Blum Holdings Inc (BLMH)

[MonestHind]

**MUST READ**'TRTC REPORT-Carnage is the reality'

Please read the linked article before investing. The information herein is VERIFIABLE; the author has kindly provided sources. The vast majority of this stuff is straight out of OFFICIAL FILINGS.

DO NOT BE FOOLED BY THE DREAMWORLD HYPE. TRTC IS IN TERRIBLE SHAPE FINANCIALLY AND OPERATIONALLY. DILUTION IS A MAJOR, REAL CONCERN.

THE STOCK IS EXTREMELY OVERVALUED AND COULD EASILY LOSE ANOTHER 50% AS DILUTION CONTINUES AND FURTHER LOSSES MOUNT.


****FULL ARTICLE:
Pending litigation, potential bankruptcy threaten shareholder value ****

In January 2013, TRTC announced it was acquiring GroRite. GroRite was described as one of New Jersey's largest gardening super centers with 10 acres of retail gardening center, hydroponic cultivation facility and plant nursery. Derek Peterson stated: "GroRite's facility is amazing, they carry everything a home gardener would need". And hopefully they could provide exactly what TRTC desperately needed which was a viable business. The press release stated that GroRite had "annual revenue in excess of $4 million with positive net income" (source). This would have been a great addition, but TRTC did not actually buy GroRite. The letter of intent to buy GroRite must have fallen through and they ended up with the scraps, a cultivation business called Edible Garden.


At this stage, however, any addition of revenue would be helpful as the existing GrowOp business was in free fall. Revenues for the first quarter of 2013 had plummeted to only $66,000. With the Edible Garden's merger complete at the end of Q1 2013, revenue seemed to have bounced back to $665,000 due to the Edible Garden integration in Q2 2013 (source). Although revenues were higher, cost of goods sold were as high as ever $660,000. The remaining gross margin of $6,000 was nowhere near enough to cover overhead, let alone make it a viable business.


However, the hype from this acquisition was not meant to last. By Q1 of 2014, sales were plunging once again. Revenues were only $560,000, with cost of sales of $558,000 (latest 10-Q). That left only $2,000 of gross profit to cover a staggering $2.2 million of Selling, General and Administrative (SG&A) expenses. At this level of gross margins, TRTC would have to do over $500 million in sales per quarter just to cover their overhead. Appendix K provides additional details on how the increase SG&A is another sign of promotion.

More major issues coming to light:

"...the controlling management of TRTC were defendants in a lawsuit. In this lawsuit, Amy and her husband Derek, were defendants in a case for wrongfully accepting over $300k through illegally traded securities in 2009. They "accepted illegally-issued, unrestricted IEAM securities to which they were not entitled, and which, upon information and belief, they resold for full market value to the detriment of IEAM and its shareholders". Sounds like a group of people that Thomas Puzzo would be delighted to involve in his quest for stock promotions. Refer to appendix D for additional details.

Management team with skeletons in their closet:

These are things investors should know, that they wouldn't read on the boards.

To hear him talk, you would think Derek Peterson was pure as the driven snow and just shocked by all the things that happen with penny stocks. Now, we have already shown that his comments were factually challenged, but there is more. Exactly who is Derek Peterson? In October of 2010, The Telegraph UK, wrote an article and posted a video on Derek and Amy Almsteier's hydroponics business and their slogan, 'The First Honest Hydro Store'. As part of that 'honesty' Derek's last name was reported to be Oppedisano, not Peterson. Derek Oppedisano - what is the CEO's legal name and why did he change it? Terra Tech plays up the fact that Peterson was once an investment banker; however, if he's so good with financials, why in 2012 did he personally file for bankruptcy "On February 22, 2012, Mr. Peterson filed a petition for bankruptcy in the United States Bankruptcy Court for the Central District of California". Peterson (or Oppedisano) did not leave the world of 'white shoe firms' voluntarily. It turns out he was fired for not disclosing his marijuana equipment side business.