Parent Co. made a Form 10 filing with the Securities and Exchange Commission Aug. 10, typically viewed as a first step to register a class of securities for potential trading on a U.S. stock exchange, either the New York Stock Exchange or Nasdaq Stock Market.
The move to list on a U.S. stock exchange is a significant step for the cannabis business, and Parent Co. is considered one of the first to do so.
“With support of legalization of cannabis at the federal level rising across the country, we are exceptionally well positioned with strong, highly visible consumer brands and an innovative product offering to leverage the success we have achieved in California and lead the national cannabis opportunity,” Michael Auerbach, chairman of San Jose-based Parent Co., said.
The cannabis company trades on the NEO Exchange, a Canadian stock exchange based in Toronto.
The Form 10 filing disclosed 2021 compensation for Chief Executive Steve Allan, Chief Financial Officer Mike Batesole and Chief Operating Officer Dennis O’Malley. Allan, Batesole and O’Malley are to receive a base salary of $375,000, $300,000 and $350,000, respectively, according to the filing.
Parent Co. also disclosed plans recently to end its $50 million stake in Toronto-based Mercer Park Brand Acquisition Corp., a blank-check company going public and merging with Long Beach-based Glass House Group in a $567 million deal. Glass House Group is the state’s largest cannabis producer.
In July, Parent Co. agreed to purchase Calma West Hollywood for $11.5 million. The purchase is set to close in the third quarter. The Calma acquisition brings Parent Co.’s retail footprint in California to five establishments, including two in San Jose and two in Los Angeles County — one in Bellflower and the other in West Hollywood once the deal closes.
Parent Co. came together in January when TPCO Holding Corp., formerly Subversive Capital Acquisition Corp., closed its acquisition of CMG Partners Inc., or Caliva, and Left Coast Ventures Inc. The deal created what Parent calls one of the best capitalized cannabis companies in the United States.
