Jay-Z is about to take his stake in the cannabis industry to another level as the business consortium The Parent Company is looking to produce over 900,000 pounds of cannabis. Jay-Z’s Monogram cannabis company is a member of the lucrative partnership group which just made a series of transactions to become an owner of California’s largest cannabis producer.
The Parent Company purchased Mercer Park Brand Acquisition Corp for $50 million. Mercer Park is set to merge with Glass House Group in a deal worth more than $567 million. After the merger, The Parent Company will officiate a 10-year-deal with Glass House to produce nearly 500,000 pounds of cannabis. They are also finalizing a six-year $25 million retail partnership that will allow The Parent Company products to be sold at Glass House stores.
In addition, The Parent Company signed a definitive binding agreement to acquire four acres of licensed high-quality outdoor cannabis cultivation located in Sonoma County, California from a consortium of experienced cannabis farmers, Mosaic.Ag. That deal was worth $17 million in a combination of cash and shares of The Parent Company. The farmers also received a $6 million cash advance.
“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, CEO of The Parent Company in a statement to Bloomberg.
“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,” he continued.
With this latest business deal, the newly inducted Rock & Roll Hall of Famer Jay-Z seems to be doing quite well in retirement.
