Jay-Z Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 15, 2021
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7min5330

TPCO Holding Corp. (OTCQX: SBVCF, SBVQF) completed its qualifying transaction to acquire CMG Partners Inc. better known as Caliva and Left Coast Ventures, Inc. with global icon, entrepreneur and MONOGRAM founder, Shawn “JAY-Z” Carter and entertainment powerhouse Roc Nation. TPCO said it expects pro forma revenues of $334 million in 2021.

Shawn “JAY-Z” Carter, The Parent Company’s Chief Visionary Officer, said, “This is an incredible time for this industry. The end of cannabis prohibition is here, and The Parent Company will lead the charge to a more expansive and inclusive cannabis industry. We are paving a path forward for a legacy rooted in dignity, justice, care, and consistency. The brands we build will redefine growth, social impact, and social equity. This is our time. I’m proud and excited to lead the vision of The Parent Company.”

Jay-Z recently launched his premium cannabis line called Monogram, whose flower is cultivated at The Parent Company’s flagship growing facility in San Jose, California, using a batch-by-batch approach. The company said that each plant receives personalized attention from the company’s expert growers, who grade and select every flower by hand. The team is led by Cultivation Ambassador DeAndre Watson, who has been working with the plant for over 25 years. The packaging is matt black and looks as if it’s inspired by a high-end cosmetics line.

Common Shares and Warrants are now trading on the NEO Exchange under the symbols “GRAM.U” and “GRAM.WT.U”, respectively, and remain trading on the OTCQX under the symbols “SBVCF” and “SBVQF,” respectively. Beginning January 19, 2021, the OTCQX symbol “SBVCF” will change to “GRAMF.”

Michael Auerbach, Chairman of SCAC and The Parent Company, added, “This is an industry-defining moment. With its experienced management team, advanced infrastructure, industry-leading operational efficiencies, proven strategy of brands, and cultural influence, The Parent Company will help shape the future of cannabis in the U.S. and beyond as well as begin to repair and rectify the wrongs of prohibition.”

The Parent Company listed the following investment highlights in a company statement:

 Progressive Operational Platform –

  • TPCO owns its supply chain, enabling the company to leverage scale and profitably produce and distribute a broad portfolio of cannabis products for every consumer segment. The vertically integrated, omnichannel strategy maximizes gross profit and EBITDA margins, scales consumer reach, generates proprietary consumer data, and beats the illicit market on price, quality, and convenience.
  • Omnichannel Platform – TPCO’s scalable omnichannel business offers customers convenient express or scheduled delivery, and in-store or curbside pick-up, all through a single user-centric e-commerce platform, Caliva.com. This omnichannel e-commerce platform, offering both a robust portfolio of high-margin owned brands as well as third-party brands, allows The Parent Company to rapidly scale its direct-to-consumer reach to all Californians. Coupled with its powerful sourcing and low-cost manufacturing capabilities, this omnichannel platform offers consumers across California compelling pricing and convenience while remaining profitable.
  • Exclusive Brand Partnerships and Leading Cultural Influence – Brand strategy and marketing playbook led by Shawn “JAY-Z” Carter and Roc Nation, leveraging unparalleled cultural influence of leading artists and entertainers to build the most valuable and scalable brand portfolio in cannabis. JAY-Z officially launched the first his flagship cannabis line, MONOGRAM, on December 10, 2020.
  • Unrivaled Consumer Reach  TPCO currently reaches over 50% of consumers in California through Caliva.com, its existing direct-to-consumer platform. The Parent Company will have the greatest consumer reach of any cannabis company in California, reaching 75% of consumers in the state by the end of 2021 and almost 90% by the end of 2022 through scaling of its omnichannel platform.
  • Strong Balance Sheet –The Parent Company is the most well-capitalized cannabis company in the United States and will pursue an aggressive M&A strategy to accelerate growth, market share gains, and profitability.
  • Industry-Defining Social Impact  Led by Shawn “JAY-Z” Carter, The Parent Company will fund The Parent Company Social Equity Ventures with an initial target of $10 million and an annual contribution of at least 2% of its net income to invest in minority-owned and Black-owned cannabis businesses and contribute to the effort to rectify the wrongs of prohibition through diversifying both the business leadership and workforce of the cannabis industry. Beyond investing, the fund will also support organizations and programs focused on diversifying the cannabis workforce through job fairs and placement, industry training and education, as well as Social Equity application support.

