MONOGRAM Archives - Green Market Report

Debra BorchardtNovember 15, 2021
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TPCO Holding Corp. also known as The Parent Company (NEO: GRAM.U) (OTCQX: GRAMF) announced its financial numbers for the third quarter ending September 30, 2021, with an eye-popping charge of $570 million. The Parent Company’s revenue for the quarter was $39.7 million and the adjusted EBITDA loss for Q3 2021 was $16.2 million.

TPCO reported that its sales in the third quarter dropped by 26.7 % from the second-quarter revenue of approximately $54.2 million and blamed the decline on a decrease in bulk wholesale flower and bulk wholesale oil prices during the third quarter.  Wholesale revenue fell to $26.9 million versus $42.3 million in the second quarter and this was attributed to the decrease in whole flower pricing during the quarter. The direct-to-consumer revenue grew 7.6% sequentially to $12.8 million.

“Over the last several quarters we have executed on our strategic initiative to drive growth in the higher quality, direct-to-consumer revenue we generate by expanding our coverage in the California market through our omnichannel platform,” said Troy Datcher, Chief Executive Officer of The Parent Company. “While our performance was impacted by the continued bulk wholesale flower and oil pricing declines that were seen across the California market, we expect that as we continue to expand the direct-to-consumer line of our business we will reduce our exposure to these pricing fluctuations. Additionally, we remain well-positioned with our access to high-quality indoor-grown cannabis, which continues to command a higher price point in the market.”

Operating expenses in the quarter were $31.6 million, cash expenses included general and administrative costs of $9.9 million, salaries and benefits of $9 million, and sales and marketing expenses of $4.6 million. Non-cash expenses included stock-based compensation of $3.6 million and depreciation & amortization of $3.3 million.

Impairment Charge Details

TPCO said that the charge was based on the softening of the California cannabis market. As part of the impairment assessment, TPCO’s future forecasts considered changes in cash flow estimates due to lower flower and oil prices realized during the third quarter of 2021. While the Company remains optimistic that cannabis legalization will occur, our expected future cash flows reflect the current tax and regulatory environment. While the company insisted that the challenges it faced were not unique to the company and that the entire California market was experiencing these issues, few other companies have registered a charge of this magnitude.

“Furthermore, the Company would like to highlight that of the consideration paid for the Qualifying Transactions, $232,719,246 related to non-cash contingent consideration. This amount is potential additional consideration issuable, if and when, the stock price reaches certain thresholds. During the nine months ended September 30, 2021, the Company recorded a gain on contingent consideration of $220,997,087 which is reflected in the statement of operations.”

The charge won’t affect the company’s cash position which is a healthy $206.7 million as of September 30, 2021. 


StaffOctober 4, 2021
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TPCO Holding Corp. also known as The Parent Company (NEO: GRAM.U) (OTCQX: GRAMF) is buying California-based Coastal Holding Company in a deal with a valuation of $56 million that is expected to close in 2022. The acquisition will bring The Parent Company’s current California retail store and delivery depot footprints to eleven and six, respectively. The Parent Co. said this would make it the second-largest operating retail dispensary and delivery hub in the State with an expanded reach to over 80% of California’s population.

The deal consists of $16.2 million in cash with a contingent consideration of up to $40 million in equity of The Parent Company upon completion of milestone events and a $9 million option to acquire the remaining equity of a southern California dispensary that Coastal currently holds a minority interest in.

“I am thrilled to add Coastal to our expanding retail network,” said Troy Datcher, Chief Executive Officer of The Parent Company. “With strategically positioned locations in high-traffic, densely populated regions, Coastal enables us to significantly increase our reach to a broader potential audience of consumers with both in-person retail and delivery options. In just over 4 months, we have more than tripled our operating retail stores in California.”

Mr. Datcher added, “As we continue to extend our reach in California, our focus remains on providing our customers with the exceptional product selection and retail experiences they have come to expect from us. I look forward to welcoming and working with the Coastal team and introducing their customers to our convenient in-store, delivery, and mobile app shopping options and full suite of high-quality brands.”

No.03 OG Handroll

The Parent Company’s product portfolio includes Monogram by Shawn “JAY-Z” Carter, Caliva, Deli, Fun Uncle, and Mirayo. Monogram just released its No.03 strain in the Heavy OG Handroll product type. The company said that the OG Handroll “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’s Culture & Cultivation Ambassador, DeAndre Watson.”

 


StaffApril 12, 2021
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The infamous Rat Pack featured singers like Sammy Davis Jr., Frank Sinatra, and Dean Martin. Others like actor Peter Lawford and comedian Joey Bishop also rounded out the group that was known for its hard-drinking and partying ways. Lawford and Davis were well-known cannabis consumers at the time. So it seems fitting that a premium cannabis company like Monogram would seek to emulate the glamour days of old.

The new campaign was shot at the stunning Frank Sinatra House in Palm Springs, where MONOGRAM recreated and paid homage to the photography of Slim Aarons. Aarons became famous for his highly stylized poolside vignettes from the early 1960s and his subjects were often glamourous jet setters, celebrities, and socialites.  With wardrobe playing such a critical role in the art direction High Snobiety Fashion Director Corey T. Stokes styled each contemporized photo, with timeless looks immortalized by Aarons’ original work, while seamlessly weaving in modern accents or pops of streetwear. Featured personalities include ‘Best New Artist’ Grammy nominee Chika, New York-based trio of culinary experts & activists Ghetto Gastro, rapper & songwriter Curren$y, designer & stylist Aleali May, and fashion & beauty model Slick Woods. The cast of individualistic visionaries and icons of tomorrow are depicted across the campaign creative lounging on floats with MONOGRAM product in hand, basking in outdoor opulence and establishing a new good life, redefined.

From Palm Springs To NYC

Launching just in time for 4/20, the campaign is currently on display across all major U.S. markets including New York State, which recently legalized adult use of cannabis on March 31, 2021. Billboards and sprawling wallscapes featuring the photography can be found throughout well-traveled areas of New York City – from Times Square to SoHo to Brooklyn – further underscoring this major step in helping to destigmatize cannabis and drive progress forward for the industry

“On the heels of legalization, seeing creative like this become a natural part of the fabric of New York City only reinforces that cannabis has a right to exist within our customs, arts and social institutions,” shared Mr. Carter. “New York’s decision to legalize is a victory for the entire industry, and I’m excited to have MONOGRAM play a role in bringing that message to life in my own backyard.”

Slim Aarons

Slim Aarons’ life’s work was devoted to capturing as he put it “attractive people, doing attractive things in attractive places.” The photographs he created over four decades at the world’s finest locales have since become synonymous with mid-century luxury, beauty and leisure. MONOGRAM tapped Williams to reimagine several of these quintessential images – including “Keep Your Cool,” “Desert House Party,” “Poolside Glamour,” “Leisure and Fashion” and more – starring an updated cast of diverse personalities. The resulting imagery illustrates the dynamic, expanding landscape of modern luxury, and how it intersects with a new chapter in cannabis culture.

“The perception around cannabis has shifted a lot since the 20th century. If you were to ask me and my peers how we’d define the good life today, weed would definitely be a part of it. Whether we’re smoking to inspire creativity or to celebrate an achievement, cannabis has a rightful place in modern day culture,” said  photographer Hype Williams. “HOV has a vision for the industry that he’s bringing to life through MONOGRAM. His focus for this campaign was to showcase how beautifully cannabis fits into the good life today, and I am honored to be a part of it.”


StaffDecember 11, 2020
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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.

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