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.
[[{“value”:”The retailer is pushing forward with ambitious expansion plans in the state.
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