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“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 statement said.

Over the past few months DeFrancesco has been building up Heavenly Rx, a hemp-focused subsidiary of SOL Global, which was founded in April 2019 as a Florida-based entity registered to DeFrancesco’s wife, Catherine DeFrancesco.

Florida corporate filings show that on June 7, Catherine DeFrancesco signed off on the dissolution of Heavenly Rx, but just 10 days later a revocation of that dissolution was filed with the state by one Larry M. Goldberg. On July 23, Heavenly RX submitted an official change in registrant of the company, from Catherine DeFrancesco to Goldberg.

It was also around this time when SOL Global began announcing significant investments in Heavenly Rx, as part of a larger private offering by the CBD company. SOL’s first investment was a purchase of shares worth $15 million — it subsequently increased that stake to $24 million or 44 per cent of Heavenly Rx. In a statement issued by SOL Global regarding its participation in the offering, the company disclosed that they were “related party transactions” under Canadian securities laws because SOL was considered a “control person” of Heavenly Rx.

Heavenly Rx also made a series of high profile moves over the summer, including the purchase of a 25 per cent stake in the popular Seattle-based drinks company Jones Soda, and the appointment of former Kellogg president Paul Norman as its CEO and Fox News host Judge Jeanine Pirro as a board member.

“Brady and I started SOL together, and I want to make sure that whatever I do next with the new investment company will reward SOL’s loyal shareholders,” DeFrancesco emphasized.

The changes to SOL Global, including DeFrancesco’s departure from the company, are expected to be finalized on or before the end of October.

• Email: vsubramaniam@nationalpost.com | Twitter: VanmalaS