TerrAscend acquires Gage for $550 million $

Things are heating up in the high-end cannabis market. Gage, which holds a license to sell rapper Wiz Khalifa’s Cookies and Khalifa Kush products, is changing hands. Canadian company TerrAscend is acquiring all the shares of the Michigan-based company for $545 million. The transaction must now be approved by Canadian financial authorities, since both companies are listed on the Toronto Stock Exchange.

A nice little sum… for a little gem. Gage is the top cannabis company in Michigan, the third-largest market in the U.S. that is worth $2 billion a year. «We look forward to building on the deep connection that Gage shares with Michigan consumers.», says Jason Wild, the CEO of TerrAscend, rubbing his hands together in a press release.

Another reason to break out your checkbook: Gage holds an exclusive license to be the only retailer in Michigan authorized to sell internationally recognized brands. This is the case with The Cookies Family , which includes the Gelato, Girl Scout Cookies, or Cherry Pie. But also Khalifa Kush, the brand from Ambassador Wiz Khalifa. Gage also has an excellent catalog of genetics, which TerrAscend will now be able to access.

Gage is aimed at potheads

TerrAscend is also acquiring a high-end competitor, though in a different market segment. The Canadian company focuses primarily on dispensaries and their senior customers (through its brand, The Apothecarium), as well as fans of natural products. Gage, on the other hand, caters more to potheads, those connoisseurs who want the best products.

In fact, this is reflected in the prices. Its cannabis flowers are, on average, 40 % more expensive than the competition in Michigan. This is a difference the company fully accepts, and one that can also be explained by the high quality (and high purchase price) of the products it sells.

The new company, TerrAscend-Gage (it is unclear whether it will change its name), will therefore rely on a network of 23 stores in four U.S. states (California, Michigan, New Jersey, and Pennsylvania), with hopes of expanding to 34 locations soon. The group will also have an extensive cannabis production network, with seven different sites in the United States and Canada.