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 Insights - Blum Holdings, Inc. reported a revenue growth of 26% year-over-year, reaching $2.2 million in Q1 2025, compared to $1.8 million in Q1 2024, driven by strategic divestitures and new retail store additions [1][4] - The company achieved positive EBITDA of $57,000, a significant turnaround from an EBITDA loss of $3.0 million in Q1 2024, indicating improved operational efficiency [1][4] - Net loss from continuing operations was reduced by over 80%, down to $0.6 million from $3.5 million in Q1 2024, reflecting effective cost management and operational improvements [1][4] Financial Performance - Revenue increased to $2.2 million in Q1 2025 from $1.8 million in Q1 2024, marking a 26% increase [4][11] - Gross margin improved to 53%, up from 45% in both Q1 and Q4 2024, attributed to better pricing discipline and product mix [4][11] - Operating expenses decreased to $2.5 million from $4.4 million in Q1 2024, showcasing effective cost containment measures [4][11] - Adjusted EBITDA loss narrowed to $0.4 million, an 87% improvement year-over-year and 80% quarter-over-quarter [4][11] Strategic Developments - The company raised $1.6 million in capital in 2025 at competitive rates, enhancing its financial position [4] - Approval was received from the Bankruptcy Court for a settlement with People's, effective after a 14-day appeal period [4] - Brad Hirsch was appointed to the Board of Directors, enhancing governance and oversight [4] - An amended Letter of Intent (LOI) with a Bay Area dispensary is expected to generate approximately $12 million in annual revenue [4] Management Commentary - The CEO emphasized that the company has achieved breakeven operations on an EBITDA basis and is now strategically positioned for growth [5] - The focus remains on securing capital to strengthen the balance sheet and evaluating strategic acquisition opportunities to drive growth in the California cannabis market [5]