# EDGAR Filing Document

**Accession Number:** 0001876945
**File Stem:** 0001654954-23-004141
**Filing Date:** 2023-3
**Character Count:** 49134
**Document Hash:** 9cc03a78161e0726252bdedc100f0d5f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-004141.hdr.sgml**: 20230331

**ACCESSION NUMBER**: 0001654954-23-004141

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 19

**CONFORMED PERIOD OF REPORT**: 20230331

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230331

**DATE AS OF CHANGE**: 20230331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TPCO Holding Corp.
- **CENTRAL INDEX KEY:** 0001876945
- **STANDARD INDUSTRIAL CLASSIFICATION:** AGRICULTURE PRODUCTION - CROPS [0100]
- **IRS NUMBER:** 981566338
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56348
- **FILM NUMBER:** 23789330

**BUSINESS ADDRESS:**
- **STREET 1:** 1550 LEIGH AVENUE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95125
- **BUSINESS PHONE:** 647-823-9692

**MAIL ADDRESS:**
- **STREET 1:** 1550 LEIGH AVENUE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95125

?xml version="1.0" encoding="utf-8"?tpco_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 8-K** 

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934** 

**Date of report (Date of earliest event reported): March 31, 2023**

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| |
|:---|
| **TPCO Holding Corp.**  |
| **(Exact name of registrant as specified in its charter)**  |

---

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| | | |
|:---|:---|:---|
| **British Columbia, Canada** | **0-56348** | **98-1566338** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

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| | |
|:---|:---|
| **1550 Leigh Avenue, San Jose, California** | **95125** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (669) 279-5390** 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☒ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange**<br>**on which registered** |
| **N/A** | **N/A** | **N/A** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02 Results of Operations and Financial Condition.**

On March 31, 2023, TPCO Holding Corp. (the "Company") issued a press release announcing its financial results for its fiscal quarter and year ended December 31, 2022. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K.

The information provided under this Item (including Exhibit 99.1) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

Effective March 31, 2023, the Company promoted Rozlyn Lipsey from Executive Vice President of Operations to Chief Operating Officer. The promotion qualifies Ms. Lipsey as a principal operating officer of the Company under applicable securities laws.

Ms. Lipsey brings 9 years experience in cannabis and over 25 years of forming and scaling operating companies in the agricultural, construction, and manufacturing and distribution spaces. As Chief Operating Officer, Ms. Lipsey will oversee all operations including cultivation, manufacturing, distribution, procurement, strategic sourcing and wholesale. Prior to joining the Company in June 2022 as Executive Vice President of Operations, Ms. Lipsey was President and Managing Partner of a vertically integrated cannabis company that sold its assets in Arizona to MedMen Enterprises Inc. ("**MedMen**") in 2018. This transaction brought Ms. Lipsey to MedMen, where she served from January 2019 to May 2022 , most recently served as Chief Operating Officer .

Ms. Lipsey began her career in the Foreign Agricultural Service , responsible for the analysis of the cotton and textile complex in Central Asia . This led to her role as the Director of Business Development for an international, vertically integrated cotton processing and trading company, Anderson Clayton.

Ms. Lipsey moved into the President and COO role in the Jokake Companies, a family investment office, where she managed a $30 million revenue farming, residential, and commercial property for strategic divestment with a large private equity fund; built, scaled and successfully divested a calcium carbonate manufacturing company (Superior Marble) serving the building materials industry; diversified and scaled a $100 million commercial contracting firm (Jokake Construction) and successfully transitioned its first generation ownership; and co-founded a national chemical distribution company (ProKure 1) focused on commercial remediation companies and cannabis cultivators.

Ms. Lipsey holds an undergraduate degree in Economics from Allegheny College and a Master of Business Administration from Kent State University. Ms. Lipsey is 52 years old.

Ms. Lipsey has an annual base compensation of $300,000. She participates in the Company's Annual Incentive Plan with a 50% of annual base pay bonus target. Annual Incentive Plan awards are based on achieving business metrics as set by the board of directors of the Company (the "**Board**") and individual performance. Annual Incentive Plan awards are distributed on a discretionary basis at the discretion of the Board. Ms. Lipsey participates in the TPCO equity plan and is eligible for annual RSU grants, both time and performance-based grants, subject to Board approval. In the event of termination as a result of the Company eliminating Ms. Lipsey's position for reasons not attributable to performance, Ms. Lipsey will be entitled to (a) continuation of base salary for six months following the effective date of termination, (b) payment by the Company of the employer portion of medical insurance for a period of six months following the effective date of termination provided Ms. Lipsey pays for the employee contribution portion of such insurance and (c) to receive a pro rata portion of targeted Annual Incentive Plan award (collectively, "Severance"). Payment of any Severance is subject to Ms. Lipsey's execution and non-revocation of a general release of claims in a form reasonably acceptable to the parties and continued compliance with post-employment confidentiality covenants.

