US$55 Million Senior Secured Debt Financing Provides Maximum Flexibility to Execute on Gage's Growth Strategy, Including Near-Term Retail Acquisition Opportunities
DETROIT, and TORONTO, Nov. 22, 2021 /PRNewswire/ - Gage Growth Corp. ("Gage" or the "Company") (CSE: GAGE) (OTCQX: GAEGF), a leading high-quality premium cannabis brand and operator in Michigan, today announced it has closed on a senior secured term loan (the "Term Loan") for aggregate gross proceeds of US$55 million (the "Offering"). Gage intends to use the proceeds (i) to finance the Company's retail acquisition strategy in Michigan, (ii) to support the Company's future growth, and (iii) for general working capital purposes. All retail acquisitions are expected to be accretive to Gage and TerrAscend Corp. ("TerrAscend") upon and subject to the completion of its proposed acquisition of Gage.
"This non-dilutive financing provides Gage with maximum flexibility to execute on near-term acquisition opportunities," said Fabian Monaco, CEO of Gage. "We received a great deal of interest and, through our advisors, had healthy participation in this transaction by a high-quality mix of institutional investors, led by Chicago Atlantic Advisors, LLC ("Chicago Atlantic"). Together with TerrAscend, we are committed to building one of the most dominant cannabis companies in Michigan. With the closing of this debt financing, we are well positioned to execute swiftly and drive value for our shareholders."