SOL Global Investment Corp. (OTCMKTS: SOLCF) Has Repaid $2.5 million Towards Clearing Its $50 million Credit

SOL Global Investments Corp. (OTCMKTS: SOLCF) has announced that it has already repaid $2.5 million towards clearing its $50 million credit from an arm’s length lender.As a result, the company’s principal amount has been reduced to $30 million, which seems to be a great move.

Furthermore, SOL Global Investments Corp. will continue to repay the Credit Facility until it clears the debt. In addition, the company promises to give updates concerning any further payments towards the Credit Facility. Therefore, they will publicly make the payments after sending the cash payment.

Further Announcements

SOL Global Investments Corp. has also announced that Mr Alex Spiro has resigned from his duty as the company’s director. The resignation took effect on February 8, 2022.

On July 8, 2019, the company had gotten financing of $50 million from a Credit Facility through the issue and sale of a senior secured non-convertible debenture. According to the contract, the company agreed to repay the debenture in cash by July 5, 2021.

How and When the Dispute Arose

However, on February 8, 2021, the company announced a dispute with the lender. A dispute arose concerning whether the company should pay the debenture in cash or deliver specific shares.

In the agreement, a statement said that if the acquisition of Verano Holdings Corp. (OTCMKTS: VRNO) by Harvest Health &Recreation Inc. will go through, then the lender will demand certain shares of Verno or Harvest instead of cash. But the company denied those claims hence breaching section 347 of the Criminal Code in Canada.

The company claimed that the lender’s right to receive shares instead of cash was dependent on a specific transaction deal closing which failed to occur. However, the US claim asserted that the Credit Facility had the right to receive payment through shares.

On September 3, 2021, the company discussed its disclosed litigation settlement with the lender concerning the debenture. As a result, the company paid $120 million on September 3, 2022, which marked $68.5 million above the Debenture principal plus the accrued interest.

Therefore, the company noted accrued liability of $68.5 million by August 31, 2021. The $50 million loan term was 12 months with an interest of 9%, p.a, secured through the general security agreement.