Music industry mogul Jay-Z is set to join a newly formed cannabis company that’s expected to become the largest in California.
The venture was formed via a partnership between Caliva, Left Coast Ventures, Subversive Capital Acquisition Corp. (OTCQX:SBVCF) and Roc Nation, the entertainment company Jay-Z launched in 2008.
Jay-Z, whose real name is Shawn Carter, will take on the title of “Chief Visionary Officer.”
Under the agreement, Caliva will buy OG Enterprises Branding Inc., which is currently owned by Caliva and Carter at a 50/50 ratio.
Carter will receive compensation in the form of the new company’s stock.
Subversive Capital will then acquire both Caliva and Left Coast Ventures for $282.9 million and $142.2 million, respectively. The combined entity has been simply dubbed “The Parent Company.”
The transaction is slated to close in January 2021 with Steve Allan as CEO.
The board of directors will include Subversive Capital chairman Michael Auerbach, who calls California “the most powerful cannabis economy in the world,” citing how it’s ripe for consolidation.
“With its advanced infrastructure, industry leading operational efficiencies, proven strategy of brands, and cultural influence, The Parent Company is expected to be best positioned for the inevitable end of cannabis prohibition in the United…