TerrAscend Corp., one of the latest multi-state operators (MSOs) to enter Maryland’s cannabis market, has struck a deal to acquire Gage Cannabis, a leading weed brand in Michigan.
The $545 million acquisition, which was announced last week, means medical patients in Maryland could soon start to see Gage products on dispensary shelves. It comes just months after TerrAscend first set foot into Maryland’s cannabis industry by snapping up local grower HMS Health from Curaleaf Holdings.
Gage Cannabis has become one of Michigan’s largest cannabis retailers by focusing on high-end products and developing exclusive partnerships with sought-after brands like Cookies and Khalifa Kush.
“We could think of no better company to partner with as we execute on our shared strategy of deep vertical integration and scale in our core markets, with a vision of creating the most consumer-centric cannabis company in the world,” said Gage CEO Fabian Monaco in a press release.
In June, Monaco had told the Cannabis Industry Journal that Maryland was one of several states that Gage hoped to enter, along with Illinois, Pennsylvania, Ohio, New Jersey, and Massachusetts. Until now, Gage only operated in Michigan, while TerrAscend runs close to 30 businesses in Pennsylvania, New Jersey, California and Canada.
TerrAscend is just one of many multi-state operators working to expand their Maryland footprints as the state gears up for the legalization of retail cannabis sales. In July, Greg Rochlin, the head of TerrAscend’s northeast operations and a Baltimore native, told the Baltimore Business Journal that the company had been looking to gain entry into Maryland for several years.
Upon acquiring HMS Health in June, the company immediately announced plans to expand the local grower’s 22,000 square-foot production facilities in Frederick. Since then, the company has introduced its own flower line, Kind Tree, to the Maryland market.
The details of the TerrAscend-Gage deal are not yet clear, though both companies have made their intention to expand in Maryland evident. TerrAscend has been on the lookout for a Maryland dispensary to acquire, a deal that would complete the trinity of growing, processing and retailing licenses the company needs to become vertically integrated in Maryland.