[PRESS RELEASE] – DOWNEY, Calif., July 3, 2025 – Blüm Holdings Inc., a California-based publicly traded holding company and cannabis operator, announced that it has signed a binding agreement to acquire the majority of the membership interests in another licensed adult-use and medical cannabis dispensary in Northern California.

This marks Blüm’s latest strategic acquisition as it continues to scale its retail platform across California. The new dispensary will join Blüm’s growing portfolio, which includes three other Northern California stores and a recently acquired Bay Area location.

The transaction is structured as an all-stock deal, valuing the business at up to $5 million, including performance-based earn-outs tied to revenue and EBITDA benchmarks. Under a management services agreement (MSA), Blüm is set to begin integration on July 1, 2025, assuming key centralized functions such as compliance, accounting, marketing and finance.

“We are deeply honored that this group of seasoned operators chose to entrust their business to Blüm,” Blüm Holdings CEO Sabas Carrillo said. “This deal reflects our ongoing commitment to partnering with strong operators who share our values and performance standards, while we provide the support and infrastructure to unlock further growth.”

The dispensary has established a strong presence in its local community, supported by consistent financial performance and an experienced, customer-focused leadership team. The earn-out structure is designed to align incentives and reward continued success.

Blüm Holdings has made meaningful progress in executing its turnaround strategy and positioning itself for long-term growth through disciplined acquisitions, operational excellence, and brand-forward retail execution. The company continues to identify and partner with operators who bring local expertise, cultural alignment and a proven track record.

“We didn’t get here alone,” Carrillo said. “This transaction reflects not just a business milestone, but a collective win for everyone who believed in us—our shareholders, advisers, teammates and partners. We’re just getting started.”

The transaction is expected to close upon the completion of definitive agreements and customary closing conditions. Closing is targeted for Q3 2025. No assurances can be provided that definitive agreements will be successfully negotiated, executed or closed, or that necessary regulatory approvals will be obtained.

A U.S. Department of Defense (DOD) contractor is suing the federal government, alleging that questions about his past marijuana use during a security clearance process violated his Fifth Amendment right against self-incrimination.

The plaintiff in the case, Robert Filipiuk, is an aerospace engineer at Johns Hopkins University Applied Physics Laboratory. In early 2023, as part of a DOD background check, he disclosed on a questionnaire that he’d used marijuana edibles roughly four times between March 2022 and October 2022.

By mid-2023, the agency issued a preliminary decision denying him access to classified information, a decision that was later reviewed. At the review hearing, when asked about his prior marijuana use, he declined to answer the questions.

Afterward, the administrative judge in the case told Filipiuk’s lawyer that “the Government expects that applicants will provide full disclosure and truthful answers to their questions.” He gave Filipiuk “one more chance to answer that question” about past cannabis use.

The engineer declined, and the judge issued an unfavorable security clearance decision.

Filipiuk’s complaint says the government violated his Fifth Amendment right against testifying against oneself by “by forcing him to choose between self-incrimination or holding a security clearance, a condition of his employment.”

It asserts the government violated the Constitution by informing Filipiuk that any information he shared could be disclosed to law enforcement but also warning that failure to answer the questions would lead to a loss of employment.

At the same time, the suit says, the government failed to offer Filipiuk temporary immunity in order to more openly discuss past cannabis use, “forcing him to choose between the threat of criminal prosecution and his security clearance, and ultimately his employment.”

“The loss of the security clearance will end his career,” the complaint continues, “which will also mean that Plaintiff will lose his livelihood as his entire career has been working technical jobs that require a security clearance.”

Losing the clearance will also hurt his earning potential, eliminate his health insurance and pension and negatively impact his reputation, the filing says.

It notes that Filipiuk was subjected to drug screening at least six times between August 2023 and November 2023, each time testing negative for marijuana and other drugs.

“In using Plaintiff’s assertion of his Fifth Amendment rights as a basis to revoke Plaintiff clearance, a condition of his employment, the Department violated Plaintiff’s constitutional rights and privilege against self incrimination,” the suit alleges. “Thus, pursuant to the APA [Administrative Procedures Act, this Court may set aside these actions and the findings and conclusions that resulted therefrom.”

As far as the security clearance, the lawsuit seeks a court injunction that would compel the government “to cease violating Plaintiff’s constitutional rights through the security clearance process.” It further asks the court order DOD to “delete the questions Plaintiff declined to answer, Plaintiff’s declination to answer, and the accompanying reasoning from the records.”

