Before suffering a $575 million loss, Jay-Z reportedly broke off his relationship with a cannabis company.

The hip-hop icon and his firm haven’t been associated with The Parent firm in a few years, despite the widespread assumption that the two are connected due to the latter’s severe collapse.

According to TMZ, a source disclosed

“It just went up in a mess after Jay-Z stepped away years ago.” Since December 2022, they have been legally split, and another LLC now owns The Parent Company.

It was recently revealed that The Parent Company was experiencing severe financial difficulties. According to reports, the firm lost $587 million in 2022. This is after it was predicted to make over $300 million in its first year in 2020 and had $575 million in capital before it spent it all.

Three distinct cannabis companies merged to become The Parent Company, which went public in 2020. With his Monogram brand’s joints serving as the company’s main luxury product, Jay-Z was appointed Chief Visionary Officer.

With the “OG Handrolls” strain of marijuana costing $50 each, issues arose almost immediately. Given that the typical cannabis user may find a standard joint for as little as $5, it is pricey.

“The hype hasn’t lived up to the reality, much like a lot of other things we’ve witnessed in the cannabis industry with rappers. Seth Yakatan, a cannabis investor, told SFGate that Monogram was intended to be an ultra-premium product. He added, “I don’t know anyone who tried it and thought it was anything more than mid-tier.”

To keep afloat, The Parent Company partnered with Gold Flora, another cannabis business in California, in 2023. By acquiring just 49% of the new firm, the Parent Company became a minority stakeholder in its own business.

In addition, Gold Flora is coping with its problems. It has more than $63.5 million in debt and has reported losses of more than $56 million in 2024 thus far.

Whatever you want to say about Jay-Z, he knows when to get out before the trouble starts in the world of business.