Gage Cannabis Archives - Green Market Report

Debra BorchardtNovember 29, 2021
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4min00

Gage Growth Corp.  (CSE: GAGE) (OTCQX: GAEGF) reported its financial results for the third quarter ending September 30, 2021, with revenue rising to $27.2 million versus $26.4 million in the second quarter of 2021, a 3.2% increase. The net loss for the quarter was $3.7 million,

“In the third quarter of 2021, Gage had a record performance across all financial and operating metrics,” said Fabian Monaco, CEO of Gage. “We will continue to invest while improving our margins. Moreover, as we further introduce our in-house branded concentrate products, we expect our gross margin to further improve over the next two quarters.”

Gage reported that the gross margin, before the impact of biological asset adjustments, was 36.5% in the third quarter versus 34.2% in the second quarter. The company said that the 230 basis point improvement quarter over quarter in gross margin to 36.5% was due to a greater mix of higher-margin sales from retail locations and cultivation capacity expansion via Gage-operated cultivation assets, contract growing partners, and lower input costs from dedicated wholesale partners.

The company said it expects that it will continue to see its quarter-over-quarter margin expansion in the fourth quarter as in-house branded vape cart sales have recently accounted for over 80% of the category month-to-date in November. In the month of November, the company has been averaging approximately 18,000 Gage vape carts sold per week.

TerrAscend Acquisition

A couple of weeks ago, Gage announced that shareholders voted in favor of acquisition by TerrAscend Corp., and on November 15, 2021, the Ontario Superior Court of Justice (Commercial List) has issued a final order approving the Arrangement.

Mr. Monaco continued, “We are very pleased with the announcement of the proposed acquisition of Gage by TerrAscend. Our shared strategic and corporate values make this combination a strong fit, and I am extremely excited and looking forward to executing on our shared strategy of deep vertical integration and scale in our core markets. In addition, I am also very pleased with the closing of our recent debt financing which further strengthens our balance sheet.”

Looking Ahead

In addition to 10 retail dispensaries in operation today, Gage said it is in active discussions with multiple retail operators in Michigan to potentially acquire over 10 retail locations in the coming months. The company’s second Kalamazoo dispensary is now fully built and expected to open in December. Gage also successfully acquired another dispensary located in Detroit. and expects to close another proposed acquisition of a dispensary in Sturgis by the end of November. Both dispensaries are expected to be rebranded as Gage and Cookies stores, respectively. The company now has 17 dispensaries in its portfolio with the inclusion of the Sturgis acquisition.

Mr. Monaco concluded, “Overall, we will continue to execute on our growth strategy in the remaining months of 2021 and into 2022. With a strong balance sheet, we are well-positioned to execute on our near-term acquisition opportunities that will fuel the overall growth of the company.”


Debra BorchardtSeptember 1, 2021
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5min01

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) is buying Michigan-based Gage Growth Corp.  (CSE: GAGE) in a deal valued at $545 million. Gage’s portfolio includes the city and state approvals for 19 “Class C” cultivation licenses, three processing licenses, and 15 provisioning centers (dispensaries). Once the deal is closed, the combined business will have operations in 5 states and Canada, including 7 cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the U.S. and Canada.

“The acquisition of Gage expands our footprint to the third largest cannabis market in the U.S.,” said Jason Wild, Executive Chairman of TerrAscend. “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.”

Deal Terms

Gage shareholders will receive 0.3001 of a common share of TerrAscend for each Gage share held, representing a total consideration of approximately $545 million based on the closing price of TerrAscend on August 31, 2021. The Exchange Ratio implies a consideration of $2.11 (or C$2.66) per Gage Share, representing an 18% premium based on the closing prices of both companies’ shares on the Canadian Securities Exchange on August 31, 2021.

“Our shared strategic and corporate values make this combination a strong fit,” said Fabian Monaco, CEO of Gage. “We also recognize the incredible success that TerrAscend has enjoyed in recent years. 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.”

