The Parent Company Strengthens California Retail Footprint

Rhea-AI Summary

TPCO Holding Corp. has acquired an operating retail dispensary in Ceres, California, expanding its coverage to approximately 65% of the state's population. The dispensary, known for its support of veterans and families with disabilities, enhances TPCO's distribution reach to an additional 1.7 million people. The acquisition is subject to standard closing conditions and regulatory approval. CEO Steve Allan emphasized the opportunity to broaden access to their products and improve delivery services.

Positive

• Acquisition of Ceres Dispensary increases state reach to 65% of California's population.
• Enhances distribution capability to 1.7 million additional residents.
• Supports brand rebranding and community commitments.

Negative

• Transaction terms undisclosed, leaving uncertainty regarding financial implications.
• Acquisition subject to customary closing conditions and regulatory approval, which could delay integration.

Acquires Operating Dispensary in Modesto Metro Area of California, Expanding State Coverage to 65%

SAN JOSE, Calif., Aug. 3, 2021 /PRNewswire/ - TPCO Holding Corp. ("The Parent Company'' or the "Company") (NEO: GRAM.U) (OTCQX: GRAMF), today announced that it has acquired an operating retail dispensary located in Ceres, California (the "Ceres Dispensary") from the owners of Jayden's Journey ("Jayden's"). Terms of the transaction were not disclosed and remain subject to customary closing conditions, including regulatory approval. The Company plans to rebrand the location at a later date.

Known for its advocacy for the veteran community and its support of families with children with disabilities, Jayden's has built a strong and loyal customer base in California's Central Valley. Located at 4030 Farm Supply Dr, Ceres, CA 95307, the Ceres Dispensary features large, open retail space to provide consumers with a unique and compelling shopping experience. The Ceres Dispensary increases the Company's distribution reach to a new 1.7 million people, improving the Company's state wide coverage to approximately 65% of California's population and now additionally servicing the area that extends from Antioch to Merced. Online orders for delivery through caliva.com, The Parent Company's on-demand direct-to-consumer platform are immediately available from this location.

"This is a fantastic opportunity to expand our reach and increase availability of our exceptional product selection and retail experiences to a broader potential audience of consumers and patients in California's Central Valley," said Steve Allan, Chief Executive Officer of The Parent Company. "This new location allows us to quickly access this important region and to drive future growth through the introduction of our robust delivery network. We look forward to building off the strong foundation that the team at Jayden's Journey has created while continuing to honor their commitments to the community."

About The Parent Company:
The Parent Company (TPCO Holding Corp.) (NEO: GRAM.U) (OTCQX: GRAMF) is California's leading vertically integrated cannabis company combining best-in-class operations with leading voices in popular culture and social impact. The Parent Company brings together global icon and entrepreneur Shawn "JAY-Z" Carter, entertainment powerhouse ROC NATION, California's leading direct-to-consumer platform CALIVA, and leading cannabis manufacturer, LEFT COAST VENTURES, to form a cannabis industry leader for the post-prohibition era. Chief Visionary Officer Shawn "JAY-Z" Carter, one of the most recognized and celebrated entrepreneurs of our time, guides The Parent Company's brand strategy in partnership with ROC NATION, the world's preeminent entertainment company with a roster of culture-making artists, athletes, and influencers. The brands we build together will pave a new path forward for a legacy rooted in equity, access, and justice.

For the latest news, activities, and media coverage, please visit www.theparent.co or connect with us on LinkedIn and Twitter.

Forward Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company's current expectations regarding future events. The words "will", "expects", "intends" and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.

Specific forward-looking information contained in this press release includes, but is not limited to, statements concerning The Parent Company's plan to drive future growth through the acquisition of the Ceres Dispensary. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading "Risk Factors" in The Parent Company's Annual Information Form dated March 25, 2021, which is available on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.

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SOURCE TPCO Holding Corp.

FAQ

What is the recent acquisition by TPCO Holding Corp.?

TPCO Holding Corp. has acquired an operating retail dispensary in Ceres, California.

How does the acquisition affect TPCO's market reach?

The acquisition expands TPCO's coverage to approximately 65% of California's population.

What is the address of the newly acquired dispensary?

The Ceres Dispensary is located at 4030 Farm Supply Dr, Ceres, CA 95307.

What are the expected benefits of the Ceres Dispensary acquisition?

It increases distribution to an additional 1.7 million people and enhances product availability.

Are there any risks associated with the acquisition of the Ceres Dispensary?

Yes, the acquisition is subject to regulatory approval, which may delay operations.