Form 4: BLUM HOLDINGS CEO Sabas Carrillo Boosts Direct Stake Through Open Market Purchases

BLUM HOLDINGS, INC. CEO Sabas Carrillo has reported recent open market purchases of common stock, increasing his direct beneficial ownership, alongside significant indirect holdings through Adnant, LLC.

Summary

• Sabas D. Carrillo, who serves as Chief Executive Officer, Director, and a 10% Owner of BLUM HOLDINGS, INC. (BLMH), reported multiple open market purchases of the company's common stock.
• On May 23, 2025, Mr. Carrillo acquired 250 shares of common stock at a price of $0.72 per share.
• An additional 250 shares of common stock were purchased on May 28, 2025, at $0.76 per share.
• On May 29, 2025, he bought 400 shares of common stock at $0.70 per share.
• These direct transactions increased his total direct beneficial ownership of common stock to 91,697 shares.
• Mr. Carrillo also holds significant indirect beneficial ownership through Adnant, LLC, where he is the CEO and managing member, including 4,932,154 shares of common stock and 3,571,429 shares of Series V Preferred Stock.
• Each share of Series V Preferred Stock is convertible into 1/3 of a common stock share at the holder's option after the first anniversary of issuance, and automatically converts on the fourth anniversary.
• Furthermore, he indirectly owns warrants to purchase 595,238 shares of common stock at an exercise price of $0.46, which are exercisable from December 30, 2024, and expire on December 31, 2027.

Sentiment

Score: 8

Explanation: The sentiment is positive due to the CEO's open market purchases of company stock, which typically signals strong confidence in the company's future and valuation. This aligns management's interests with shareholders.

Positives

• The CEO, Sabas D. Carrillo, increased his direct beneficial ownership in BLUM HOLDINGS, INC. through open market purchases, signaling confidence in the company's future prospects.
• The purchases were made at prices ranging from $0.70 to $0.76 per share, indicating management's belief in the stock's value at these levels.
• The CEO's significant direct and indirect holdings, including common stock, preferred stock, and warrants, align his interests closely with those of other shareholders.

Negatives

• NA

Risks

• NA

Future Outlook

This Form 4 filing reports past insider transactions and does not contain explicit forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• "Purchase of common stock on the open market pursuant to the Board approval."
• "Reporting Person is the CEO and managing member of Adnant, LLC."

Industry Context

Insider buying, particularly by a CEO and significant owner, is often viewed positively by the market as it signals management's confidence in the company's valuation and future prospects, potentially indicating a belief that the stock is undervalued relative to its intrinsic worth or future growth.

Comparison to Industry Standards

• NA

Related Party Transactions

• Sabas D. Carrillo, the reporting person, is the CEO and managing member of Adnant, LLC, which indirectly holds a significant amount of Common Stock, Series V Preferred Stock, and Warrants of BLUM HOLDINGS, INC.

Stakeholder Impact

• Shareholders may view the CEO's increased stake as a positive signal, potentially boosting investor confidence and aligning management's interests with shareholder value creation.

Next Steps

• NA

Key Dates

Recommendation

Keywords

BLUM HOLDINGS, BLMH, Sabas Carrillo, Insider Trading, Stock Purchase, Form 4, SEC Filing, Common Stock, Preferred Stock, Warrants, Adnant LLC, CEO, Director, 10% Owner