Two vertically integrated cannabis companies in California are consolidating.
TPCO Holdings, which operates as The Parent Co., and Gold Flora are merging in an all-stock deal, according to a Tuesday news release.
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Gold Flora shareholders will own 51% of the combined business and The Parent Co.’s will own the remaining 49%.
The combined company will be called New Parent and will operate as Gold Flora Corp.
Subject to approval, New Parent is expected to trade on Canada’s Neo Exchange and the over-the-counter markets.
Shares of TPCO Holdings currently trade as GRAMF on the OTC markets.
Gold Flora will also have access to a $5 million line of credit from The Parent Co at a 10% annual interest rate, secured by Gold Flora assets.
If the merger doesn’t go through, Gold Flora will have to pay the outstanding balance. If the merger is completed, the debt will
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