Another Cannabis Company Opts For Reorganization, Here's What Investors Need To Know

On Tuesday, Unrivaled Brands, Inc. UNRV revealed its intentions to implement a reorganization in which a new Delaware holding company, Blum Holdings, Inc., would become the publicly traded holding company of Unrivaled Brands and its subsidiaries.

Details

Under the reorganization, each outstanding share of Unrivaled’s common stock and Series V preferred stock would be exchanged automatically on a one-for-one basis for a share of common stock and Series V preferred stock, respectively, of Blüm.

Any outstanding securities convertible or exercisable for shares of Unrivaled common stock will become securities convertible or exercisable for shares of Blüm common stock. The directors and executive officers of Blüm will be the same as those for Unrivaled and the business operations will continue from current office locations and companies.

In connection with the annual meeting, the Unrivaled stockholders will also be asked to approve, among other proposals, a reverse stock split of the company’s common stock at a ratio determined by the board of directors of Unrivaled in the range between a 1-for-70 to 1-for-100. If Unrivaled’s stockholders approve, the reverse stock split will be implemented immediately before the reorganization.

What’s Next

Subject to the approval of the reorganization by Unrivaled’s stockholders at the 2023 annual meeting of stockholders and certain other customary conditions, Unrivaled expects the reorganization to be completed in the fourth quarter of 2023.

As a result of the reorganization, current Unrivaled stockholders would become stockholders of Blüm with the same number and percentage of shares as they held in Unrivaled immediately prior to the reorganization, subject to any changes from the implementation of the reverse stock split.

UNRV Price Action

Unrivaled’s shares traded 1.6028% higher at $0.022 per share at the market close on Tuesday.

Related News

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• Unrivaled Brands Appoints CEO As Chairman of the Board And COO As Director
• Unrivaled Brands Q1 FY23 Revenue Declines 52.7% YoY, What About Profit?

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