Toronto, Ontario and Detroit, Michigan--(Newsfile Corp. - May 27, 2020) - SLANG Worldwide Inc. (CSE: SLNG), ("SLANG"), a leading global cannabis consumer packaged goods company with a diversified portfolio of popular brands, and Gage Cannabis Co. ("Gage"), one of Michigan's leading cannabis and brand platforms, today announced a strategic partnership to introduce new cannabis brands to Michigan consumers.
Pursuant to the partnership and pending regulatory approval, Gage has been granted an exclusive license to produce and distribute the SLANG product suite in Michigan, including its category-leading products O.penVAPE, Pressies, District Edibles, and Bakked. SLANG will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.
"Partners are the backbone of the SLANG network, and we are excited to embark on this initiative with a great operator like Gage," said Peter Miller, CEO of SLANG Worldwide. "Gage has demonstrated an ability to scale as leaders in a rapidly growing and competitive market. By supporting their business with the diversified SLANG product offerings, we expect even greater mutual scale and success. This deal is directly on target with our licensing and partnership strategy, and we look forward to growing together."
The addition of the SLANG brands will strengthen Gage's offering in the vape, edible, and concentrate product categories. Production of the additional products will utilize Gage's increasing cultivation and processing capacity in the state. Gage currently operates four provisioning centers in Michigan, with eight additional stores slated for opening.
"Gage understands that partnering with industry leading brands like SLANG elevates the Michigan cannabis market and provides consumers with a range of products that are of exceptional quality," said a representative of Gage. "Gage is unwavering in its commitment to bringing only the best cannabis products and brands to Michigan."
Gage's operating affiliates are fully licensed in Michigan for the cultivation, processing and distribution of cannabis products. Gage's state-wide retail presence includes the flagship Cookies-branded provisioning center in the heart of Detroit. SLANG has also partnered with Cookies, a leading cannabis and lifestyle brand, in three other states.
"I am very excited to see this collaboration between two companies that are each innovators and leaders in their own segment of the cannabis market," said Bruce Linton, Executive Chairman of Gage and an investor in SLANG. "Partnerships like this are a great way for both companies to accelerate their growth in a capital-efficient manner, which is crucial in today's market."
Michigan has historically been one of the top five largest cannabis markets in the United States and previously boasted the second largest medical patient base, only behind California, according to New Frontier Data. Adult-use cannabis sales in Michigan began in late 2019 and have been growing steadily since then with 27% month-over-month growth from March to April 2020, based on data from the Michigan Marijuana Regulatory Agency. A recent study by Michigan State University estimated that total cannabis sales in the state could reach $3 billion within the next five years.
Subject to the receipt of applicable regulatory approvals, SLANG's brands are expected to be available in Michigan at provisioning centers across the state, including those operated by Gage, by the fourth quarter of this year.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. SLANG specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG. For more information, please visit www.slangww.com.
About Gage Cannabis Co.
Gage Cannabis Co's operating affiliates set the standard for quality cannabis products and experience, bar none. Gage supported and branded locations grow plants in small batches using 100% hydroponic cultivation methods for sustainable and responsible operations. From handpicking every plant to employing a proprietary drying, trimming and curing method, each step of the Gage process is deliberately designed to deliver only the best cannabis products in Michigan.
Gage-branded provisioning center locations are currently operating in Adrian, Ferndale and now Lansing, with additional locations slated to open in Traverse City, Battle Creek, and Kalamazoo in the next few months. Other locations scheduled to open include Bay City, Buena Vista, Center Line, Grand Rapids, and Lenox Township. Gage Cannabis Co. earned an AdCann Advertising Award as the best retail storefront in the United States.
To supplement a wide range of proprietary products, Gage Cannabis Co. partners with a deep roster of internationally and local renowned brands to bring the local cannabis culture to life.
For more information about Gage Cannabis Co., visit www.gageusa.com.
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This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated benefits of the relationship between SLANG and Gage, the introduction and distribution of SLANG branded products in Michigan and the cannabis market in Michigan.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, risks related to the COVID-19 global pandemic, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.