Blum Holdings, Inc. (OTCQB: BLMH) closed a stock purchase agreement on December 18, 2025 that added a fully licensed, high‑volume cannabis retail dispensary in the Bay Area to its portfolio. The store, which generated approximately $12 million in annual revenue, was acquired for a combination of cash and equity, giving Blum full operational control and a new customer base in Northern California.
The deal fits Blum’s disciplined, opportunistic growth strategy, which focuses on acquiring durable retail assets with proven revenue and strong customer relationships. By adding a high‑volume location in a major market, Blum expands its retail footprint in a region that is a key driver of the company’s overall growth trajectory.
Blum’s financial context underscores the significance of the acquisition. The company reported a net income of $33.1 million on revenue of $13 million for fiscal 2024, a turnaround from prior losses. In Q3 2025, however, Blum posted a net loss of $2.56 million on revenue of $4.85 million, reflecting integration costs and ongoing expansion expenses. The $12 million in new revenue from the Bay Area dispensary will help offset short‑term losses and accelerate top‑line growth as the company scales its retail network.
The acquisition occurs amid broader consolidation in the U.S. cannabis industry, with larger operators buying smaller, licensed stores to capture market share. Federal tailwinds—such as potential rescheduling of cannabis and the SAFE Banking Act—create a favorable regulatory environment, while state‑level fragmentation remains a challenge. Blum’s purchase positions it to benefit from these tailwinds while strengthening its competitive stance in a fragmented market.
CEO Sabas Carrillo said the transaction “reflects Blum’s disciplined growth approach and underscores our focus on acquiring durable retail assets with real revenue and customer relationships.” He added that the move strengthens the company’s position to capitalize on structural tailwinds in the cannabis industry.
While Blum has not issued new guidance following the acquisition, management expects the addition to support long‑term growth prospects and to provide a platform for future expansion in high‑potential markets.
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