News Summary

TerrAscend Corp. has announced its decision to exit the Michigan cannabis market due to financial challenges, closing all 20 dispensaries and impacting around 1,200 employees. The closures are expected to be completed by the end of Q3 2025, with the company shifting its focus to more favorable markets in the northeastern U.S. This move highlights the ongoing struggles of the cannabis industry in Michigan amid an oversupplied market.

Detroit – TerrAscend Corp., a significant player in the cannabis industry known for its brands such as GAGE and Cookies, has announced it will be exiting the Michigan market. This decision comes as the company has identified Michigan as an “extremely difficult market” for its operations. All 20 of the company’s dispensaries in the state are set to close, along with four cultivation and processing facilities, impacting around 1,200 employees.

The planned exit from Michigan is expected to be completed by the end of the third quarter of 2025. The closures will directly affect approximately 250 jobs at dispensaries under the company’s various brands, including GAGE, Pinnacle Emporium, and Cookies. Locations facing closure include major cities such as Detroit, Ferndale, Lansing, Kalamazoo, Traverse City, Grand Rapids, and Battle Creek. The cultivation and processing facilities are situated in Bay City, Harrison Township, and Warren.

According to the company, the decision to withdraw is primarily motivated by financial considerations. TerrAscend believes that its resources can be better utilized in its primary markets located in the northeastern United States, which include New Jersey, Maryland, Pennsylvania, and Ohio. Following the exit from Michigan, the company will maintain its operations with 19 dispensaries and four cultivation and processing facilities in other states.

Sales figures have also played a role in TerrAscend’s decision to exit Michigan. The company’s revenue figures show a decline, with total sales dropping from $317.3 million in 2023 to $306.7 million in 2024. This downturn highlights the challenges within the Michigan market, characterized by slumping prices and an oversaturated supply.

TerrAscend’s exit marks a notable challenge in the cannabis sector of Michigan, which has seen many businesses struggle due to an oversupply issue—leading to steep price reductions and record inventory levels. This environment complicates the sales landscape for businesses that continue to operate in the area. TerrAscend’s decision is part of a broader trend, as other multi-state operators such as PharmaCann and Curaleaf have also chosen to cease operations in Michigan amidst similar market pressures.

In addition to closing its facilities and dispensaries, TerrAscend plans to sell its Michigan assets, including real estate. The funds raised from these sales are expected to be directed towards reducing the company’s significant debt, which stands at $183.5 million.

Understanding TerrAscend’s exit sheds light on the wider state of the cannabis industry in Michigan. Over the last few years, the region’s cannabis market has encountered environmental factors that have severely affected profitability. With a continually increasing number of dispensaries, the market has struggled to sustain balance, causing many companies to navigate narrow profit margins.

As the cannabis industry evolves, the actions of companies like TerrAscend serve as indicators of the growing pains and turbulence within the sector. While TerrAscend consolidates its efforts and investments into more favorable markets, the impact of its withdrawal from Michigan will be felt both by employees and within the industry as a whole.