The Parent Co. Sends 'Strong Signal' To Shareholders, Enters Into Lock-Up Agreements With Its Board And Leadership Team

TPCO Holding Corp. GRAM GRAMF, which is doing business as The Parent Company, said Friday that both its leadership team and board of directors agreed to extend the share lock-up period for an additional six months.

Based in San Jose, California, the company announced Friday that over 35 million shares, which account for roughly 36% of the issued common shares, will be locked up until January 28, 2022.

Under the deal, the following insiders agreed to lock up the common shares that they either directly own or over which they exercise control or direction: CEO Steve Allan, CFO Mike Batesole, Dennis O'Malley, COO and president of Caliva, CLO Colin Brown, CVO Shawn "Jay-Z" Carter as well as the company's entire board of directors, including Michael Auerbach, Carol Bartz, Al Foreman, Leland Hensch, Daniel Neukomm, Jeffry Allen, and Desiree Perez.

The insiders are not allowed to sell, swap, hedge, pledge, assign, transfer, hypothecate or otherwise dispose of any of the lock-up shares.

"I am pleased that the entirety of our Board and leadership team have agreed to extend our share lock-up period to send a strong signal to our shareholders, partners, and employees of our unwavering conviction and confidence in the long-term prospects of The Parent Company," Michael Auerbach, the company's chairman, said. "The combination of some of the most well-known brands and products, together with our state-wide distribution networks and an industry-leading balance sheet, makes us exceptionally well-positioned to execute on our growth and consolidation strategies to lead the California cannabis market and beyond."

The company also entered into buyback agreements with John Figueiredo, President of SISU, and two other employees to buy a portion of their shareholdings over a period of 3 months at the prevailing market price to fund their tax liabilities in relation to the SPAC Merger.

A Busy July

The company launched a new delivery hub in Chula Vista, California, reaching an additional 3.3 million residents in the greater San Diego area in mid-July, ahead of introducing its shoppable app for iPhone users.

Also, on the heels of revealing its intentions to purchase the West Hollywood-based dispensary for $11.5 million, The Parent Company opted to terminate a conditional agreement to invest $50 million in GH Group, Inc. via a private placement offering by Mercer Park Brand Acquisition Corp. BRND MRCQF. 

Price Action

The Parent Company's shares were trading 0.2934% higher at $4.10 per share at the time of writing.

Photo: Courtesy of Scott Graham on Unsplash