Gage Cannabis Announces US$20 Million Reg A+ Commitment from JW Asset Management

DETROIT, Dec. 16, 2020 /PRNewswire/ -- Gage Cannabis Co. ("Gage" or the "Company"), the leading high-quality craft cannabis brand and operator in Michigan, today announced it has secured a minimum investment of US$20 million from funds advised by JW Asset Management, LLC ("JWAM") as part of the Company's Regulation A, Tier 2, equity financing (the "Offering").

JW Asset Management's investment will provide Gage with resources to accelerate the expansion of its retail and cultivation footprint, pursue accretive acquisitions, and help position and solidify Gage as the leading cannabis operator in the state of Michigan. JWAM has been an active investor in the cannabis sector since 2014, investing in many of the industry leaders, including TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), where Jason Wild's strategic involvement and support has been instrumental in driving tremendous value for shareholders.

"JW Asset Management is widely recognized as one of the premier investors in the cannabis sector. Their participation provides Gage with a strong balance sheet that enables us to further establish our brand in one of the fastest-growing cannabis markets in the United States," said Fabian Monaco, President of Gage. "We are confident in executing on our 2021 goals, driven by the growth of both the cultivation and dispensary arms of our business. We are fortunate to have developed a strong relationship with JWAM and are grateful for their support as we capitalize on the opportunities ahead in Michigan."

Jason Wild, Founder and President of JWAM added, "Gage has rapidly established a strong footprint in Michigan and I'm thrilled to participate in their growth. I'm confident that Gage's experienced team will continue to execute on the opportunity ahead."

Gage's Michigan footprint has grown significantly since their first retail opening in the state in September 2019. Today, the Company supports five provisioning centers (dispensaries), three cultivation facilities, and one processing facility across the state of Michigan, with plans to double their retail footprint by the end of the first quarter of 2021. Earlier this month, Gage had its first harvest at its flagship Monitor Township cultivation facility with a second harvest scheduled for this week.

The first tranche of approximately US$10 million of the US$20 million commitment from JWAM has been received by the Company. Gage expects to receive the remaining funds prior to year end 2020. In consideration for JWAM's participation in the Offering (US$1.75 per share), the Company has agreed to issue an equivalent number of warrants to purchase subordinate voting shares of the Company (the "Warrants"). Each Warrant shall entitle the holder to purchase one subordinate voting share in the capital of the Company for US$2.60.

Go-public Plan in Q1 2021

The Company continues to pursue a go-public transaction which it tentatively expects to complete by the end of Q1 2021. Additionally, the Company confirms that general public access to the Offering will close on December 16^th, 2020. Gage encourages interested investors to visit www.GageInvestors.com for more information.

About Gage Cannabis Co.

Gage Cannabis Co. is innovating and curating the highest quality cannabis experiences possible for cannabis consumers in the state of Michigan and bringing internationally renowned brands to market. Through years of progressive industry experience, the firm's founding partners have successfully built and grown operations with federal and state licenses, including cultivation, processing and retail locations. Gage's portfolio includes city and state approvals for 19 "Class C" cultivation licenses, three processing licenses and 13 provisioning centers (dispensaries). To learn more, please visit www.GageUSA.com.

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. While legal in certain states, cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.  Investors should carefully read the risk factors and disclosures contained in the offering circular prepared in connection with the Offering before making any decision to invest in the Company. 

Forward Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and include statements with respect to future revenue and profits. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, the impact of the COVID-19 pandemic and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information.  Additional information regarding risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" and elsewhere in the Company's offering circular effective September 14, 2020.  The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Media Contact

MATTIO Communications

[email protected]

SOURCE Gage Cannabis Co.

Related Links

https://gageusa.com