Caliva And Left Coast Ventures Merge, Forming New Company Backed By Jay-ZDecember 1, 2020
California cannabis players Caliva and Left Coast Ventures have entered an agreement with Subversive Capital Acquisition Corp., a special purpose acquisition company, to be acquired into a new entity called The Parent Company. Along with Caliva and Left Coast, the company is also partnering with rapper and cannabis entrepreneur Jay-Z and live events company Roc Nation.
Subversive Capital will directly purchase each share of Caliva stock in order to merge it into a wholly-owned subsidiary, with the transaction paid in stock and valued at $283 million. In Left Coast Ventures’ case, a similar maneuver will take place, valued at an additional $142.2 million. Caliva president Steve Allan will become CEO of The Parent Company, while Caliva CEO Dennis O’Malley will become COO and president. Left Coast CEO Brett Cummings will be CFO of the new company, and Jay-Z will serve as chief visionary officer.
The transaction is expected to close in January 2021. Subversive Capital estimates that Caliva and Left Coast’s combined pro forma revenue will total $185 million this year and $334 million next year.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.
Tagged : cannabis