TerrAscend Acquires Gage Cannabis for $545 Million in Strategic Move

In a significant move within the cannabis industry, Canadian company TerrAscend has announced its acquisition of Michigan-based Gage Cannabis for $545 million. This acquisition includes all of Gage's shares and is pending approval from Canadian financial authorities, as both companies are listed on the Canadian Securities Exchange in Toronto

Gage Cannabis, a leading player in Michigan's $2 billion cannabis market, is renowned for its exclusive licenses to sell popular brands such as Cookies and Khalifa Kush, the latter associated with rapper Wiz Khalifa. TerrAscend's CEO, Jason Wild, expressed excitement over leveraging Gage's strong consumer connections in Michigan, highlighting the strategic value of this acquisition

The acquisition allows TerrAscend to diversify its offerings by adding Gage's premium cannabis products to its portfolio. Gage's products are known for their high quality, commanding prices that are 40% higher than the average in Michigan. This premium positioning aligns with TerrAscend's strategy to cater to discerning cannabis consumers

TerrAscend, which already operates in several U.S. states, will expand its retail footprint with this acquisition. The combined entity will operate 23 stores across California, Michigan, New Jersey, and Pennsylvania, with plans to increase to 34 locations. Additionally, TerrAscend will enhance its production capabilities with seven sites in the U.S. and Canada

This acquisition is expected to have significant implications for the cannabis market, particularly in Michigan, where Gage has established a strong brand presence. By integrating Gage's offerings, TerrAscend aims to enhance its competitive edge in the premium cannabis segment, appealing to both seasoned consumers and new markets