Jay-Z is reportedly no longer affiliated with The Parent Company, which suffered significant revenue losses starting in 2022.
In 2020, the rap mogul, born Shawn Carter, launched his luxury cannabis brand Monogram under The Parent Company, where he served as chief visionary officer, mentions Lawyer Monthly. Its flagship product, the OG Handrolls, was priced at $50, with the full lineup of strains primarily available at eight California-based dispensaries, including Caliva, Coastal, and Zen Garden, as well as an Arizona dispensary called Ponderosa.
However, since then there appears to be trouble in paradise for both Monogram and The Parent Company. SFGATE mentions Monogram’s pricing did not fair well for cannabis consumers, especially since its products were marketed as high-end and premium.
“Like many other things we’ve seen in cannabis surrounding rappers, the hype hasn’t met the reality. Monogram was supposed to be an ultra-premium product, and I don’t know anyone who tried it and thought it was anything more than mid-tier,” Seth Yakatan, a cannabis investor and advisor, told SFGATE.
Furthermore, the company’s products are also no longer listed on the websites of the retailers that previously marketed and sold them, notes the outlet.
As for The Parent Company, which portfolio companies included Monogram, Caliva, Mirayo by Santana, Fun Uncle, and Deli as of January 2023, it appears it over-projected its success as the company expected to earn $334 million in 2020 after receiving $575 million in initial funding. However by 2022, it reportedly had a net loss of $587 million and its stocks took a dive. To remain afloat, it merged with Gold Flora in 2023, resulting in The Parent Company becoming a minority owner in its own company with a 49% stake, according to SFGATE.
So far in 2024, Gold Flora has reportedly lost more than $56 million, and its debt exceeds $63.5 million.
As for Jay-Z’s current involvement, it appears he has severed financial ties with The Parent Company.
“Jay-Z stepped away years ago and it just went up in a mess,” a source familiar with the matter stated, according to Complex.
As part of a restructuring of Jay-Z’s relationship with the company, Roc Nation returned approximately 7.1 million common shares of The Parent Company, per a press release. However, he and his affiliates will continue to collaborate with the company on brand strategy and philanthropic efforts, and the company was given the exclusive rights to commercialize Monogram products in California for eight years.
