Blum Holdings Inc (BLMH)

[Art Vandeley]

They keep reducing the number of shares because Dominion keeps exercising the warrants taking advantage of cashless basis since the S1 isn't effective yet meaning they can exercise their warrants without having to give money to the company because the A1 isn't effective yet.


Page 35 of the S1/A

The table includes the outstanding Warrants held by the Selling Stockholder, as well as warrants held by other parties. The Selling Stockholder has exercised some of the Warrants on a cashless basis and has sold some of the shares received pursuant to Rule 144. Accordingly, we are registering 6,271,930 shares of Common Stock underlying the Warrants. The Warrants have an exercise price equal to 90% of the-20 day VWAP of the Common Stock prior to February 5, 2014, which price the Company estimates to be approximately $0.30753 per share, subject to adjustment. The Warrants have a “cashless” exercise feature and a term of four years.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10319639