- Gage Cannabis, vertically integrated cannabis operator, has stated goals to become fastest-growing cannabis brand in state of Michigan
- Michigan’s cannabis industry has benefitted from strong growth momentum ever since state passed motion to legalize cannabis for adult recreational use in 2018; sector now valued at estimated $3 billion per annum at maturity
- Gage Cannabis currently has five retail locations across Michigan along with three wholly-owned cultivation centers all fully operational
- Company posted $13.1 million in 3Q2020 sales (unaudited), a 129% increase from its 1Q2020 figure of $5.8 million
On December 4, 2018, Michigan officially became the 10th state in the United States to legalize marijuana for adult recreational use. Since then, Gage Cannabis a leading vertically integrated operator in the cannabis industry led by former CEO and Chairman of Canopy Growth Corp. Bruce Linton, has sought to focus on the Michigan market, with the stated ambition of building the fastest-growing cannabis brand in the state.
Gage Cannabis has witnessed a rapid growth trajectory since its inception, having opened its first medical provisioning center (dispensary) in the state of Michigan in 2019. Since then, the company has seen its retail footprint expand to five medical or adult-use locations, with plans to operate 20+ locations by the end of 2021. Gage Cannabis has simultaneously sought to complement its retail distribution network with a swiftly expanding cultivation operation—one which has focused on producing small-batch, indoor-grown, and hand-trimmed plants designed to ensure that every gram of cannabis sold is of the highest quality.
Currently, the company boasts three operational cultivation sites, located at Monitor Township, Harrison Township, and Warren while operating one processing facility located in the Harrison Township. Going forward, the company intends to open a new processing facility located in close proximity to its cultivation assets.
Ever since the use of recreational cannabis was legalized in 2018, Michigan has emerged as one of the fastest-growing legal cannabis markets in the United States in terms of consumption. State authorities have recently projected recreational marijuana sales to be worth nearly $1 billion per annum in 2021 with revenues set to rise above $1.5 billion by 2023 (https://cnw.fm/uxKFz).
Gage Cannabis has sought to capitalize on surging cannabis demand within Michigan through its extensive distribution footprint – one which has seen the company establish a presence encompassing an estimated 90% of Michigan’s population within a one-hour radius of its dispensaries. The company’s initiatives have not gone unrewarded.
Gage Cannabis recorded sales of $5.8 million in 1Q2020—a figure which rose to $11.9 million in 2Q2020 and is forecast to rise further to $13.1mn (unaudited) in 3Q2020 as per management guidance, marking a 129% growth in sales from 1Q2020 to 3Q2020. The increase has been reflected through a commensurate increase in the company’s cultivation capacity, which has risen from 200 pounds per month at the start of the year to an estimated 1,000 pounds by December – with the increase in cultivation capacity assisting the company promote rapid growth through its retail locations.
A study carried out by the Brightfield Group found that the recreational marijuana market in Michigan could be set to rival the figures seen in areas such as Nevada and Colorado by 2023 (https://cnw.fm/rfl0B). In fact, Michigan is already one of the top five cannabis markets based on the most recent month of cannabis sales. The study found that 3% of Michigan’s residents were medical marijuana cardholders, a figure which has led the consumer insights company to predict that the state’s recreational market could triple in size over the next three years.
Gage Cannabis has recently announced its intentions to raise up to $50 million in gross proceeds through a regulation A+ offering (https://cnw.fm/90OXZ), with a portion of the proceeds set to be re-invested to finance the company’s various growth initiatives. With Michigan’s cannabis market set to expand exponentially in the coming years, Gage Cannabis finds itself well-positioned to capitalize on market’s future growth trajectory.
NOTE TO INVESTORS: The latest news and updates relating to Gage Cannabis are available in the company’s newsroom at https://cnw.fm/GAGE
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