TerrAscend Corp (TSE: TER) has closed its acquisition of Gage Growth Corp.
As previously announced, the transaction was done by way of a court-approved plan of arrangement pursuant to the Canada Business Corporations Act, pursuant to which shareholders of Gage received 0.3001 of a common share of TerrAscend for each share of Gage held.
TerrAscend issued 51.3 million common shares to former Gage shareholders upon closing.
Gage is now a wholly owned subsidiary of TerrAscend. As part of the transaction, Gage’s shares will be delisted from the CSE effective at the close of trading today.
Management Commentary
TerrAscend executive chairman Jason Wild said, “I believe the combination of TerrAscend and Gage has created one of the most compelling and differentiated operators in the North American cannabis industry. Our proven cultivation and manufacturing expertise, proprietary flower strains, and top-selling brands position us to deliver exceptional retail experiences and products for our patients and customers.”
Wall Street’s Take
Last week, Needham analyst Matt McGinley kept a Buy rating on TER and C$10.26 price target. This implies 62.9% upside potential.
Overall, consensus on the Street is that TER is a Moderate Buy based on two Buys. The average TerrAscend Corp price target of C$12.13 implies 92.5% upside potential to current levels.
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