The case, filed last week in U.S. District Court for the District of Columbia and first reported by Law360, is Filipiuk v. Department of Defense (25-01974).

Legal questions about federal workers testing positive for marijuana have ballooned in recent years, as more individual states have legalized the drug.

A recent policy paper from a pair of companies in the trucking industry, for example, said the sector was short about 80,000 drivers last year—an issue it asserted was exacerbated by workers testing positive for marijuana under the federal Department of Transportation’s (DOT) strict, zero-tolerance drug policy.

“A significant number of otherwise qualified drivers fail pre-employment or random drug tests due to marijuana use,” the report said. “These drivers are often unaware of the DOT’s strict zero-tolerance policy or mistakenly believe that legal marijuana use in their home state is acceptable under federal law.”

Congressional lawmakers at hearings earlier this year also heard from representatives of the trucking industry, who called for wider use of hair-follicle testing in the industry. The chair of the National Transportation Safety Board (NTSB), meanwhile, recommended better education for drivers.

The U.S. Supreme Court in April ruled in favor of a trucker who sued a cannabis company after he was fired over a positive THC test that he said was caused by consuming a hemp-derived CBD product.

Separately, a Substance Abuse and Mental Health Services Administration (SAMHSA) official earlier this year downplayed criticism from the CEO of a drug-testing company that more widespread use of saliva-based drug testing “means truckers who use cannabis will be able to do so with near impunity, as long as they avoid a drug test for a couple of days.”

“When a donor receives a request for collection, the donor will not know if the test will be an oral fluid or urine collection until they arrive at the collection facility for a federal agency,” the unidentified SAMHSA official said in response. Not knowing whether to expect a saliva or urine test, in other words, would prevent drivers simply stopping marijuana use a few days before a saliva-based test.

The transportation industry also advised Congress in January that if marijuana is federally rescheduled, businesses want assurances that they won’t have to forgo zero-tolerance drug policies for drivers—while stressing that a key problem for the sector is a lack of technology to detect impaired driving.

While saliva and blood tests can detect recent marijuana use better than urine or hair samples, there’s another wrinkle: As recently acknowledged by a U.S. Department of Justice (DOJ) researcher, it’s unclear whether a person’s THC levels are even a reliable indicator of impairment.

Separately, people on both sides of the political divide have at times this year framed drug testing as a way to expel undesirable employees from government.

Elon Musk, during his time chairing the Trump administration’s Department of Government Efficiency (DOGE), called it a “great idea” to mandate drug testing of federal employees.

Shortly after that, a Democratic congresswoman filed a bill that would have required Musk and other DOGE workers to submit to drug testing to maintain their “special government employee” status.

Read the full complaint in Filipiuk v. Department of Defense below:

Using Hemp Flour And Oil Can Make Gluten-Free Baked Goods With ‘Optimal’ Texture And ‘Significant’ Nutrition, Study Shows

Question: Hi, I keep reading articles and social media posts about freezing freshly harvested buds to preserve freshness, minimize mold and mildew contamination, and lower production costs.

I recently took a few dozen branches from freshly harvested plants and placed them into a walk-in freezer. When I checked on them a few days later, they had basically turned into a frozen mass covered in ice on the surface.

Can you please explain why and how to freeze, and how this can lower my cost of production? I would certainly like to lower costs, but I’m also very curious about how I can utilize this process as a means of storing my excess cannabis and minimizing its degradation. Also, what is frozen cannabis best utilized for?

Answer: It’s true enough that more and more growers are freezing cannabis flower destined for specific types of extracts. Live resin and live rosin extracts, in particular, are made using fresh-frozen cannabis. Both heat and oxygen are primarily responsible for terpene loss and THC degradation. This method minimizes exposure and preserves the most terpenes possible.

Cannabis buds yield a plethora of terpenes, which are volatile, resulting in a large percentage of these terpenes evaporating during harvesting, drying, and/or curing (see The Volatile Oil Composition of Fresh and Air-Dried Buds of Cannabis sativa” by Samir A. Ross and Mahmoud A. ElSohly). Freezing the freshly harvested buds immediately after harvest solidifies the chemical contents in the trichome heads, thus minimizing losses from evaporation. In a proper sub-zero environment, fresh-frozen cannabis will maintain freshness and quality for over a year.

Another advantage of fresh-freezing cannabis is that the amount of time between harvest to processing is minimized. The resulting extracts have a much longer shelf life than cannabis buds. Freezing cannabis also helps solidify unwanted compounds such as wax and fats, which are then easier to filter or remove from a hydrocarbon extraction.

