Holding company Farmhouse is buying Thrown LLC, producer of functional energy-drinks brand, Nappy Boy Dranks, founded by US singer and rap artist T-Pain.
The financial terms of the deal were not disclosed.
T-Pain signed a memorandum of understanding with Farmhouse in May to merge Thrown into the publicly listed Farmhouse. The rapper will become CEO of Farmhouse’s new drinks division.
Speaking on the acquisition, Evan Horowitz, the CEO of Farmhouse, said: "Acquiring Thrown positions Farmhouse at the forefront of this expanding sector. With T-Pain's vision and leadership driving innovation, I'm confident Nappy Boy Dranks will become a positive force in the industry."
Set up this year in Atlanta, Georgia, Nappy Boy Dranks’ first product is a 2oz energy shot-style drink. According to Farmhouse’s website, the drink, called GamerShots, is a functional beverage designed for esports enthusiasts and claims to be “zero-crash”, made using a nootropic energy blend.
When the deal is closed, Farmhouse will take “all membership interests of Thrown in exchange for approximately 25% of Farmhouse’s total issued shares”, a statement read.
T-Pain, the CEO of Thrown, said: "Nappy Boy Dranks is all about bringing good energy to everyone – whether you're a gamer, creator, or hustling every day. I want people to feel good, play good, and stay focused. I'm excited to share this with the world."
The management team at Thrown will remain working for the business under the Farmhouse umbrella. Performance incentives given to employees will also be dependent on an earn-out agreement.
As part of the deal, Farmhouse also needs to raise $10m in funding, providing $8m of that sum to Thrown to use as working capital.
The purchase of Thrown marks San Francisco-based Farmhouse’s first venture into beverages.
In addition to its new drinks branch, the company also manages a Farmhouse Vaults division, which helps businesses use IP (intellectual property) to launch their physical products using licensing agreements for NFTs (non-fungible tokens).
