the assumptions are not correct and that the objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information contained in this press release. Other risk factors include: risks resulting from investing in the US marijuana industry, which may be legal under certain state and local laws, but is currently illegal under US federal law; the risks of investing in securities of private companies which may limit SOL Global’s ability to sell or otherwise liquidate such securities and realize value; dependence on management; SOL Global’s ability to service its current or future debt; SOL Global’s ability to obtain additional financing from time to time to pursue its business objectives; competition; dispute; inconsistent public opinion and perception regarding the medical and adult marijuana industry; and regulatory or policy change. Additional risk factors relating to SOL Global can also be found in SOL Global’s current MD&A, which has been filed on SEDAR and can be viewed at www.sedar.com. Readers are cautioned to carefully consider these factors, as well as other factors, uncertainties and potential events, and not to place undue reliance on any forward-looking information.
The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management as of the date such forward-looking information is made. SOL Global undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material differences between subsequent actual events and such forward-looking information. information, except as required by applicable law.
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SOL Global Investments Corp.
Paul Kania, Chief Financial Officer
Phone: (212) 729-9208
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