Steve Allan, The Parent Company’s CEO, said, “With both the most comprehensive vertically integrated platform and brand portfolio in California, and the healthiest balance sheet in cannabis, we will reshape the industry in the world’s largest cannabis economy.”


StaffStaffDecember 11, 2020
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4min8810

Shawn ‘JAY-Z’ Carter has launched his first products from the cannabis line, MONOGRAM. Earlier this year, Carter announced he was partnering with California-based cannabis company Caliva. That company also recently announced an agreement with The Parent Company (TPCO) and Carter has since accepted the role of Chief Visionary Officer for the newly formed corporation. The special purpose acquisition company (SPAC) Subversive Capital Acquisition Corp. (OTCQX: SBVCF) entered into definitive agreements with Carter, Roc Nation, CMG Partners Inc. (Caliva) and Left Coast Ventures, Inc. to form TPCO. The deal is expected to close in January 2021.

“Cannabis has been around for thousands of years, yet it is still an industry whose legacy of skilled craftmanship is often overlooked,” shared Mr. Carter. “I created MONOGRAM to give cannabis the respect it deserves by showcasing the tremendous hard work, time, and care that goes into crafting a superior smoke. MONOGRAM products are next level when it comes to quality and consistency and we’re just getting started.”

Monogram said its flower is cultivated at The Parent Company’s flagship growing facility in San Jose, California, using a batch-by-batch approach. The company said that each plant receives personalized attention from the company’s expert growers, who grade and select every flower by hand. The team is led by Cultivation Ambassador DeAndre Watson, who has been working with the plant for over 25 years. The packaging is matt black and looks as if it’s inspired by a high-end cosmetics line.

 

The newly introduced MONOGRAM strains – No. 88, No. 96, No. 70 and No. 01 – are currently available via the brand’s three product classes:

  • THE OG HANDROLL – The first product of its kind, THE OG HANDROLL (SRP: $50) takes inspiration from the smoke experience of a premium cigar, but implements a proprietary roll technique allowing the flower to burn slowly and evenly for multiple sessions. Highly trained artisan rollers break the flower down by hand and roll using a time-honored process that was specially architected by MONOGRAM Culture & Cultivation Ambassador DeAndre Watson. A true work of art and craftsmanship that cannot be automated, the roll itself burns clean and clear every time.
  • LOOSIES PREROLL PACK – The LOOSIES PREROLL PACK (SRP: $40) contains four 0.4g prerolls that have been individually wrapped to foster communal smoking with ease. Each is filled with flower that has been produced to exacting standards to ensure a premium experience. The packaging itself makes a statement and reflects the magic held within: bold, convenient, top-shelf quality – wherever, whenever.
  • FLOWER – Available in 2g and 4g jars, MONOGRAM FLOWER (SRP: $40 & $70) is cannabis perfected. Grown in small batches to maintain control and quality, each flower is hand-selected and hand-finished by MONOGRAM experts to provide the best possible experience, from grow to smoke. The bold packaging provides a showcase piece while keeping the cannabis fresh and protected from UV light.

Debra BorchardtDebra BorchardtNovember 24, 2020
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6min9830

Special purpose acquisition company (SPAC) Subversive Capital Acquisition Corp. (OTCQX: SBVCF) or SCAC entered into definitive agreements with global icon, entrepreneur and MONOGRAM founder, Shawn “JAY-Z” Carter, entertainment powerhouse Roc Nation, California cannabis company CMG Partners Inc. (Caliva) and Left Coast Ventures, Inc. to form TPCO Holding Corp. (The Parent Company). The deal is expected to close in January 2021.

