News

Gage will accelerate the expansion of its retail and cultivation footprint

 Gage Cannabis Co., a cannabis brand and operator in Michigan, has announced it has secured a minimum investment of US$20 million from funds advised by JW Asset Management, LLC as part of the company’s Regulation A, Tier 2, equity financing.

JW Asset Management’s investment will provide Gage with resources to accelerate the expansion of its retail and cultivation footprint, pursue accretive acquisitions, and help position and solidify Gage as the leading cannabis operator in the state of Michigan. JWAM has been an active investor in the cannabis sector since 2014, investing in many of the industry leaders, including TerrAscend Corp., where Jason Wild’s strategic involvement and support has been instrumental in driving tremendous value for shareholders.

“JW Asset Management is widely recognized as one of the premier investors in the cannabis sector. Their participation provides Gage with a strong balance sheet that enables us to further establish our brand in one of the fastest-growing cannabis markets in the United States,” said Fabian Monaco, president of Gage. “We are confident in executing on our 2021 goals, driven by the growth of both the cultivation and dispensary arms of our business. We are fortunate to have developed a strong relationship with JWAM and are grateful for their support as we capitalize on the opportunities ahead in Michigan.”

Wild, founder and president of JWAM added, “Gage has rapidly established a strong footprint in Michigan and I’m thrilled to participate in their growth. I’m confident that Gage’s experienced team will continue to execute on the opportunity ahead.”

Gage’s Michigan footprint has grown significantly since their first retail opening in the state in September 2019. Today, the company supports five provisioning centers (dispensaries), three cultivation facilities and one processing facility across the state of Michigan, with plans to double its retail footprint by the end of the first quarter of 2021. Earlier this month, Gage had its first harvest at its flagship Monitor Township cultivation facility with a second harvest scheduled for this week.

The first tranche of approximately US$10 million of the US$20-million commitment from JWAM has been received by the company. Gage expects to receive the remaining funds prior to year end 2020. In consideration for JWAM’s participation in the offering (US$1.75 per share), the company has agreed to issue an equivalent number of warrants to purchase subordinate voting shares of the company. Each warrant shall entitle the holder to purchase one subordinate voting share in the capital of the company for US$2.60.

Go-public Plan in Q1 2021

The company continues to pursue a go-public transaction which it tentatively expects to complete by the end of Q1 2021. Additionally, the company confirms that general public access to the offering will close on Dec. 16, 2020. Gage encourages interested investors to visit www.GageInvestors.com for more information.

Share

This post was originally published on this site