The description of Ms. Lipsey's compensation is qualified in its entirety by reference to her Employment Offer letter and the first amendment thereto, which are filed as Exhibits 99.1 and 99.2, respectively, to this Current Report and are incorporated herein by reference.

There are no arrangements or understandings between Ms. Lipsey and any other person pursuant to which Ms. Lipsey was selected to be Chief Operating Officer. There are no family relationships between Ms. Lipsey and any of the Company's directors or other executive officers, and Ms. Lipsey is not a party to any transaction, or any proposed transaction, required to be disclosed pursuant to Item 404(a) of regulation S-K.

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(d) Exhibits***

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](tpco_ex991.htm) | [Press Release dated March 31, 2023](tpco_ex991.htm) |
| [99.2](tpco_ex992.htm) | [Rozlyn Lipsey Employment Offer from TPCO US Holding LLC dated May 10, 2022](tpco_ex992.htm) |
| [99.3](tpco_ex993.htm) | [First Amendment to Offer of Employment between Rozlyn Lipsey and TPCO US Holding LLC dated February 3, 2023](tpco_ex993.htm) |
| 104 | Cover page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: March 31, 2023

---

| | |
|:---|:---|
| TPCO HOLDING CORP. | TPCO HOLDING CORP. |
| By: | /s/ Mike Batesole |
| Name: | Mike Batesole |
| Title: | Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](tpco_ex991img1.jpg)

**The Parent Company Reports Preliminary Fourth Quarter and Full Year 2022 Financial Results**

*Reports 2% sequential and 5% annual revenue growth* 

*Cost savings initiatives generated a 10% improvement in quarterly adjusted EBITDA loss* 

*FY 2022 gross profit grew 99.8% driving annual gross margin to 31%* 

*Maintained strong cash balance of $93.7 million at year end*

*Revised strategic arrangement with Roc Nation to preserve approximately $33.5 million of cash*

*Proposed transformational merger of equals with Gold Flora to create a leading vertically integrated operator in the world's largest cannabis market*

*Conference call to be held March 31, 2023, at 9:00 a.m. ET*

SAN JOSE, Calif., March 31, 2023 - TPCO Holding Corp. ("The Parent Company" or "the Company") (NEO: GRAM) (OTCQX: GRAMF), a leading consumer-focused California cannabis company, today announced, its preliminary (unaudited) financial results for the three- ("Q4 2022") and twelve- ("FY 2022") month periods ended December 31, 2022. All amounts are expressed in U.S. dollars.

**Q4 and FY 2022 Financial Highlights**

· Q4 and FY 2022 net sales from continuing operations were $20.0 million and $83.6 million respectively (excluding bulk wholesale business which is shown as discontinued operations)

· Gross profit from continuing operations was $6.7 million, or 33% of net sales in for Q4 2022 and $26 million, or 31% of net sales in FY 2022.

· Q4 2022 net loss from continuing operations was $41.0 million and a FY 2022 net loss of $237.7 million.

· Adjusted EBITDA loss from continuing operations was $14.4 million in Q4 2022 and $71.8 million in FY 2022, respectively. Adjusted EBITDA removes the effects of changes in fair value of financial instruments, impairment charges, and other non-cash items.

· Cash and cash equivalents totaled $93.7 million as of December 31, 2022.

**Quarterly Highlights and Subsequent Events**

· Entered into a revised strategic arrangement with Roc Nation LLC ("ROC") and SC Branding, LLC ("SC Branding") under which approximately 7.1 million common shares were returned to the Company, and approximately $33.5 million in top-line costs are expected to be saved over an eight-year period. Additionally, The Parent Company secured an exclusive and royalty-free eight-year license to commercialize Monogram in California.

· Announced that the Company had entered into a definitive business combination agreement (the "Merger Agreement") with Gold Flora, another leading vertically-integrated California cannabis company, to combine in an all-stock merger. The proposed combined company is expected to be strongly positioned as a top 10 brand portfolio by revenue in California, with 20 retail stores by the end of 2023, 12 house brands and broad state-wide coverage. It is expected the combined company, with its comprehensive vertical integration, would achieve between $20-$25 million annualized cost savings, through benefits such as enhanced scaled and supply chain optimization. Details regarding the Merger Agreement, including the strategic benefits and rationale, can be found in the Company's press release dated February 22, 2023.

