In recent months, everyone’s been raving about the potential in the Illinois cannabis market, but the truth is they’re overlooking an even greater opportunity.
Newsweek, for example, says, “Illinois [is set] to record $1 billion in cannabis sales by year’s end.”
And NBC Chicago says, “Illinois cannabis sales continue to smash records, with revenue exceeding that of liquor.”
But despite all the fanfare, another state has already surpassed Illinois in terms of cannabis revenue.
And at this point, the media still hasn’t caught on yet.
Michigan has slowly risen the ranks since full legalization was passed, and it is now on track to make up an enormous $3 billion market.
That puts it only behind California and Colorado, both of which had a massive head start after being among the first states to legalize recreational cannabis use.
But with close to 250,000 medical patients residing in Michigan, the state currently has the same number of medical card holders as all of Canada.
All that to say that demand is soaring in the Great Lakes State. And after full adult-use was legalized, demand has only continued to rise since dispensaries opened in December 2019.
In fact, cannabis revenue skyrocketed by 585% in Michigan during its first year after legalization.
And keep in mind, this was all during a year where customers were largely not allowed in retail dispensaries due to the pandemic.
Today, Gage Growth Corp. (CSE: GAGE | OTC:GAEGF) is moving towards becoming the #1 market share leader in the fast-growing state.
And the numbers are showing they’re only continuing to build on that goal.
After raising $50 million in December/January, Gage made an impressive announcement on their recent revenues.
They reported that for Full Year 2020, revenue increased 1,972% to a whopping $39.9 million.
That comes out to a 20X increase in revenue in just one year. Even better, most recently, the company reported its Q1-2021 results, posting record revenue of $17.6 million, an increase of 219.4% year-over-year and 67.9% quarter-over-quarter. The company ended the first quarter of 2021 with over $43.6 million of cash.
You’d be hard-pressed to find that kind of growth anywhere else in the markets.
Learn how Gage Growth Corp. is moving towards becoming the market share leader in America’s fastest-growing cannabis state – Read our exclusive report!
But early numbers are already proving to be even more impressive for this year.
For example, Gage just reiterated its guidance for Q2-2021 revenue of $26-31 million.
That incredible growth potential is a major reason why Jason Wild has been one of their biggest shareholders.
Wild is the executive chairman of leading cannabis company, TerrAscend, and he has an incredible track record for spotting gems in the industry.
For instance, he was an early backer of Canopy Growth Corp. That’s long before it became the $10 billion behemoth it is today.
And with Gage’s premium product yielding a premium price, he clearly sees the potential of this fast-growing cannabis company.These premium prices have helped amount to an average basket size of $164 in 2020.
Compare that to Michigan’s average basket size of $85, and you’ll see why the numbers look so promising for this company.
That has helped them land agreements with 5 or more contract growers to cultivate more of their product around the state.
These agreements allow Gage to save valuable capital on the front end while immediately increasing their supply on the shelves.
But they don’t rely on these partners exclusively, as they’ve developed their own massive footprint of cultivation and production facilities. When combining both owned cultivation footprint and contract grows, the company’s cultivation capacity is expected to increase to 3,000 lbs by July and 7,000 by year end.
Continuing Their Massive Growth Trend
Gage Growth Corporation covers every step of the process as a vertically integrated cannabis company.
That means they control everything from the cultivation of the flower to cutting and drying the product to packaging it on their shelves.
This kind of hands-on touch allows them to ensure they provide the highest quality, premium product possible.
They do it all in their cultivation and production facilities using a high-quality, low-cost, indoor production method.
Combined with contract grow, their total footprint of over 250,000 square feet allows them to produce up to 3,000 pounds of cannabis flower per month by July.
That’s expected to increase to 7,000 pounds per month by year end.
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And they use that to produce a broad portfolio of high quality products.
But they’ve also taken it a step further by partnering with one of the most well-known brands in the cannabis space.
Cookies is one of the most prolific and respected cannabis lifestyle brands in the markets.
That’s why this California-based premium cannabis brand has been able to develop partnerships with major hip-hop artists like Snoop Dogg, Wiz Khalifa, and Rick Ross.
And now, Gage Growth Corp. has signed an exclusive partnership with Cookies in Michigan.
This partnership has earned them instant credibility and added more reach on social media, giving them the ability to easily grow their brand and product to a larger audience.
And they’re using this same strategy to amplify their brand with other key partners like Blue River, Lemonnade, Grandiflora Genetics, Runtz, and more.
While Gage’s numbers have proven they’ve had a successful year in 2020 by any measure, their ambitious plans could make this year even more impressive.
- After opening their 9th retail location, they expect to have 20+ stores open and operating by the end of 2021.
- They’re planning to have a processing lab opened in the third quarter.
- And they also have several other Michigan-based acquisition opportunities in progress.
When you compare Gage to competitors, it instantly becomes clear how grossly undervalued the company is at the moment too.
Take, for example, their revenues for the biggest holiday in cannabis culture: 4/20.
Gage drove over $505,000 in revenue that day.
That’s roughly on par with what industry peer, Planet 13 Holdings, brought in as well.
But currently, Planet 13 boasts a massive market cap of $1 billion.
Which means Gage, with a market cap of approximately $500 million, is driving numbers at the level of major players more than 4 times their size.
Now, as Gage Growth Corp. is set to continue their aggressive growth in one of the top cannabis revenue-producing states in the nation…
The time is right for early investors to follow one of the best hidden opportunities in the growing Michigan cannabis market.
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