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Wednesday, May 18, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

TerrAscend to close US$545M Gage Growth acquisition

The combined company will have 7 cultivation facilities, and expects 40 retail stores in its network by the end of the year

TerrAscend to close Gage Growth acquisition
Photo via TerrAscend

North American pot operator TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) is set to close its deal to buy a Michigan-based company on Thursday.

On Wednesday, the firm says its all-stock US$545-million acquisition of Gage Growth Corp. (CSE: GAGE) (OTCQX: GAEGF), which has operations in Michigan and Canada, will close by way of a court-approved plan under the Canada Business Corporations Act.

When the transaction closes, TerrAscend will expand its footprint with operations in California, Michigan, Maryland, New Jersey, Pennsylvania and Canada. This includes seven cultivation and processing facilities, as well as 25 cannabis stores serving medical and adult-use markets in Canada and the U.S.

Read more: Gage to open flagship Cookies pot shop in Toronto

Read more: TerrAscend expands leadership team

While TerrAscend says it eventually plans to acquire ownership of all Gage’s licensed operators in Michigan, TerrAscend’s wholly owned subsidiary will operate the Gage business through existing service agreements with those operators until then.

By the end of the year, TerrAscend expects the combined company will have 40 stores in its retail network. That number includes the 38 stores the firms already have open.

After closing, Gage shares will be halted and delisted from the Canadian Securities Exchange.

“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,” TerrAscend executive chairman Jason Wild says in a statement.

Gage CEO Fabian Monaco adds, “With our shared core philosophies and complementary areas of expertise, we can’t wait to execute on our collective vision.”

TerrAscend stock was down 2 per cent Wednesday to $6.28 on the Canadian Securities Exchange.

 

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