A rapid transition from harvest to frozen can also minimize the growth and proliferation of bacteria and molds that can contaminate the buds during hang-drying and curing. By not drying and curing the cannabis, growers can minimize the duration of the post-harvest phase and can avoid having to purchase and operate expensive environmental control equipment to maintain dry and cure rooms.

(Editor’s note: Fresh-freezing is a completely different process from freeze-drying, which is used for consumable flower products. For more on freeze-drying, see this video interview with Buckeye Relief’s team.)

How to Fresh-Freeze Cannabis

The key to fresh-freezing cannabis is to limit the buds’ exposure to room temperatures after harvest. Additionally, if unsealed containers are placed in a conventional non-sub-zero freezer, ice crystals can form on the outer surface of buds. This ice can inhibit the extraction process, resulting in a minimized yield of extract, as well as potency, aroma, and flavor.

Here are the steps to follow to properly fresh-freeze your cannabis:

1. Remove all fan leaves and secondary leaves without trichomes.
2. Remove branches and trim/buck off the buds.
   1. Do a second pass to remove all leaves without trichomes.
3. Immediately place the harvested buds into insulated coolers with dry ice (never allow the buds to make contact with the dry ice) to precool the buds.
4. Trim the buds.
   1. It is best to work with buds in cold temperatures.
5. Place trimmed buds into sealable moisture-resistant bags or containers, and place the containers into another cooler with dry ice.
   1. Many growers prefer to precool the buds utilizing dry ice so that they will be below 65°F (18°C) prior to placing them into the blast freezer or freeze tunnel. These rapid freeze processes minimize the formation of ice crystals.
   2. Under perfect conditions, you want the buds to be in the 32°F to -4°F range (zero to -20°C) on the surface of the buds, and preferably within that same range inside the larger buds before rapid freezing.
6. Lightly vacuum seal the containers that contain the trimmed buds.
   1. Do so gently; do not clump it all together. Layer the buds so there is a loose to medium consistency, and so they are fairly flat to better facilitate the blast freezer. This minimizes freezing time while ensuring even freezing throughout the contents. Vacuum sealing also minimizes oxidation and ensures outside moisture does not migrate to the buds and form surface ice.
7. Place vacuum-sealed containers into a third cooler with dry ice.
   1. It is imperative that the frozen cannabis is never allowed to thaw before it is utilized for extraction.
8. When the third cooler is full, place the containers into the blast freezer or freeze tunnel to be frozen.
9. After blast freezing, place the frozen buds into a sub-zero freezer capable of achieving at least 0°F (-18°C), but preferably, buds should be stored at -4°F to -22°F (-20°C to -30°C). Some growers prefer as low as -40°F to -112°F (-40°C to -80°C).

Fresh-frozen cannabis is a benefit to both consumers and growers because freezing the cannabis minimizes labor costs and reduces the time between harvest, extraction, and processing. A grower can simply harvest, trim, and freeze a harvest, rather than harvest, trim, dry, and cure. When fresh-freezing, the frozen buds are ready for extraction or delivery to the extraction facility only 24 hours after harvest. This results in a lower cost of production of the starting material, and ultimately a lower price for the resulting extract, allowing for a lower price to customers.

Things to Avoid When Fresh-Freezing Cannabis

Frozen trichomes are hard and brittle. Excessive or rough handling of frozen cannabis can damage and dislodge trichomes, thus diminishing potency and flavor. Do not drop or shake frozen cannabis bags.

Look for leaks or holes in containers. Any leaks can result in trichome loss or freezer burn if not under vacuum. Freezer burn causes cellular damage, resulting in terpene compromise, cannabinoid degradation, and discoloration.

Never allow buds to thaw before use; only remove them from the freezer as needed for use in extraction. Letting them thaw allows terpenes to evaporate, and it’s better for the extraction process if the buds are frozen, not thawed.

You must be mindful that the reason for freezing is to best preserve the desired compounds. As such, timing is very important: If you do not arrest terpene loss by immediately solidifying the trichome head by utilizing insulated coolers and dry ice at all trim stations, pre-blast freezer steps, and when utilizing a freeze tunnel, all these steps are meaningless. As the cannabis sits, it wilts and loses the qualities you are attempting to preserve.

Kenneth Morrow is an award-winning grower and breeder. He is the owner of Trichome Technologies, a research and development company. He is also a consultant and author of the book “Marijuana Horticulture Fundamentals” and a founding advisory board member of Cannabis Business Times, where he has been a columnist since 2015. Find him on Instagram @trichometechnologies or reach him via email at: [email protected].