Jay-Z is gearing up to become an owner of California’s largest cannabis producer after a series of multi-million-dollar transactions.
Hov’s The Parent Company — which owns his Monogram cannabis brand — made $67 million worth of transactions, including $50 million to acquire Mercer Park Brand Acquisition Corp., which is about to merge with Glass House Group in a deal worth $567 million. After the merger, The Parent Company will finalize a 10-year deal with Glass House, which will produce nearly 500,000 pounds of cannabis biomass. In addition, the two companies are finalizing a six-year, $25 million retail partnership agreement that will allow The Parent Company’s products to be sold at all Glass House 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 also purchased four acres of land from cannabis farmers for $17 million in a combination of cash and common shares of The Parent Company. The farmers were also advanced $6 million in cash.