(Reuters) – Bruce Linton-led Gage Cannabis Co plans to list on the Canadian stock market in the first quarter of 2021, its president told Reuters, as the U.S.-based dispensary operator looks to capitalize on strong demand for weed during lockdowns.
FILE PHOTO: Bruce Linton, Founder and Co-CEO of Canopy Growth, speaks to CNBC on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 7, 2019. REUTERS/Brendan McDermid
Linton joined Gage as executive chairman in 2019, months after being ousted from the board of Canopy Growth Corp WEED.TO – a business he founded in 2013, took public the next year and transformed into the most valued cannabis company through a string of deals. (reut.rs/30rhknz)
Gage, which currently focuses solely on the Michigan market, is expecting sales of around $13.2 million in the third quarter, up 11% from the previous three months.
“We have seen tremendous growth in the Michigan market in 2020 and Gage has been diligent in capturing that growth through its operating assets,” said Fabian Monaco, president of Gage Cannabis.
Weed companies in the United States have reaped the benefits of cannabis businesses being allowed to stay open as essential services during the COVID-19 restrictions.
The company outlined plans to open eight to ten new stores by the end of this year and will consider expanding to markets beyond Michigan next year, according to a presentation to investors reviewed by Reuters.
Gage has already filed an offering circular with the U.S. Securities and Exchange Commission, indicating it could launch a “regulation A+” offering in the country before the Canada debut.
A regulation A+ offering, also called a mini-IPO, allows companies to raise capital without actually listing the shares on a stock exchange.
Companies whose businesses involve marijuana cultivation are not yet allowed to list in the United States as the plant remains illegal at the federal level.
Gage-branded products are also sold in Canada by Radicle Cannabis, which is backed by Canopy Rivers.
Canopy Growth holds a 27% stake in Canopy Rivers.
Reporting by Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath