Jay-Z’s Cannabis company buys “Coastal Dispensary”
Jay-Z’s The Parent Company, his cannabis business, is making big moves. The company has acquired 100% of the equity of “Coastal Dispensary” for up to 65 Million Dollars. Meaning that his business will have access to about 80 % of the population of California, once the deal is completed.
Coastal Dispensary, LLC (“Coastal”) is a retail dispensary and delivery operator that has been offering cannabis and CBD products since 2018.
The Parent Company has signed definitive agreements to buy “Coastal” for $16.2 million in cash with contingent consideration of up to $40 million in equity of The Parent Company upon completion of milestone events as well as a $9 million option to acquire the remaining equity of a southern California dispensary that Coastal currently holds a minority interest in.
The deal is inclusive of six consumer delivery hubs and eleven omnichannel retail locations. On Instagram, the company announced that they’re expecting to significantly expand.
“We look forward to significantly increasing our reach to a broader audience of consumers both in-person and online as the largest fully vertically integrated omnichannel platform in the California market.”
a hundred ways
Jay-Z is Hiphop’s most established business man. So it’s obviously not too easy, to follow all the moves HOV hass been making. His work in the cannabis market dates back to the end of last year, when he launched his Monogram cannabis line in collaboration with the Caliva brand.
In January of this year, Caliva, Roc Nation and their partner Left Coast Venture were merged as The Parent Company. This makes The Parent Company the largest cannabis brand in California and the most capitalized in the entire United States.
Among the investors are hiphop superstars like Rihanna, Meek Mill and DJ Khaled.