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Cannabis org The Parent Company establishes restructured partnership with Jay-Z’s Roc Nation and SC Branding

jay-z and troy datcher ceo of the parent companyShawn “Jay-Z” Carter and Troy Datcher, CEO of The Parent Company.

Shareif Ziyadat/Getty Images; The Parent Company

  • The Parent Company and Jay-Z’s Roc Nation and SC Branding have established a revised strategic agreement to restructure their partnership, the companies announced to Insider. 
  • Jay-Z, Roc Nation, and their affiliates will return approximately 7.1 million common shares of The Parent Company “to preserve shareholder value,” the companies said. 
  • Through the agreement, The Parent Company will have an eight-year exclusive license to distribute Monogram, Jay-Z’s cannabis line, in California. 

TPCO Holding Corp., a consumer-focused California cannabis company known as “The Parent Company,” has entered into modification agreements to restructure its partnership with Shawn “Jay-Z” Carter’s Roc Nation and SC Branding, the companies announced exclusively to Insider. 

As part of the restructured arrangement, Jay-Z, Roc Nation, and their affiliates will return approximately 7.1 million common shares of The Parent Company and “enable the organization to save approximately $33.5 million in top-line costs over an eight-year period,” the companies said.

In a release sent to Insider, the parties laid out the terms of the new agreement and its implications for their established social equity venture

As to preserve shareholder value, Roc Nation has agreed to forgo future The Parent Company equity payments pursuant to the original partnership and SC Branding has agreed to forego future cash and/or equity payments. The mutually-agreed upon terms allow for Roc Nation and JAY-Z affiliates, who are expected to remain substantial shareholders, to continue work with The Parent Company across innovation, brand strategy and social justice fair equity opportunities.

Desiree Perez, CEO of Roc Nation and Dania Diaz, Managing Director of Philanthropy at Roc Nation will remain in their roles with the Company’s social equity ventures investment advisory committee as both entities work collaboratively on initiatives to help repair the harms created by the prohibition of cannabis. The parties are united in their drive to empower entrepreneurs in underserved communities by providing a platform for those who have been historically marginalized and disenfranchised by the unequal application of legislation.

Under the terms of the new agreement, ownership of Jay-Z’s cannabis line Monogram will transfer from The Parent Company to an entity under SC Branding, while The Parent Company will have an exclusive and royalty-free eight-year license to distribute the Monogram brand in California.

“Collectively, we have agreed to restructure our partnership in order to afford The Parent Company the best opportunity to execute a longstanding and successful strategy,” Shawn “Jay-Z” Carter said in a statement to Insider. “We are excited for the continued growth of The Parent Company and our future together in the cannabis industry.”

“I want to sincerely thank JAY-Z, Desiree Perez and the entire ROC team for their significant creative contributions. I look forward to continuing our exciting work together to create products and brands that address the needs of consumers in the world’s largest cannabis market,” said Troy Datcher, CEO and chairman of The Parent Company. “Importantly, this arrangement significantly reduces our ongoing financial commitments and protects shareholders from future dilution while transforming our business into a platform for future brand collaborations. We will continue to leverage our position as a world-class brand builder by working with authentic leaders and innovators in the industry. As we prepare our Company for potential national exposure, I’m thrilled with the innovative brand developments we expect to roll-out in the coming months.”

Desiree Perez, CEO of Roc Nation, added, “We’re eager to work alongside The Parent Company in this progressive capacity. The cannabis industry necessitates adaptability and critical thinking, and this collaborative approach puts us in a more versatile position to address social equity issues and create better opportunities for multicultural business leaders. Our hope is that we’ll be collectively poised to create comprehensive and longstanding change across the cannabis industry for decades to come.”

Later this month, The Parent Company’s social equity venture will launch a “Brand Success Program,” a 12-week program “implemented to provide minority owned brands with guaranteed shelf space and individualized mentorship by TPCO Sales, Marketing, Retail, and Operational Leaders,” a rep for the company said.

“Brands will learn best practices, operational procedures, and tips that can be applied to any retail outlet nationwide,” they continued. “The goal of the program is to empower each Brand with the knowledge and opportunity to scale their business, market efficiently, increase brand awareness while building customer loyalty, and boost sales.”

The program will launch in mid-January with the brand CRONJA from CEO and co-founder Bryant Bowens. It’ll follow up with the launch of the brand Disco Jays by MAKR House, from activist and entrepreneur Amber Senter.

Read the original article on Business Insider