The rap mogul strikes again.
If there’s one thing we’ve come to know about JAY-Z, it’s that he knows how to make serious money moves. The rap mogul has his hand in just about any market you can think of, from hard liquor to streaming services. Just this year alone, he finalized a deal with Jack Dorsey’s Square Inc. to acquire a majority stake in Tidal and reportedly filed to trademark a TV and film production company.
He launched his Monogram cannabis brand at the tail end of last year just as the legal marijuana industry is about to take off. According to a press statement, he’s also gearing up to become an owner of California’s largest cannabis producer after multiple multi-million dollar transactions.
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Hov’s The Parent Company, which owns his Monogram Cannabis brand, acquired 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. Additionally, the companies are finalizing a six-year $25 million retail partnership that will allow The Parent Company products to be sold at Glass House stores.
“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 continued, “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.”
In addition to scoring the deal, The Parent Company also purchased four acres of land from cannabis farmers for $17 million in a combination of cash and shares of The Parent Company. The farmers also received a $6 million cash advance.
Big news for Hov!