Gage Cannabis On Their Goal To Dominate A Strategic Cannabis Market: Michigan

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Gage Cannabis Co. (“Gage” or the “Company”) is a Michigan-based, vertically integrated cannabis operator led by former CEO and Chairman of Canopy Growth Corp WEED CGC, Bruce Linton. 

Started in 2019, Gage Cannabis is focused not-only on cultivating high-quality cannabis but on cultivating an experience that empowers patients to learn more about the benefits of this plant.

When visiting one of Gage’s retail locations, you will see a wide variety of products that span five different product classes: cannabis hardware, flower, edibles, concentrates, and vape pens/disposables. 

And when it comes to their product offerings, Gage implements sustainable and responsible operations. The company ensures that every gram of cannabis sold is of the highest quality with a great customer experience. All of Gage’s cannabis is grown indoors in small batches using 100% hydroponic cultivation methods, and is then trimmed and hung by hand. 

The Michigan Market

After Michigan became the tenth state to legalize recreational cannabis in 2018, Gage saw this opportunity and decided to open its first dispensary the following year. 

Since its inception, Gage has been solely focused on the Michigan market. One reason behind this decision was the state’s fast-growing legal cannabis market and consumption habits.

The Michigan market is also currently valued at an estimated $3 billion. In September 2020, the state recorded $106 million in cannabis sales. This record number has made Michigan a top-five cannabis market, with a 507% growth in adult-use sales from January to September of this year. 

Gage currently operates three licensed cultivation facilities and one processing asset that serve 13 provisioning centers (dispensaries) throughout Michigan that can be reached by over 90% of Michigan’s population within a 1-hour radius. Gage currently operates five dispensaries across the state and plans to open an additional 3-4 locations by the end of Q1 2021, and by the end of 2021, Gage expects to operate 20+ dispensaries.

Going Public

Gage is currently planning a Canadian listing for Q1 2021. In addition, the company launched a Regulation A, Tier 2, equity financing, also referred to as a mini-IPO, which allows companies to raise capital without actually listing shares on a stock exchange.

The Company is currently offering up to 28,571,400 shares of Subordinate Voting Shares for USD $1.75 per share.

Gage has also experienced an exceptional year of growth in 2020. Sales bloomed during the COVID-19 lockdown period, nearly doubling to $11.9 million in Q2 from $5.8 million in Q1. From January to September of this year, the company marked a 157% growth in sales. The increase reflects the brand’s expansion efforts and increase in cultivation capacity. Gage now estimates its monthly cultivation capacity to be approximately 1,000 pounds of product – a 180%+ increase in monthly production from only a few months ago.

This increase in cultivation capacity will help Gage promote rapid growth through its retail locations. This is evidenced by Gage’s average basket size of $175+, which when compared to the average basket size in Michigan, is more than double.

Along with its focus on expansion, the company also states that its goals are to invest in the health and wellness of their local communities. As Michigander’s themselves, they are working towards building a brighter, cleaner, and greener future.

To learn more about Gage Cannabis, click here.

Photo by Marco Jimenez on Unsplash

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.