JW Asset Management, LLC, an entity controlled by Jason Wild, currently the holder of approximately 39% of TerrAscend Shares will hold approximately 32% of TerrAscend Shares on a partially diluted basis. In addition, JW Asset Management, LLC and its joint actors hold or exercise direction or control over approximately 16.34% of the Gage Shares

Gage Cannabis

Gage has established itself as a leader in the Michigan market, which is the third-largest cannabis market in the U.S. with reported cannabis sales of $171 million in the month of July 2021, representing an annualized market size of approximately $2.1 billion. The deal will provide access to Gage’s sought-after brand and proprietary library of genetics as well as Gage’s exclusive licensing partnerships in Michigan with COOKIES, SLANG Worldwide, Blue River, Pure Beauty, and Khalifa Kush.

Gage’s award-winning retail stores generate industry-leading retail metrics, including strong average basket size ($152 in the second quarter of 2021 compared to Michigan average of $85) and premium pricing for its flower products (40%+ relative to the Michigan market average price). TerrAscend expects to leverage Gage’s portfolio of over 40+ proprietary flower strains in addition to brand and marketing capabilities, at retail locations in other states. Gage comes into the deal with a $32.8 million cash position and minimal debt as of June 30, 2021.

The transaction includes a $30 million termination fee.


Debra BorchardtJuly 20, 2021
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Michigan-based Gage Growth Corp. (CSE: GAGE) has added another high-profile name to its dispensaries. A couple of weeks ago it was Wiz Khalifa and his brand, Khalifa Kush (“KK”) that Gage said it was going to develop and launch in the state of Michigan in an exclusive deal. Now Gage and Pure Beauty have entered into an exclusive five-year partnership agreement to launch Pure Beauty’s line of premium cannabis products in Michigan, pending Michigan. Pure Beauty is a California-based boutique cannabis brand that combines art, culture, and style with sustainable and social justice practices.

“We are thrilled to announce this partnership with one of the top brands in cannabis,” said Fabian Monaco, CEO of Gage. “Brand recognition is key to winning in the cannabis industry and with the addition of Pure Beauty to our brand portfolio, we look forward to creating and delivering the highest-quality cannabis products and experiences to our customers and patients.”

Pure Beauty was founded by the same masterminds behind Marley Natural. Pure Beauty prizes indoor-grown, high-quality flower and combines them with fresh, beautiful packaging. Most of the company’s packing is paper because the company is concerned about waste. “We spent a year and a half perfecting a child resistant mylar bag that is made from plant starch and are pretty proud of this.”

Like the Wiz Khalifa deal, Gage will be the exclusive producer, processor, wholesaler, and retailer of Pure Beauty branded products in Michigan. Gage and Pure Beauty will work to develop and commercialize a product lineup that includes flower, a full range of pre-rolls, extracts, beverages, and edibles that will be sold at Gage branded provisioning centers (dispensaries).

“Our mission is to bring unique, high-quality products to market while being mindful of the social and environmental implications intrinsic to the cannabis industry,” said Imelda Walavalkar, CEO of Pure Beauty.  “As a brand that cares deeply about art and culture, we felt very aligned with Michigan’s distinct and thriving culture, specifically with Gage, who we find to be among the best cultivators and operators in the nation. We are confident they will execute at the highest level as they share our commitment to social justice.  We could not be more excited about this partnership.”

Pure Beauty has lofty goals when cultivating its flower. “All of the water used in our cultivation is collected from the air, we pull no water from California tap. Why? Because a single cannabis plant needs approximately 150-250 gallons of water to reach flowering state. Our cultivation has no runoff; even “safe” fertilizers and nutrients will contaminate surrounding water supplies making life inhabitable for indigenous species. And we love animals. We also love bugs and use them, like rolly pollys, earthworms and nematodes along with friendly bacteria, fungi and protozoa to create a “soil food web” which helps naturally prevent disease and plant-eating predators by working with the plant to provide nutrients and protection. And when we are done we donate all used soil to public parks. Because why not? Parks are great and we should all support them. And yes, we talk to our flower. These thoughtful cultivation practices and the good energy surrounding our flower in their life cycle creates robust terpene profiles, with a strong nose that—when you smoke it—you will understand the world in a different way.”

 


Debra BorchardtJuly 7, 2021
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Gage Growth Corp.  (CSE: GAGE) (OTC: GAEGF) now has an exclusive partnership agreement with multi-platinum-selling, GRAMMY Award and Golden Globe Award-nominated recording artist Wiz Khalifa’s brand, Khalifa Kush (“KK”), to develop and launch a line of premium cannabis products in the state of Michigan. Gage will be the exclusive producer, processor, and retailer of KK branded products in Michigan.

