News Summary
TerrAscend Corp., a leading cannabis company, will exit the Michigan market by closing 20 dispensaries and four cultivation facilities due to financial challenges. This decision will lead to about 1,200 job losses. The company aims to reallocate resources to more profitable states while dealing with declining sales and market competition. TerrAscend intends to complete its exit strategy by 2025, focusing on its operations in New Jersey, Maryland, Pennsylvania, and Ohio. The broader industry faces similar struggles due to market oversaturation and declining prices in Michigan.
Grand Rapids, Michigan – TerrAscend Corp., a major cannabis company known for its GAGE and Cookies brands, has announced its exit from the Michigan cannabis market, attributing the decision to significant financial difficulties. The company plans to close all 20 of its dispensaries in Michigan by the end of 2025 and shut down four cultivation and processing facilities in the state.
The closures are set to result in the loss of approximately 1,200 jobs. TerrAscend stated that it aims to reallocate resources to more profitable markets, specifically targeting operations in New Jersey, Maryland, Pennsylvania, and Ohio, as it grapples with the implications of an oversaturated market and declining sales in Michigan.
The decision comes on the heels of a reported decrease in sales figures from $317.3 million in 2023 to $306.7 million in 2024. This downturn reflects broader industry challenges, including oversupply, plunging prices, and reduced foot traffic at dispensaries. The average price of an ounce of marijuana flower in Michigan has dropped more than 28% year-over-year, currently standing at $63.17.
Details of the Exit Strategy
TerrAscend anticipates completing its exit from Michigan by the third quarter of 2025. Proceeds from the sale of its Michigan assets, which include valuable real estate, will be utilized to consolidate and pay off company debts. This decision signifies a strategic pivot for TerrAscend, which previously expanded its footprint in Michigan through the acquisition of Gage Growth Corp. in March 2022 for $545 million.
Market Conditions and Competition
The challenges in Michigan’s cannabis market are not unique to TerrAscend. Other multi-state operators, including PharmaCann and Curaleaf, have also pulled out of the Michigan market in recent months. The declining margins and oversaturation of products have driven companies to reassess their operations. As of late May 2025, a staggering 2.73 million active cannabis plants are being cultivated in Michigan, contributing to excessive inventory and continued price declines.
The cannabis industry in Michigan has faced a perfect storm of market conditions that have made profitability difficult. These harsh realities reflect not just individual company struggles but a broader trend affecting various players within the state’s cannabis economy.
Legal Troubles
In addition to these operational challenges, TerrAscend is currently dealing with a proposed class-action lawsuit in Michigan relating to unsolicited marketing texts. This legal issue adds another layer of pressure to the company’s already strained financial situation.
Conclusion
As TerrAscend Corp. begins its exit from the Michigan cannabis market, it emphasizes the urgent need for companies in the sector to adapt and strategize amidst ongoing financial pressures. The looming closures of dispensaries, cultivation sites, and the anticipated job losses underscore the volatility of the cannabis industry in Michigan, which continues to evolve in response to market demands and economic realities.
Deeper Dive: News & Info About This Topic
HERE Resources
TerrAscend to Exit Michigan Marijuana Market by 2025
TerrAscend Exits Michigan Cannabis Market, Impacting Jobs
TerrAscend to Close Marijuana Operations in Michigan by 2025
TerrAscend Exits Michigan Cannabis Market
Additional Resources
- Wood TV: TerrAscend Corp. Halting Operations in Michigan
- Metro Times: Cannabis Giant Plans to Close 20 Dispensaries in Michigan
- Crain’s Detroit: TerrAscend Exit Michigan Market
- Crain’s Grand Rapids: Cash-Strapped Michigan Weed Businesses
- Detroit Free Press: Marijuana Deals and Sweepstakes in Michigan
- Wikipedia: Cannabis in Michigan
- Google Search: Michigan Cannabis Market
- Google Scholar: Michigan Cannabis Industry
- Encyclopedia Britannica: Cannabis
- Google News: Michigan Cannabis News
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
