Blum Holdings Inc (BLMH)

[AC7880]

But what about the insider selling and dilution?... you never addressed that.

Sure, I'll address that if you will in turn respond to my thoughts on it.

Insider selling: Yes, there was a great deal of insider selling before the lockup agreements. How many of the TRTC board members draw a salary? How do they pay bills for themselves and their families? If you were a TRTC board member would you work for free? If you had shares and needed cash to meet your and your families needs, would you sell those shares?

I was surprised they all agreed to a one year lockup at all. My prediction: they will sell shares the first week the lockup agreements end. I certainly would if it was me and I needed cash to support my family. (I guarantee the complaints and yelling will be tremendous from those who cannot foresee what will happen when the lockup ends.)

Another thing that really surprised me: giving up their preferred shares, all while KNOWING a RS had to come to fix the share structure.

It was many of us on this board (with Kevin Denver as the main ring leader as I recall) raising hell over the preferred shares with the RS coming that likely caused them to make that change. During that time of raising hell I was blocked from the multiple company FB pages and all Twitter accounts where I was raising hell. I'm still blocked today. But we won the fight and TRTC backed down and made the change.


Dilution:

No, I'm not pleased with the amount of past dilution. However, I recognize this sector is dealing in a federally illegal product, and banking cannot yet happen. No traditional loans. Shares have been and are being used as "collateral" for funding. Not the best funding in the world, but what was and is available in this sector. I'll come back to dilution in a bit.

The Reverse Split: It HAD to happen. No other choice. The share structure had to be fixed. OS was bumping AS. With no RS to fix share structure, then there would be no shares to use as "collateral" for more loans and funding to continue operations and undertake all the expansion we have discussed many time just in the past two days alone. No RS, no 40 million in funding in 8 tranches and no expansion.

Now that said, TRTC should have just been totally honest and told everyone in advance why they HAD to do a RS. They did beat around the bush and gave only "one" of many reasons was to to get new funding.

To everyone studying this stock in depth, and reading ALL the posts it was absolutely clear a RS was coming - and WHY. I give credit to Kevin Denver once again to being one of the first to raise the alarm on the imminent split.

I myself posted MANY times there would be a RS to fix share structure. I was ridiculed for doing so by many board members - from both sides (pro TRTC and negative TRTC).

TRTC management should have told shareholders more clearly they were going to do a RS to fix share structure and acquire new funding. (it was however voted on in advance with pre-approval to do as needed).

Back to dilution: Many now very successful US business's had no net profits for up to decades, yet they grew the company and PPS increased over time. This sector is more difficult than most due to a federally illegal product, and thus no banking.

In this sector with no "real" banking, new additional shares (dilution) = funding. I have not always been pleased with the spend rate. Probably should have been a slower burn rate.

I was happy the RS occurred, and happy it's done with. The RS hysteria, over reaction, and fear selling that came with it was ridiculous in my view. I used it to my advantage to buy during the fear and hysteria. The low was 4 April at $2.10, close at $2.20. Day before the split was .268, equivalent $4.02.

I am very happy right now with the coming advertised expansion. It comes with new dilution (via the 40 million in 8 tranches) . I'm good with that. The only alternative is NO expansion, and possibly even default on paying employees and paying the bills.

Dilution will "slow" (not end) in 2019. Reduced costs from not buying wholesale weed or extracted products. Profits (no, not NET) will rise with cultivation, extraction, new dispensaries, etc.

When will "net" profit occur? Who knows? If expansion continues (as I hope it does) then "net" profit is in the future a few years at minimum. With taxation as is, in a federally illegal product, expansion is much better than net profits in my opinion.

Prediction: I will not be shocked nor surprised if there will be MORE dilution than the current agreed to 40 million dollars in 8 tranches, (IF) expansion is to increase in speed and breadth. In other words, more deals for new funding for increased expansion is a possibility, and with it more dilution. I love real expansion. I'm here for the future, not the current situation. (The wailing and complaints will be incredible if it happens).


- Expansion = Dilution
- Dilution = Expansion
- Expansion = "eventual" profits, yes even some day (far in the future) "net" profits.
- Increased profits (no, not net) = increased investor confidence, followed by increased PPS.

That long explanation above is why I am buying these lows. I made money here before flipping. Now I am accumulating and holding. And all that is without even discussing law changes in CA, NV, NJ, and at federal level.