“We are excited to partner with Gage for our first expansion into the Midwest, and to finally release KK to my fans in Michigan,” said Wiz Khalifa. “From day one of Khalifa Kush, we have only partnered with people we align with, who focus on customer and quality over everything, and Gage is one of the best.”

Gage and KK will also work to develop and commercialize a product lineup that includes flower, pre-rolls, extracts, and concentrates that will be sold at Gage provisioning centers. The Khalifa Kush (KK) strain was developed for Wiz back in the early 10’s and is tailored specifically for his personal tastes. It was also held closely within his private stashes in Los Angeles, California. After years of keeping KK to himself, he chose to share KK with the world in 2014. A two-year-long journey led to the first Khalifa Kush flower sales in 2016 at Tryke’s Reef Dispensaries in the Southwestern US.

“Wiz is a globally recognized cannabis connoisseur. KK has had incredible success in other U.S. cannabis markets, establishing a brand that is synonymous with ultra-premium quality,” said Fabian Monaco, CEO of Gage. “We are confident that this partnership will allow Michigan to become a unique cannabis destination in the near future.”

According to WeedMaps, Khalifa Kush, aka KK or Wiz Khalifa OG, is an indica-dominant strain bred by Colorado-based RiverRock Cannabis. It’s descended from OG Kush genetics and was originally unavailable to the public. The top reported aromas of Khalifa Kush are pungent pine, sour lemons, and earth. And it is said to taste like sweet citrus and pine.

The arrangement includes a grant of license to certain intellectual property to produce and sell KK branded products in Michigan and is subject to Michigan regulatory approval. KK will consult on cultivation, distribution, branding, consumer engagement, and other operating responsibilities. The initial term of the license agreement is five years on an exclusive basis.

Khalifa Kush produces a medium-sized bushy plant thanks to its indica heritage. Khalifa Kush has an average flowering time between 56 and 63 days indoors and late September to early October outdoors. It is known to produce large yields in ideal conditions. It does require some skill to grow since Screen of Green (ScrOG) is needed to make it really flourish. Khalifa Kush is resistant to pests and disease so it grows well indoors and outdoors, especially in a warm, dry climate.


Debra BorchardtApril 29, 2021
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6min00

Michigan-based Gage Growth Corp.  (CSE: GAGE) reported its financial results for the three and twelve months ended December 31, 2020. Gage said revenue increased 615% to $10.5 million in the fourth quarter over last year. Gage also reported that its revenue increased 1,972% for the full year to $39.9 million versus $1.9 million in fiscal year 2019. The company also trimmed its net losses to $29.8 million from 2019’s net loss of $75 million. the company had a stellar 420 holiday and logged revenue of over $505,000 in a single day with average basket size of $171 and 2,956 total transactions.

“Throughout 2020, we worked to establish Gage as one of the leading vertically integrated cannabis companies in Michigan. We strategically invested in the infrastructure and human capital necessary to build scale, leveraging our first-mover advantage and strong brand to own the Michigan market,” said Fabian Monaco, CEO of Gage. “We are thrilled with the results of our efforts, demonstrated by the strong revenue growth and margin expansion we have achieved. Gage is approaching an exciting inflection point, which we believe will enable us to extend our strong growth as we look ahead to 2021.” The company said it closed its fiscal year with over $45 million of cash after closing the first tranche of oversubscribed Regulation A, Tier 2, equity financing.

Gage also noted that at this time it has eight cultivation facilities in operation today (three Gage operated and five contracted cultivation assets) and is expecting to expand to 13 cultivation facilities by year-end. The cultivation capacity is expected to increase to 3,000lbs/month in June/July 2021 and further expand to 7,000lbs/month by year-end. Gage said it expects to operate in-house processing assets in the third quarter of 2021 leading to further margin expansion.

The company’s average basket size in 2020 was $164 compared to the estimated state average basket size of $85. The company reported that it continues to see a range of $150 – $170 per average basket size in 2021. Additionally, Gage is targeting $1 million average in revenue per month for each dispensary it operates in 2021. Gage’s average monthly revenue over the past 60 days per dispensary is in excess of $1 million. Moreover, excluding one particular location situated in a tourist-heavy location that has been significantly impacted by the COVID-19 pandemic, the average monthly revenue for each dispensary was approximately $1.3 million in March 2021. Currently, four Gage-operated dispensaries have been performing in the past 60 days at an annual run rate in excess of $15 million.

