Shawn Carter, aka Jay Z, has been named Chief Visionary Officer of a new California-based cannabis company called TPCO Holding Corp.
TPCO (The Parent Company) has been formed via the acquisition by Canada-based Subversive Capital Acquisition Corp – a special purpose acquisition company (SPAC) – of two California-based cannabis companies including Left Coast Ventures and Caliva, which Jay-Z previously struck a partnership with in 2019.
Jay Z announced his new cannabis brand called Monogram last month.
According to an investors’ presentation, TPCO “brings together Jay Z, Roc Nation, Caliva and Left Coast Ventures to consolidate and dominate California, the world’s largest cannabis market, through a transaction valued at up to $1.2bn.”
Caliva and Left Coast Ventures expect combined revenues of $185m in 2020 and $334m in 2021.
The new company’s brand strategy and marketing will be led by Jay Z and Roc Nation, “leveraging unparalleled cultural influence of leading artists and entertainers to build the most valuable and scalable brand IP in cannabis,” according to TPCO.
He will also lead TPCO Social Equity Ventures, a corporate venture fund with an initial target of $10m 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.
Roc Nation CEO Desiree Perez will also be joining the Parent Company’s Board of Directors.
The fraternization of the legal cannabis business and the music business has been gathering momentum this year.
In February, MBW reported that Justin Bieber manager Scooter Braun had joined a $22m (€20m) financing round in a German cannabis startup called Sanity Group, in what the company’s founders said at the time was the largest funding round yet in Europe’s cannabis sector.
MBW also learned that artist managers Bill Curbishley of Trinifold Management (The Who, Judas Priest), Ian McAndrew of Wildlife Management (Arctic Monkeys, Royal Blood) and Colin Lester of Jem Music Group (Craig David) are all investors/stakeholders in the UK-based CBD wellness business called Apothem Labs.
“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.”
Jay-Z
Jay-Z 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.”
“California is the most powerful cannabis economy in the world, and we have a unique opportunity to consolidate the market with The Parent Company.”
Michael Auerbach, SCAC
SCAC’s Chairman, Michael Auerbach, added: “California is the most powerful cannabis economy in the world, and we have a unique opportunity to consolidate the market with The Parent Company.
“With its advanced infrastructure, industry leading operational efficiencies, proven strategy of brands, and cultural influence, The Parent Company is expected to be best positioned for the inevitable end of cannabis prohibition in the United States.”
Steve Allan, who will become The Parent Company’s CEO following 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.”
Chris Akelman, Partner at Fireman Capital Partners (“FCP”), said: “Caliva and Left Coast Ventures are two proven cannabis operators, and California is an incredible market with a huge opportunity for consolidation.
“I’m proud of FCP’s role and confident that The Parent Company will go on to build industry-leading brands in the cannabis space.”Music Business Worldwide
