It is often said that Jay-Z does nothing small. Proof of that is his latest business move in the Cannabis market. The billionaire rap mogul and his cannabis company, The Parent Company, have acquired the Coastal Dispensary for a reported $56.2 million, with the additional option of equity in other stores bumping the deal up $9 million to a total price tag of $65 million.
Headquartered in Santa Barbara, the three-year old company—which operates five of six licensed locations spanning from West Los Angeles to Vallejo—has been a dominant player in the cannabis industry and is credited as being the second-largest operating retail dispensary in the state with an expanded reach to over 80% of its population.
“I am thrilled to add Coastal to our expanding retail network,” said Troy Datcher, chief executive officer of The Parent Company. “With strategically positioned locations in high-traffic, densely populated regions, Coastal enables us to significantly increase our reach to a broader potential audience of consumers with both in-person retail and delivery options. In just over four months, we have more than tripled our operating retail stores in California.”
The deal—pending approvals—is expected to be finalized in 2022 and would boost the company’s current retail store and delivery footprints to eleven and six, respectively.
Earlier this year, The Parent Company signed a $17 million deal to acquire four acres of licensed high-quality outdoor cannabis cultivation located in Sonoma County, California from a consortium of experienced cannabis farmers.