TerrAscend Corp. TER TRSSF and Gage Growth Corp. GAGE GAEGF have completed their previously announced merger.
The companies wrapped up their court-approved plan of arrangement under the Canada Business Corporations Act, whereby TerrAscend has acquired all of the issued and outstanding subordinate voting shares of Gage.
"I believe the combination of TerrAscend and Gage has created one of the most compelling and differentiated operators in the North American cannabis industry," said Jason Wild, executive chairman of TerrAscend. "Our proven cultivation and manufacturing expertise, proprietary flower strains, and top-selling brands position us to deliver exceptional retail experiences and products for our patients and customers."
What It Means For TereAscend?
The deal expands the company’s footprint with owned and managed operations in California, Michigan, Maryland, New Jersey, Pennsylvania and Canada.
The transaction provides access to Gage's sought-after brand and pheno-hunting capabilities as well as its exclusive licensing partnerships in Michigan with Cookies, Blue River, Pure Beauty, Khalifa Kush and others.
The combined company's retail network is expected to reach 40 stores by the end of 2022. This includes 25 currently functioning dispensaries across five states with Gage managing 11 dispensaries in Michigan and a Cookies dispensary in Canada, in addition to TerrAscend's 13-store footprint in key markets like California, New Jersey and Pennsylvania.
Gage's $72.3 million pro forma cash position, which includes gross proceeds from its recently closed $55 million senior secured debt financing, combined with TerrAscend's $103 million cash balance as of September 30, 2021, enables the combined company to execute on its growth plans.
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Photo: Courtesy of Cytonn Photography on Unsplash
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