Debra BorchardtJune 5, 2023
George Allen claims the numbers behind the deal don't make sense.
The Parent Co. Archives - Green Market Report
Debra BorchardtJune 5, 2023Debra BorchardtFebruary 22, 2023
Gold Flora holds a slim majority of shares.
Debra BorchardtJanuary 6, 2023Jay Z takes ownership of his luxury brand.
John SchroyerNovember 14, 2022Company warned it may dip into cash reserves in Q1.
Adam JacksonNovember 9, 2022
Five states had ballot measures to consider.
John SchroyerNovember 2, 2022
The company cited an "underperforming wholesale market" for the move.
Adam JacksonAugust 16, 2022
After the market closed on Monday, TPCO Holding Corp. (OTCQX: GRAMF) posted results that missed expectations as the company restructures and recovers from record losses. The west-coast cannabis company delivered its financial results for the second quarter ending June 30, 2022.
The Parent Co. reported approximately $27.4 million in revenue during the period, a 27% loss versus the same period last year — missing the Yahoo Finance Average analyst estimate for revenues of $33.23 million.
The Parent Co. also reported a second-quarter net loss of $30 million versus a $33.5 million loss sequentially; and a net loss of $734,000 in the same period last year. The earnings were for a loss of $0.30 per share, versus a gain of six cents per share in the previous quarter, according to SEDAR filings.
“Our team remains focused on our business transformation, and this quarter’s results are an early indication that our profitability improvement plan is working,” said CEO Troy Datcher. “As anticipated, our efforts to maximize the contributions from our omni-channel retail opportunities and minimize our exposure to the California wholesale market have significantly shifted our revenue mix. While this decision compressed topline sales, it drove solid Q2 gross margin of 24% compared to 9% in the prior year period as our omni-channel retail revenue grew 60% to account for 69% of our net sales in the quarter.”
Layoffs
As the company restructures, it has eliminated positions and undertaken a reduction in force intended to optimize the organization, which resulted in the elimination of approximately 17% of its workforce since the beginning of 2022, representing over $7.6 million in annualized payroll reductions which are included in $9.3 million total expense savings. In addition to the layoffs, The Parent Co is rethinking its delivery depot operations, which includes the recent exit of the Company’s Sacramento delivery operations, and the complete examination and outsourcing of all non-strategic capabilities.
Datcher added, “I am also pleased to report that since implementing the first phase of our long-term profitability plan, we have achieved $9.3 million in annual expense savings. In the next phase of the profitability plan there are additional major initiatives underway that are expected to help us reduce cash operating expenses by $30 million by year end. A key factor to achieving this goal is our new wholesale distribution agreement with Nabis, which will lower our annual operating expenses and expand our already-wide reach by introducing our premier brands to a larger potential base of customers. Similarly, our first out-of-state expansion agreement with Curio Wellness in Maryland is an important first step to growing our presence outside of the California market and introducing new markets to our premier west coast brands.”
The Parent Co. posted an adjusted EBITDA loss of $18.4 million. In addition, the company had unrestricted cash and cash equivalents totaling $126 million as of June 30, 2022.
The company generated $7.6 million in cash through the sale-leaseback of property, the sale of underutilized equipment and the settlement of outstanding litigation.
“Looking across our peer landscape, based on the strength of our balance sheet, the quality of our brands, and the retail experience we offer, we are the strongest positioned operator in an incredibly competitive marketplace,” said Datcher. “We firmly believe that the significant shift to more profitable revenue and implementation of our cost-saving strategic initiatives will be a winning strategy in the California market that better serves our customers and drives value for our shareholders.”
Debra BorchardtJuly 2, 2021
Glass House Brands Inc. (NEO: GLAS.A.U ) has called off its previously announced conditional agreement to accept a $50 million strategic investment from The Parent Company, whose official name is TPCO Holding Corp (OTC: GRAMF). Glass House said that it was a mutual agreement and that the Strategic Investment will not be completed at this time. Glass House said in its statement that it will consider future partnership opportunities with The Parent Company after the purchase and retrofit of the 5.5 m square foot greenhouse cultivation facility located in Ventura County, California.
TPCO Holding Corp. confirmed that the private placement offering by Mercer Park Brand Acquisition Corp. has been terminated by the parties effective today Mercer Park Brand Acquisition Corp. recently merged with Glass House.
