Blüm to acquire 3 California cannabis stores for $9.7 million

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California marijuana company Blüm Holdings plans to acquire three Sacramento cannabis retail stores from Operators Only Corp.

The proposed purchase price is $9.7 million, including “a $1.9 million secured promissory note over 34 to 42 months” and issuance of more than 1.8 million common shares of Blüm, according to a follow-up news release issued Wednesday.

The sellers will get nearly 16% of Blüm, “incorporating an additional approximate $14.0 million of revenue to the Company’s 2023 revenues of $33 million while not diluting” gross margin, the release noted.

The sellers also “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 three locations comprise a Cookies store in midtown Sacramento and two Lemonnade stores elsewhere in the city.

The stores would be Blüm’s first foray into Sacramento, the company said.

“The Sacramento retail cannabis market exhibits both maturity and opportunity,” Blüm said in a statement.

“With a growing regular consumer base, we believe the market presents an ideal landscape for expansion and innovation.”

The proposed acquisition still requires definitive agreements.

Santa Ana-based Blüm was previously known as Unrivaled Brands before a recent corporate reorganization.

Meanwhile, the company’s over-the-counter shares started trading this week under their new symbol (BLMH).