Blüm Holdings Inc. (OTCQB: BLMH) has taken a major step in its bid to restructure its finances, selling a prized retail dispensary for $24.8 million to slash debt.
The Santa Ana-based company said Tuesday it completed the sale of its Blüm Santa Ana cannabis store to Haven Nectar LLC. The deal marks a milestone in Blüm’s efforts to regain a firmer financial footing after racking up an estimated $90 million in liabilities since August 2022, according to company filings.
The sale retired about $44.5 million in debt for Blüm, reducing its total obligations by more than half, while generating a $34 million gain on the divestiture, the company said. Blüm received $9 million in cash proceeds and $15.84 million in liabilities assumed by the buyer.
“The sale of our Santa Ana store is a landmark achievement for Blüm Holdings, not only because of the financial gain but because it symbolizes the end of a challenging era,” Blüm CEO Sabas Carrillo said in a statement.
Carrillo said the dispensary staff “created a solid foundation for future success,” but Blüm’s remaining teams are “poised to compete and thrive in a revitalized company” after shedding the debt burden.
Blüm, which operates cannabis brands such as Korova across California, has been mired in litigation and financial troubles. It agreed to license the Blüm name to the Santa Ana store’s new owners for up to 18 months as part of the deal.
The sale continues a restructuring that Blüm said has helped slash around $90 million in total liabilities from its balance sheet over the past 21 months. Cannabis companies have faced heightened financial pressures amid price compression, tax burdens, and competition from still-thriving illicit markets.
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