California cannabis company Blüm Holdings, Inc. (OTCQB:BLMH) announced its second-quarter financial results on Thursday for the three months ended June 30, 2024.
Patty Chan, the company's CFO called Blüm's financial results and sale of Blüm Santa Ana "financial milestones" and "the culmination of the transformative journey we began in August 2022."
The company's subsidiary Unrivaled Brands sold its controlling membership interest in People's First Choice LLC (PFC) to Haven Nectar LLC in June 2024. PFC owns and operates a cannabis retail dispensary campus in Santa Ana, California named Blüm Santa Ana.
The sale provided $24.8 million in total consideration, including $9 million in cash and $15.8 million in assumed liabilities. The deal boosted the company's balance sheet, eliminating an estimated $37.9 million in liabilities and contributing to a total liability reduction of roughly $63.3 million since December 31, 2021.
"Our streamlined operations, reduced debt load, and expanded retail footprint provide a robust platform for sustained growth and profitability," Sabas Carrillo, the company's CEO, said.
Read Also: Blüm Holdings Q1 Revenue Drop 16% YoY, Eliminates Non-Performing Legacy Operations, Reduces Net Loss
Q2 2024 Financial Results
- Revenue totaled $3.8 million, up from $1.8 million in the second quarter of fiscal 2023.
- Gross profit totaled $1.6 million, up from $ 798,000 in the prior year's quarter.
- The gross profit margin was 42% compared to the gross profit margin of 45% in the second quarter of last year.
- Net income – attributable to Blum Holdings – was $23.8 million, compared to $3 million net loss in the prior year's period.
- Adjusted EBITDA came in negative at $3.7 million, up from an adjusted EBITDA loss of $3.1 million in the second quarter of fiscal 2023.
- California Cannabis Co. Blüm Reports 36% YoY Drop In 2023 Revenue, Narrows Net Loss By 93%
