TerrAscend Corp (CSE: TER) is one step closer to acquire Gage Growth Corp (CSE: GAGE). The firm this morning indicated that it has received a key approval from the State of Michigan in proceeding with the transaction.
The company has been granted pre-qualification approval by the Marijuana Regulatory Agency under the Medical Marihuana Facilities Licensing Act. The pre-qualification applies to cultivation, processing and retail licenses, and is the most comprehensive aspect of the licensing framework within the state.
With the pre-qualification received, the company is now one step closer to close its acquisition of Gage, with this key closing condition now met. The firm is now able to proceed with receiving shareholder approvals, along with court and other regulatory approvals as part of the process.
The acquisition of Gage Growth Corp by TerrAscend was originally announced at the start of the month, with the deal being pegged at US$545 million. Taking the form of an all stock deal, the arrangement will bring TerrAscend’s total footprint to five US states as well as Canada.
A timeline for closing has been pegged as the first half of 2022.
TerrAscend last traded at $9.21 on the CSE.
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