Subversive Capital Acquisition Corp. have formed TPCO Holding Corp. – The Parent Company – and are acquiring Caliva and Left Coast Ventures as part of their goal to “to redefine the industry with a mission to both consolidate the California cannabis market and create an impactful global company.”
The deal includes $36.5 million in equity commitments from new and existing shareholders, including Fireman Capital Partners, Tuatara Capital, Subversive Capital, and Roc Nation artists including Rihanna, Yo Gotti, and Meek Mill.
Shawn “Jay-Z” Carter, who launched cannabis brand Monogram last month and founded Roc Nation in 2008, will join the company as its chief visionary officer.
“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.” – Jay-Z in a statement
Caliva CEO Steve Allan will serve as CEO; Left Coast Ventures President Brett Cummings was named chief financial officer; and Caliva President Dennis O’Malley will serve as chief operating officer, the company said.
Its expected board of directors includes Roc Nation CEO Desiree Perez; former Yahoo and Autodesk CEO Carol Bartz; Tuatara Capital Partner Al Foreman; La Jolla Group CEO Daniel Neukomm; NetApp and Barracuda Director Jeffry Allen; SCAC CEO Leland Hensch; and SCAC Chairman and Founder Michael Auerbach.
The deal to acquire Caliva and Left Coast is expected to close in January. The firm expects combined pro forma revenues of the two companies to reach $185 million this year and $334 million in 2021.
The Parent Company will become Roc Nation’s “Official Cannabis Partner” which will see the company provide “special access and rights with respect to Roc Nation’s roster of artists and athletes and Roc Nation will promote The Parent Company’s brand portfolio and provide various services.”