The Parent Co. (TCPO Holding Corp.) said it is spending a total of $67 million to bolster its supply of California-grown cannabis and get access for its products on retail shelves.
In particular, The Parent Co. announced a $50 million cash investment in Glass House Group as well as the acquisition of four acres of outdoor cannabis farms in Sonoma County.
According to a news release, The Parent Co. is buying a 6.2% stake in Glass House Group and entering into a deal under which Glass House will carry The Parent Co.’s 17 brands in all its stores.
The $50 million investment is expected to close in the third quarter of this year – at the same time as Glass House’s $567 million acquisition by Mercer Park Brand Acquisition Corp.
The deal will give The Parent Co. access to:
- Glass House’s existing 500,000 square feet of marijuana cultivation canopy.
- The 110,000 pounds of cannabis Glass House produces per year.
- The 23 total marijuana stores Glass House will control once Mercer Park’s acquisition closes, which is expected to happen by July 2022.
The Parent Co. also said it has acquired four Sonoma County marijuana farms run by Mosaic.Ag for $17 million in cash and stock. That deal is expected to close by the second quarter of 2022.
“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,” Steve Allan, CEO of The Parent Co., said in the release.
The Parent Co. – which employs rapper Shawn “Jay-Z ” Carter as chief visionary officer – trades on the Canadian NEO exchange under the ticker symbol GRAM.U and on the U.S. over-the-counter markets as GRAMF.