Blum Holdings Inc (BLMH)

[TheCreepyCracker]

I think if it happens it will only be up to 1 for 20 at the most.
If it happens, most of the people on this board will not be able to buy more that 1 or 2 thousand shares. Might not be a bad thing.

A - Philip Carlson

Thank you, Derek. So, the first question we have, do you have a timeframe for potential reverse split and can you comment on potential NASDAQ up-listing?

Derek Peterson

Okay, yes, we get that one all the time. So, I’ve always said that my only need for reverse split would be for an uplifting. And I’m sticking to that to this day. To me to reverse into a vacuum with my financial background, I just don’t think makes sense. Now if there were a financing need, if there were a large financier that wanted to come in and great us great terms, and then that was one of the things they wanted to see happen, we would certainly be open to that. But as we sit right now, that’s a tool and the mechanism we want to utilize for potential uplifting.

Now in terms of timing, for all practical purposes we need most of the equity standard right now. We’ve been able to increase shareholders’ equity to $7.6 million, every quarter it seems to be going up. So, we meet the standards with the exception of the price per share.

However it’s my feeling that the NASDAQ isn’t going to be ready to take account of this company. And I say that because I believe they’re going to want banking regulations to be dealt with before they let a company up on the exchange because if I’m there, if I’m putting myself in their shoes, I mean, two things; I want a large company that has high degree of financials, a healthy balance sheet, good operating cash flow.

I want to make sure whatever company is the first company, because the national news it’s going to be, it’s going to have some size and scope and scale associated with it before I take the risk on it. Because it’s going to be an embarrassment for everybody if the first company that gets up there doesn’t have the ability from a capitalization standpoint to remain uplifted. It’s very difficult to maintain listing on exchanges.

I mean, right now we’re putting [indiscernible] type compliance into our financial protocols and our operational protocols, and shortening our filing deadlines to 30 days on the Qs and 60 days on the Ks, instead of 45 and 90. So, there is, a lot of extra headwinds that are associated with uplifting.

So, while we’re in a hurry to do it, because we ultimately want to be listed there. Part of it is qualitative and part of it is just waiting for the exchanges and for the industry development for them to ultimately have a measure of comfort with us.