Just a month after Jay-Z launched MONOGRAM with cannabis brand Caliva — where he’s served as chief brand strategist since July 2019 — he’s already made yet another move heading for mogul status within the industry.
According to Billboard, Subervisve Capital Acquisition Corp — which has a growing footprint in the cannabis industry — has now acquired two California-based cannabis brands. The end result has landed Jay-Z as the company’s chief visionary officer.
In an announcement on Tuesday (Nov. 24), the company revealed the transaction is set to close in January.
Acquiring the direct-to-consumer cannabis platform Caliva along with hemp and cannabis producer — Left Coast Ventures — Subversive Capital is ready to take the industry by storm by having the brands combine under a new vertically-integrated cannabis company that will be named TPCO Holding Corp.
The deal includes $36.5 million in equity commitments from both existing and new shareholders which include Tuatara Capital, Subversive Capital, Fireman Capital Partners, and Roc Nation artists like Yo Gotti, Meek Mill, and Rihanna.
According to the new venture, their goal is “to redefine the industry with a mission to both consolidate the California cannabis market and create an impactful global company.”
Subversive Capital anticipates both revenues combined to reach $185 million this year and $334 million next year (2021).
As the chief visionary officer at TPCO, Jay-Z will guide both brand strategy and Social Equity Ventures, which is described as a corporate venture fund that will not only invest in Black and minority-owned cannabis businesses but will contribute to progressive criminal justice initiatives as well.
These initiatives include industry vocational training, job placement, bail reform, expungement clinics, and application support for California’s Social Equity program which currently offers support to individuals who’ve been impacted negatively by the state’s prior criminalization of cannabis.
Social Equity Ventures will be funded by TPCO with an annual contribution of about 2 percent of its net income and an initial target of $10 million.
“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,” notes Jay-Z in a statement. “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’s label and management company Roc Nation will also be a part of the deal and leverage Roc Nation artists to help promote and build the newly formed cannabis giant.