News Summary

TerrAscend Corp. has announced its exit from the Michigan cannabis market, resulting in over 230 layoffs and plans to divest all Michigan assets, including four cultivation facilities and 20 retail stores. This decision reflects the challenges in the Michigan cannabis market, including market oversupply and declining prices. While the company’s operations will cease in Michigan, it will continue to focus on other markets, including New Jersey and California, as it seeks to enhance operational efficiencies.

Detroit – TerrAscend Corp., a prominent player in the cannabis industry, has announced it will be exiting the Michigan market, resulting in the layoff of more than 230 employees. This decision comes as part of a WARN Act notice filed with the state, marking a significant shift in the company’s operational focus.

The exit strategy includes the sale or divestment of all Michigan assets, which encompasses four cultivation and processing facilities and 20 retail stores. Among the notable closures will be Gage dispensaries in Detroit and Ferndale, a Cookies dispensary in Detroit, as well as cultivation facilities located in Warren and Harrison Township. This transition is expected to be completed in the second half of 2025, affecting approximately 21% of TerrAscend’s overall workforce.

The crisis in the Michigan cannabis market is driven by factors such as market oversupply and decreasing prices that have made it increasingly challenging for businesses to remain profitable. These economic pressures have prompted TerrAscend to reevaluate their operations within the state. The company is not alone in this struggle; other multistate operators, including PharmaCann, have also reduced their presence in Michigan, contributing to job losses in the sector.

TerrAscend entered the Michigan market in 2022 with a $545 million acquisition of Gage Growth Corp. At the time, the Michigan recreational marijuana market was experiencing unprecedented growth, becoming one of the largest in the U.S. by several sales volume metrics, even surpassing California. However, as market conditions evolved, an upcoming report is anticipated to show a slight decline in total recreational marijuana sales in Michigan for the first half of 2025 compared to the same timeframe in 2024.

From December 2019 to early 2025, data indicate that the Michigan cannabis industry generated a total of $1.3 billion in sales, although this reflects a 2.6% decline year-over-year. Such trends highlight the intense competition and precarious nature of the cannabis market in Michigan.

Despite retracting from Michigan, TerrAscend will continue to maintain operations in several other markets, including New Jersey, Maryland, Pennsylvania, Ohio, California, and Canada. The company’s strategic focus will shift towards enhancing financial performance and operational efficiencies by directing resources to its northeastern U.S. markets.

This decision represents a pivotal moment for TerrAscend as it seeks to navigate through the challenges posed by the current cannabis market landscape. The upcoming changes will not only affect the employees who will lose their jobs but will also resonate throughout the Michigan cannabis sector as it continues to adjust to fluctuating regulations and market demands.