Hov’s business The Parent Company just finished up some really big deals that will shape the cannabis business in the state of California.
Jay-Z’s marijuana company continues to make big-time power moves in the legalized cannabis market.
Earlier this month, the company made $67 million worth of transactions, including a $50 million purchase in a company Mercer Park Brand Acquisition Corp., which is about to merge with another company called Glass House Group in a deal worth $567 million.
When that deal is done, Hov’s company will have ownership in California’s largest cannabis producer. The Parent Company also negotiated a 10-year deal with Glass House, which will produce almost half a million pounds of cannabis biomass.
The Parent Company and Glass House are also finishing up a $25 million retail partnership agreement over six years that enables The Parent Company’s suite of branded products, like Monogram, to be sold across all Glass House retail locations.
“These partnerships are a fantastic opportunity to secure long-term access to over 900,000 pounds of high-quality, low-cost, California-grown cannabis for use across our expanding portfolio of branded products,” said Steve Allan, Chief Executive Officer of The Parent Company. “Our focus over the last 100 days has been to continue to scale up our supply chain. Our strategic investment accomplishes two important components, gaining access to Glass House’s greenhouse-grown cannabis at attractive pricing and expanding the distribution of our products to their network of retail stores.”
The Parent Company is also snapping up pristine real estate from cannabis-based farmers.
The Parent Company purchased four acres of licensed high-quality outdoor cultivation from a consortium of experienced cannabis farms affiliated with a company called Mosaic.Ag.
The rap star/mogul’s company paid $17 million in a combination of cash and common shares of The Parent Company and advanced the farmers $6 million in cash.