How a Jay-Z backed cannabis company went from $575 million in cash to a ‘debt death spiral’

https://www.sfgate.com/cannabis/article/jay-z-linked-california-pot-company-19941342.php

26 comments

  1. Tldr: spent way too much on marketing a product that was inferior and priced out of most people’s budgets 

  2. lol if they did an forensic audit I have no doubt we’d see quite a few people charged up on racketeering. This smells of capital vulture with a healthy dose of crime 

  3. I have first hand experience with this – and saw it coming the entire time 😆

  5. “You know i really need to break into that bell pepper game.”

    The only money in farming occurs at scale and with government assistance.

  6. TLDR if anyone should know the business lmao
    Yeah, likely laundering.

  8. A single joint was $50? They thought there was a market for that?

  10. I don’t think a lot of people realize how businesses work and run these days. Companies are being run like the company itself is the product. These venture capitalist come in on a decent business with a decent industry reputation, strip it of absolutely everything squeezing every ounce of value out of a company they can, run the business into the ground, declare bankruptcy, and move on to the next one. This went exactly how Jay-Z and his associates planned. Welcome to late stage capitalism

  11. Celeb status aside, a lot of pot companies rise and die within the same year they get famous. Theres notoriously razor thin margins and just a brutal competition 

  12. His only real success is scamming (sorry I meant finessing) Jack Dorsey into buying TIDAL for 300 million.

  14. If you can’t make a weed business work you gone fucked up.

  15. Joints that failed to stay lit for more than a minute that cost 50 bucks – lol

  16. Weed in the states is a fucked up industry atm. Federal legalization needs to happen. Though it does seem like management didn’t help much in this case.

  17. Crazy how Jay-Z who has no formal education doesn’t do business well. Who would’ve seen that coming. He’s one of the rap goats. Should just stay focused on that. Or venture out and do other things similar to that.

  19. Not being able to sell weed is crazy. It sells itself.

  21. Jay Z was paid $26 million for his likeness from TPCO. TPCO was burning a mil a day in operational losses before they got forced to merge with flora.

  24. $50 for a single joint? I better be so high that I don’t smoke for a week. I’m not a big enough Jay-Z fan for that price.

  26. Jay-Z is a great rapper but he has terrible business sense.

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