Blüm Holdings, Inc. (OTCQB:BLMH) announced Tuesday that its subsidiary Unrivaled Brands, Inc. has sold its controlling membership interest in People's First Choice LLC (PFC) to Haven Nectar LLC. PFC owns and operates a cannabis retail dispensary campus in Santa Ana, California named Blüm Santa Ana.
"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," stated Sabas Carrillo, CEO of Blüm Holdings. "Our team has fought tirelessly, often under immense pressure with little resources, to steer the company through litigation and restructuring. We are immensely proud of the team which includes AGMs, Inventory Managers, Drivers, and Guides at PFC who have made the Blüm Santa Ana store a remarkable asset. 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."
The Disposition Summary
The disposition marks an important step in the company's strategic restructuring plan, which began in August 2022. The key highlights include
- $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.
- 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.
Price Action
Blüm Holdings shares closed Monday market session 10.29% lower at $0.4000 per share.
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Blüm Holdings Q1 Revenue Drop 16% YoY, Eliminates Non-Performing Legacy Operations, Reduces Net Loss
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