News Summary

TerrAscend Corp has announced its exit from the Michigan cannabis market, affecting 20 dispensaries and over 240 employees. This strategic move is part of a broader workforce reduction of 21% across the company. The decision comes as sales in Michigan decline and the company redirects focus to more profitable markets like New Jersey and California. The challenges in Michigan’s cannabis landscape, including pricing pressures and oversupply, highlight the difficulties many operators face in this competitive environment.

Lansing, Michigan — TerrAscend Corp, a prominent player in the U.S. cannabis market, has announced its exit from Michigan, impacting 20 retail dispensaries and over 240 employees in the state. This strategic decision is part of a broader effort to cut down its workforce by approximately 21%, affecting around 1,200 employees overall, as the company redirects its focus to more profitable markets.

The exit from the Michigan cannabis market, expected to be finalized by the end of September 2025, involves the divestment of all state assets including 20 retail locations under popular brands such as Gage, Pinnacle Emporium, and Cookies, as well as four cultivation and processing facilities. The proceeds from these asset sales will be utilized to address the company’s existing debt of $183.5 million.

Executive Chairman Jason Wild has indicated that the company has conducted a thorough evaluation of operating conditions in Michigan, labeling the market as “extremely difficult.” These conditions have manifested in a decline in sales from $317.3 million in 2023 to $306.7 million in 2024, attributed to lower foot traffic and a decrease in promotional activities.

TerrAscend plans to maintain its focus on 19 dispensaries and four cultivation and processing facilities located in more lucrative markets, including New Jersey, Maryland, Pennsylvania, Ohio, and California. This alignment aims to enhance financial performance by reallocating resources where they can provide greater returns.

The challenges faced by TerrAscend in Michigan are not unique. Other multi-state operators (MSOs) such as PharmaCann and Curaleaf have similarly exited or reduced their operations in this particularly challenging market. The state’s cannabis landscape is suffering from intense pricing pressures and oversupply, which have significantly curtailed profit margins for many operators. In May alone, Michigan issued 67 new cannabis licenses, which exacerbated the already saturated environment.

As the company prepares to exit, the implications for its staff are profound. Over 240 employees working at the Michigan dispensaries may find themselves at risk of job loss as the market shifts and the company consolidates. The announcement underscores the volatility and challenges faced within the cannabis industry, particularly in states where competition is fierce and consumer traffic is declining.

The decision to withdraw from Michigan aligns with a broader trend as cannabis companies adjust their strategies in response to market realities. TerrAscend’s focus will now center on regions that demonstrate sustainable growth potential, indicating a shift in priorities as the industry continues to evolve amid regulatory and economic pressures.

The exit from Michigan signals not only a significant operational change for TerrAscend but also highlights the ongoing challenges within the state’s cannabis industry as companies navigate competitive pressures and seek to stabilize their financial footing. As the market adapts, the focus will likely remain on finding balance between supply, demand, and sustainable profitability in the coming years.