SOL Global Investments Corp C.SOL

Valuation Metrics - Verano Only

[Plaindisclousre]

F/X	0.79
Verano Holdings
Shares I&O (millions)	290,000,000
Trading Price	$10.00
Market Cap	$2,900,000,000
SOL %’age	9.3146%
SOL Value of VHI (USD)	$270,124,400
$Cdn Fx	$0.79
SOL Value of VHI (Cdn)	$341,929,620
SOL debt	-$50,000,000
SOL NAV (Verano only)	$291,929,620
SOL I&O shares	55,000,000
VHI NAV/Sh (pre-tax)	$5.31

[jthottam]

Hi, A few thoughts.  I agree with the share counts that you used, but for some reason the press release from Sol today seems to indicate only 25.2MM shares.  Any thoughts why? Sol has higher Debt amount in terms of both principal and accrued interest (i.e., in their last filing on Aug. 31st, 2020 it was listed at ~$54.7MM CAD.  Now its probably closer to $56MM CAD or $44MM USSD).

[Alphaseeker1984]

SOl's ownership in Verano is closer to 9.3% after the Verano Merger and the $100MM private placement

[jthottam]

Agreed, on the private placement. But that gets you to around 27MM shares. That still leaves about 1.8MM Verano shares unaccounted for?

[Plaindisclousre]

Good comments.  My thoughts: The $50mm in debt should include accrued interest to July 2021. I can't see how to precisely know SOLs Verano share holding other than bang on the (interim) CFO's door loudly.  It's really highly questionable why management hasn't given any disclosure on the Verano RTO when Verano is so material to SOL's NAV/Sh and the RTO is

[jthottam]

Agreed, Some information that may help you,  1. The August 31st, 2020 filing indicated that the Debt + Accrued Interest was ~$54.5MM 2. In the press release today from Sol, they mention that their ownership in Verano is 25.2MM shares. 3. Not sure if I can say anything on this Hope that helps

[Plaindisclousre]

Just noticing yesterday's PR.  It does not mention the market value put on Verano (or SOL's holdings in Verano) by the $100,000,000 raise Verano just completed - in fact makes no mention of that raise.  Why not?  What is your calc that the Verano shares should be 27 million versus the 25.2 millon now being reported?  

[jthottam]

Hi PD, So the press release from Majesta on December 15th, 2020 is as follows: Verano Holdings Enters into an Agreement for a Go-Public Transaction in Conjunction with AltMed Merger (globenewswire.com) In it, you will see it states:  "The subscription receipts are anticipated to be priced at US$10 per subscription receipt and are based on a US$2.8 billion pre-money valuation of the