SANTA ANA, Calif., Feb. 14, 2024 – PRESS RELEASE – Blum Holdings Inc., is pleased to share certain highlights of its recently announced proposed acquisition and rollup transaction of three Sacramento retail dispensaries. Additionally, the company is excited to introduce a new brand, Turkey Bag Heroes, as part of the strategic rollup efforts in the retail market.
If completed, the proposed acquisition will mark Blüm Holdings’ entrance into the Sacramento cannabis market. The Sacramento retail cannabis market exhibits both maturity and opportunity. With a growing regular consumer base, we believe the market presents an ideal landscape for expansion and innovation.
Anticipated Highlights of the Proposed Acquisition:
- Approximate combined 2023 revenues of the assets: $14 million with 50% gross margins
- Approximate 2023 revenue from delivery: $400,000
- Estimated cash from operations: $1.9 million
- A customer base of approximately 150,000
- Purchase price: $9.7 million, structured as a $1.9 million secured promissory note over 34 to 42 months and the issuance of 1,835,330 shares of the company’s common stock
- Sellers will receive 15.63% of the company, incorporating an additional approximate $14 million of revenue to the company’s 2023 revenues of $33 million while not diluting our gross margin
- Sellers retain the option to exchange their stock issuance for a five year note in two years at a 35% discount to the purchase price value of the stock
- The consummation of the proposed acquisition values the company at an estimated $42 million pre-transaction
Cookies Sacramento: Neighboring the California state Capitol, in the Lavender District of Sacramento’s Midtown, Cookies Sacramento is located at 1716 J St., Sacramento. Midtown is a hip district with a diverse restaurant scene, from trendy, upscale dining to contemporary global cuisine, plus craft breweries, bars and nightclubs. There’s also a mix of independent galleries, clothing boutiques and vintage shops, as well as several music venues. Recently managed by experienced Sacramento serial entrepreneurs, Cookies Sacramento delivers a unique retail experience in the heart of the city, with seasoned staff and a beautiful 1,500-square-foot Cookies branded interior. Highlights include state-of-the-art displays and a wide selection of California’s latest premium and exotic products.
Lemonnade North Sacramento: Previously part of the respected Kolas chain, Lemonnade North stands as a pioneering entity in the cannabis retail landscape located at 1115 Fee Drive, Sacramento. Next to Sacramento’s premier shopping destination, Arden Fair Mall, and boasting visibility from the busy Interstate 80 and 160 freeways in Northern Sacramento, the store holds a strategic advantage in terms of location and accessibility. The Lemonnade licensing agreement provides an opportunity for exclusive collaborations with Rick Ross and Run The Jewels.
Lemonnade South Sacramento: Lemonnade South has been a strong presence in the cannabis community since its inception in 2009. Situated at 1421 47th Ave., Sacramento, the store enjoys strategic proximity to the bustling Interstate 5 freeway, ensuring convenient access for patrons from across the region. With a rich heritage spanning over 15 years, Lemonnade South embodies a legacy of excellence and commitment to customer satisfaction. Boasting a loyal customer base cultivated over the years, the store serves as a cornerstone of the local community, offering a diverse array of premium cannabis products. Lemonnade South continues to uphold its reputation as a trusted destination for enthusiasts seeking top-quality offerings and unparalleled expertise.
Introducing Turkey Bag Heroes: As part of our commitment to innovation and growth, Blüm Holdings is proud to introduce Turkey Bag Heroes. Upon closing of the proposed acquisition, Turkey Bag Heroes will serve as a brand under our retail rollup strategy, offering high-quality small batch flower for the cannabis enthusiast. Unlike traditional brands, Turkey Bag Heroes offers exclusive drops in 14-gram and 28-gram quantities, catering to connoisseurs seeking unrivaled sensory journey from aroma to flavor to potency. Turkey Bag Heroes represents the pinnacle of cannabis cultivation—where quality meets indulgence.
