- Blum Holdings, Inc. executed two unsecured promissory notes on **September 16, 2025**, and **September 17, 2025**, for **$500,000** and **$250,000**, respectively, totaling **$750,000** in principal.  **[1996210_0001437749-25-029627_ex_863490.htm:0]** **[1996210_0001437749-25-029627_ex_863491.htm:0]** **[1996210_0001437749-25-029627_blmh20250922_8k.htm:1]** 
- Both notes bear an **8.0% annual interest rate**, compounded monthly, with interest payments commencing on **January 15, 2026**, and maturity dates of **September 16, 2027**, and **September 17, 2027**, respectively.  **[1996210_0001437749-25-029627_ex_863490.htm:0]** **[1996210_0001437749-25-029627_ex_863491.htm:0]** **[1996210_0001437749-25-029627_blmh20250922_8k.htm:1]** 
- The notes are convertible at the lender's election into convertible promissory notes, which include automatic conversion into capital stock at a conversion price equal to **85% of a $20,900,000 pre-money valuation** (or **$0.98 per share** on a fully diluted basis).  **[1996210_0001437749-25-029627_blmh20250922_8k.htm:1]** 
- In connection with these notes, the company will grant warrants to purchase up to **571,429 shares** and **285,714 shares** of common stock, respectively, at an exercise price of **$0.35 per share**.  **[1996210_0001437749-25-029627_blmh20250922_8k.htm:1]** 
- The **$500,000** note formalizes an advance payment received on **August 11, 2025**.  **[1996210_0001437749-25-029627_blmh20250922_8k.htm:1]**

BLUM HOLDINGS (BLMH)