TerrAscend to Acquire Gage Growth in $545M Deal

TerrAscend Corp. is set to acquire Michigan-based Gage Growth Corp. in a $545 million all-stock deal. Upon completion of the deal, the combined business will have operations in five states and Canada, including seven cultivation and processing facilities and 23 medical and adult-use dispensaries.

The agreement will give TerrAscend access to Gage’s brands and genetics library, as well as its licensing partnerships with Cookies, Slang Worldwide, Blue River, Pure Beauty, and Khalifa Kush.

Jason Wild, TerrAscend executive chairman, said the acquisition extends the company’s footprint into Michigan, which is the third-largest legal cannabis market in the U.S with an annualized market size of $2.1 billion.

“Combining our market-leading share in our existing states with Gage’s proven cultivation, retail, and marketing capabilities, creates one of the largest and most dynamic companies in the industry. We look forward to leveraging Gage’s profound connection with Michigan’s consumers, in addition to its established partnerships with award-winning brands like COOKIES, to provide our patients and customers with best-in-class product offerings and retail experiences.”—Wild in a press release

The companies noted the strength of Gage’s balance sheet—a $28 million cash position with minimal debt.

Gage CEO Fabian Monaco said that the two companies’ “strategic and corporate values make [the] combination a strong fit.”

“We also recognize the incredible success that TerrAscend has enjoyed in recent years,” Monaco said in a statement. “We could think of no better company to partner with as we execute on our shared strategy of deep vertical integration and scale in our core markets, with a vision of creating the most consumer-centric cannabis company in the world.”

The deal still requires final approval from Canadian regulators and Gage shareholders.