As was heavily speculated on Twitter this morning, TerrAscend Corp (CSE: TER) has entered into an arrangement to acquire that of Gage Growth Corp (CSE: GAGE), thereby expanding its presence to include the state of Michigan. The transaction is set to take the form of an all-stock deal.
Under the terms of the arrangement, Gage Cannabis shareholders are to receive 0.3001 of a common share of TerrAscend for each share of Gage held. The consideration implies a price of US$2.11, or C$2.66, per share, roughly an 18% premium to the most recent closing price of the operator. The overall transaction meanwhile is pegged at roughly US$545 million.
The transaction will expand TerrAscend’s operations to include a total of five US states as well as Canada, with a total of 23 dispensaries in operation and 7 processing and cultivation facilities. It will also bring several large name-brands under TerrAscend’s banner, including licensing partnerships with Cookies, Slang Worldwide, and Khalifa Kush among others.
Following the completion of the transaction, Gage shareholders are expected to hold roughly 19.8% of the resulting company on a pro-forma basis. The arrangement remains subject to the approval of Gage shareholders.
The transaction is currently slated to close in the first half of 2022, pending regulatory approvals.
TerrAscend last traded at $8.86 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.