Gage Growth Corp. Announces Fiscal Year 2020 Results

4.7 min readPublished On: April 29th, 2021By
DETROIT– Gage Growth Corp., (CSE: GAGE), a leading cannabis brand operator in Michigan, today reported its financial results for the three and twelve months ended December 31, 2020.
Financial Highlights for the year ended December 31, 2020

(in millions of US Dollars)

FY 2020

FY 2019




Gross Profit (Loss)



Gross Margin %



Total Operating Expenses



Net Loss



Cash, End of Period



See “Non-IFRS Financial Measures” below for more information regarding Gage’s use of Non-IFRS financial measures and other reconciliations

“Throughout 2020, we worked to establish Gage as one of the leading vertically integrated cannabis companies in Michigan. We strategically invested in the infrastructure and human capital necessary to build scale, leveraging our first-mover advantage and strong brand to own the Michigan market,” said Fabian Monaco, CEO of Gage. “We are thrilled with the results of our efforts, demonstrated by the strong revenue growth and margin expansion we have achieved. Gage is approaching an exciting inflection point, which we believe will enable us to extend our strong growth as we look ahead to 2021.”

Mr. Monaco added, “Michigan continues to report robust cannabis sales, and in March of this year, the state posted $146 million of cannabis sales, which represents an annualized run rate of approximately $1.8 billion. We believe Michigan will be a top five largest cannabis market in the United States this year.”

Mr. Monaco concluded, “Overall, we are well positioned to further scale our business and execute on our expansion strategy in 2021. We are excited to build on our momentum and are already seeing great performance evidenced by our record monthly revenue in March and seeing the trend continue into April driven by the success of our new store launches and strength of our brand in the market. We are projecting to set another consecutive monthly revenue record in May with two more store openings.”

Operational Updates and Developments

1.   Plan to open 8th Gage operated dispensary in Battle Creek this week; two additional dispensary openings planned in May

  • The Company continues to execute on its retail expansion strategy with the goal of opening 20 or more locations by year end.
  • Anticipates opening two locations in May 2021, bringing its total retail footprint to ten.
  • Two additional Cookies branded dispensaries expected to open in Q2/Q3 2021.

2.   Actively pursuing accretive retail acquisitions at attractive prices

  • Gage is in active discussions with multiple retail operators in Michigan.
  • Significant revenue synergies expected to be realized as the Company expects to supply Gage/Cookies branded products which consistently sell out due to high demand.

3.   Delivering on cultivation ramp-up and opening of processing lab to satisfy consumer demand

  • The Company’s Monitor Phase II cultivation expansion is expected to be completed in Q4 2021, bringing an additional 2,000lbs+/month of cultivation capacity.
  • The Company expects its aggregate monthly cultivation capacity to increase to 3,000lbs in June/July and 7,000lbs by year end. This expansion is spread across eight cultivation facilities currently in production, moving to nine facilities at the end of Q2 2021, and 13 cultivation facilities by year end.
  • Gage is expected to open its own processing asset in the third quarter of 2021. This will allow the Company to produce in-house branded extract-based products which command significantly higher margin. Currently, Gage is purchasing the majority of these extract-based products from third parties.

4.   Gage continues to boast some of the industry’s leading retail metrics(1)

  • The Company’s average basket size in 2020 was $164 compared to the estimated state average basket size of $85. The Company continues to see a range of $150 – $170 per average basket size in 2021.
  • Additionally, Gage is targeting $1 million average in revenue per month for each dispensary it operates in 2021. Gage’s average monthly revenue over the past 60 days per dispensary is in excess of $1 million. Moreover, excluding one particular location situated in a tourist heavy location that has been significantly impacted by the COVID-19 pandemic, average monthly revenue for each dispensary was approximately $1.3 million in March 2021. Currently, four Gage operated dispensaries have been performing in the past 60 days at an annual run rate in excess of $15 million.
  • Consecutive record performance in March and April – March monthly revenue of $7.5+ million and April expected to exceed March revenue by a 5-6%. In addition, Q1-2021 sequential quarter growth is projected to exceed 60%.(1)

5.    Record 4/20 Celebration(1)

  • In the full week leading up to 4/20, including 4/20, the Company posted record retail revenue of $2,347,617, with 14,206 transactions and an average basket size of $165.
  • The Company celebrated 4/20 posting a single day retail revenue record across its seven dispensaries, conducting 2,956 transactions and generating over $505,000 in revenue with an average basket size of $171.

Financial Guidance(1)

Based on the continued strength of the Company’s operations and robust consumer demand, Gage is pleased to provide FY 2021 Q1 and Q2 guidance to reflect the transition from its 2020 growth strategy to achieving scale and operating leverage.







Flower Gross Margin (%)



This guidance is fully funded and contemplates only current operations in Michigan. If such operations are impacted by COVID-19, guidance could be negatively affected.

See “Non-IFRS Financial Measures” below for more information regarding Gage’s use of Non-IFRS financial measures and other reconciliations.



These preliminary and unaudited financial results are subject to customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Cautionary Note Regarding Forward-Looking Information and Statements” and “Financial Outlook”.


(This information is primarily sourced from Gage.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).

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