Roc Nation Stock Deal: Parent Company Restructures Partnership to Save $33.5M, Returns 7.1M Shares

The Parent Company (NEO: GRAM.U, OTCQX: GRAMF), a California-based cannabis leader, has finalized a restructured partnership agreement with Roc Nation LLC and SC Branding, fundamentally reshaping the relationship while protecting shareholder interests. The reconfigured arrangement delivers substantial financial benefits: approximately $33.5 million in cost savings over eight years and the return of 7.1 million common shares that had previously been issued—a strategic move designed to preserve shareholder value and reduce future equity dilution.

Key Financial and Ownership Changes

Under the revised terms, Roc Nation and affiliated entities under Shawn “JAY-Z” Carter’s leadership will forgo future equity and cash payments from The Parent Company. In exchange, they maintain their position as substantial shareholders while maintaining operational involvement. This recalibration eliminates approximately $33.5 million in top-line financial commitments over the eight-year period, a critical shift for the company’s financial trajectory.

The agreement specifically addresses the Monogram brand portfolio. Ownership will transfer to SC Branding and its affiliates, while The Parent Company secures an exclusive, royalty-free eight-year license to commercialize Monogram products throughout California. This arrangement covers all existing Monogram products and form factors, with rights to expand into future SKUs with partner approval.

Strategic Partnership Continuity and Social Equity Focus

Despite the financial restructuring, the partnership framework remains substantive. Roc Nation will continue introducing The Parent Company to potential artist and partner collaborations, supporting brand innovation and market development. Desiree Perez, CEO of Roc Nation, and Dania Diaz, Managing Director of Philanthropy at Roc Nation, retain their advisory positions on the Company’s social equity ventures committee.

Both entities are doubling down on cannabis industry social equity initiatives, focusing on dismantling barriers to entry for entrepreneurs in historically marginalized communities. The partnership aims to create meaningful opportunities for minority-led businesses within the multibillion-dollar legal cannabis sector.

Executive Perspectives on the Restructuring

Shawn “JAY-Z” Carter emphasized the mutual benefit: “We have agreed to restructure our partnership to afford The Parent Company the best opportunity to execute a longstanding and successful strategy. We are excited for the continued growth of The Parent Company and our future together in the cannabis industry.”

Troy Datcher, CEO and Chairman of The Parent Company, highlighted the operational advantages: “This arrangement significantly reduces our ongoing financial commitments and protects shareholders from future dilution while transforming our business into a platform for future brand collaborations. As we prepare our Company for potential national exposure, I’m thrilled with the innovative brand developments we expect to roll-out in the coming months.”

Desiree Perez added strategic perspective: “This collaborative approach puts us in a more versatile position to address social equity issues and create better opportunities for multicultural business leaders. Our hope is that we’ll be collectively poised to create comprehensive and longstanding change across the cannabis industry.”

About The Parent Company

The Parent Company operates as a vertically integrated California cannabis enterprise with twelve retail locations, one delivery hub, and a portfolio spanning Monogram by Shawn “JAY-Z” Carter, Caliva, Mirayo by Santana, Fun Uncle, and Deli brands. The company’s social equity venture fund targets systematic barriers and provides minority entrepreneurs with meaningful growth and leadership pathways in the legal cannabis industry.