TPCO Holding Corp. (NEO: GRAM), also known as The Parent Company, announced today that it has entered into a definitive agreement to acquire California retail dispensary and delivery operator Coastal Holding Company. The transaction is reported to be for a total consideration of $56.2 million on a cash and company share deal.

Under the terms of the agreement, the cannabis firm agreed to acquire 100% of Coastal, including the latter’s six retail locations and two delivery depots. The acquisition price consists of $16.2 million in cash, $20 million in The Parent Company common shares contingent upon signing management services agreements, and $20 million more in shares contingent upon the successful transfer of cannabis licenses.

The agreement also gives the company Coastal’s minority stake in a Southern California dispensary. The Parent Company also has the option to acquire the remaining equity of the dispensary for $9 million.

“With strategically positioned locations in high-traffic, densely populated regions, Coastal enables us to significantly increase our reach to a broader potential audience of consumers with both in-person retail and delivery options,” said The Parent Company CEO Troy Datcher.

The company further relayed that the acquisition will increase its current California retail store and delivery depot footprints to eleven and six, respectively, claiming a reach of “over 80% of California’s population”.

The Parent Company last traded at $3.22 on the NEO.

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