Core Insights - Blum Holdings, Inc. has signed a binding agreement to acquire a majority of the membership interests in a licensed adult-use and medical cannabis dispensary in Northern California, marking a strategic move to expand its retail platform across the state [1][2]. Acquisition Details - The acquisition is structured as an all-stock deal, valuing the business at up to $5.0 million, which includes performance-based earn-outs linked to revenue and EBITDA benchmarks [3]. - Integration of the new dispensary is set to begin on July 1, 2025, under a Management Services Agreement, where Blum will take over key centralized functions such as compliance, accounting, marketing, and finance [3]. Leadership and Strategy - The CEO of Blum Holdings expressed gratitude for the trust placed in the company by the dispensary's operators, emphasizing the alignment of values and performance standards [4]. - The dispensary has a strong local presence and consistent financial performance, supported by an experienced leadership team focused on customer service [4]. Growth and Positioning - Blum Holdings is executing a turnaround strategy aimed at long-term growth through disciplined acquisitions and operational excellence [5]. - The company is actively seeking partnerships with operators who possess local expertise and a proven track record [5]. Future Outlook - The transaction is expected to close in Q3 2025, pending the completion of definitive agreements and customary closing conditions [6].

Core Viewpoint - Blüm Holdings, Inc. is executing a strategic transaction to acquire a 100% membership interest in a holding company that has a non-controlling equity interest in Cookies Creative Consulting & Promotions, Inc., enhancing its alignment with a leading cannabis brand in the U.S. [1] Group 1: Transaction Details - The acquisition will be conducted through a newly formed wholly owned subsidiary, Blüm Acquisition Co., in exchange for 489,131 shares of Blüm common stock and a warrant for an additional 30,762 shares at an exercise price of $0.64 per share, totaling an implied value of $562,500 [2][3] - The share and warrant consideration will be subject to customary adjustments based on the verified ownership percentage of Cookies held by the seller [3] Group 2: Strategic Importance - The CEO of Blüm Holdings emphasized that this transaction is a significant step in the company's long-term strategy to increase economic exposure to major cannabis brands through strategic relationships [4] - The recent transactions are expected to provide exposure to equity value not fully visible in Blüm's public float, including its retail dispensary portfolio and Cookies-branded flagship store [4] Group 3: Future Outlook - The transaction is anticipated to close upon the completion of definitive agreements and customary closing conditions, with a target closing date set for Q3 2025 [4]

Core Viewpoint - Blum Holdings, Inc. has executed an Amended and Restated Binding Letter of Intent to acquire 100% of a licensed retail cannabis operator in Northern California, which is expected to significantly enhance its revenue and market position in California's cannabis sector [1][2]. Financial Impact - The acquisition is projected to generate over $12.0 million in additional revenue, more than doubling Blum's annual revenue [2]. - The total consideration for the acquisition remains at $2.0 million, which includes an immediate escrowed payment of $800,000 upon the execution of a Management Services Agreement [2][6]. Strategic Objectives - The transaction includes performance-based earn-outs tied to specific revenue milestones for the year following the closing, aligning the Target's management with Blum's long-term growth and profitability goals [3]. - The CEO of Blum Holdings emphasized the strategic importance of this acquisition in reshaping the cannabis landscape and enhancing the company's brand presence in California [4]. Company Overview - Blum Holdings is recognized as a leader in the cannabis sector, operating dispensaries throughout California and owning several prominent brands, including Korova [5]. - The company aims to leverage its ecosystem to enhance customer acquisition, brand awareness, and overall value across its portfolio [5].