TPCO Holding Corp (The Parent Company (OTCQX:GRAMF, NEO:GRAMU)) says a group of insiders have voluntarily entered into lock-up agreements with regards to an aggregate of over 35 million shares of common stock, or around 36% of the total issued and outstanding shares of common stock.
The California-based cannabis company said the lock-up went into effect Wednesday, July 28, 2021.
As part of the agreement, the holders will “lock up the common shares that they directly own or over which they exercise control or direction through January 28, 2022.”
READ: The Parent Company launches upgraded cannabis shopping app on Apple's App Store
The lock-up agreements stipulate that the stockholders will not sell, pledge, assign, transfer, hypothecate or otherwise dispose of any of the lock-up shares, or enter into any swap, hedge or engage in any short-selling of the lock-up shares, in addition to other restrictions.
According to the statement, the insiders are comprised of select members of The Parent Company (OTCQX:GRAMF, NEO:GRAMU)'s leadership team, including: Steve Allan, CEO, Mike Batesole, CFO, Dennis O'Malley, COO and President of Caliva, Colin Brown, CLO, Shawn "JAY-Z" Carter, CVO and the entire Board of Directors - Michael Auerbach, Carol Bartz, Al Foreman, Leland Hensch, Daniel Neukomm, Jeffry Allen, and Desiree Perez.
To date, the insiders have not sold any common shares of the company that they directly own or over which they exercise control or direction.
"I am pleased that the entirety of our board and leadership team have agreed to extend our share lock-up period to send a strong signal to our shareholders, partners, and employees of our unwavering conviction and confidence in the long-term prospects of The Parent Company,” Michael Auerbach, Chairman of The Parent Company said in the statement.
“The combination of some of the most well-known brands and products, together with our state-wide distribution networks and an industry-leading balance sheet makes us exceptionally well positioned to execute on our growth and consolidation strategies to lead the California cannabis market and beyond."
Additionally, TPCO also gave an update regarding US employee buyback agreements with John Figueiredo, President of SISU, and two other employees, who had previously entered into automatic share disposition plans on March 16, 2021.
The employee plans were originally entered into for the purpose of covering tax obligations, which resulted from the acquisition of SISU in connection with the company's qualifying transaction.
Under the terms of the buyback agreements, TPCO will provide for the purchase of a portion of the employees' shareholdings over a period of three months at the prevailing market price, for the sole purpose of funding the employees' tax liabilities.
During the term of the buyback agreements, the employees have agreed to enter into lock-up agreements for their remaining shareholdings, which are not impacted by the buyback agreement.
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