Jay-Z and The Parent Company have restructured their agreement.
According to a press release, an agreement between The Parent Company and Jay-Z’s Roc Nation and SC Branding has been modified.
With the revision, the cannabis company is “expected” to save nearly $33.5 million over eight years.
The agreement also includes Jay-Z and affiliates and Roc Nation returning approximately 7.1 million common shares of The Parent Company.
“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,” the press release details.
Roc Nation and JAY-Z affiliates will keep their titles as shareholders and continue to work closely with The Parent Company.
“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,” Jay-Z said in a press statement.”We are excited for the continued growth of The Parent Company and our future together in the cannabis industry.”
In addition, ownership of the Monogram brand will be moved to an entity under SC Branding and the Hip-Hop billionaire.
The Parent Company will have an exclusive and royalty-free license that will allow them to distribute the brand across the state of California over eight years.
“I want to sincerely thank JAY-Z, Desiree Perez and the entire ROC team for their significant creative contributions. I look forward to continuing our exciting work together to create products and brands that address the needs of consumers in the world’s largest cannabis market,” said Troy Datcher, CEO and chairman of The Parent Company, according to a press release. “Importantly, this arrangement significantly reduces our ongoing financial commitments and protects shareholders from future dilution while transforming our business into a platform for future brand collaborations. We will continue to leverage our position as a world-class brand builder by working with authentic leaders and innovators in the industry. As we prepare our Company for potential national exposure, I’m thrilled with the innovative brand developments we expect to roll-out in the coming months.”