A San Jose, Calif.-based cannabis grower and dispensary got a big profile boost. Billionaire rapper and businessman Jay-Z announced that he will be joining Caliva as a brand strategist. Jay-Z said is cited in a Bloomberg report as saying:
“Anything I do, I want to do correctly and at the highest level. With all the potential in the cannabis industry, Caliva’s expertise and ethos make them the best partners for this endeavor. We want to create something amazing, have fun in the process, do good and bring people along the way.”
Cannabis stocks had a terrible June. But things might be looking up for the cannabis industry with another big- name brand partnership.
When the hip hop media mogul famously punned, “I’m not a businessman, I’m a business, man,” it was no idle flex. Jay-Z (whose real name is Shawn Carter) appeared on the 2010 Forbes 400 special edition next to Warren Buffett. The caption said “He’s number 2 on the list,” pointing to Buffett, and “He’s on his way there,” pointing to Carter. His foray into legal marijuana should give cannabis stocks a major boost.
Jay-Z’s creativity and valuable celebrity status aren’t the only assets that he adds to the pot. As the chief brand strategist for Caliva, Jay-Z is taking a socially conscious approach to the marijuana business.
There’s no doubt the joint partnership is aimed at bringing social justice to those who’ve faced incarceration as well as profits to the San Jose cannabis company.
Although Jay-Z is a billionaire, he’s looking out for the little people. Caliva says the celebrity partnership will emphasize:
“…economic participation of citizens returning from incarceration – many of who are not seeing the monetary benefits of legalization – through advocacy, job training, and overall employee and workforce development.”
Caliva is privately owned. New Cannabis Ventures called it “California’s most trusted cannabis brand” in January when Caliva raised $75 million in an initial round of private funding. The company currently operates a cannabis farm and two stores in Northern California.
But Jay-Z’s partnership with Caliva may give a much-needed boost to cannabis stocks after a miserable June. Capping off its month-long losing streak, cannabis stocks were dragged down this week by CannTrust. This Monday, CannTrust Holdings (CTST) continued the losses when its shares fell in value almost 22.6%
Other cannabis stocks that aren’t so dank these days include HEXO, which was down 17% over June, Origin House which lost 15%, and OrganiGram Holdings, which suffered an 11% drop in its share prices over the last month.