California-based Blüm Holdings (OTCQB: BLMH) announced Tuesday it has secured $900,000 in new financing and signed term sheets for three potential acquisitions worth more than $14 million.

The financing was led by Douglas Rosenberg, CEO of Mesh Ventures and co-founder of 1212 Ventures, both of which are significant investors in the cannabis brand Cookies, according to the company.

Blüm plans to use the capital for three moves.

The company intends to acquire Mt. Tam Ventures II LLC, a Cookies holding company, for $3.9 million in cash and stock. The deal includes $250,000 in cash and about 1.9 million shares valued at $1.90 each.

In a separate transaction, Blüm aims to merge with Mesh Ventures LLC in a deal valued at $9 million, comprising roughly $360,000 in cash and 4.5 million shares.

The company also plans to purchase a Northern California retail cannabis store for $1.8 million through a mix of cash and stock, with additional performance bonuses possible.

The plans follow Blüm’s recent sale of two stores in Oakland and San Leandro for $3.18 million, part of what the company recently called an effort to “optimize its retail footprint and focus on high-performing locations.”

In November, the company reported a $3.3 million loss for the third quarter of 2024, versus $23.8 million in net income for the same period in 2023. That same month, its subsidiary Unrivaled Brands – formerly known as Terra Tech – filed for Chapter 11 bankruptcy protection, carrying $35 million in liabilities against $6 million in assets.

To save money, Blüm laid off workers twice last year and cut back on corporate spending, which helped reduce expenses from $30.3 million to $14.8 million by September.

CEO Sabas Carrillo said the new financing reflects investor confidence in the company’s strategy.

“This capital is a key component in enabling us to pursue opportunities that align with our game plan,” said Carrillo, who previously served as Cookies’ CFO from 2018 to 2020. “Every move we make is part of a long-term vision.”

The company also cut its debt by 68% to $9.2 million since early 2024. Sales rose to $4.3 million in the latest quarter ending Sept. 30, up 182% from last year, helped by store consolidation and growth in its Korova brand.

All three acquisitions remain subject to definitive agreements and regulatory approval.

As of September, Blüm had $38.6 million in total assets, including $1 million in cash, but owed $66.1 million.

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.