Jay-Z Touts 'End Of Cannabis Prohibition' As Roc Nation Finalizes SPAC Deal With Caliva, Left Coast Ventures

A consortium made up of CMG Partners Inc., Left Coast Ventures Inc. and Shawn Carter (Jay-Z) —with his company Roc Nation — has finalized its previously announced transaction with Subversive Capital Acquisition Corp. SBVCF.

The newly formed company has been dubbed TPCO Holding Corp., or The Parent Company.

The transaction is being touted as the biggest cannabis SPAC deal ever.

"This is an incredible time for this industry,” Carter said in a prepared statement. “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."

Deal Details

The merger was previously announced in November:

• Caliva agreed to acquire OG Enterprises Branding Inc., then owned by Caliva and Carter at a 50/50 ratio.
• Carter would get repayment in the form of the new company’s shares.
• Subversive Capital opted to purchase both Left Coast and Caliva for $142.2 million and $282.9 million, respectively.
• The combined company was renamed “The Parent Company” with Steve Allan as CEO, and Carter as Chief Visionary Officer.

The Parent Company’s shares are now trading on the NEO Exchange with ticker symbols “GRAM.U” and “GRAM.WT.U". It still trades on the OTCQX with ticker symbols “SBCVF” and “SBVQF”, respectively.  Consequently, the OTCQX symbol “SBVCF” will be changed to “GRAMF” on Jan. 19.

Parent Company Plans

The Parent Company projects to hit $334 million in 2021 pro-forma revenues. Consumer reach is expected to be 75% in California by the end of the year, and almost 90% by the end of 2022.

What’s more, the vertically-integrated cannabis company prides itself on having a strong balance sheet, claiming to be “the most well-capitalized cannabis company in the United States.”

Among its social impact plans is $10 million of initial support for social equity initiatives, plus a yearly contribution of at least 2% of its net income to fund minority-owned and Black-owned cannabis businesses in an effort to amend prohibition injustices.

"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,” Allan said in a statement.