[PRESS RELEASE] – DOWNEY, Calif., Jan. 7, 2026 – Blum Holdings Inc., a California-based publicly traded holding company, announced that on Dec. 31, 2025, certain outstanding indebtedness of the company, together with accrued interest, totaling approximately $3.05 million, was converted into shares of the company’s common stock pursuant to a previously executed debt conversion agreement.
The conversion was completed at a fixed price of $0.98 per share, representing 85% of a $20.9 million pre-money valuation on a fully diluted basis. As a result of the transaction, Blüm issued 3,248,547 shares of common stock, and the converted debt was canceled and satisfied in full.
The transaction eliminates a meaningful portion of legacy unsecured obligations from the company’s balance sheet and further simplifies its capital structure.
In connection with the transaction, Blüm also executed a $525,000 senior secured promissory note consolidating two previously issued and expired unsecured notes. The new note bears interest at 8% per annum, matures on Dec. 31, 2027, is secured by substantially all of the company’s assets, and may be prepaid at any time without penalty. Warrants previously issued in connection with the prior notes were canceled.
“These actions reflect continued progress in simplifying our capital structure and reducing legacy obligations,” Blüm Holdings CEO Sabas Carrillo said.
Additional details regarding the transactions are included in the company’s current report on Form 8-K filed with the Securities and Exchange Commission.
