Blüm Holdings Moves Forward with Binding LOI for Key Acquisition
Blüm Holdings (OTCQB: BLMH) has entered into a Binding Letter of Intent (LOI) to acquire a Northern California dispensary that generated approximately $18.0 million in annual gross revenue and $13.0 million in net revenue for 2024 (unaudited). The acquisition price is set at $2.0 million, structured as a combination of cash and equity, with a performance-based bonus award.
Concurrent with the LOI, Blüm issued a $500,000 senior secured convertible promissory note with an 8% annual interest rate, maturing on March 31, 2025. The note may be converted into Target shares or have its maturity extended. The agreement includes structured operational targets focusing on expense reductions and EBITDA improvements.
Blüm Holdings (OTCQB: BLMH) ha stipulato una Lettera di Intenti Vincolante (LOI) per acquisire un dispensario nella California del Nord che ha generato circa 18,0 milioni di dollari di fatturato lordo annuale e 13,0 milioni di dollari di fatturato netto per il 2024 (non verificato). Il prezzo d'acquisizione è fissato a 2,0 milioni di dollari, strutturato come una combinazione di contante ed equity, con un premio basato sulle prestazioni.
Concomitantemente alla LOI, Blüm ha emesso un notes convertibile senior garantito di 500.000 dollari con un tasso d'interesse annuale dell'8%, in scadenza il 31 marzo 2025. Il note può essere convertito in azioni di Target o avere la sua scadenza estesa. L'accordo include obiettivi operativi strutturati che si concentrano sulla riduzione dei costi e sul miglioramento dell'EBITDA.
Blüm Holdings (OTCQB: BLMH) ha celebrado una Carta de Intención Vinculante (LOI) para adquirir un dispensario en el norte de California que generó aproximadamente 18,0 millones de dólares en ingresos brutos anuales y 13,0 millones de dólares en ingresos netos para 2024 (sin auditar). El precio de adquisición se establece en 2,0 millones de dólares, estructurado como una combinación de efectivo y capital, con un bono basado en el rendimiento.
Al mismo tiempo que la LOI, Blüm emitió un préstamo convertible senior garantizado de 500.000 dólares con una tasa de interés anual del 8%, que vence el 31 de marzo de 2025. El préstamo puede convertirse en acciones de Target o tener su vencimiento prolongado. El acuerdo incluye objetivos operativos estructurados enfocados en la reducción de costos y mejoras en el EBITDA.
Blüm Holdings (OTCQB: BLMH)는 구속력 있는 의향서(LOI)를 체결하고 북부 캘리포니아에 있는 한 대마초 판매점을 인수하기로 했습니다. 해당 판매점은 2024년(감사받지 않음)에 약 1800만 달러의 연간 총 수익과 1300만 달러의 순 수익을 창출했습니다. 인수 가격은 200만 달러로 설정되어 있으며, 현금과 주식의 조합으로 구성되고 성과 기반 보너스가 포함됩니다.
LOI와 동시에 Blüm은 연 8%의 이자율이 적용되는 50만 달러 규모의 선순위 담보 전환 사채를 발행하였으며, 이는 2025년 3월 31일 만료됩니다. 이 사채는 Target 주식으로 전환되거나 만기가 연장될 수 있습니다. 계약에는 비용 절감 및 EBITDA 개선에 중점을 둔 구조화된 운영 목표가 포함되어 있습니다.
Blüm Holdings (OTCQB: BLMH) a signé une Lettre d'Intention Contraignante (LOI) pour acquérir un dispensaire dans le nord de la Californie qui a généré environ 18,0 millions de dollars de revenus bruts annuels et 13,0 millions de dollars de revenus nets pour 2024 (non vérifiés). Le prix d'acquisition est fixé à 2,0 millions de dollars, structuré comme une combinaison de liquidités et d'équité, avec une prime basée sur la performance.
En parallèle avec la LOI, Blüm a émis une obligation convertible senior garantie de 500 000 dollars avec un taux d'intérêt annuel de 8 %, arrivant à échéance le 31 mars 2025. Cette obligation peut être convertie en actions de Target ou voir son échéance prolongée. L'accord comprend des objectifs opérationnels structurés axés sur la réduction des coûts et l'amélioration de l'EBITDA.
