Bruce Linton-Backed Gage Cannabis Offers Reg A+ Equity Financing

DETROIT, Nov. 26, 2020 /PRNewswire/ - Gage Cannabis is one of the leading vertically integrated operators in the cannabis industry

• Its current focus is the Michigan market, which is valued at an estimated $3 billion and recorded $109 million in cannabis sales in August 2020
• The company currently has five dispensaries across Michigan, with the potential to have 90% of the state's population within a one-hour drive as it continues to expand its dispensary network, offering a wide range of products and even home delivery options
• Gage has experienced 157% sales growth from January to September 2020, with $30M+ in sales year-to-date
• Gage has posted an average basket size of $175+ for the past six months. For comparison, the state of Michigan average basket size is $85 – Gage is almost $100 higher!
• Gage is planning to expand its cultivation site in Monitor Township and open up to an additional 2-3 provisioning centers (dispensaries) in Michigan by the end of Q1 2021. It has detailed plans to open 10+ other locations in 2021, with a goal of operating 20+ locations by year-end 2021
• The company intends to go public during Q1 2021 through a Canadian listing

Gage Cannabis Co. is a leading vertically integrated operator in the cannabis industry led by the former CEO and Chairman of Canopy Growth Corp., Bruce Linton. The company is currently focused exclusively on the Michigan market, working with the declared goal of building the fastest growing cannabis brand in the state.

One of the reasons Gage targeted Michigan as its location of choice is due to the state's fast-growing legal cannabis market and consumption habits amongst consumers. In 2018, Michigan became the 10th state to legalize the recreational use of cannabis. In light of such favorable market dynamics, Gage opened its first medical provisioning center (dispensary) shortly after, in 2019. The company now has 8-10 medical or adult-use locations open or in the works, with an additional 10+ planned to open during 2021. Gage's current portfolio features 19 Class C cultivation licenses across four cultivation assets and three processing licenses.

Current Asset and Brand Portfolio

Gage's current brand portfolio consists of five unique product classes: flower products, edibles, hardware, concentrates and vape pens/disposables.

The company has already created relationships with a wealth of exclusive brand partners, including some of the most illustrious brands in the country. Notably, Gage's exclusive partnership with Cookies, one of the most well-respected cannabis lifestyle brands in the United States, illustrates Gage's operational prowess in cultivating quality flower and operating its branded retail stores. Today, Gage operates the 8 Mile Cookies location in Detroit, Michigan, which is one of the top performing dispensaries in the state despite being a medical-only dispensary.

Committed to providing only products of the highest quality, Gage cultivates small-batch, indoor-grown, high-quality cannabis that is hand-trimmed and hung to dry. Gage ensures that every gram of cannabis sold is consistently of the highest quality and offers a superb customer experience.

The company currently has four cultivation assets, located at Monitor Township (expansion planned), Harrison Township, Warren and Lenox Township, and it operates one processing facility located in Harrison Township, with plans to operate another two processing facilities in Monitor Township and Lenox.

Financial Highlights

In Q1 2020, the company recorded sales of $5.8 million. This number grew substantially in Q2, reaching $11.9 million. Management estimates Q3 sales at roughly $13.1 million, marking a 157% growth in sales from January to September 2020, within a year of operations.

This increase reflects the company's significant expansion efforts since the beginning of 2020. Starting with only 200 pounds per month, Gage now estimates its monthly cultivation capacity at approximately 1,000 pounds of product.

This increase in cultivation capacity has helped Gage promote rapid growth through its retail locations. Average basket size, which refers to the retail value of each consumer transaction, is estimated at $85 for the Michigan cannabis industry. As of September 2020, Gage has an average basket size of approximately $180 at its locations, more than double the state average.

Plans to Go Public in Q1 2021

Gage Cannabis is currently planning a Canadian listing for the first quarter of 2021 (https://nnw.fm/JGq4y). Additionally, Gage launched a Regulation A, Tier 2, equity financing, also called a mini-IPO, which allows companies to raise capital without actually listing shares on a stock exchange.

Gage is offering up to 28,571,400 shares of Subordinate Voting Shares ("Shares"), for US$1.75 per Share. The Shares are being offered pursuant to Regulation A of Section 3(b) of the Securities, as amended, for Tier 2 offerings, by management on a "best-efforts" basis directly to purchasers who satisfy the requirements set forth in Regulation A.

The Company encourages all interested investors to visit GageInvestors.com for a link to the Offering Circular and to learn how to invest in the Offering. Financing information is also available by calling toll free at 1-844-606-0809 or locally at 1-616-504-6060.

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 GageInvestors.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 our offering circular before making any decision to invest in our 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; 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. 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.

Legal Notice

This press release is for information purposes only and does not constitute an offer or sale of the securities referenced herein.  Any such offer will only be made in compliance with applicable state and federal securities laws pursuant to Regulation A, Tier 2 of the Securities Act of 1933. A link to the qualified offering circular and related offering documents is attached hereto and all prospective investors should carefully review these materials, which includes important disclosures and risk factors associated with an investment in Gage Cannabis Co. These securities have not been recommended by the Securities and Exchange Commission or any state securities commission or regulatory authority, nor has any commission or regulatory confirmed the accuracy of the information contained the offering materials. 

The information is provided for convenience only, is not investment advice and may not be relied upon in considering an investment in Gage Cannabis Co.  No representation or warranty, express or implied, is made as to the accuracy or completeness of any information contained herein, and any investment decision should be based solely on the information contained in the offering circular and related materials, and the investors independent research. No representation or warranty, express or implied, is made as to the future performance of any investment in Gage Cannabis Co., or that investors will or are likely to achieve favorable results, will make any profit at all or will be able to avoid incurring a loss on their investment.  In addition, prospective investors are encouraged to consult with their financial, tax, accounting or other advisors to determine whether an investment in Gage Cannabis Co. is suitable for them.

SOURCE Gage