Blum Holdings Inc (BLMH)

[Magnum7419]

I have said from day one, HIGH profit from TRTC will come from IVXX sales , not sales from Blum Dispensaries( till legalization occurs) .

The days of brick and mortar are fading fast IMHO. TRTC is building a brand called IVXX at this point, they are NOT building a brand Called BLUM yet.

When a customer comes to any state that has medical marijuana, they are looking for the product that they are use to or heard of, NOT the STORE !

So how do they do that, they go ONLINE and search for IVXX. In fact one can go online now at www.ivxx.com and see all the stores that have IVXX and by simple search one can find what they want based on best price or location.

DP has already stated they will market IVXX in all 62 dispensaries in Las VEgas. So customers will not need to go to Blum if they want IVXX. They can simply go online, order it and have it sent to their location if they choose. Just checkout weedmaps, allbud or cannamarket and you will see what I mean.

Overhead for running a lab and producing and distributing IVXX has a much greater margin than running a dispensary.

Page 101 of the Blum Boutique application to Berkeley is the first three year budget costs that shows net income.

First year of operation they expect a net income of $7,000 dollars after spending 1.7 million dollars. That means we the share holders would get approximately 50% of that 7,000 dollars.......

YEar two of operation they expect a net income of 440,000 dollars after spending 1.9 million. They will be able to spin to the media that net income sky rocketed.... but in the end we get 200,000.

YEar three of operation they expect a net income of 800,000 dollars after spending 2.6 million. That works out to 400,000.

In contrast, IVXX generated over 400,000 dollars in the last 90 days in California.

This is why I see no need to open the Blum dispensaries in NEVADA as quickly as possible.

See page 101 ref Budget numbers

http://www.ci.berkeley.ca.us/uploadedFiles/Planning_and_Development/Level_3_-_Commissions/Commission_for_Medical_Cannabis/Blum%20.pdf