U.S. multi-state marijuana operator TerrAscend Corp. is acquiring Michigan-based cannabis cultivator Gage Growth Corp. for $545 million. This business move further cements the American cannabis industry ahead of possible federal legalization. The agreement gives TerrAscend, which already operates in California, New Jersey, and Pennsylvania, now with access to Michigan, the third-biggest marijuana market in the U.S., as well as a myriad of high-profile brands that Detroit-based Gage Growth secured through exclusive license deals.
Gage operates 10 cannabis dispensaries in Michigan and is expected to open another 10 in the coming months, while also owning a proprietary library of genetics and brand deals including Cookies and Khalifa Kush. The executive chairman of TerrAscend said, “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.” Gage shareholders will collect 0.3001 of a common share of TerrAscend for each Gage share held, representing a total consideration amounting to about $545 million based on the closing price of TerrAscend on August 31, 2021.
Fabian Monaco, CEO of Gage, said, “Our shared strategic and corporate values make this combination a strong fit.” He continues, “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.” The business deal is expected to close sometime around the first half of 2022.