Blüm Holdings (OTCQB: BLMH) hat einen Bindenden Letter of Intent (LOI) unterzeichnet, um ein Dispensary in Nordkalifornien zu erwerben, das für 2024 (nicht geprüft) etwa 18,0 Millionen US-Dollar an jährlich brutto Einnahmen und 13,0 Millionen US-Dollar an Nettorevenue generierte. Der Kaufpreis beträgt 2,0 Millionen US-Dollar und wird als Kombination aus Bargeld und Eigenkapital sowie einem leistungsbasierten Bonus strukturiert.
Parallel zur LOI hat Blüm eine senior gesicherte wandelbare Schuldverschreibung in Höhe von 500.000 US-Dollar mit einem jährlichen Zinssatz von 8% emittiert, die am 31. März 2025 fällig wird. Die Schuldverschreibung kann in Target-Aktien umgewandelt werden oder die Fälligkeit kann verlängert werden. Die Vereinbarung enthält strukturierte operative Ziele, die sich auf Kostensenkungen und EBITDA-Verbesserungen konzentrieren.
- Target dispensary shows strong revenue performance with $18M gross and $13M net revenue
- Relatively low acquisition cost of $2M compared to target's revenue
- Deal structure includes performance-based targets for operational improvement
- Strategic expansion into Northern California market
- Revenue figures are unaudited and subject to adjustment
- Additional debt burden through $500,000 convertible note at 8% interest
- Transaction completion not guaranteed pending due diligence and final negotiations
- Execution risks during turbulent cannabis industry conditions
DOWNEY, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Blum Holdings, Inc. (OTCQB: BLMH) (the “Company,” “Blüm,” “Blüm Holdings,” “we” or “us”), a California-based publicly traded holding company and cannabis operator, today announced that it has entered into a Binding Letter of Intent (“LOI”) to acquire a premier Northern California dispensary (“Target”). This follows the previously announced Non-Binding Letter of Intent disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on January 15, 2025.
For the twelve months ended December 31, 2024, the Target generated approximately
Pursuant to the terms of the LOI, a wholly own subsidiary of Blüm will acquire
Concurrently with the parties’ execution of the LOI, Blüm entered into a senior secured convertible promissory note in the principal amount of
No assurances can be made that the Company will successfully negotiate and enter into definitive agreements for the transactions contemplated by the LOI (the “Transaction”) or that the Company will be successful in completing the Transaction.
“This agreement is a testament to the hard work and dedication of our team and shareholders over the past two years as we continue executing on our turnaround strategy and enter a new era of growth. The progress we have made would not have been possible without the trust and support of our employees, corporate team, partners, and shareholders, and for that, I am incredibly grateful. Their belief in our vision has allowed us to take bold but disciplined steps which we believe will stabilize and grow our business. We expect this Transaction to represent a significant and meaningful milestone in our journey, and we remain committed to driving durable value for our team, shareholders, partners, and customers,” said Sabas Carrillo, CEO of Blüm Holdings.
“Beyond acquiring a dispensary with strong gross and net revenues, we are equally excited to welcome such a hardworking and dedicated team to Blüm. Their experience, resilience, and commitment to excellence align well with our culture, and we look forward to working alongside them to build something truly special together while integrating their operations into our expanding platform,” Sabas added.
“That said, job’s not finished. We still have work ahead of us to successfully close this Transaction—work that must be done during a particularly turbulent time in both the cannabis industry and the broader political climate. While challenges remain, I have confidence in our team’s ability to navigate this moment with the same determination and discipline that have brought us this far,” concluded Sabas.
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. As both a holding company and a marketing platform, Blüm aims to leverage its growing ecosystem to accelerate customer and retail investor acquisition, increase brand awareness, and create value across its portfolio.
For more info, please visit: https://blumholdings.com.
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Contact:
Jason Assad
LR Advisors LLC.
jassad@blumholdings.com
678-570-6791
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. The Company uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on the Company’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for the Company to predict all such factors, nor can the Company assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks may include, among other things, the risk that the Company will not achieve the anticipated benefits of Transaction, such as the stabilization and growth of the Company’s business; the risk that we may not be able to execute our growth strategies; the risk that we may not successfully negotiate and enter into definitive agreements for the Transaction; and the risk that even if we are able to negotiate and enter into definitive agreements, the Transaction may not be completed. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to the Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.
FAQ
What is the purchase price for BLMH's Northern California dispensary acquisition?
What are the revenue figures for the dispensary BLMH is acquiring?
What are the terms of BLMH's convertible note issued with the acquisition LOI?
When does BLMH expect to close the Northern California dispensary acquisition?
