Blum Holdings Inc (BLMH)

[Magnum7419]

Anyone have an idea how much this is going to cost us each month starting August 5th ??

Each Note accrues interest at a rate of 12% per annum and has a maturity date of 18 months after issuance. All principal and interest due and owing under each Note is convertible into shares of Common Stock of the Company at any time at the election of the holder thereof, at a conversion price equal to approximately $0.30753 per share, subject to adjustment. Beginning on August 5, 2014, and continuing on each of the following eleven successive months thereafter, the Company is obligated to pay 1/12 th of the face amount of the Notes outstanding and accrued interest.

The Notes are currently convertible into a total of 20,654,103 shares of Common Stock, which may increase in the future if the conversion price is adjusted upon our sale of equity at a price less than the then-conversion price. Pursuant to the Amendment, we agreed to reserve an aggregate of 41,308,206 shares of Common Stock for conversion of the Notes upon such adjustment, all of which are registered hereby.