by Lynda Kiernan

Now that 30 U.S. states have legalized medical cannabis, 10 states and the District of Columbia have legalized recreational use, and the industrial growing of hemp is now federally legal, the cannabis industry has very rapidly matured as demand soars.

Furthermore, the legalization of industrial hemp production in the U.S. with the passing of the 2018 Farm Bill, has created an expanded market and opportunity for growth within the sector.

These developments have rapidly given the legal medical and recreational cannabis, and parallel hemp asset class, legitimacy, and with it capital. 

International investment company SOL Global announced it has secured C$50 million (US$38 million) in financing through a private placement through the sale of a senior secured non-convertible debenture to an undisclosed institutional investor. 

Headquartered in Toronto, and listed on the Canadian Securities Exchange under the symbol SOL, SOL Global focuses on, but is not limited to, investments and strategic partnerships with cannabis and cannabis-related companies in U.S. states where it has been legalized, the hemp and CBD industries, and the emerging hemp and cannabis industries across Europe. 

The firm takes a comprehensive approach, making investments that span the supply chain from cultivation to distribution and retail, and that complement the company’s R&D program with the University of Miami. It is this specific approach that the firm feels will position it as a leader in the U.S. medical cannabis space. 

As part of its plan to achieve this benchmark, SOL Capital plans to use the funds gained through this financing to support its long-term vision – the continued build-out of its robust hemp and CBD strategy via Heavenly Rx Ltd., its ongoing investment in top-tier talent and operations across both its hemp/CBD and THC operations, and the acquisition of additional assets in Florida, Michigan, and California for its previously announced new cannabis multi-state operator. 

This debenture carries an interest rate of 6 percent per annum, and will mature two years after the closing date, unless the term is shortened by the meeting of certain independent milestones determined within the terms of the deal. 

Concurrently, SOL Capital announced that Johnathan Gilbert has resigned from his role as president of its wholly-owned subsidiary Impact Biosciences Inc., and has decided not to spin out the subsidiary into an independent public company. It has been decided that the company will review its options for continuing its R&D program being conducted at the University of Miami to bring to market the first accepted cannabinoid drug regimen for concussive treatment. 

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.