Consolidation in the cannabis industry is inevitable. As long as marijuana remains federally illegal in the U.S. and cannabis companies need to expand via acquisition to penetrate more states, marijuana businesses will continue to join forces. One deal that investors will want to pay close attention to right now involves cannabis producer TerrAscend’s (OTC:TRSSF) acquisition of Gage Growth (OTC:GAEG.F), a Michigan-based marijuana company. The two businesses announced the deal on Sept. 1, and the combined entity could become one of the top multistate operators in the country. Here’s why you should consider putting TerrAscend’s stock in your portfolio in light of this news.TerrAscend currently has operations in Canada and is active in four U.S. states — California, Maryland, New Jersey, and Pennsylvania. But only one of those states, California, has a recreational market that’s up and running. While New Jersey has approved adult-use marijuana, sales there may not commence until next year. The acquisition of Gage, which operates in Michigan, will give TerrAscend another top marijuana market in its portfolio that is fully legal and open for business. In 2020, Michigan generated just under $1 billion in cannabis sales, slightly below Illinois’ tally. Both states were among the top 10 in revenue for cannabis last year.

420 Intel – Marijuana Industry News, 09/15/2021 20:00:00

Open article: