Jay-Z Cannabis Company Gets Huge Deal To Produce 900,000 Lbs Of Marijuana
Rap mogul Jay-Z continues to dominate with his business acumen. We’ve all come to know that he makes major deals that rake in cash, so it shouldn’t come as a surprise that his foray into the marijuana industry is also proving to be very profitable.
At the end of last year, Jay-Z announced that he would be launching the Monogram cannabis brand. It was his official push into the legal marijuana industry, and it looks like it’s already been bringing back in cash for him. According to a press statement, he’s also set to become the owner of one of California’s largest cannabis producers. This follows several multi-million dollar transactions.
So here’s a breakdown of how it all happened and what the mergers and acquisitions mean for his bottom line. Firstly, The Parent Company owns his Monogram Cannabis brand, and that brand acquired Mercer Park Brand Acquisition Corp for $50 million. Mercer Park is expected to merge with Glass House Group in a deal worth more than $567 million.
Once that’s official, The Parent Company will be part of a lucrative 10-year-deal with Glass House to produce nearly 500,000 pounds of cannabis. The Parent Company has also already purchased four acres of land from cannabis farmers for $17 million. That deal involves a combination of cash and shares of The Parent Company. The farmers have reportedly already received a $6 million cash advance.
That’s not all; the companies are also in talks to finalize a six-year $25 million retail partnership which will mean that The Parent Company products would be sold at Glass House stores. Of course, this is probably just another day in the life of the rap mogul, who also has numerous businesses that are profitable. One of his most recent deals was with Jack Dorsey’s Square Inc. to acquire a majority stake in Tidal. Out of that deal, a TV and film production company trademark has reportedly been filed.
“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 the Chief Executive Officer of The Parent Company, Steve Allan.
He also shared that over the last 100 days, the focus has been to continue to scale up the company’s 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 added.