![](tpco_ex991img1.jpg)

· Extended the Company's license agreement with Mirayo by Santana, a line of premium cannabis products curated by ten-time GRAMMY award-winning guitarist and longtime cannabis advocate Carlos Santana.

o In May 2023, Mirayo is expected to introduce its new line of solventless 10mg hash rosin gummies made with all-natural ingredients, which will be available in flavors like Guava, Prickly Pear and Raspberry at the Company's retail locations across California.

· Launched Cruisers, a new all-FUN, no-frills brand that puts consumers first and offers everyday value on premium cannabis products. Cruisers combines the Company's existing brands, Fun Uncle and DELI, streamlining these top-performing products into a single consumer-centric destination. By skipping the doldrums of the daily grind, Cruisers transports consumers to that carefree place where the bowl is always full.

· Enrolled four participants in the Company's Social Equity Ventures ("SEV") Brand Success Program. CRONJA, Substance & Skewville, Peakz, and Disco Jays by MAKR House will participate in the 12-week program implemented to provide minority-owned brands with guaranteed shelf space and individualized mentorship from the Company's sales, marketing, retail, and operational teams. These brands will learn best practices, operational procedures, and tips that can be applied to any retail outlet nationwide to provide them with the knowledge and opportunity to scale their business, increase brand awareness, build customer loyalty, and expand their retail presence.

· Further strengthened the Company's senior management team with the appointment of Roz Lipsey to the role of Chief Operating Officer, effective March 31, 2023.

**Management Commentary**

"Transforming our business to emerge as a leader in California, as well as a world class brand builder has been our guiding principle throughout 2022," said Troy Datcher, Chief Executive Officer, and Chairman of The Parent Company. "To achieve this, we took decisive action and focused the organization company on our strongest and most profitable assets. This focus improved our cost structure, with additional benefit to be realized as we move through the year, significantly improving annual gross margin to 30% compared with only 16% for 2021. I am encouraged by the initial results of our actions and would like to thank our team for their commitment to achieving our goals. We operate in one of the most dynamic and exciting cannabis markets in the world and we must remain nimble and pivot where appropriate to create a more efficient and simplified business to remain competitive."

Mr. Datcher, continued, "Earlier this year we announced, in partnership with Roc Nation, that we have restructured our strategic arrangement to significantly reduce our financial commitments and eliminate future dilution for our shareholders while maintaining our successful collaboration."

Mr. Datcher added, "Leading the way with innovation and exceptional consumer products, we recently extended our valued partnership with Mirayo by Santana. The authenticity and genuine commitment to delivering the highest-quality products is why Mirayo is a perfect fit in our brand portfolio. We're investing in these types of relationships to connect with consumers and deliver products that meet their needs and we look forward to introducing several new brand developments to drive consumer engagement in the coming months."

![](tpco_ex991img1.jpg)

Mr. Datcher, concluded, "We entered 2023 on solid footing, and expect to see the results of the significant work our team has done continue to positively impact our financials in the first half of the year. Our newly streamlined operations have provided us with the opportunity to take the next step in our evolution through our recently announced transformative agreement with Gold Flora. Together, our business will have the scale, cultivation capabilities, brand portfolio, and capital resources to execute on our mission to create brands and a retail experience that consumers love. The opportunity ahead of us in California is significant and the time is right to bring together two operators that can extract value along each step of the supply chain, capture more margin to drive profitability, and deliver further value to our shareholders."

**Optimization and Long-term Profitability Initiatives** 

The Company has implemented numerous strategic initiatives to build a foundation for growth and accelerate its pathway to profitability, while preserving the strength of its balance sheet. It is anticipated that these initiatives will increase gross margins while enabling the Company to focus and invest in the development of its strong brands and its omni-channel retail business. The Company anticipates that the financial impact of the strategic decisions made throughout 2022 will be realized within the first half of 2023.

Throughout FY 2022, the Company has taken meaningful steps to reduce structural overhead costs, and drive efficiencies by optimizing its operations, resulting in:

· Achieving annualized expense savings of approximately $13.6 million.

· A workforce reduction of 40% as of December 31, 2022, representing an estimated $17 million reduction in annualized base payroll expense.

· Outsourced product manufacturing to third-party processors which the Company expects will achieve an average of 27% cost savings on these products.

· Divesture of the Company's non-strategic wholesale extraction division.

