Blum Holdings Inc (BLMH)

[I-Glow]

It seems the IR person you spoke with gave you some information that isn't accurate.

There is a floor for conversion @ 0.30. Since there is a floor, this is not “toxic” financing.

That isn't what the documents filed says.

If on the 180th day following February 7, 2014, the closing bid price for the company’s common share is below $0.30 per share, the conversion price will automatically adjust to 70% of the lowest VWAP in the 15 trading days prior to the 180th day following February 7, 2014.

hardly a floor.

Then let's take a closer look at the financing.

On February 6, 2014, the company has received $800,000, which has a principal amount of $842,105.26 and issued 1,369,277 warrant shares in its first tranche.

So Dominion was paying $0.58 per share on 02/06/2014 - at that time the PPS closed at $0.60.

Later in the document we find:

The second tranche will be for $800,000, which will have a principal amount of $842,105.26, and 1,369,277 warrant shares along with each additional nine tranches for $550,000, with a principal amount of $578,947.36 and issuance of 941,378 warrant shares.

And we also find:

Beginning August 5, 2014, and continuing on each of the following 11 successive months thereafter, the company is obligated to pay 1/12th of the face amount of the notes and accrued interest. As long as the company is not in default under any note, each tranche will be closed on every 30th day following the previous closing date.

So TRTC wants everyone to believe that Dominion is going to continue funding at $0.58 per share when the PPS is about 1/2 of that at this time. That is complete nonsense.

Beginning August 5, 2014 TRTC has to start repaying the loan. That would be a total of $3,800,000 (excluding interest) so 1/12 of that would be a payment of $316,667 due on August 5.

Then on September 5, 2014 there is another payment due of $362,500 again I am excluding interest.

So in the 10-Q those payments should show up unless they are in default.

What we have is Dominion loaning TRTC $6,550,000 and receiving repayment of the loan plus interest - and then additionally receiving 11,210,956 shares of TRTC stock.

So, on a loan of $6,550,000 Dominion Capital receives (at today's price) = $3,026,958 + $6,894,737 for a Total of $9,921,695! - That doesn't include the the additional shares Dominion will receive because of the depress PPS.

IG

That is a pretty significant return on their investment.