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Blüm Holdings

Blüm Holdings sheds cannabis dispensary in debt-cutting move

Published

6 months ago

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The sale retired about $44.5 million in debt for Blüm.

Blüm Holdings Inc. (OTCQB: BLMH) has taken a major step in its bid to restructure its finances, selling a prized retail dispensary for $24.8 million to slash debt.

The Santa Ana-based company said Tuesday it completed the sale of its Blüm Santa Ana cannabis store to Haven Nectar LLC. The deal marks a milestone in Blüm’s efforts to regain a firmer financial footing after racking up an estimated $90 million in liabilities since August 2022, according to company filings.

The sale retired about $44.5 million in debt for Blüm, reducing its total obligations by more than half, while generating a $34 million gain on the divestiture, the company said. Blüm received $9 million in cash proceeds and $15.84 million in liabilities assumed by the buyer.

“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,” Blüm CEO Sabas Carrillo said in a statement.

Carrillo said the dispensary staff “created a solid foundation for future success,” but Blüm’s remaining teams are “poised to compete and thrive in a revitalized company” after shedding the debt burden.

Blüm, which operates cannabis brands such as Korova across California, has been mired in litigation and financial troubles. It agreed to license the Blüm name to the Santa Ana store’s new owners for up to 18 months as part of the deal.

The sale continues a restructuring that Blüm said has helped slash around $90 million in total liabilities from its balance sheet over the past 21 months. Cannabis companies have faced heightened financial pressures amid price compression, tax burdens, and competition from still-thriving illicit markets.



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Auxly Cannabis Group

The Daily Hit: August 15, 2024

Published

4 months ago

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August 16, 2024

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News from: New York, Georgia, Blum Holdings, Gold Flora and more.

The Daily Hit is a recap of the top financial news stories for Thursday, August 15, 2024.

On the Site

New York ruling could threaten crackdown on unlicensed marijuana sales

A court ruled that a convenience store in Queens would be allowed to reopen due to improper delivery of a summons under Operation Padlock.

Read more here.

Georgia low-THC medical marijuana program growing by 1,000 patients per month

Only around a dozen dispensaries are operational in Georgia.

Read more here.

Lykos to cut 75% of staff, reorganize in wake of FDA defeat

Remaining staff will focus on efforts to get FDA approval for the MDMA therapy.

Read more here.

Blüm Holdings posts second-quarter profit, driven by dispensary sale

The company said it’s focused on making operations more efficient and expanding its retail footprint.

Read more here.

Gold Flora enjoys rising revenue from last year’s TPCO deal

Still, sales fell slightly from the first quarter and the company remains a going concern.

Read more here.

More earnings:

In Other News

Medcana

SFWJ, which does business as Medcana, a holding company focused in the cannabis and agricultural technology sectors, announce that all of the convertible debt on the company’s calance sheet will be eliminated by the end of the third quarter.

Read more here.

Germany

Four and a half months after the federal law came into effect, it remains unclear who in Berlin will decide on applications from so-called “social clubs” that want to grow cannabis.

Read more here.

Dallas

The Dallas City Council on Wednesday voted to put a marijuana decriminalization measure on the ballot for the November election, continuing a trend by Texas activists to reform cannabis policy at the local level.

Read more here.



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Blüm Holdings

Blüm Holdings posts second-quarter profit, driven by dispensary sale

Published

4 months ago

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August 15, 2024

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Blüm Holdings Inc. (OTCQB: BLMH) posted a net income of $23.4 million for the second quarter ending June 30, showing progress in its turnaround efforts.

The company’s improved performance was largely attributed to the sale of its controlling interest in People’s First Choice LLC, which operated the Blüm Santa Ana dispensary. The transaction, completed in June, provided $24.8 million in total consideration, including $9 million in cash and $15.8 million in assumed liabilities.

The company reported total revenue of $7.2 million, a 22% slide from $9.3 million in the same quarter last year. This included $2.1 million from three new dispensaries in Northern California.

“With the new stores, Blüm Holdings is beginning to capitalize on new opportunities in the California cannabis market,” CEO Sabas Carrillo said in a statement.

He added, “Our streamlined operations, reduced debt load, and expanded retail footprint provide a robust platform for sustained growth and profitability. As we approach the two-year anniversary of when our team took over, I believe we have achieved a strong track record of being responsible stewards of the assets and investments entrusted to us.”

Gross margin stood at 42%, down slightly from 45% in the previous quarter. Blum made progress in debt reduction, with total debt now at $9.4 million, down from $29.1 million at the end of 2023.

Despite the positive net income, Blüm Holdings recorded an adjusted EBITDA loss of $3.7 million for the quarter, excluding one-time gains and non-cash items.

“Through disciplined execution and consistent hard work, we have reduced our debt, streamlined our operations, and positioned Blüm Holdings for sustained growth and profitability,” CFO Patty Chan said.



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Blüm Holdings

The Daily Hit: June 18, 2024

Published

6 months ago

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June 18, 2024

By


News from: Blüm Holdings, New York, RAW, California State Fair, and more.

The Daily Hit is a recap of the top financial news stories for Tuesday, June 18, 2024.

On the Site

Blüm Holdings sheds cannabis dispensary in debt-cutting move

The sale retired about $44.5 million in debt for Blüm.

Read more here.

New York leaders say more than 500 illicit cannabis shops shuttered thus far

Roughly 400 of the shops were located in New York City.

Read more here.

RAW rolling papers sues male enhancement pill company for copying its trademark

RAW had its own packaging claim problems in 2023 for making false statements, which is has since rectified.

Read more here.

California State Fair to allow cannabis sales, consumption this summer

The program, which will allow direct-to-consumer sales, aims to “amplify California’s rich agricultural bounty.”

Read more here.

Christina Lake Cannabis posts 17% revenue rise, but net loss widens

Oversupply weighed on the firm’s margins, prompting impairment charges.

Read more here.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings (TSX: CWEB) (OTCQX: CWBHF) appointed Erika Lind as chief financial officer, effective June 29. Lind replaces Jessica Saxton, who resigned from the company to pursue other interests effective June 28.

Read more here.

Zen Leaf

Workers at Zen Leaf in Buchanan, Michigan, voted overwhelmingly on Friday to ratify their first contract with UFCW 951.

Read more here.

Gee Distributors

Colorado’s attorney general is suing Greeley-based cannabis product retailer Gee Distributors, which does business as CBDDY, as well as owner Christopher Landon Eoff for allegedly selling marijuana marketed as industrial hemp.

Read more here.



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