After the markets closed on Friday, SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) posted colossal losses as it searched for stability amid new leadership changes. The company released the findings in its unaudited financial report card for the second quarter ending May 31, 2022.
The company recorded a net loss of $128.7 million compared to the same period last year when it had a net income of $60.7 million.
During the first and second quarters of this year, the company reduced its exposure to the cannabis sector as a percentage of its NAV from 24% to 18% as it continued to diversify into other areas, such as clean technology, electric vehicles, and the Miami real estate market.
“Despite immediate market headwinds, our Core investments continue to show strength and present tremendous shareholder opportunity both mid and long term,” its newly-minted Chairman and CEO Kevin Taylor said in the release. “Our team remains focused on supporting SOL’s core holdings, divesting non-core assets, right sizing operations, and continuing to de-leverage our balance sheet through debt repayment and restructuring.”
Sol Global saw Jones Soda’s revenue increase 58% to $4.5 million versus $2.9 million in the first quarter of last year. Gross profit as a percentage of revenue increased 40 basis points to 27.3% compared to 26.9% in the first quarter last year. The company saw growth across all major sales channels for its core bottled soda business, Jones Soda. It launched its Mary Jones cannabis-infused soda line, with 10mg Cannabis-Infused Sodas now available in the California market. Jones Soda Co. announced the findings in the first quarter ending May 11, 2022.
The company also saw some advances in its compliance cloud software company, Fyllo, which offers tools to access cannabis and CBD purchasing data—inking a deal with marketing firm Semasio in April. Fyllo also beefed up its regulatory database with a new “Jurisdiction Dashboard,” which will track and update jurisdiction-level cannabis activity and history to help users spot data-driven trends.
Sol Global also said that Michigan-based Common Citizen, which it owns, recently launched a cultivation partnership with boxing legend Mike Tyson’s premium cannabis line, California-based Tyson 2.0 — which Common Citizen also holds a minority stake in. Common Citizen said it will grow Tyson’s cannabis at its state-of-the-art hybrid greenhouse in Michigan and will first yield “Knockout OG” and “Pound for Pound Cake”— both favorite strains of Tyson’s. The cannabis will be sold at Common Citizen retail partners in prepackaged eighths (3.5 grams) and 1-gram pre-rolls.
The company posted losses from investments totaling $97.9 million in the second quarter, compared to gains of $83.3 million during the same time last year. The unaudited Net Asset Value per share was $3.43 in the second quarter compared to $7.43 in the same quarter last year.
Sol Global made $26.1 million worth of payments towards its $50 million credit facility over the first two quarters this year, reducing the outstanding principal to $21.4 million as of May 31, 2022. The company said it made additional payments after the end of the quarter, resulting in a remaining principal balance of $7.835 million as of July 29, 2022.
Disclaimer: https://www.greenmarketreport.com/sol-global-see-hefty-losses-shrinks-cannabis-holdings/
Posted by: Times Of Hemp, TOH, #TOH, #TimesOfHemp, https://www.timesofhemp.com