Looking Ahead

“Overall, we are well-positioned to further scale our business and execute on our expansion strategy in 2021,” said Monaco. “We are excited to build on our momentum and are already seeing great performance evidenced by our record monthly revenue in March and seeing the trend continue into April driven by the success of our new store launches and strength of our brand in the market. We are projecting to set another consecutive monthly revenue record in May with two more store openings.” April revenue is looking like it is growing 5-6% sequentially over March.

Gage gave investors guidance for the next two quarters based on consumer demand.  The company said that it expects revenue in the range of $17-18 million in the first quarter of the fiscal year 2021 and $26-$31 million for the second quarter.

Mr. Monaco added, “Michigan continues to report robust cannabis sales, and in March of this year, the state posted $146 million of cannabis sales, which represents an annualized run rate of approximately $1.8 billion. We believe Michigan will be a top-five largest cannabis market in the United States this year.”

Expansion Plans

Gage said it continues to execute on its retail expansion strategy with the goal of opening 20 or more locations by year end. It expects to open two locations in May 2021, bringing its total retail footprint to ten. Two additional Cookies branded dispensaries expected to open in Q2/Q3 2021.

 


Debra BorchardtDecember 16, 2020
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5min05

Michigan-based Gage Cannabis Co. has secured an investment of $20 million from funds advised by JW Asset Management as part of the company’s Regulation A, Tier 2 capital raise. The company said it is hoping to go public by the end of the first quarter of 2021. Additionally, Gage confirmed that general public access to the Offering will close on December 16th, 2020.

JW Asset Management’s investment will provide Gage with the capital it needs to accelerate the expansion of its retail and cultivation footprint, pursue accretive acquisitions, and help position and solidify Gage as an important 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.

In October the company said it has garnered $30+ million (unaudited) in sales so far this year and is anticipating further sales growth in the coming months. The company has stated that it is an exclusive cultivator and retailer of cannabis brands including Cookies, Lemonade, Runtz, Grandiflora, SLANG Worldwide (CNSX:SLNG), OG Raskal, and its own proprietary Gage brand portfolio in Michigan.

“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.”

Gage’s Michigan footprint has grown significantly since its first retail opening in the state in September 2019. The Company now 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 said it has had its first harvest at its flagship Monitor Township cultivation facility with a second harvest scheduled for this week.

Jason 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.”

The first tranche of approximately $10 million of the $20 million commitment from JWAM has been received by the company. Gage said it expects to receive the remaining funds prior to year-end 2020. In consideration of 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 $2.60.

Bruce Linton, Executive Chairman of Gage Cannabis said, “Michigan is one of the top cannabis markets in the U.S., and I am confident Gage is poised to continue building on its historical execution and fortifying its position as one of the top operators and brands in Michigan, as well as a name consumers look for across the United States”. Linton is the former CEO, Chairman, and Founder of Canopy Growth Corporation (NYSE: CGC) and was the first and lead investor in the offering, emphasizing his support of the company.

 

 


Debra BorchardtOctober 14, 2020
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Michigan-based privately-owned cannabis company Gage Cannabis Co. has launched a Regulation A, Tier 2, equity financing.  The company’s Executive Chairman is industry leader Bruce Linton. Gage said it is offering up to 28,571,400 shares of Subordinate Voting Shares for $1.75 per Share. The shares are being offered pursuant to Regulation A of Section 3(b) of the Securities, as amended, for Tier 2 offerings, by management on a “best-efforts” basis directly to purchasers who satisfy the requirements set forth in Regulation A.

“We wanted to provide investors with the opportunity to invest in a growing and dominant cannabis operation before an official IPO process,” said Bruce Linton, Executive Chairman of Gage Cannabis. “Michigan is one of the top cannabis markets in the U.S., and I am confident Gage is poised to continue building on its historical execution and fortifying its position as one of the top operators and brands in Michigan, as well as a name consumers look for across the United States”. Linton is the former CEO, Chairman, and Founder of Canopy Growth Corporation (NYSE: CGC) and was the first and lead investor in the offering, emphasizing his support of the company.

