Huge News From California

Jay-Z is set to become the Chief Visionary Officer of TPCO Holding Corp, the largest cannabis company in California.

Good morning, friends!

There was some huge news coming out of California last night as Subversive Capital Acquisition Corp, a special purpose acquisition company (SPAC), announced the completion of the largest cannabis SPAC in history.

The deal brings together MONOGRAM founder Shawn “Jay-Z” Carter, entertainment powerhouse Roc Nation (founded by Jay-Z in 2008), Caliva (one of the largest direct-to-consumer cannabis brands in the world), and Left Coast Ventures (a California cannabis company with a portfolio of 15 brands).

The deal is the largest SPAC in both cannabis and Canadian history, and seeks to redefine the industry with a mission to both consolidate the California cannabis market and create an impactful global company with a strong focus on social equity.

The newly formed company has an initial target of $10 million in addition to an annual contribution of at least 2% of the company’s net income to invest in minority-owned and black-owned cannabis businesses as well as other initiatives in an effort to rectify the wrongs of prohibition.

These initiatives will include bail reform, industry vocational training, job placement, expungement clinics, and social equity application support.

“Although we know we can’t fully redeem the injustices created by the ‘war on drugs’, we can help shape a brighter and inclusive future. The brands we build will pave a new path forward for a legacy rooted in equity, access, and justice. We’re creating something people can trust and we’re investing in our future, our people, and our communities.” - Shawn “JAY-Z” Carter, Chief Visionary Officer.

(📸 / Shawn Jay-Z Carter)

The coming together of Caliva and Left Coast Ventures will create the largest cannabis company in California, the largest cannabis market in the world.

This merger will result in the formation of a company with over $185 million in top-line revenue in 2020 alone, targeting $334 million in 2021 with the intention to pursue an aggressive M&A strategy with their $575,000,000 in cash. 👇🏽

(📸 / Subversive Capital)

At the beginning of this year, the cannabis industry in California was talking about Caliva’s decision to ditch cannabis delivery company Eaze.

Since then, Caliva has made significant investments in building its own direct-to-consumer capabilities, currently reaching over 50% of consumers in California.

As a result, the newly-formed parent company is expected to have the greatest consumer reach of any cannabis company in California, reaching 75% of consumers in the state by the end of 2021, with the aim of reaching almost 90% by the end of 2022.

Should they succeed in executing against this incredibly ambitious goal, they would have the greatest consumer reach of any cannabis company in the world! 🌎

(📸 / Caliva)

The brand strategy will be led by Jay-Z, with Roc Nation becoming the parent company’s official and exclusive cannabis partner.

This partnership with Roc Nation will provide the company with special access and rights to Roc Nation’s roster of A-list artists and athletes which includes Kyrie Irving, LaMelo Ball, Marcus Rashford, Christina Aguilera, and DJ Khaled, to name just a few.

Only time will tell how this deal shakes out, but with Jay-Z as the conductor of this newly formed orchestra —I think they’ll be alright. 🎵


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