SOL Global has a new name Bluma Wellness Inc., and a new focus to become profitable
SOL Global Investments Corp. (CSE: SOL) will be having a special meeting of common shareholders on October 15, 2019 where they will be asked to consider and approve the proposed change of business from an international cannabis investment company, to that of a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange (CSE). In connection with the Company’s proposed change of business shareholders will also be asked to consider and approve a change of name of the Company to “Bluma Wellness Inc.”.
SOL Investment Group (SIG) will be spun out of SOL Global and operate completely independent of Bluma Wellness and HeavenlyRx. SOL Global intends to spin off all of SOL Global’s non-multi-state cannabis operator (MSO) assets not under the Bluma Wellness umbrella to SIG. Further details of the spin-off transaction will be provided in the coming weeks as the Company works to conclude its strategic review of its assets. The purpose is to fully reflect the value of the different assets. Andrew DeFrancesco will lead the newly formed SOL Investment Group (SIG) and step down from his roles as Chairman & CIO of SOL Global.
SOL Global to focus on the US states of Florida, Michigan and California and on being more profitable
Initial operations for SOL Global will include assets in three of the top ten cannabis revenue markets in the U.S; namely Florida, Michigan and California. The new Company strategy is also to be more profitable by keeping the capital and operating expenses low with an efficiency-driven model of integrating operations and streamlining.
The timing of the proposed change of business is strategic, as SOL Global CEO Brady Cobb commented: “One of the innate strengths of SOL Global’s management is knowing when to enter a market, as is evidenced with our early success in Canada and Florida. We have planned this transition and the market entrance of our MSO to coincide with the rapid growth of the legal U.S. cannabis marketplace amid a presumptive tail wind from federal policy reform initiatives related to cannabis.”
Bluma Wellness – Everyone to “bloom”
The Company’s proposed change of name to Bluma Wellness Inc. was selected to ensure that patients and consumers utilizing SOL Global’s plant-based products can enhance their daily lives, namely to bloom and thrive. Bluma is an ancient Hebrew word which means to flower, bloom or blossom.
Mr. Cobb adds: “We chose the name Bluma Wellness as an appropriate way to honor the true intent of each seed that we cultivate, harvest, and deliver as a product.”
SOL plans to complete previously announced acquisitions. This will include the licensed dispensaries operated by MCP Wellness in Michigan (April 24, 2019), California based acquisitions which include the famed Humboldt, cultivator “Northern Emeralds” and dispensary chain “One Plant USA” (May 16, 2019). The resulting products of the new combined company Bluma Wellness will be powered by Northern Emeralds’ genetics cultivation and processing techniques that will be anchored by the brands and products that SOL Global has invested in. The product will then be deployed by dispensaries that include One Plant’s robust retail arm across the states of Florida, Michigan, and California.
Some of the SOL Global’s portfolio of investments
Note: Added to above is also PRØHBTD, which is a media platform built exclusively to create, develop and market cannabis brands to global audiences. Also a ~42% stake in Heavenly Rx Ltd, and an alliance with the University of Miami.
Despite market volatility, SOL Global is holding to its strategic direction and has continued to make additional investments in the cannabis, CBD and hemp sectors. The Company’s renewed focus is on the key US states of Michigan, California, and Florida. SOL is also investing in operational upgrades to efficiently scale up operations to expedite the path to profitability for the newly named Bluma Wellness, which they expect will ultimately deliver value to shareholders. SOL Global certainly has firm plans to bloom in a new name, and now a whole new structure.
SOL Global Investments Corp. is headquartered in Toronto Canada; and has a market cap of C$ 70 million.