Blüm Holdings Announces $3.05 Million Debt Conversion

Core Viewpoint - Blum Holdings, Inc. has successfully converted approximately $3.05 million of outstanding indebtedness into common stock, simplifying its capital structure and reducing legacy obligations [1][2][4] Group 1: Debt Conversion Details - The conversion was executed at a fixed price of $0.98 per share, equating to 85% of a $20.9 million pre-money valuation on a fully diluted basis, resulting in the issuance of 3,248,547 shares of common stock [2] - The converted debt was fully cancelled and satisfied, significantly reducing the company's legacy unsecured obligations [2] Group 2: New Financing Arrangement - In conjunction with the debt conversion, Blum Holdings executed a $525,000 senior secured promissory note, consolidating two previously issued unsecured notes [3] - The new note carries an interest rate of 8.0% per annum, matures on December 31, 2027, and is secured by substantially all of the company's assets, with the option for prepayment without penalty [3] Group 3: Company Overview - Blum Holdings is a leader in the cannabis sector, operating dispensaries throughout California and owning several prominent brands, including Korova, known for high potency products [5] - The company aims to leverage its ecosystem to enhance customer and retail investor acquisition, increase brand awareness, and create value across its portfolio [5]