Clarfiication & Breakdown on Sol's Disposal of Bluma SharesClarification on Bluma Transaction:
I know a lot of people were upset or panicked by the Bluma transaction (including a friend of mine from the industry). I was trying to figure out why people were panicked by this and so I spent a couple of minutes figuring out how to better analyze the transaction as to help explain why I think the Sol Global team did a good job in disposing those shares and warrants.
Here is the breakdown of what we learned from the General Update from Feb 8th: 16,891,749 shares outstanding 6,450,000 warrants Total Gross Proceeds of $23,341,749 Market value of Bluma shares today: $1.21 Therefore 16,891,749 shares are worth $20,439,016. That leaves $2,902,729 to be allocated to the warrants which equates to $0.45/warrants (given the warrants most likely have a strike price of $1.01 in line with other warrants described by SolCF, that leaves an extrinsic option value at least or $0.24 per share in excess of the the current market value of $1.21). in the press release they said they paid an average of $1/shares & warrants which can be negatively misleading to the average reader.
However if you break it down (like above) and separate the two securities, it makes more sense.
Sol Global, as a reminder, had to divest its direct ownership in shares of Bluma since they Verano had closed it's acquisition of AltMed and Florida places restrictions on investors in multiple licenses.
Plus, we know that Sol Global maintains a 33% economic interest.
I don't believe this transaction was at all self-dealing (at least not in the way one would think) and the valuations all make sense....just needs a little digging "In the Ruff".
Hope that helps for everyone and GLTA on Wednesday!