Blum Holdings, Inc. - UNRV STOCK NEWS

Unrivaled Brands, Inc. (OTCQB: UNRV) announced the resolution of its litigation with People’s California, LLC, through a binding term sheet. The parties will jointly request a stay of all pending litigation upon final documentation. CEO Sabas Carrillo emphasized the importance of the settlement in enhancing their retail operations in California, particularly in Riverside and Costa Mesa. Interim Chief Legal Officer Robert Baca acknowledged the efforts of their legal team in achieving a favorable outcome. Unrivaled operates four dispensaries in California and is known for its popular cannabis brand, Korova.

Unrivaled Brands reported preliminary financial results for the fiscal year ending December 31, 2022, showcasing a 10% increase in revenue from continuing operations, totaling $52.5 million. The company saw a significant 65% year-over-year revenue growth in its cannabis retail operations, amounting to $40.4 million. Additionally, total liabilities were reduced by 41%, decreasing to $71.1 million. However, fourth-quarter revenue dropped to $8.5 million from $13.3 million in the same quarter last year, reflecting a decline due to a reduced number of operational retail stores.

Unrivaled Brands (OTCQB: UNRV) announced a private placement to raise up to $2 million through new Series V Preferred Stock and warrants. The offering will consist of approximately 14 million shares at $0.14 each, convertible to common stock at an effective price of $0.014 per share. The plan includes up to 71 million warrants at an exercise price of $0.028. Proceeds aim to enhance revenue, marketing, inventory, and support litigation. The transaction involves key executives investing, aligning interests with shareholders.

Unrivaled Brands (OTCQB: UNRV) has entered binding Letters of Intent to purchase two Cookies branded retail dispensaries located in Redding and Oakland, California. The company will pay a total of $1.5 million in common stock for options to purchase each dispensary over the next 12 months. Additionally, Unrivaled will negotiate Management Services Agreements to receive up to 25% of each dispensary's net revenue. This partnership aims to enhance growth opportunities while maintaining capital efficiency.

Unrivaled Brands, Inc. (OTCQX: UNRV) has reopened its Blum San Leandro dispensary in California following a Management Services Agreement with Brick City Productions. The company also spun off two Oregon assets, LTRMN, Inc. and Psychonaut Oregon, allowing a focus on California operations. Executive changes include Sabas Carrillo as CEO, Tracy McCourt as Chief Revenue Officer, and Jim Miller as Chief Operating Officer, aiming to enhance operational efficiency and growth strategies. These initiatives are seen as pivotal for streamlining resource allocation.

Unrivaled Brands (OTCQX: UNRV) successfully contested an ex parte application by People’s California to expedite a writ of possession hearing. Initially filed on December 7, 2022, this application sought to advance the hearing date to December 19, 2022; however, Unrivaled argued against this motion, leading the court to set the new hearing date for March 6, 2023. People’s California, facing a history of unsuccessful litigation attempts, continues to seek provisional relief in a case involving a cross-complaint filed by Unrivaled regarding fraudulent asset sales.

Unrivaled Brands, Inc. (OTCQX: UNRV) reported a Q3 2022 revenue of $10.76 million, a decrease of 46.3% from $20.05 million in Q3 2021. Retail revenue was $8.77 million, while cultivation/distribution revenue was $2.00 million. The gross loss from continuing operations was $(0.06) million, compared to a profit of $0.33 million a year earlier. Operating loss surged to $122.80 million, primarily due to a $107.97 million impairment of intangible assets. SG&A expenses rose to $13.24 million, reflecting increased operational costs post-merger. Strategic restructuring included a $1.53 million loss on asset disposal.

On November 7, 2022, Unrivaled Brands, Inc. (OTCQX: UNRV) filed a cross-complaint against Frank Kavanaugh, Jay Yadon, Bernard Steimman, and People’s California, alleging fraud and negligent misrepresentation related to the acquisition of the People’s First Choice dispensary in November 2021. The complaint alleges over $5 million was siphoned off through backdated accounting entries and that Unrivaled assumed over $4 million in IRS tax debt. Newly appointed Interim CEO Sabas Carrillo indicated further claims may arise as investigations continue.