This state could soon become a new green leader
New revenue numbers were just released, and it shows incredible growth in a state that most wouldn’t expect.
The announcement showed that this Michigan market has moved into the top 3 in the industry based on recent April data, and the pace is still picking up.
Soon, it could become the 2nd biggest market in the United States, as the legal MJ industry is expected to add a massive $160 billion to the economy by 2025.
At this point, only California and Colorado are leading them in this race to the top, both of which had a head start as they wecre among the first states to legalize recreational use.
And in case of California, it has a significantly larger population. But Michigan is closing the gap quickly with its meteoric rise.
The state already had strong support for the push toward legalization with so many seeing the benefits medically.
Michigan has over 250,000 medical patients who are “going green” to help manage their health conditions.
And after they legalized adult use for the recreational side, the first dispensaries opened in December 2019.
Since then, adult use sales have skyrocketed.
In the first full year of sales in 2020, Michigan pulled in an incredible $985 million in sales during the “green wave.”
That is a staggering 3.5x jump from 2019.
But with recent numbers being announced, the state is now on track to rake in $1.85 billion – nearly a 2x increase over 2020 again.
And with revenue numbers in Michigan going parabolic, Gage Growth Corp. (CSE: GAGE) (OTC: GAEGF) is quickly emerging as a leader in this space.
Download our special report on Gage Growth Corp.’s rapid rise in one of America’s top states in the industry and how early investors could profit
Leveraging Michigan’s Massive and Fast-Growing Market
Gage Growth is moving towards becoming the #1 market share leader for the state by covering every step of the growth process, from cultivation and curation to sales at the dispensary.
They just announced numbers for the first quarter of 2021, and the results were incredible.
Gage Growth set record revenue numbers with $17.6 million for the first quarter of the year.
That’s a huge increase of 219% over their Q1 numbers for last year.
The results also showed a significant margin improvement of 880 basis points compared to Q4 2020.
What’s more impressive? The company anticipates further margin expansion in Q2 2021 as cultivation yields increase from both Gage-operated assets and more contract grow partners coming online.
And it confirms what everyone already knows: delivering a premium product with a premium price can be a winning strategy for massive growth.
Their emphasis on bringing high-quality products to market helped them end the quarter with an average basket size of $158 in the first quarter of this year.
Compare that to Michigan’s statewide average basket size of $85, and you’ll see why the potential for Gage Growth looks so promising.
This is an exciting time for the company that’s nearly doubling that value, especially in a state that’s quickly rising the ranks in this space.
And they’re doing that in part thanks to partnerships with proven brands that customers already know and love.
Cookies is one of the most prolific and well-respected lifestyle brands in the MJ industry, partnering with hip-hop superstars like Snoop Dogg, Wiz Khalifa, and Rick Ross.
Now, they’re partnering with Gage Growth on a exclusive basis in Michigan, who has opened the first Cookies branded dispensary outside of California.
This partnership helps lend instant credibility and more social reach through their relationship with Cookies.
And Gage Growth is now able to expose their brand and products to a much larger audience as a result.
This has already paid dividends as they’ve followed a similar path with other big-name partners in the industry like Lemonnade, Grandiflora Genetics, Runtz, and many more.
But while these partnerships have helped launch their growth over the last year, it’s their own cultivation and production facilities that have the company so excited for the next few months.
Blazing the path to become the market share leader
Gage Growth’s vertical integration model is allowing them to deliver a high quality, premium product at a premium price.
That’s because they’re able to control every step of the process, from the growth of the plant to curating it to delivering it to customers in the dispensaries.
Combined with contract growers, their total footprint of over 250,000 square feet is helping them produce up to 3,000 pounds per month by July/August of premium flower.
And they’re expecting to increase that number to 7,000 pounds per month by the end of the year.
Gage Growth is well on track to become the largest operator in Michigan by year end.
Imagine becoming the largest operator in the top 5 MJ market in the United States.
Read our exclusive report on how investors could profit from Gage Growth Corp.’s expansion throughout Michigan in 2021
Not only do contract grow agreements help expand the cultivation capacity, the contract growers are a huge help for their bottom line.
That’s because it helps them save on capital with overhead for the facilities while still steadily ramping up their production.
Simply put, the company doesn’t need spend a single dollar of operating expenses or capital expenditures to run the these facilities.
And with 90% of the state’s population living within one hour of a Gage Growth dispensary portfolio, it makes nearly all the adults of Michigan’s 10 million residents a potential customer.
That’s why they’ve been able to attract big-name investors like Jason Wild to help back them along the way.
Wild is the executive chairman of the industry leader, TerrAscend, with a proven track record for spotting gems within the space.
As an early backer of Canopy Growth Corp, the $10 billion giant, he’s shown he knows when a rising company shows promise.
So it speaks volumes about Gage Growth’s potential that he’s become their major shareholder.
And after being recently included in a leading ETF for the MJ industry, that’s opening them up to exposure from a whole new slew of investors.
Now, with Gage Growth expected to open and operate 20 or more stores by the end of the year, they’re continuing their plans to expand across the state.
They plan to have another processing lab up and running in the third quarter of this year, which could help add even more to their profits with better margins.
And they’re also on the verge of closing several other Michigan-based acquisition opportunities.
After opening their 9th dispensary in the state, with plans to introduce new products to market later this year, this story is just starting to heat up.
And as Michigan’s adult use revenue is expected to reach over $1 billion this year, Gage Growth could be sitting on a goldmine as they continue to move towards becoming the state’s #1 market share leader.
IMPORTANT NOTICE AND DISCLAIMER
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Gage Growth Corp. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of five hundred thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
CHANGES IN SHARE TRADING AND PRICE
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
NO OFFER TO SELL OR BUY SECURITIES
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.
This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.
NO FINANCIAL ADVICE
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.
INDEMNIFICATION/RELEASE OF LIABILITY
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.
valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.
ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.