NEWS BRIEF

Cannabis SPAC acquires Caliva and Left Coast Ventures, hires Jay-Z

New York-based Subversive Capital Acquisition Corp., a special purpose acquisition company (SPAC), said it has acquired two California cannabis companies and hired rapper and producer Shawn “Jay-Z” Carter to foster social equity in the industry.

The company is purchasing marijuana brand Caliva and cannabis investment firm and producer Left Coast Ventures.

The purchases will create a new parent company, TPCO Holding Corp., and include $36.5 million worth of equity commitments from new and existing shareholders, according to a news release.

Terms of the transaction, which is expected to close in January 2021, were not disclosed.

The merger of the two California companies creates a vertically integrated platform that includes cultivation, manufacturing, brands, retail and delivery – allowing TPCO to control its supply chain.

According to the news release, Caliva and Left Coast Ventures expect combined pro forma revenues of $185 million in 2020 and $334 million in 2021.

“California is the most powerful cannabis economy in the world, and we have a unique opportunity to consolidate the market,” Subversive Capital Acquisition Corp. (SCAC) Chair Michael Auerbach said in a statement.

The news release predicts TPCO will “have the greatest consumer reach of any cannabis company in California reaching 75% of consumers in the state by the end of 2021 and almost 90% by the end of 2022.”

SPACs are growing in popularity for private cannabis companies looking to raise money and become publicly traded. SCAC itself currently holds around $575 million in cash-in-trust.

Steve Allan, meanwhile, will serve as TPCO’s CEO.

Carter will serve as the holding company’s chief visionary officer, a role in which he will help guide brand strategy as well as lead the company with a goal of raising $10 million to invest in minority- and Black-owned cannabis companies, among other efforts.

TPCO will also contribute at least 2% of its net annual income to support social equity initiatives.

“The brands we build will pave a new path forward for a legacy rooted in equity, access, and justice. We’re creating something people can trust and we’re investing in our future, our people and our communities,” Carter said in the release.

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2 comments on “Cannabis SPAC acquires Caliva and Left Coast Ventures, hires Jay-Z
  1. Al on

    I’m new to MJBIZ and having access to this type of MJ ‘Information’ will create a new generation of millionaires in the USA.
    IMHO, you’ll sign up today or be left out tomorrow.

    Reply
  2. Louis on

    Hi, the companies should make there brands more affordable for poor people to go out purchase the products. That really have chronic pain and help out instead of being so greedy and just looking at numbers…..

    Reply
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