JAY-Z and his luxury cannabis company, Monogram, reportedly cut ties with its parent company, The Parent Company (TPCO) before it suffered a $575 million loss.
RELATED: Jay-Z Launches His Own Cannabis Line, ‘Monogram’
On Monday (December 2), San Francisco’s SFGATE reported that JAY-Z’s cannabis brand Monogram had a hopeful future when it launched in early 2020. The luxury weed line, founded by JAY-Z, born Shawn Carter, rolled out joints and cannabis flower.
However, four years later, JAY-Z’s luxury cannabis company Monogram has cut ties with its parent company, reportedly before it suffered a $575 million loss. According to SFGATE, at the time of publishing, Monogram’s website lists nine retailers where its products are sold (eight in California and one in Arizona), however, the retailers no longer appear to list Hov’s brand on their sites.
According to SFGATE, JAY-Z’s Monogram cannabis company, whose parent company is ironically called The Parent Company (TPCO), cut ties with the latter before experiencing a $575 million loss. Now, SFGATE first reported that TPCO hit the cannabis market in California with $575 million in cash and plans to take over the entire industry.
RELATED: Jay-Z’s 40/40 Club In NYC’s Flatiron District Closes Its Doors — Moving To New Location
In early 2020, TPCO, which was comprised of three existing cannabis corporations, went public and held 20 different retail brands, multiple grow houses, and a network of retail stores in California. At the time, TPCO’s executives nearly guaranteed massive success to its investors.
In November 2020, TPCO board member Michael Aurbach bragged to Weedweek about the company having $575 million in cash, noting that it was more money than any other company in the state had. Aurbach added, “We’re going to dominate and consolidate the market… It will be hard for any smaller player to compete with us.”
JAY-Z soon became the Chief Visionary Officer at TPCO and his cannabis company, Monogram, became TPCO’s luxury weed line, offering pricey pre-rolled joints and cannabis flower. One joint sold at $50 while other companies often sold at $5. According to GQ, Monogram said their products were pricey because they were hand-rolled with premium cannabis, but the publication said the joints wouldn’t stay lit for “more than a few seconds.”
RELATED: Eve Addresses Viral Excerpt In Memoir About JAY-Z Warning Her About Failed Female Rappers Amid Her Debut: ‘He Didn’t Say It Out Of Malice, I Used It As Motivation’
According to its SPAC listing, TPCO expected to pull in $334 million in revenue within its first year of launching, however, like many other cannabis companies in the California market, it failed to achieve that much success. In 2022, TPCO reported a whopping $587 million net loss, reportedly due to overvaluing some of its acquired brands, like Monogram.
In 2023, TPCO was forced to merge with another California cannabis company named Gold Flora to remain afloat. In the merger, TPCO grabbed a 49% share of the newly formed corporation, meaning they are now a minority owner in its own company, essentially being absorbed by Gold Flora.
Before the 2023 merger, SFGATE reported that in December 2022, JAY-Z and his luxury line of cannabis, Monogram, cut ties with The Parent Company (TPCO). According to Gold Flora’s stock filings, Monogram separated itself from TPCO and is now owned by a separate LLC (Limited Liability Company).
RELATED: Ludacris Claims He Would Beat JAY-Z In A Rhyme Writing Contest: ‘In Terms Of Flow, I’m Going To Kill That Sh*t’
It’s also reported that Gold Flora is financially hurting, reporting over $56 million in loss as of December 2024. However, they still have the exclusive rights to sell Monogram products in California, although it’s unclear if they are still actively selling them.
According to Seth Yakatan, a cannabis investor and advisor to several California cannabis companies, TPCO was spending “mind-boggling” amounts of money while still in motion and they had hoped to recoup their spending with JAY-Z’s luxury line of cannabis products, Monogram, which reportedly “failed to live up to the hype.”
Yakatan, like GQ, said Monogram’s so-called luxury products received “universally negative” reviews. Yakatan added, “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.”
RELATED: Candace Owens Continues To Come For Beyoncé After Kamala Harris Endorsement Allegations: ‘People Find Her And JAY-Z To Be Annoying Now, She Doesn’t Know What It Means To Be Authentic Anymore’
#Socialites, be sure to check out the post below, then leave us your thoughts in a comment after!
