News Summary

TerrAscend Corp. plans to shut down its marijuana operations in Michigan by September 2025, affecting around 20 dispensaries and 250 employees. The company cites tough market conditions, including declining sales and increased competition, as reasons for the closure. The move marks the end of TerrAscend’s significant presence in Michigan, redirecting focus toward more profitable markets like New Jersey and Pennsylvania. This decision reflects growing financial challenges within the cannabis industry in Michigan.

Burton, Michigan — TerrAscend Corp. has announced plans to close its entire marijuana operations in Michigan by September 2025, impacting approximately 20 dispensaries and over 250 employees. The decision comes as the company grapples with challenging market conditions in the state, which has seen a decline in sales and increased competition among cannabis businesses.

Among the dispensaries affected is the Gage Cannabis location at 1234 N. Center Road in Burton. In addition to the dispensaries, TerrAscend will also shut down four marijuana cultivation centers across Michigan. This move will mark the end of the company’s Michigan presence, which currently represents about half of TerrAscend’s overall operations.

Executive Chairman Jason Wild cited the difficult conditions in Michigan’s cannabis market as a primary reason for the closures. The company aims to streamline its focus on financially stronger markets, including New Jersey, Maryland, Pennsylvania, and Ohio. The planned closures are expected to take place over the course of the next three to six months, with stores remaining open but operating on reduced hours until they officially close.

The decision comes in the wake of significant financial shifts for TerrAscend. The company’s sales in Michigan dropped from $317.3 million in 2023 to $306.7 million in 2024. Furthermore, the company has seen its long-term debt rise to $183.5 million as of 2024. TerrAscend plans to utilize savings from the Michigan closures to pay down this debt and reallocate resources to more profitable operations.

The cannabis market in Michigan has faced numerous challenges, contributing to declining profit margins and an oversupply of marijuana. Increased competition has pressured prices, compelling several multi-state cannabis companies, including PharmaCann and Curaleaf, to exit the Michigan market due to financial struggles. The issues facing TerrAscend reflect broader trends experienced in the Michigan cannabis industry.

As the company shifts its focus outside of Michigan, it will seek to strengthen its position in states where market conditions are more favorable. This strategic pivot aims to enhance profitability and operational stability as Michigan’s cannabis environment continues to evolve.

The impending closures underscore the volatility of the cannabis industry and the ongoing struggles faced by many companies operating within it. TerrAscend’s move is a significant indicator of the larger market challenges that have forced various cannabis businesses to reevaluate their strategies and geographic footprints.