Michigan-based cannabis operator Gage Growth Corp. GAGE GAEGF confirmed Monday that it has closed on a senior secured term loan for aggregate gross proceeds of $55 million. The company highlighted its plans to use the proceeds to (i) finance its retail acquisition strategy in Michigan, (ii) support its future growth and (iii) for general working capital purposes.
All retail acquisitions are expected to be accretive to Gage and TerrAscend Corp. TRSSF upon and subject to the completion of its proposed acquisition of Gage.
The term loan bears interest at a per annum rate equal to the greater of 7.00% plus prime rate and 10.25%, payable monthly in arrears, with a maturity date of November 30, 2022. It is secured by a first lien on all company assets.
The placement was arranged by Canaccord Genuity Corp. and Chicago Atlantic as lead lender and administrative agent.
"This non-dilutive financing provides Gage with maximum flexibility to execute on near-term acquisition opportunities," Fabian Monaco, CEO of Gage stated. "We received a great deal of interest and, through our advisors, had healthy participation in this transaction by a high-quality mix of institutional investors, led by Chicago Atlantic Advisors, LLC ("Chicago Atlantic"). Together with TerrAscend, we are committed to building one of the most dominant cannabis companies in Michigan. With the closing of this debt financing, we are well positioned to execute swiftly and drive value for our shareholders."
John Mazarakis, Partner of Chicago Atlantic added, "Gage has built an extraordinary organization focused on high quality product, culture, and community, centered in a growing network of retail and cultivation assets. The terms of the Term Loan reflect the Gage management team and its employees' remarkable track-record of execution and extraordinary commitment to serving its communities."
More recent news from Gage:
Gage Growth’s shares traded 6.57% lower at $1.6 per share at the time of writing Monday morning.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga Cannabis Conferences are coming to Los Angeles
Join the Benzinga Cannabis Market Spotlight: California, and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders, gain insider insights into the investment landscape, and shape the evolving markets in California and beyond. Don’t miss this chance to be at the forefront of the cannabis industry’s growth and innovation! Join now.