Cannabis company Gage Growth Corp. (CSE:GAGE) (OTCQX:GAEGF) is a step closer to a takeover by cannabis company TerrAscend Corp. (CSE:TER) (OTCQX:TRSSF), as its shareholders approved the previously announced arrangement at the special meeting held on Thursday.

TerrAscend's shareholders followed suit and approved the transaction, pursuant to which the company New York and Toronto-based company will acquire all of the issued and outstanding subordinate voting shares of Gage.

Gage Shareholders

Gage's shareholders carrying an aggregate of 120,076,552 votes, representing approximately 56.26% of votes entitled to be cast at the meeting, were represented in person or by proxy at the special meeting.

The special resolution was approved by 99.57% of the votes cast by Gage's shareholders, voting together as a single class, as well as 99.22% of the votes cast by the Shareholders, excluding the votes attached to the shares directly or indirectly held or controlled by Mike Hermiz, Jason Wild and Richard Mavrinac.

"We are pleased that Gage shareholders have expressed their support not only for this transaction but also for the company's vision to strategically expand its brand footprint in a variety of new markets," Fabian Monaco, CEO of Gage said. "Our team looks forward to joining forces with TerrAscend to create higher industry standards in the cultivation, processing, branding, and consumer experiences, as mainstream demand accelerates throughout the country."

TerrAscend Shareholders

The resolution put forth to TerrAscend's shareholders at the meeting regarding the transaction was approved by approximately 99.78% of the votes cast by TerrAscend minority shareholders.

"On behalf of the entire TerrAscend team, I'd like to thank our shareholders for the strong support they have shown for the proposed acquisition of Gage Cannabis, one of the most influential and innovative brands in the United States." Jason Wild, executive chairman of TerrAscend said Friday.

The Deal Details

The companies entered into a definitive agreement in September, under which TerrAscend will acquire all of the issued and outstanding subordinate voting shares of Gage for around $545 million.

The combined business will have operations in five states and Canada, including seven cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the U.S. and Canada.

Shortly after, TerrAscend received prequalification approval for cultivation, processing and retail licenses from Michigan's Marijuana Regulatory Agency pursuant to the Medical Marihuana Facilities Licensing Act, representing a key closing condition for the acquisition of Gage.

The closing of the transaction is pending regulatory review.

TRSSF Price Action: TerrAscend's shares traded 6.56% higher at $6.37 per share on Friday morning

GAEGF Price Action: Gage Growth's shares traded 5.56% higher at $1.9 per share on Friday morning.

Photo: Courtesy of Andrea Piacquadio from Pexels