· Optimized its delivery depot footprint to realize the benefits of the newly allowable increase in delivery "case pack value", which enabled the Company to increase the geographic area that can be covered by a vehicle and dispose of certain redundant delivery locations. These dispositions resulted in approximately $500,000 in gross sale proceeds and annual cost savings of approximately $1.8 million.

**Q4 and FY 2022 Financial Results**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *in thousands* | **Q4 2022** | Q3 2022 | **QoQ%**<br> **Change** | Q4 2021 | **YoY%**<br> **Change** | **FY 2022** | **FY 2021** | **YoY%**<br> **Change** |
| Net Sales<sup>(1)</sup> | $19963 | $19560 | *2.0 %* | $24540 | *-19 %* | $83637 | $79925 | *4.6 %* |
| Gross Profit | $*6652* | $6618 | *0.5 %* | $*1408* | *373 %* | $26010 | $13018 | *99.8 %* |
| &nbsp;&nbsp;&nbsp;&nbsp; *Gross Margin* | *33 %* | *34 %* |  | *6 %* | \* | *31 %* | *16 %* | *\** |
| Net loss and comprehensive loss | $(41036) | $(134620) |  | $(53200) | \* | $(237700) | $(498326) | *\** |
| Adjusted EBITDA  | $(14406) | $(15936) | *-9.6 %* | $(28110) | \* | $(71793) | $(65684) | *\** |

---

<sup>(1)</sup> All amounts above from continuing operations

\* Information is not meaningful.

The Company's consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations ("MD&A") have been included in its Annual Report on Form 10-K filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to The Parent Company's MD&A for additional detail and discussion on the Company's results from operations.

![](tpco_ex991img1.jpg)

**Conference Call**

The Parent Company will host a conference call today, March 31, 2023, to discuss these results. Troy Datcher, Chief Executive Officer, and Mike Batesole, Chief Financial Officer will host the call starting at 9:00 a.m. Eastern time. A question-and-answer session will follow management's prepared remarks.

---

| | |
|:---|:---|
| **CONFERENCE CALL DETAILS** | **CONFERENCE CALL DETAILS** |
| DATE: | Friday, March 31<sup>st</sup>, 2023 |
| TIME: | 9:00 a.m. Eastern Time  |
| WEBCAST: | <u>Click Here</u> |
| DIAL-IN NUMBER: | 1 (647) 484-0475 or 1 (888) 256-1007 |
| CONFERENCE ID: | 5520988 |
| REPLAY:<br>| 1 (647) 436-0148 or 1 (888) 203-1112 <br> Available until 12:00 midnight Eastern Time Friday, April 7, 2023<br> Replay Code: 5520988 |

---

Financial results and analyses are also available on the Company's website (<u>ir.theparent.co</u>).

**About The Parent Company**

The Parent Company is a leading consumer-focused, vertically integrated cannabis company with twelve retail locations, one delivery hub and a curated product portfolio, including Monogram by Shawn "JAY-Z" Carter, Caliva, Mirayo by Santana and Cruisers.

The Parent Company is committed to leveraging its status to help build a more equitable cannabis industry. Its social equity venture fund aims to eliminate systematic barriers to entry and provide minority entrepreneurs with meaningful participation, growth, and leadership opportunities in the multibillion-dollar legal cannabis industry.

Shares of The Parent Company common stock are traded on NEO Exchange under the ticker symbol "GRAM" and on the OTCQX under the ticker symbol "GRAMF."

For the latest news, activities, and media coverage, please visit www.theparent.co or connect with us on <u>Instagram</u>, <u>LinkedIn</u>, and <u>Twitter</u>.

References to information included on, or accessible through, websites and social media platforms do not constitute incorporation by reference of the information contained at or available through such websites or social media platforms, and you should not consider such information to be part of this press release.

![](tpco_ex991img1.jpg)

**Financial Disclosure Advisory**

The Company has not yet completed its reporting process for the fourth quarter and year ended December 31, 2022. The preliminary results presented herein are based on the Company's reasonable estimates and the information available to the Company at this time. As such, the Company's actual results may materially vary from the preliminary results presented herein and will not be finalized until the Company reports its final results for the fourth quarter and year ended December 31, 2022. In addition, any statements regarding the Parent Company's estimated financial performance for the fourth quarter and year ended December 31, 2022, does not present all information necessary for an understanding of the Company's financial condition and results of operations as of and for these reporting periods. The preliminary financial results presented herein were not reviewed by The Parent Company's independent registered public accounting firm. The Company expects to delay the filing of its Form 10-K until Monday, April 3, 2023, as the Company and its auditor require additional time to complete the final review of the Company's financial statements and other disclosures in the Form 10-K.

