DETROIT and TORONTO -- Gage Growth Corp. announced it has closed on a senior secured term loan for aggregate gross proceeds of $55 million.
Gage intends to use the proceeds to finance the company's retail acquisition strategy in Michigan, support the company's future growth, and for general working capital purposes. All retail acquisitions are expected to be accretive to Gage and TerrAscend Corp. 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. 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."
John Mazarakis, partner of Chicago Atlantic, added, "Gage has built an extraordinary organization focused on high quality product, culture, and community, centered in a growing network of retail and cultivation assets. The terms of the term loan reflect the Gage management team and its employees' remarkable track-record of execution and extraordinary commitment to serving its communities."
The loan bears interest at a per annum rate equal to the greater of 7.00% plus prime rate and 10.25%, payable monthly in arrears, with a maturity date of Nov. 30, 2022. The loan is secured by a first lien on all company assets. The placement was arranged by Canaccord Genuity Corp. and Chicago Atlantic as lead lender and administrative agent.