Cannabis producer TerrAscend announced in early September that it will buy Gage Growth Corp for $545 million and expand its US operation. It appears that the purchase of the Michigan-based cannabis brand and operator is close to complete under a plan of arrangement approved by the court under the Canada Business Corporations Act today. As usual, the transaction is subject to the satisfaction or waiver of all remaining closing conditions.
TerrAscend reported that upon completion of the Gage Growth acquisition, it will have seven cultivation plants and 23 dispensaries (both medical and recreational) in different states and Canada. One of these states will be Michigan, the third-largest cannabis market in the country.
This is in addition to gaining a presence in California, Maryland, New Jersey and Pennsylvania. With this purchase, TerrAscend will increase its multi-state operation, which a few quarters ago had net sales of $58.7 million.
“This is a defining moment for TerrAscend as we combine two leading vertically integrated operators with proven cultivation and manufacturing expertise, deep portfolios of proprietary flower strains, and top-selling brands across our core markets,” said Jason Wild, executive chairman of TerrAscend. “I look forward to working with the talented Gage team as we integrate and align our cultivation, retail, and operational practices to continue providing our patients and customers with best-in-class product offerings and retail experiences.”
For his part, Fabian Monaco, CEO of Gage, said the firm is pleased to join close ties with a company like TerrAscend as it will help create one of the most prominent cannabis companies in the northern part of the continent. “With our shared core philosophies and complementary areas of expertise, we look forward to executing our collective vision,” he added.
Some of the benefits anticipated as a result of the transaction include leadership in a top state like Michigan. Michigan is among the top three large markets in the country, with reported cannabis sales of $168 million in the month of December 2021.
Premium brands will also be included in the equation. This transaction provides access to Gage’s phenotype search capabilities and coveted branding.