**Forward Looking Statements**

This press release contains forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company's current expectations regarding future events. The words "will", "expects", "intends", "believes" and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.

Specific forward-looking information contained in this press release includes, but is not limited to the Company's (i) future financial performance, including, without limitation, statements regarding the Company's expected reduction in costs and timing thereof; (ii) capacity to achieve profitability; (iii) ability of The Parent Company to execute on its growth strategies, including those associated with the recently extended license agreement for the Mirayo by Santana brand; (iv) statements relating to the proposed combination with Gold Flora, including potential synergies associated with that transaction and prospects of the combined operation,(v) expectations regarding future corporate development activities and (vii) the expected timing of the filing of the Company's Form 10-K. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic conditions including the impact of increasing inflation, the continued significant price compression in flower and distillate oil in the California market, competition in both our wholesale and omni-channel retail channels, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading "Risk Factors" in The Parent Company's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 29, 2023 and in the Company's periodic reports subsequently filed with the SEC and in the Company's filings on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

![](tpco_ex991img1.jpg)

**Additional Information and Where to Find It**

In connection with the Company's proposed business combination with Gold Flora LLC (the "Business Combination"), The Parent Company will file the proxy statement and information circular (the "Circular") with the U.S. Securities and Exchange Commission (the "SEC"). The Circular will containing important information about the Business Combination and related matters. Additionally, The Parent Company and Gold Flora will file other relevant materials in connection with the proposed transaction with applicable securities regulatory authorities. **Investors and security holders of The Parent Company are urged to carefully read the entire definitive Circular (including any supplements to the Circular) when such document becomes available before making any voting decision with respect to the Business Combination because the Circular will contain important information about the proposed Business Combination and the parties to the Business Combination.** The Circular, when available, will be mailed to The Parent Company shareholders, as well as be accessible on the SEC's EDGAR system and SEDAR profile of The Parent Company.

Investors and security holders of The Parent Company will be able to obtain a free copy of the Circular, as well as other relevant filings containing information about The Parent Company and the Business Combination, without charge, at the website of the SEC at www.sec.gov, or from The Parent Company by going to The Parent Company's Investor Relations page on its website at <u>https://ir.theparent.co/financials/sec-filings/default.aspx</u>.

**Participants in the Solicitation**

The Parent Company, Gold Flora and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of The Parent Company proxies in respect of the Business Combination. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to The Parent Company shareholders in connection with the Business Combination will be set forth in the Circular. Other information regarding the participants in The Parent Company proxy solicitation and a description of their direct and indirect interests in the Business Combination, by security holdings or otherwise, will also be contained in the Circular. Copies of the Circular and the other documents The Parent Company will file with the SEC related to the proposed transaction may be obtained, free of charge, from the SEC or The Parent Company as described in the preceding paragraph

**Non-GAAP Financial Measures**

This news release contains the non-GAAP financial measure "Adjusted EBITDA," which is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. As a result, this measure may not be comparable to similar measures presented by other companies. For a reconciliation of "Adjusted EBITDA" to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled "Reconciliation of Non-GAAP Measures" below.

**Adjusted EBITDA**

We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define Adjusted EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization (EBITDA) adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) fair value change in contingent consideration and investments measured at Fair Value Through Profit and Loss ("FVTPL") (iii) non-recurring legal and professional fees, human-resources, inventory and collections-related expenses, (iv) non-recurring tax charges (v) intangible and goodwill impairments and loss on disposal of assets, (vi) transaction costs related to merger and acquisition activities, and (vii) non-cash sales and marketing expenses.

![](tpco_ex991img1.jpg)

