Terrascend will buy Michigan-based rival Gage Growth, backed by prominent cannabis investor Jason Wild, for around US$545 million, reported Reuters on Wednesday, September 1.
Dealmaking in the US cannabis industry has heated up this year as companies bank on Democrats’ promises to reform marijuana laws and potentially legalize the plant at the federal level.
However, little progress has been made so far and weed stocks have fallen off a cliff in recent months. Gage Growth shares have plunged about 22% up to its last close, since its direct Canadian listing in April.
Gage Growth, which closed its first day of trading at CA$2.89 (US$2.29) on April 6, will receive an implied consideration of CA$2.66 per share in the merger.
The combined company will have operations in five US states and Canada, including seven cultivation and processing facilities and 23 operating dispensaries in the two countries, Terrascend said in a statement.
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