The Parent Co. buying West Hollywood cannabis retailer for $11.5 million

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TPCO Holding Corp. (The Parent Co.), a California-based vertically integrated marijuana operator, announced Monday it would acquire MJ retailer Calma in West Hollywood, California, for $11.5 million.

According to a news release, TPCO will spend $8.5 million in cash and another $3 million in company equity. The purchase is expected to close in the third quarter.

The founders of Calma will remain at the helm of the shop, according to the release, to “ensure Calma remains a staple in West Hollywood.”

Steve Allan, CEO of TPCO, said the company plans more acquisitions in California, noting it would “evaluate and identify additional strong retail and delivery operators in strategic locations.”

TPCO came about last year when New York-based Subversive Capital Acquisition Corp., a special purpose acquisition company (SPAC), made a pair of California acquisitions: marijuana brand Caliva and cannabis investment firm and producer Left Coast Ventures.

The business has hired rapper Shawn “Jay-Z” Carter to work on cannabis industry social equity.

The Calma acquisition brings TPCO’s retail footprint in the state to four shops, including two in San Jose and two in the greater Los Angeles metro area.

TPCO trades on the NEO Exchange in Canada under the ticker symbol GRAM.U and on the over-the-counter markets as GRAMF.