Beyond the lucrativeness of the cannabis industry, one other reason Jay-Z gave for venturing into the production of cannabis was to bring diversity into the sector. The billionaire rapper and entrepreneur has shown he means business.
In a first major move since backing TPCO Holding Corp to establish one of the biggest cannabis companies in the U.S., The Parent Company, the firm has appointed Troy Datcher to serve as its new CEO effective Sept 8th.
The appointment makes Datcher the first Black to lead a major publicly traded U.S. cannabis company. Datcher started out at Clorox Company in 1999 as senior vice president and chief customer officer responsible for the company’s worldwide sales organization.
According to Yahoo Finance, he deployed global sales plans for over $6.7 billion in annual revenue across Clorox’s portfolio of brands. He also joined JTG/Daugherty Racing, after he was appointed director of NASCAR Sponsorship and Marketing for the firm. After three years, he returned to Clorox Company.
“I’m truly honored to be at the forefront of shaping the future of the cannabis industry with The Parent Company,” Datcher said. “This is a tremendously strong company that is poised for continued growth and we have a unique opportunity to disrupt a sector that has disproportionately impacted communities of color – including my own – for far too long.”
He continued: “This is a chance to partner with cultural powerhouses like JAY-Z and Desiree Perez to rectify the wrongs of prohibition, eradicate antiquated laws and create a new cannabis infrastructure rooted in diversity, equity, and justice for our communities. Together, we can shape a legal cannabis industry that is reflective of our entire culture in California and beyond.”
The genesis of TPCO Holding Corp
Last year, Jay-Z launched his own cannabis brand called Monogram. He launched the brand in partnership with the largest vertically-integrated cannabis company in California, Caliva, a firm he served as the Chief Brand Strategist for in 2019.
He was then appointed as the chief visionary officer of Subversive Capital Acquisition Corp, a special-purpose company specialized in acquiring cannabis firms in California. Subversive Capital Acquisition Corp then acquired Caliva, which collaborated with Jay-Z to launch his cannabis firm.
The deal led to the creation of a new holding company, TPCO Holding Corp, and include $36.5 million of equity commitments from new and existing shareholders. Caliva and Left Coast Ventures expect combined revenues of $185m in 2020 and $334m in 2021.
The aim of these deals was to “both consolidate the California cannabis market and create an impactful global company” and assisting people jailed over cannabis-related offenses with training and job placements.
Jay-Z was brought on board to guide TPCO’s brand strategy and enlist other “leading artists and entertainers” to promote the business. He’ll leverage artists from his record label Roc Nation to help build and promote the newly-formed cannabis company.
Jay-Z will also lead TPCO’s investments in Black and minority-owned cannabis firms and its initiatives to ‘rectify the wrongs’ done when the drug was illegal.
It will seek to establish $10 million in funding and dedicate 2% of its annual net income to invest in cannabis businesses owned by Black people and other minorities and initiatives to promote justice reforms