Winning US Cannabis: My Conversation with the Leaders of Gage Growth and Terrascend
As part of my contribution to Seeking Alpha’s CEO Interviews series, I was happy to talk with Fabian Monaco, CEO of Gage Growth, and Jason Wild, Executive Director of Terrascend. Here's a link to the conversation.
As context, Gage is a single-state operator focused on Michigan—the third largest cannabis market in the United States. Terrascend is a multi-state operator (MSO) with a footprint in California, Pennsylvania, New Jersey, Maryland and Canada.
We had both leaders on the show to discuss their pending merger—Terrascend is acquiring Gage in an all stock deal valued at $545mm. The resulting business will have retail, cultivation and operations spanning 5 states (plus Canada) and will establish a key presence in Michigan--the third largest cannabis market in the US. The deal is expected to close in the first half of 2021.
We covered why Gage was a compelling acquisition target, why the Michigan market is important and what Terrascend can learn from Gage’s success in the high-end flower market. Jason Wild also shares why he thinks cannabis stocks have been underperforming, and shares tips for investors looking build a portfolio of cannabis stocks.