DOWNEY, Calif., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Blum Holdings, Inc. (OTCQB:BLMH) (the "Company," "Blüm," "Blüm Holdings," "we" or "us"), a California-based publicly traded holding company, today announced that on December 31, 2025 certain outstanding indebtedness of the Company, together with accrued interest, totaling approximately $3.05 million, was converted into shares of the Company's common stock pursuant to a previously executed Debt Conversion Agreement.

The conversion was completed at a fixed price of $0.98 per share, representing 85% of a $20.9 million pre-money valuation on a fully diluted basis. As a result of the transaction, Blüm issued 3,248,547 shares of common stock, and the converted debt was cancelled and satisfied in full.

The transaction eliminates a meaningful portion of legacy unsecured obligations from the Company's balance sheet and further simplifies its capital structure.

In connection with the transaction, Blüm also executed a $525,000 senior secured promissory note consolidating two previously issued and expired unsecured notes. The new note bears interest at 8.0% per annum, matures on December 31, 2027, is secured by substantially all of the Company's assets, and may be prepaid at any time without penalty. Warrants previously issued in connection with the prior notes were cancelled.

"These actions reflect continued progress in simplifying our capital structure and reducing legacy obligations," said Sabas Carrillo, Chief Executive ...