“In addition to our supply of award-winning, in-house cannabis, we remain well-positioned with sufficient access to both high-quality, low-cost indoor and outdoor-grown cannabis for use in our portfolio of branded products that are sold through our wholesale and direct-to-consumer channels,” said Steve Allan, Chief Executive Officer of The Parent Company. “Glass House is building a robust cultivation footprint in California, and we look forward to working with their team in the future on potential collaborations as we broaden our reach across the State. Looking ahead, we will continue to strategically deploy our capital on high-growth investment opportunities that will solidify our leadership position and offer strong value for our shareholders.”
Glass House also said that it didn’t expect the termination of the investment to affect the current purchase and development plans for the Camarillo Greenhouse Facility, its acquisition of seventeen retail licenses, or the pre-transfer construction currently occurring concerning four of those retail locations, or its ongoing land use permitting concerning recently won licenses in Isla Vista and Santa Ynez, California.
Glass House said it expects to complete the purchase of the Camarillo Greenhouse facility this quarter and is currently negotiating with several banks and other lenders for property secured financing, the majority of which is expected to be used for the retrofit.
On Monday, July 5, Glass House is set to begin trading on the NEO exchange in Canada under the name GH Group, Inc. or Glass House Brands. The subordinate, restricted, and limited voting shares and warrants of Glass House were approved for listing on the NEO Exchange under the symbols “GLAS.A.U” and “GLAS.WT.U”.
In 2020, Glass House reported that it grew revenue 185% year-over-year to $53 million and generated positive adjusted EBITDA, driven by its expanded cultivation and distribution footprint, improved supply chain and production efficiencies, and enhanced consumer brand profile. Including the assets of the Southern California Greenhouses and proposed Element 7 retail licenses, the combined company expects to generate full-year 2022 revenue and adjusted EBITDA of approximately $326 million and $104 million, respectively.
Debra BorchardtJune 28, 2021
TPCO Holding Corp. also known as The Parent Company (OTCQX: GRAMF) is buying a West Hollywood, CA dispensary named Calma West Hollywood in a deal valued at $11.5 million. It is expected to close in the third quarter of 2021. The transaction is made up of $8.5 million in cash and $3.0 million in shares of The Parent Company.
Calma is located in the Los Angeles metropolitan area, with a population of approximately 18.7 million people and a cannabis retailer density of approximately one store for every 194k people in the region. The 3,250 square foot dispensary is one of only ten stores in the West Hollywood area that is licensed for both delivery and storefront retail.
“We are thrilled to be expanding our retail presence in the iconic West Hollywood region and look forward to continuing to provide our clients with the exceptional selection and retail experiences they’ve come to expect from us,” said Steve Allan, Chief Executive Officer of The Parent Company. “Strategically positioned in a high-traffic, high-population region of Los Angeles, this acquisition enables us to expand our reach to a broader potential audience of consumers and patients with both in-person retail and delivery options.”
TPCO said in a statement that with more than 3.6 million visitors per year, West Hollywood is situated in the core of the Los Angeles region, surrounded by cultural destinations and tourist attractions in every direction. The acquisition of Calma increases its current California retail footprint to four, with two operating locations in San Jose and one in Bellflower. To ensure Calma remains a staple in West Hollywood, the Calma founders will remain involved with the operations of the business. The deal remains subject to regulatory approvals, including approval by the City of West Hollywood.
85% of the equity of Calma will be obtained by TPCO upon approval by the City of West Hollywood. The transfer of the remaining 15% equity of Calma is expected to occur in 2022. Closing of the Calma transaction is subject to standard closing conditions as well as regulatory review and approval.
“The Calma team is thrilled for the next phase of its growth as part of The Parent Company,” said Cobby Pourtavosi, Founder of Calma. “The Parent Company shares our relentless belief in prioritizing consumer experience and will be a contributing member of the West Hollywood community for years to come.”
Mr. Allan added, “As we continue to execute on our omnichannel expansion strategy, we will look to evaluate and identify additional strong retail and delivery operators in strategic locations to expand our reach across the state.”
StaffApril 12, 2021
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.”
Get the latest cannabis news delivered right to your inbox
Unpack the industry with the daily cannabis newsletter for business leaders.