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The Parent Company Restructures Partnership With Jay-Z's Companies For Expected Top-Line Cost Savings Of $33.5M

Benzinga · 01/06/2023 08:05

TPCO Holding Corp. (OTCQX:GRAMF) (NEO:GRAM.U) has entered into modification agreements to restructure the relationship between Roc Nation LLC, SC Branding, LLC and The Parent Company. As part of the restructured arrangement, Shawn 'JAY-Z' Carter and affiliates and Roc Nation will return approximately 7.1 million common shares of The Parent Company and enable the organization to save approximately $33.5 million in top-line costs over an eight-year period.

As to preserve shareholder value, Roc Nation has agreed to forgo future The Parent Company equity payments pursuant to the original partnership and SC Branding has agreed to forego future cash and/or equity payments. Desiree Perez, CEO of Roc Nation and Dania Diaz, managing director of philanthropy at Roc Nation will remain in their roles with the company's social equity ventures investment advisory committee as both entities work collaboratively on initiatives to help repair the harms created by the prohibition of cannabis.

Under the terms of the agreements, ownership of the brand "Monogram" will transfer to an entity designated by SC Branding and its affiliate, Shawn 'JAY-Z' Carter. The Parent Company will have an exclusive and royalty-free eight-year license to commercialize Monogram in California. In addition to all current Monogram products, form factors and SKUs, the company will also have the right to sell any other future Monogram form factor or SKU as is approved by the ROC Entities. ROC will continue to introduce and, subject to its client obligations, support The Parent Company in potential relationships with various partners and artists.

"Collectively, we have agreed to restructure our partnership in order to afford The Parent Company the best opportunity to execute a longstanding and successful strategy," stated Shawn "JAY-Z" Carter. "We are excited for the continued growth of The Parent Company and our future together in the cannabis industry."

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Photo: Benzinga edit with photos by Matthias Zomer on Pexels and squarefrog on Pixabay

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