01:23 PM EDT, 05/09/2025 (MT Newswires) -- SOL Global Investments ( SOLCF ) on Friday said it made a US$1-million strategic investment into McQueen Labs' MCQ Markets for digital tokenization of investment-grade collector cars.

"This investment in MCQ Markets highlights the innovative potential of tokenization, breaking down barriers traditionally associated with luxury ownership and transforming the collector car industry for a new generation of investors," said Interim Chief Executive Officer Paul Kania.

The company announced a proposed securities purchase agreement with McQueen Labs signed on May 8, according to which, the company is expected to receive convertible debentures of MCQ Markets, in the aggregate principal amount of US$1 million (around C$1.3 million).

Each convertible debenture will be convertible into shares of common stock in the capital of MCQ Markets, subject to the terms and conditions set forth in the debentures.

The company will issue a total of about 11.5 million common shares in the capital of the company at a deemed price of C$0.12 per common share to MCQ Markets as full consideration for the debentures issued in connection with the note financing.

Apart from the debentures, the company will also receive 1,000 shares of Series F convertible preferred stock of MCQ Markets, each with a par value of US$0.001, which will be convertible into MCQ shares at the valuation cap (a price based on a valuation of US$54 million) and may be converted at any time for a period of 36 months following the completion of a qualified event.

A qualified event may be a going-public transaction, a direct listing, reverse takeover, or merger with a special purpose acquisition company.

The company stated that the trading of such common shares will be subject to resale restrictions, including a limitation that no more than 20% of the daily trading volume of the company's common shares on the Canadian Securities Exchange may be sold by MCQ Markets on any trading day.

The agreement is expected to close on or around May 15.

"By deepening our partnership with SOL Global, we are at the vanguard of RWA tokenization to bring new financial products to market to meet the increasing demand from investors seeking to diversify their portfolios," said MCQ Markets' Chief Executive Officer Curt Hopkins.

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