Troy Datcher joins Parent Co. from Clorox Co. where he most recently served as senior vice president and chief customer officer responsible for the company’s worldwide sales organization.
Datcher will be the first Black CEO to run a major publicly traded pot company. He begins the job Sept. 8, replacing current Chief Executive Steve Allan, who said he would assist with the leadership transition.
Allan will stay with Parent Co. and shift his focus to the company’s strategic partnerships and mergers and acquisitions. He will also run Parent Co.’s roughly $10 million social equity fund, which invests in Black-led cannabis businesses.
Datcher will focus on building the Parent Co. brand and marketing.
On Aug. 16, the company reported profit of $6.84 million on revenue of $54.2 million in its fiscal 2021 second quarter. This compares with profit of $19.8 million on sales of $39.9 million in the first quarter, the company’s first as a publicly traded company.
The San Jose-based company, which has one of the best balance sheets in the cannabis industry, also reported no debt and cash of $257 million in its second quarter ended June 30, a draw of slightly under $24 million from its first quarter.
“Our cash balance really is unprecedented for a cannabis company in California, and that provides us with more flexibility and opportunities to consolidate and invest in growth opportunities,” Allan said in an interview.
In July, Parent Co. agreed to purchase Calma West Hollywood for $11.5 million.
The Calma deal brings Parent Co.’s retail footprint in California to six establishments, including one in Bellflower and another in West Hollywood. Parent Co. also owns three delivery businesses in California — where the lion’s share of the company operates — with one of those delivery businesses located in Los Angeles County.
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.
Jay-Z owns roughly 5 million shares in Parent Co., which are valued at nearly $20 million. About 2 million of those shares were awarded to him as “chief visionary officer” to execute a brand strategy. The rapper’s remaining 3 million shares were awarded to him in 2019 when half of his cannabis line, Monogram, was acquired by Caliva.