Caliva and Left Coast Ventures expect combined pro forma revenues of $185 million in 2020 and $334 million in 2021. These acquisitions together constitute SCAC’s “qualifying transaction”. SCAC currently holds approximately $575 million in cash-in-trust, which would make The Parent Company one of the most well-capitalized cannabis companies in the United States assuming no redemptions.

Brand strategy and marketing playbook led by Shawn “JAY-Z” Carter and Roc Nation, will be leveraging the cultural influence of leading artists and entertainers to build the most valuable and scalable brand IP in cannabis. The Parent Company will become Roc Nation’s “Official Cannabis Partner”, Roc Nation will provide The Parent Company with special access and
rights with respect to Roc Nation’s roster of artists and athletes and Roc Nation will promote The Parent Company’s brand portfolio and provide various services.

Carter, who will become The Parent Company’s Chief Visionary Officer following the closing of the deal, said: “Although we know we can’t fully redeem the injustices created
by the ‘war on drugs’, we can help shape a brighter and inclusive future. The brands we build will pave a new path forward for a legacy rooted in equity, access, and justice. We’re creating
something people can trust and we’re investing in our future, our people, and our communities.”

SCAC has received private placement commitments of $36.5 million at a price of $10.00 per share issuable immediately prior to, and conditional on, completion of the Transaction (the “Private Placement”). Investors in the private placement commitments received to date include Fireman Capital Partners, Tuatara Capital, and Subversive Capital, the largest investors in Caliva and Left Coast Ventures, as well as Roc Nation artists Rihanna, Yo Gotti, and Meek Mill. The proceeds of the Private Placement are intended to be used in connection with the Transaction and to fund the growth of The Parent Company following the deal’s closing.

Caliva currently reaches over 50% of consumers in California through its existing platform for delivery. The Parent Company is expected to have the greatest consumer reach of any cannabis company in California reaching 75% of consumers in the state by the end of 2021 and almost 90% by the end of 2022 through scaling of its omnichannel platform.

Steve Allan, who will become The Parent Company’s CEO following the closing of the Transaction, said: “In addition to building the most influential portfolio of cannabis and hemp brands in the world, The Parent Company’s vertical operational platform has been designed for growth and future mergers and acquisitions, forging a path to redefine the cannabis industry in California.”

Social Equity Component

Led by Carter, The Parent Company will fund The Parent Company Social Equity Ventures with an initial target of $10 million and an annual contribution of at least 2% of its net income to invest in minority-owned and Black-owned cannabis businesses and contribute to the effort to rectify the wrongs of prohibition through initiatives that are working toward meaningful
change in the criminal justice system. These initiatives will include bail reform, industry vocational training, job placement, expungement clinics, and Social Equity application
support.

Terms of the Deal

Caliva shareholders will receive aggregate consideration of approximately $282.9 million. Caliva shareholders will receive consideration in the form of newly issued common shares in the capital of SCAC, subject to exceptions for certain U.S. persons that will receive consideration in cash. Left Coast Ventures shareholders will receive aggregate consideration of approximately $142.2 million less the Sisu Consideration. Left Coast Venture shareholders will receive consideration in the form of newly issued SCAC Common Shares, subject to exceptions for certain U.S. persons that will receive consideration in cash. In connection with the consummation of the LCV Transaction, SCAC has also agreed to repay in full certain promissory notes of LCV for an aggregate amount equal to $15.0 million which LCV Note Repayment will adjust the consideration paid to Left Coast Ventures shareholders on closing. In addition, the Left Coast Venture shareholders may receive up to approximately 3.9 million additional SCAC Common Shares in the event the VWAP of SCAC Common Shares reaches $13.00, $17.00 and $21.00 within three years of closing (with one-third of such shares delivered at each such price threshold).


William SumnerWilliam SumnerJuly 9, 2019
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It’s time for your Daily Hit of cannabis financial news for July 9, 2019.

On the Site

Caliva

Shawn “JAY-Z” Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand. Caliva is one of the largest vertically integrated cannabis companies in California and has quickly become a market leader in cannabis consumer products in the state.

