SANTA ANA, Calif., June 18, 2024 — Blum Holdings, Inc. (OTCQB: BLMH) (the “Company,” “Blüm Holdings,” “we” or “us”), a cannabis company with subsidiaries operating throughout California, announces a significant milestone in its ongoing strategic financial restructuring. On June 10, 2024, Unrivaled Brands, Inc., a wholly owned subsidiary of Blüm Holdings, completed the sale (the “Disposition”) of its controlling membership interest in People’s First Choice LLC (“PFC”) to Haven Nectar LLC (“Haven Nectar”). PFC owns and operates a cannabis retail dispensary campus in Santa Ana, California named Blüm Santa Ana.
Key Highlights of the Disposition
The Disposition marks a significant milestone in the Company’s strategic restructuring plan, which began in August 2022. Based on estimates included in the unaudited pro forma condensed consolidated financial statements for the period ended March 31, 2024 as filed with the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on June 14, 2024, key highlights of the Disposition and restructuring plan are included below:
- $24.8 Million Total Consideration: The consideration includes $9.00 million in cash and $15.84 million in assumption of liabilities.
- Debt Extinguishment: All of the cash generated in the Disposition was used to settle debt and litigation. The transaction has extinguished an estimated $44.46 million in liabilities, reducing Blüm Holdings’ total debt by over 55%.
- Significant Financial Gain: The total estimated gain from the Disposition is $33.98 million, equivalent to $3.09 per common share.
- Estimated $90 Million in Total Liability Reduction: This transaction is part of Blüm Holdings’ broader restructuring strategy, which has resulted in the reduction of total liabilities by an estimated $90 million since August 2022.
Sabas Carrillo, Chief Executive Officer of Blüm Holdings, reflected on the journey: “The sale of our Santa Ana store is a landmark achievement for Blüm Holdings, not only because of the financial gain but because it symbolizes the end of a challenging era. Our team has fought tirelessly, often under immense pressure with little resources, to steer the Company through litigation and restructuring.”
Pursuant to a Trademark License Agreement, Blüm Santa Ana will continue to use the Blüm name in connection with PFC’s business for up to 18 months.
“We are immensely proud of the team which include AGMs, Inventory Managers, Drivers, and Guides at PFC who have made the Blüm Santa Ana store a remarkable asset,” Carrillo continued. “Their dedication, hard work, and the positive culture they have established have created a solid foundation for future success. This transaction isn’t just about financial restructuring; it’s about giving our teams the freedom and resources to excel. We believe the Blüm Santa Ana team now has a shot at the title of California’s best, and the rest of our teams are poised to compete and thrive in a revitalized company.”
For further details on the Disposition, please refer to the Company’s Current Report on Form 8-K filed with the SEC on June 14, 2024.
About Blüm Holdings
Blüm Holdings is a leader in the cannabis sector. Our commitment to quality, innovation, and customer service makes us a trusted name in the cannabis industry, dedicated to shaping its future. Blüm Holdings, through its subsidiaries, operates leading dispensaries throughout California as well as several leading company-owned brands including Korova, known for its high potency products across multiple product categories, including the legendary 1000 mg THC Black Bar.