Gage has opened five dispensaries and is in the process of opening three more locations by the end of the year with a goal of having over 20 stores by the end of 2021. The company says it has garnered $30+ million (unaudited) in sales so far this year and is anticipating further sales growth in the coming months. Gage’s portfolio includes city and state approvals for 19 “Class C” cultivation licenses, three processing licenses and 13 provisioning centers (dispensaries).

The company has stated that it is an exclusive cultivator and retailer of cannabis brands including Cookies, Lemonnade, Runtz, Grandiflora, SLANG Worldwide (CNSX:SLNG), OG Raskal, and its own proprietary Gage brand portfolio in Michigan.

“We’re excited to invite public investors to join alongside industry juggernauts, like Bruce Linton, and provide them with the opportunity to participate in our future success,” said Fabian Monaco, President of Gage Cannabis. “We have strategically acquired a portfolio of high-quality operating assets and brands in the rapidly growing Michigan market and developed a reputation for providing consumers with access to craft cannabis in elevated retail environments. This is a great first step in our journey to becoming a publicly-traded company and we’re excited to continue to build on our strong foundation while delivering long-term shareholder value.”


Marissa GoldOctober 5, 2020
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In December of 2019, Michigan became the tenth state in the U.S. to legalize adult-use cannabis. Less than a year in, it’s already outpaced Nevada to become the fifth highest-grossing state for cannabis sales and is on track to surpass $1 billion in sales, according to data from Headset. In addition to its fast-growing new adult-use market, Michigan’s medical market is ranked #2 in the country, second only to California. Now, all eyes are on The Great Lake State as cannabis operators and investors across the U.S. seek to claim their share of this high-potential market.

A Strong Medical Market Paved the Way

Though Michigan’s recreational market is still less than a year old, medical cannabis has been legal in the state since 2008. 

“Michigan has historically boasted the second-largest medical cannabis program in the country, and therefore, the adult-use market has a phenomenal base of consumers to grow from,” explains Fabian Monaco, President of Gage Cannabis Co, a Michigan-based cultivator and dispensary operator. 

“Because of this, adult-use sales are now experiencing exponential growth, along with the fact that the state has 7.3 million adults over the age of 21, with a total population of 9.9 million,” adds Monaco. 

By continuing to serve both medical and recreational markets–a move not always followed by other states–Michigan reaches a maximum potential consumer base. 

Michigan Consumers Are Top-Spenders

Perhaps the biggest standout finding was the amount Michigan consumers were willing to spend on cannabis. Headset data shows the average basket size in Michigan is $84.58, a notable increase from California’s average purchase amount of $64.13. This data puts Michigan consumers at the top of the food chain, spending-wise, and is especially attractive to cannabis brands that offer premium products at higher price points.

Gage Cannabis, which has exclusive cultivation and distribution rights to premium brands like Cookies, Grandiflora, and Minntz, currently operates just 1% of Michigan’s medical dispensaries but has commanded 10% of the state’s medical market share. 

Monaco attributes this to Michigan consumers’ apparent preference for high-quality brands, and a willingness to spend more on their purchases. Despite plenty of competition and lower-priced options, Gage continues to command premium pricing on its flower products.

“The average basket size of a Gage customer has been $175 for five straight months, which are industry-leading numbers to say the least,” Monaco underscores.

The Pandemic Only Boosted Business

With the onset of the pandemic, many retail businesses were forced to close, but the state’s newly-legalized cannabis industry was considered essential and allowed to remain open–with a few precautions. 

“Delivery saw incredible adoption in the wake of the COVID-19 pandemic,” says Meredith Mahoney, president of Lantern cannabis delivery platform. Despite the fact that Lantern was brand-new to the Michigan market, the pandemic created a demand, and her technology was able to step in and fill it. 

“Curbside pickup or delivery were the only ways to purchase, with delivery being the much easier and more convenient way to shop, and this accelerated our progress,” says Mahoney.

Consumers Come to Michigan from Out of State

Michigan’s unique geographical location also brings in consumers from neighboring states, some of which only allow medical purchases or none at all. Monaco notes that “Consumers travel to our stores from nearby states such as New York, Ohio, and Indiana, among others.” 

