Coastal Holdings Company, a Santa Barbara-based cannabis dispensary and delivery operator, was purchased by The Parent Company, a publicly traded cannabis firm backed by the rapper Jay-Z, in a deal worth as much as $56.2 million.
According to details of the transaction, which The Parent Company announced Oct. 4, The Parent Company is seeking to acquire 100% equity in Coastal for $16.2 million in cash, $20 million in stock, contingent upon signing management services agreements at each Coastal location, and another $20 million in stock contingent upon the successful transfer of Coastal’ s cannabis licenses.
The Parent Company will also inherit a minority stake in another Southern California dispensary and an option to purchase the remainder of that dispensary for $9 million in cash, $4.5 million of which was prepaid upon execution of the prior contingents, according to the press release.
The deal is expected to close sometime in 2022.
“I am thrilled to add Coastal to our expanding retail network,” Troy Datcher, CEO of The Parent Company, said in a news release. “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