Radient Technologies

Cannabis and hemp extractor Radient Technologies Inc. (TSXV: RTI)(OTCQX: RDDTF) reported that the company lost C$18 million in its financial results for the fiscal year ending March 31, 2019.The company only reported revenues of C$214,060 for the year and expenses of C$18,319,167. The cost for that revenue was C$131,249. On a positive note, the company’s cash balance at the end of its fiscal year totaled C$31,752,852, representing an increase of $9,897,548 from March 31, 2018.

Executive Spotlight: Erin Gore, Founder & CEO of Garden Society

Erin Gore is founder and CEO of Garden Society, a California-based, cannabis-focused benefit corporation serving women in search of new, more holistic ways to rejuvenate from the rigors of their daily lives. Garden Society creates artisanal confections and sun-grown pre-rolls that connects biodynamic farming, sustainable ingredients and strain-specific cannabis in a variety of products.

Green Growth Brands

Cannabis retailer Green Growth Brands Inc. (CSE: GGB)(OTCQB: GGBXF) is acquiring MXY Holdings LLC also known as Moxie in an all-stock deal valued at $310 million. The deal is expected to close within six months. Moxie is located in three states at this time, California, Nevada, and Pennsylvania. Michigan is set to be the fourth state. The products are in 250 dispensaries, which is a retail relationship that GGB would like to leverage.  Moxie provides customers with high-quality recreational and medical cannabis products.

In Other News

Surterra Wellness

The medical cannabis provider Surterra Wellness announced today that it has appointed Fareed Khan as Chief Financial Officer (CFO), who will be responsible for corporate finance, investor relations, tax and shared services activities. Formerly serving as the CFO for the Kellogg Company, Khan helped drive the company’s corporate strategy to include revitalizing key brands through targeted investment and transforming the company’s portfolio through mergers and acquisitions. “Fareed’s track record of translating strategy into initiatives that drive growth for both private and public companies, across a number of industries, will propel our continued success,” said  Surterra CEO and Chairman  William “Beau” Wrigley, Jr.

KushCo Holdings

KushCo Holdings, Inc. (OTCQX: KSHB) announced today its financial results for the third quarter ending on May 31, 2019. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year. Cash on hand is approximately $12.2 million.  “We expect demand to increase for the Company’s core product offerings as the cannabis and hemp markets continue to expand and mature. Our customer base is gaining strength with the largest multi-state operators and Canadian LP’s starting to scale in existing markets, while also preparing for growth in new emerging geographies – including recently approved Illinois,” said KushCo Chairman and CEO Nick Kovacevich.


StaffStaffJuly 9, 2019
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3min13220
Shawn “JAY-Z” Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand.

Caliva is one of the largest vertically integrated cannabis companies in California and has quickly become a market leader in cannabis consumer products in the state. The company has a best in its class facility in San Jose, that produces top quality flower and cannabis oil.

In this position, Mr. Carter said he will focus on and work to increase the economic participation of citizens returning from incarceration – many of who are not seeing the monetary benefits of legalization – through advocacy, job training, and overall employee and workforce development.
“Anything I do, I want to do correctly and at the highest level. With all the potential in the cannabis industry, Caliva’s expertise and ethos make them the best partner for this endeavor. We want to create something amazing, have fun in the process, do good and bring people along the way.” – Shawn “JAY-Z” Carter.
Carter joins a long line of rappers who have signed up with various cannabis companies. Many like Wiz Khalifa, Snoop Dogg, Kurupt, and Two Chainz have signed deals with companies or begun their own signature brands. While singers like Willie Nelson of Willie’s Reserve don’t seem involved on a daily basis, Khalifa is known to be deeply involved in the creation of his brand Khalifa Kush.
Caliva branded products can be found at their flagship dispensary in San Jose and dispensaries throughout the state of California. Last month the company acquired Zola, the maker of plant-powered beverages, to expand into the cannabis and hemp-based CBD (hCBD) beverage space. Caliva is exploring entering the infused beverage market in several categories, including sparkling water, functional shots, functional powders, teas, cold brew coffee, and sports drinks. Zola’s key relationships with distributors, ranging from regional to national, will enable fast rollout of hCBD beverages to targeted markets.


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