Michigan cannabis operator brings in $50 million from small investor offering

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Gage Growth, a Michigan-based cannabis operation, said it raised the maximum $50 million allowed through a Regulation A, small-investor offering.

Regulation A offerings are a way for a company to build a base of loyal investors in advance of a potential initial public stock offering with less-stringent regulatory requirements.

Such offerings were especially being eyed when capital markets were tight the past couple of years.

Gage’s oversubscribed offering reflects how investor interest in marijuana companies is increasing again.

Gage, which is based west of Detroit, said it expects to use the proceeds to expand its retail footprint, pursue acquisitions and strengthen its brand.

The firm, which opened its first Gage Cannabis Co. retail outlet in September 2019, now supports five dispensaries, three cultivation facilities and one processing facility in Michigan.

In December, Gage noted that it had secured a minimum investment of $20 million for its Reg A offering from funds advised by New York-based JW Asset Management, which has been an active cannabis investor since 2014.