Acquisition plans will always be an important part of today’s cannabis industry. Many companies have dedicated themselves to basing their expansion strategy on acquisitions, as is being done by North America’s leading multi-state cannabis operator, TerrAscend Corp. TerrAscend and Gage Growth Corp, a leading premium cannabis brand and operator, reportedly announced that they have reached an agreement whereby all of Gage’s issued and outstanding subordinate voting shares will now be owned by TerrAscend.
Under the terms of the transaction, Gage shareholders will receive 0.3001 of a TerrAscend common share for each Gage Share held. That, based on TerrAscend’s closing price on August 31, represents a total consideration of approximately $545 million. The plan of arrangement received the green light from the court under the Canada Business Corporations Act.
“The acquisition of Gage expands our footprint to the third-largest cannabis market in the US,” asserts Jason Wild, Executive Chairman of TerrAscend. “Combining our market-leading share in our existing states with Gage’s proven cultivation, retail, and marketing capabilities, creates one of the largest and most dynamic companies in the industry. We look forward to leveraging Gage’s profound connection with Michigan’s consumers, in addition to its established partnerships with award-winning brands like COOKIES, to provide our patients and customers with best-in-class product offerings and retail experiences.”
Upon completion of the transaction, the combined business will have operations in Canada and five different US states. In addition, it will have 23 operating dispensaries that serve the needs of the medical and recreational market in Canada and the US, and seven processing and cultivation facilities.
“Our shared strategic and corporate values make this combination a strong fit,” adds Fabian Monaco, CEO of Gage. “We also recognize the incredible success that TerrAscend has enjoyed in recent years. We could think of no better company to partner with as we execute on our shared strategy of deep vertical integration and scale in our core markets, with a vision of creating the most consumer-centric cannabis company in the world.”