Jay-Z’s Cannabis Company (TPCO) Pays $11.5 Million For Prestigious West Hollywood Dispensary
By Karlton Jahmal
The Parent Company (TPCO) continues to make big moves. Recently, TPCO (of which Jay-Z is the Chief Visionary Officer), invested in the first black-women-owned cannabis speakeasy in America. Now, the vertically integrated business is expanding its dispensary real estate in California.
TPCO announced that it has signed a definitive agreement to acquire 100% of the equity of Calma WeHo. The dispensary, which is located in West Hollywood, boasts a 3,250 square foot space and is one of only ten stores in the popular Los Angeles neighborhood that is licensed for both delivery and storefront retail. This brings TPCO's California retail operating base to four now, with two operating locations in San Jose and Bellflower as well. California hosts the biggest legal cannabis market in America, during a time where marijuana sales are booming.
"We are thrilled to be expanding our retail presence in the iconic West Hollywood region and look forward to continuing to provide our clients with the exceptional selection and retail experiences they've come to expect from us," stated Steve Allan, Chief Executive Officer of TPCO. "Strategically positioned in a high-traffic, high-population region of Los Angeles, this acquisition enables us to expand our reach to a broader potential audience of consumers and patients with both in-person retail and delivery options." Calma sells a multitude of cannabis products, from flower and tincture to topicals and smoke accessories such as weed grinders, cool bongs, dab rigs, and more.
"The Calma team is thrilled for the next phase of its growth as part of The Parent Company," added Cobby Pourtavosi, Founder of Calma. "The Parent Company shares our relentless belief in prioritizing consumer experience and will be a contributing member of the West Hollywood community for years to come." The customer experience at Calma is key, from the friendly and informative budtenders down to the marijuana packaging.
TPCO will acquire the equity of Calma for a total of $11.5 million. The acquisition is split between cash ($8.5 million) and TPCO equity ($3 million). The initial closing is expected to occur in Q3 2021, at which point 85% of Calma's equity will be acquired by TPCO with the approval of the City of West Hollywood. The remaining 15% of Calma's equity is anticipated to be transferred in 2022.
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