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Linton joined Gage as executive chairman in 2019, months after
being ousted from the board of Canopy Growth Corp <WEED.TO> - a
business he founded in 2013, took public the next year and
transformed into the most valued cannabis company through a
string of deals. (https://reut.rs/30rhknz)
Gage, which currently focuses solely on the Michigan market, is
expecting sales of around $13.2 million in the third quarter, up
11% from the previous three months.
"We have seen tremendous growth in the Michigan market in 2020
and Gage has been diligent in capturing that growth through its
operating assets," said Fabian Monaco, president of Gage
Cannabis.
Weed companies in the United States have reaped the benefits of
cannabis businesses being allowed to stay open as essential
services during the COVID-19 restrictions.
The company outlined plans to open eight to ten new stores by
the end of this year and will consider expanding to markets
beyond Michigan next year, according to a presentation to
investors reviewed by Reuters.
Gage has already filed an offering circular with the U.S.
Securities and Exchange Commission, indicating it could launch a
"regulation A+" offering in the country before the Canada debut.
A regulation A+ offering, also called a mini-IPO, allows
companies to raise capital without actually listing the shares
on a stock exchange.
Companies whose businesses involve marijuana cultivation are not
yet allowed to list in the United States as the plant remains
illegal at the federal level.
Gage-branded products are also sold in Canada by Radicle
Cannabis, which is backed by Canopy Rivers.
Canopy Growth holds a 27% stake in Canopy Rivers.
(Reporting by Shariq Khan in Bengaluru; Editing by Sriraj
Kalluvila and Devika Syamnath)
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