**Reconciliation of Non-GAAP Measures**

**TPCO Holding Corp.**

**Statements of income and comprehensive income**

(Unaudited, in United States dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three-months ended** | **Three-months ended** | **Year-ended** | **Year-ended** |
|  | **December 31,** <br> **2022** | December 31,<br> 2021 | **December 31,** <br> **2022** | December 31,<br> 2021 |
| **Net loss and comprehensive loss from continuing** | $**(41035578)** | $**(47936597)** | $**(237699408)** | $**(498326470)** |
| &nbsp;&nbsp;&nbsp; Income taxes from continuing operations | **9450752** | **123213** | **(14967779)** | **(6418167)** |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization from continuing operations | **3040858** | **8264944** | **26795957** | **22439733** |
| &nbsp;&nbsp;&nbsp; Interest expense from continuing operations | **1233677** | **1398041** | **4928475** | **5155217** |
| **EBITDA** | **(27310291)** | **(38150399)** | **(220942755)** | **(477149687)** |
| **Adjustments:** | **-** | **-** |  |  |
| &nbsp;&nbsp;&nbsp; Share based compensation expense | **1245304** | **3005477** | **6009593** | **20456297** |
| &nbsp;&nbsp;&nbsp; **Other non-recurring items:** | **-** | **-** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value change of contingent consideration | **1609879** | **(8821983)** | **967726** | **(229819070)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of investments at FVTPL | **525839** | **832172** | **947813** | **1250990** |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of assets | **4773754** | **(1208722)** | **5091541** | **2447985** |
| &nbsp;&nbsp;&nbsp;&nbsp; Impairment loss | **321988** | **14998669** | **130566825** | **575498897** |
| &nbsp;&nbsp;&nbsp;&nbsp; Other taxes | **-** | **-** | **-** | **2243441** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; De-SPAC costs | **-** | **1219347** | **-** | **5341154** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring costs | **4426930** | **-** | **5566058** | **3878782** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing expense | **-** | **15520** | **-** | **30166667** |
| **Adjusted EBITDA** | $**(14406597)** | $**(28109919)** | $**(71793199)** | $**(65684544)** |

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**Caution Regarding Cannabis Operations in the United States**

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.

**Investor Contact:**

Rob Kelly

MATTIO Communications

tpco@mattio.com

## Exhibit 99.2

**EXHIBIT 99.2**

May 10, 2022

**<u>PERSONAL AND CONFIDENTIAL</u>**

Rozlyn Lipsey

[Email address omitted]

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| | |
|:---|:---|
| **RE:**  | **Offer of Employment with The Parent Company, US Holdings LLC.** |

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Dear Rozlyn Lipsey,

We are pleased to extend to you an offer of employment with The Parent Company, US Holdings LLC. ("TPCO."or the "Company") with the anticipated start date of **June 6, 2022.** Your position is **Executive Vice President of Operations & Wholesale** reporting to Troy Datcher, Chief Executive Officer. Your home base will be in L.A with some required travel. Please note that your duties may change upon reasonable notice, based on the needs of the Company and its determination of your skills.

The terms and conditions of this Offer of Employment are as follows:

You will be paid an annual base salary in the amount of $275,000.000, less applicable state and federal withholding and other lawful deductions, payable in accordance with The Parent Co. standard payroll procedures. In this exempt position, you are not entitled to overtime pay. You will be expected to devote your full business time, attention, and energies to the performance of your duties with The Parent Co. and you shall have all authorities, duties, and responsibilities customarily exercised by an individual serving in this position, and such other duties as may be determined by the Company.

Additionally, you will be eligible for participation in the 2022 Company Annual Incentive Compensation Plan with variable compensation of up to 50% of your annual base salary. The plan will fund based on overall company performance against KPIs. When the pool funds, consideration of your individual award will also include performance against individual objectives / KPIs. The initial funding of the API pool and individual payouts is at the discretion of the Board of Directors, or Compensation Committee. Eligibility for any such bonus is conditioned on current employment as of the date of scheduled payment of bonus.

We are pleased to offer you a signing bonus of $25,000.00 at the commencement of your employment. This bonus will be paid in one lump sum in a separate check on the next regularly scheduled pay date after you start with the Company. The bonus is taxable, and all regular payroll taxes will be withheld. In the event that you voluntarily leave the Company or are terminated for cause within 12 months of your date of hire, you will be responsible for reimbursing the company for the pro-rata portion of the signing bonus. By signing this employment agreement, you authorize the company to withhold this amount from any severance and other final pay you receive upon termination of employment, provided you have received the bonus by such time.

![](tpco_ex992img18.jpg)

