Blum Holdings Inc (BLMH)

[maxxm]

Alan Brochstein Tuesday, 08/26/14 09:24:56 PM Jtyler1 post# 70845 of 70906
On the call today, Derek was careful not to give any information that would violate Reg FD. The discussion covered Edible Gardens, where the company expects better profitability and hopes to close Nature's Bounty by year-end. He weighed the pros and cons of "crossing the green line" and explained that the company is leaning towards doing so. On business development opportunities, he discussed the process for potentially bringing in Blum as the foundation for rolling up dispensaries in CA. The focus in in Nevada, Florida and the NE. There was a lot of discussion on the CO2 Extraction equipment and how the company plans to use it (either directly or lease out). This is owned as well as the lab.

Derek then covered the S-3, the Dominion deal and forward financing arrangements. He discussed the recent share awards and compensation practices, suggesting that Steven Ross is leading an effort to make this process more transparent going forward. He said that the Mann case hasn't progressed. If Mann were to get ownership, it would come from DP and not the company. The litigation against those who allegedly committed tortious interference should move forward within 60 days.

Hopefully that summary covered the main points.

Alan Brochstein Wednesday, August 27, 2014 8:57:22 AM
Re: maxxm post# 70906 Post # of 71170
S-3: Relied on counsel (brought in Randy Katz from Baker, Hostetler) - path of least resistance will be S-1. Needed to get an S-1 filed for Dominion and S-3 was holding it up.

Dominion: Great partner - very responsible.

For NB, deal will use cash raised, may require some shares issued directly

Going forward, deals like Dominion provide flexibility and less market impact at better cost compared to converts (at-the-market transactions). Companies don't make as much but take no risk. If awarded permits, will need to access capital in this manner but ok for now.