On June 10, 2024, Unrivaled Brands, Inc., a subsidiary of Blum Holdings, completed the sale of its controlling membership interest in People's First Choice LLC (PFC) to Haven Nectar LLC. PFC operates the Blüm Santa Ana cannabis dispensary in Santa Ana, California.
The sale, part of a strategic restructuring plan initiated in August 2022, included a total consideration of $24.8 million, comprising $9 million in cash and $15.84 million in assumed liabilities. All the cash generated from the sale was used to settle debt and litigation, extinguishing approximately $44.46 million in liabilities and reducing Blum Holdings' total debt by over 55%. The estimated financial gain from the sale is $33.98 million, or $3.09 per common share. Since August 2022, Blum Holdings' broader restructuring strategy has resulted in a total liability reduction of approximately $90 million.
CEO Sabas Carrillo described the sale as a landmark achievement, marking the end of a challenging era. He praised the Blüm Santa Ana team for their dedication and hard work, which have established a solid foundation for future success. The transaction is not only about financial restructuring but also about empowering teams with the resources to excel. Blüm Santa Ana will continue to use the Blüm name for up to 18 months under a Trademark License Agreement.
Carrillo expressed pride in the team at Blüm Santa Ana, noting their potential to become one of California's best dispensaries, with the rest of Blum Holdings' teams poised to thrive in a revitalized company.
Further details on the sale can be found in Blum Holdings' Current Report on Form 8-K filed with the SEC on June 14, 2024.
For more information:
Blüm Holdings
3242 S. Halladay Street
Santa Ana, CA 92705
blumholdings.com