In addition, if you decide to join the Company, it will be recommended at the next regularly scheduled meeting of the Company's Board of Directors that the Company grant you 275,000 RSUs of the Company's Common Stock of which 150,000 are time-based vesting over 4 years. You will also receive 75,000 performance-based RSUs with a vesting target of March 31, 2023 and 50,000 performance RSUs with a vesting target of April 1, 2024. Further details will be provided after the Board approves these grants. All equity is subject to approval by the Company's Board of Directors. The vesting schedule for the time based grants is, 25% of the RSUs shall vest at the end of the quarter after the initial 12 months after the date your vesting begins, subject to your continuing employment with the Company, and no RSUs shall vest before such date. The remaining RSUs shall vest quarterly over the next 3 years in equal quarterly amounts subject to your continuing employment with the Company. This RSU grant shall be subject to the terms and conditions of the Company's Equity Incentive Plan, including vesting requirements. No right to any RSU is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting or employment. If there is a Sale Event (as defined below), all unvested RSUs will vest immediately prior to the closing of the Sale Event. For the purpose of this offer letter, "Sale Event" means in the event of the closing of any of the following: (A) any transaction (which shall include a series of transactions occurring within sixty days or occurring pursuant to a plan) that has the result that shareholders of the Company immediately before such transaction cease to own at least fifty-one percent (51%) of the voting stock of the Company, or of any entity that results from the participation of the Company in a reorganization, consolidation, merger, liquidation, or any other form of corporate transaction, (B) a sale or exchange of all or substantially all of the assets of Company, or (C) a plan of merger, consolidation, reorganization, liquidation or dissolution in which Company does not survive.

Severance: In the event of termination as a result of the Company eliminating the position of Executive Vice President of Operations & Wholesale due to business conditions, reasons not attributable to your performance, in addition to any unpaid amounts or reimbursement owed by the Company to you through your date of termination, you will be eligible for (a) continuation of your base salary for four (4) months following the effective date of termination and (b) payment by the Company of the employer portion of your medical insurance for a period of four months following the effective date of your termination provided you pay for the employee contribution portion of such insurance (collectively, "Severance"). Payment of any Severance is subject to your execution and non-revocation of a general release of claims in a form reasonably acceptable to the parties and your continued compliance with your post-employment confidentiality covenants. If you are terminated by the Company for cause, which may include poor performance and/or willful misconduct among other things, you will not be entitled to Severance.

With full-time employment of 30 hours or more per week, you will be eligible for vacation, holidays, health insurance, and other employee benefits on the same basis as other comparable-level The Parent Co. employees, as such programs are established, modified, and/or eliminated by the Company from time to time. Your health insurance benefits will be effective the first of the month after your start date.

This offer of employment is conditioned upon satisfactory results of a criminal record and past employment background check. Should a more extensive background investigation be necessary to satisfy legal or client requirements, this offer of employment will also be contingent upon satisfactory results of these requirements. We ask that you complete these background investigation requirements without delay.

In addition, in accordance with The Parent Co. policies and state and federal law, this offer of employment is contingent upon your successful completion of all requirements to establish the legal right to work in the United States.

As a condition of your employment, you agree that you will abide by all current The Parent Co. personnel policies and practices, will refrain from any form of harassment or discrimination and will cooperate with other employees and customers/clients of the Company in a professional manner.

In addition, in accepting this offer of employment by your signature below, you also confirm that you are under no contractual or other legal obligations that would prohibit you from performing your duties at The Parent Co. This offer of employment is conditioned upon your execution of The Parent Co. Confidentiality Agreement and Arbitration Agreement, copies of which are enclosed.

We hope that your association with The Parent Co. will continue for a substantial period of time, but we recognize that the future is inherently uncertain and that assurances of permanent or continuing employment are not feasible. Therefore, in accordance with our standard policy, your employment will be "at-will." In other words, either you or the Company can terminate the employment relationship at any time, for any reason, with or without cause and with or without notice. This at- will aspect of your employment, which includes the right of The Parent Co. to demote, transfer, or otherwise discipline you with or without cause, is not subject to change or modification of any kind unless in writing signed by both you and the Chief Executive Officer of the Company, with the approval of the The Parent Co. Board of Directors.

![](tpco_ex992img18.jpg)

This Offer Letter and The Parent Co. Confidentiality Agreement and Arbitration Agreement supersede any, and all prior representations and agreements concerning the subject matters discussed therein by you and The Parent Co. whether written or oral. The terms of this offer of employment are governed by the laws of the State of California. Further, the Offer Letter is deemed to be executed in the City of San Jose and the County of Santa Clara, California.

The terms of this Offer Letter are extended and open for acceptance by you through the close of business on May 13, 2022. We look forward to having you join us after the successful completion of the above-referenced background checks.

We are very enthusiastic about having you join The Parent Co. team, and we look forward to working with you in building an important and successful The Parent Co. We are confident in your abilities to favorably impact the future success of The Parent Co. If the foregoing terms are agreeable, please indicate your acceptance by executing this Offer Letter in the space provided below. This Offer Letter, along with executed copies of the Confidentiality Agreement may be executed via DocuSign.

