January 18, 2022 14:00 ET | Source: Sortis Holdings, Inc.
– Transitions Fund Management Business –
– Announces Acquisitions of Bamboo Sushi, Rudy’s Barbershops, and Current Co Brands –
– Appoints Proven Consumer Finance Executive, Ryan Smith, as Chief Financial Officer –
PORTLAND, Ore., Jan. 18, 2022 (GLOBE NEWSWIRE) — Sortis Holdings, Inc. (OTC: SOHI) (“Sortis”), a leader in diversified alternative investment strategies, is providing a business update on several key initiatives as it transitions to become a platform enabling highly scalable, experiential lifestyle brands to accelerate growth and impact.
Transition of Sortis Fund Management
On December 31, 2021, Sortis sold its fund management business to Sortis, LLC (“Sortis Fund Management”), a private entity owned and operated by former Sortis Holdings managers. The asset purchase was seller financed through a promissory note. With the divestiture, Sortis is positioned to execute its brand platform strategy.
Strategic Acquisitions
The initial transactions in support of the new business strategy include several noteworthy acquisitions to expand its portfolio into the restaurant and beauty and wellness space.
On December 31, 2021, Sortis acquired Sustainable Restaurant Group, the Oregon-based operators of nine Bamboo Sushi (“Bamboo”) restaurants across four states, through a combination of cash, debt and stock. In 2008, Bamboo became the world’s first certified sustainable sushi restaurant. Since then, it has changed how consumers eat, how the industry operates, and continually aspires to protect the planet, the ocean, and the evolving global ecosystem. Bamboo is pushing the conversation forward on sustainable fishing while simultaneously serving innovative, delicious fare.
On December 31, 2021, Sortis acquired Rudy’s Barbershops (“Rudy’s”), the Washington-based operator of 30 locations, including 11 former company-owned Bishops Barbershops locations, as part of a share exchange agreement. For 29 years, Rudy’s Barbershop has been the authority on effortless style, combining self-care with culture. Rudy’s pioneered the modern barbershop movement and redefined a new generation of beauty and grooming, starting with one location in the heart of Seattle and expanding to Oregon, Georgia, Arizona, and NYC.
On December 31, 2021, Sortis acquired Current Co Brands, Inc., an upstart hospitality developer originally formed as a joint venture between Sortis and five hospitality industry veterans. The portfolio of Current Co Brands, Inc. includes management of the Mayflower Park Hotel in Seattle and the Ace Hotel in Portland and anticipates the development of several new hospitality brands.
With this new platform, Sortis begins to bring together an ecosystem of original brands with purpose and impact. As stewards of legacy and new companies alike, the platform will enable sustainable growth, cultural equity, and scalable innovation for brands with things to say. Sortis’ goal is to build a portfolio of consumer brands that share four key characteristics: a passionate customer base, differentiated brand identity, commitment to Environmental, Social, and Governance (“ESG”) priorities, and digital tailwinds. Sortis believes these acquisitions are strongly aligned with these attributes and offer significant growth opportunities. With a platform that provides enhanced access to capital, real estate strategy expertise, creative and operational talent, and cutting-edge digital capabilities, Sortis believes it can accelerate these brands’ ability to scale both organically and inorganically.
“These acquisitions mark a new beginning for Sortis as we transition into a platform business with a focus on brands that spark conversation and move culture forward,” said Paul Brenneke, Executive Chairman of Sortis. “Bamboo Sushi is the forerunner in sustainable sourcing in the restaurant industry and Rudy’s is a pioneer in LGBTQ-inclusive policies and practices within the beauty industry. We look forward to leveraging our expertise to scale these and other forward-thinking businesses under the Sortis umbrella.”
CFO Appointment
Sortis, beginning the strategic transition to an operator of scalable, lifestyle brands, has appointed Ryan Smith as its Executive Vice President and Chief Financial Officer. In addition to leading Finance, Accounting, Technology, and Human Resources, Smith will serve as a strategic business advisor to the CEO and broader executive leadership team.
Smith brings over 20 years of corporate finance experience with broad consumer, product, brand, distribution and operational expertise. He spent two decades at Nike (NYSE: NKE), where he held numerous domestic and international roles in the finance function, including roles as divisional CFO and leadership roles in Investor Relations, Business Planning, Corporate Audit, Revenue and Gross Margin Planning, and Commerce. Prior to Nike, Smith spent five years as an active CPA in public accounting.
Commenting on his appointment, Smith stated: “It’s an exciting time to be joining the Sortis team as we embark on the transition to a platform that can accelerate growth among a variety of strong lifestyle brands. Having been a finance leader for numerous businesses within Nike for two decades, I am confident in my abilities to guide Sortis through this strategic transition. I look forward to leveraging my deep consumer and operational experience, along with my expertise in building organizations and integrating acquisitions, to strengthen the performance of our current and future portfolio companies.”
Brenneke concluded: “As we embark on this transition, it was imperative that we had a CFO with a proven track record of delivering results and creating value. Ryan is a high-impact executive who brings a compelling blend of strategic and capital allocation discipline, deep operating skills, and transformational leadership abilities. He is the perfect candidate to drive the business as a member of our executive leadership team given his experience at one of the most recognizable consumer brands in the world.”
Incorporation Change and Stock Transactions
On December 31, 2021, Sortis changed its corporate domicile from Oregon to Delaware, adopted new charter documents, and issued new shares constituting approximately 10% of post-acquisition outstanding shares to affiliates of Executive Chairman Paul Brenneke resulting from the redemption of preferred stock and conversion of previously issued warrants.
About Sortis Holdings, Inc.
Sortis Holdings, Inc. (OTC: SOHI) is becoming a collection of brands that combine creative vision with business acumen. Sortis intends to power its brands across hotel & lodging, coffee, food & beverage, and beauty & wellness to drive culture forward, uniting purpose and profit to thoughtfully scale its companies and offer exceptional experiences to its customers. To learn more about Sortis, please visit sortisholdings.com.
About Sortis, LLC
Sortis, LLC is a leader in diversified alternative investment strategies focused on real estate, lending, distress situations and rescue opportunities. Sortis Funds include the Sortis Rescue Fund, the Sortis Income Fund, and the Sortis Opportunity Zone Fund. Operating under the principles of client focus, integrity, hard work and creativity, Sortis, LLC provides its accredited investors with well-managed, diverse asset-based investment strategies. Learn more at sortis.com.
Forward-Looking Statements Disclaimer
Certain statements in this press release are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, are forward-looking, including statements: regarding future operations of businesses recently acquired by Sortis; potential future acquisitions; attributes of the Sortis platform; and growth opportunities. These forward-looking statements are subject to a number of risks and uncertainties, including the inability of the parties to successfully or timely complete proposed or desired transaction; failure to realize the anticipated benefits of proposed transactions; the challenges with managing a diversified business portfolio; and risks associated with the acquired businesses, including changes in customer behavior or government regulation to address COVID-19. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements.
Investor Relations Contact
Gateway Investor Relations
Cody Slach and Cody Cree
949-574-3860
SOHI@gatewayir.com