Though he says Gage will remain a single-state operator in Michigan, he has an “aggressive” expansion plan beyond his five current retail locations to meet the current demand. “We are preparing to open an additional eight locations within the next six months in new markets including Battle Creek, Kalamazoo, Bay City, Buena Vista, Center Line, Grand Rapids, and Lenox Township,” he says.

More Firsts and More Expansion Ahead 

With recreational sales growing from $9.8 million in January to $65.5 million by August, according to Headset, there’s no questioning Michigan’s potential. Brands operating within the state are expanding their services to keep up with the Michigan consumer’s appetite. 

Mahoney plans to launch on-demand cannabis delivery next: “Lantern will be the first on-demand cannabis e-commerce platform operating in Michigan that enables recreational cannabis delivery into Detroit in 60 minutes or less from when an order is placed,” she says. After teaming up with local dispensary 3Fifteen for its launch, Lantern will now broaden its network of dispensary partners to expand its service across the state.

Joe Crouthers, CEO of investment firm Ceres Group Holdings, agrees that more industry leaders are likely to follow suit. “Michigan is a big contributor to the cannabis industry’s momentum. They have explosive growth from their new recreational market, a friendly state government with progressive regulation, diverse (canna-educated) consumer mix, and a platform for well-established brands to expand,” he says. 

And while he cautions investors with some general advice, “To maintain tempered valuations, achievable forecasts, and prudent cash flow management,” one thing is clear: “The state certainly warrants our attention.”

 


Debra BorchardtMay 27, 2020
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Up and coming Michigan cannabis company Gage Cannabis has announced a partnership with Slang Worldwide Inc. (OTC:SLGWF) to produce and distribute Slang products. While Slang is the better-known company, Gage has been quietly building a solid business in Michigan.

Michigan

Gage is focused on becoming a leader in the state as the cannabis industry has switched from building huge national footprints to targeting specific states. Adult-use cannabis sales in Michigan began in late 2019 and have been growing steadily since then with 27% month-over-month growth from March to April 2020, based on data from the Michigan Marijuana Regulatory Agency. A recent study by Michigan State University estimates that total cannabis sales in the state could reach $3 billion within the next five years. It is currently the fourth largest market in the country.

Gage Cannabis

Gage has licenses for 13 dispensaries of which four are operational at this time. There are four licenses for cultivation with three operational and one processing license. The average basket size for Gage in March was $130 and that number has jumped to $175 in April.

For now, Gage is privately owned with 60% of the company held by management and insiders. The company has raised $60 million and has $7 million in cash and no debt. Bruce Linton is the Executive Chairman, while Fabian Monaco is the President.

“Gage understands that partnering with industry-leading brands like SLANG elevates the Michigan cannabis market and provides consumers with a range of products that are of exceptional quality,” said a representative of Gage. “Gage is unwavering in its commitment to bringing only the best cannabis products and brands to Michigan.”

The company made a big splash with its Cookies partnership when it opened a Cookies branded dispensary on the well known 8 Mile road in Detroit. The 3,500 square-foot Cookies store employs 40 Detroiters and the company has in place a social equity program through which it will share $950,000 with social equity participants in cities disproportionately impacted by marijuana prohibition.

Slang

The partnership means that Gage will be including its category-leading products O.penVAPE, Pressies, District Edibles, and Bakked in its dispensaries. SLANG will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.

“Partners are the backbone of the SLANG network, and we are excited to embark on this initiative with a great operator like Gage,” said Peter Miller, CEO of SLANG Worldwide.  “Gage has demonstrated an ability to scale as leaders in a rapidly growing and competitive market. By supporting their business with the diversified SLANG product offerings, we expect an even greater mutual scale and success. This deal is directly on target with our licensing and partnership strategy, and we look forward to growing together.”

The addition of the SLANG brands will strengthen Gage’s offering in the vape, edible, and concentrate product categories. Production of the additional products will utilize Gage’s increasing cultivation and processing capacity in the state.

“I am very excited to see this collaboration between two companies that are each innovators and leaders in their own segment of the cannabis market,” said Bruce Linton, Executive Chairman of Gage and an investor in SLANG. “Partnerships like this are a great way for both companies to accelerate their growth in a capital-efficient manner, which is crucial in today’s market.”

 

 

 


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