If you have any questions regarding this offer of employment, please do not hesitate to contact our Human Resources department (669) 234-4050.

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| |
|:---|
| Sincerely, |
| /s/ Kerry Arnold |
| Kerry Arnold |
| Chief People Officer |

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**<u>AGREEMENT AND ACCEPTANCE</u>**

**I have read and accept The Parent Company, US Holdings LLC. offer of employment upon the terms and conditions set forth above.**

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| | |
|:---|:---|
| /s/ Rozlyn Lipsey | May 12, 2022 |
| Rozlyn Lipsey | Date |

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[Confidentiality and Invention Assignment Agreement Omitted]

![](tpco_ex992img18.jpg)

<u>Exhibit A</u>

LIMITED EXCLUSION NOTIFICATION TO EMPLOYEES IN CALIFORNIA

THIS IS TO NOTIFY you in accordance with Section 2870 of the California Labor Code that the foregoing Agreement between you and Employer does not require you to assign or offer to assign to Employer any invention that you developed entirely on your own time without using Employer's equipment, supplies, facilities or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Relate at the time of conception or reduction to practice of the invention to Employer's business, or actual or demonstrably anticipated research or development of Employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Result from any work performed by you for Employer.

To the extent a provision in the foregoing Agreement purports to require you to assign an invention otherwise excluded from the preceding Section, the provision is against the public policy of California and is unenforceable.

I ACKNOWLEDGE RECEIPT of a copy of this notification.

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| |
|:---|
| EMPLOYEE: |
| /s/ Rozlyn Lipsey |
| Rozlyn Lipsey |

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![](tpco_ex992img18.jpg)

<u>Exhibit B</u>

LIST OF PRIOR INNOVATIONS

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| |
|:---|
| **EMPLOYEE:** |
| /s/ Rozlyn Lipsey |
| Rozlyn Lipsey |

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## Exhibit 99.3

**EXHIBIT 99.3**

CONFIDENTIAL

**FIRST AMENDMENT TO OFFER OF EMPLOYMENT**

**BETWEEN ROZLYN LIPSEY AND TPCO US HOLDING LLC**

This Amendment to the Offer of Employment (this "Amendment") between Rozlyn Lipsey ("Employee" or "You") and TPCO US Holdings LLC ("Employer"), is made as of February 3, 2023 (the "Amendment Effective Date").

WHEREAS Employee and Employer are parties to that certain Offer of Employment, dated May 10, 2022 (the "Agreement");

WHEREAS any defined terms used herein have the same meaning as originally prescribed in the Agreement, unless otherwise noted; and

WHEREAS Employee and Employer wish to amend the Agreement.

NOW THEREFORE, in consideration of the foregoing, and good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Employee and Employer agree that the paragraph entitled "Severance" in the Agreement will be replaced in its entirety as follows:

***Severance:*** *In the event of termination as a result of the Company eliminating the position of EVP of Operations due to business conditions reasons not attributable to your performance, in addition to any unpaid amounts or reimbursement owed by the Company to you through your date of termination, you will be eligible for (a) continuation of your base salary for four **six** months following the effective date of termination, (b) payment by the Company of the employer portion of your medical insurance for a period of four **six** months following the effective date of your termination provided you pay for the employee contribution portion of such insurance and **(c) to receive a pro rata portion of your targeted annual bonus (i.e., up to 50% of your annual base salary)** (collectively, "Severance"). Payment of any Severance is subject to your execution and non-revocation of a general release of claims in a form reasonably acceptable to the parties and your continued compliance with your post-employment confidentiality covenants. If you are terminated by the Company for cause, which may include poor performance and/or willful misconduct among other things, you will not be entitled to Severance.*

The terms hereof shall constitute an Amendment to the Agreement. Except as provided herein, the terms and conditions of the Agreement shall remain in full force and effect. In the event of conflict between this Amendment and the Agreement, the terms and conditions of this Amendment shall control.

IN WITNESS WHEREOF, Employee and Employer have executed this First Amendment as of the Amendment Effective Date set forth above.

[Remainder of page intentionally left blank]

CONFIDENTIAL

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| | |
|:---|:---|
| Agreed and Acknowledged by: |  |
| /s/ Troy Datcher | Feb-03-2023 |
| Troy Datcher |  |
| CEO, The Parent Company (TPCO Holding Corp.) |  |
| /s/ Rozlyn Lipsey | Feb-03-2023 |
| Rozlyn Lipsey  | Date |
| EVP of Operations, The Parent Company (TPCO Holding Corp.) |  |

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