News Summary

TerrAscend Corp announced its complete withdrawal from the Michigan marijuana market by the end of 2025, closing 20 retail locations and a cultivation center, resulting in around 250 job losses. The decision comes amid declining profit margins and an oversupplied market. The closures will also affect well-known cannabis brands in major cities across Michigan. TerrAscend plans to focus resources in other states and Canada, while navigating a class-action lawsuit for unsolicited marketing. The future of the local cannabis industry remains uncertain as the company restructures.

Burton, Michigan – TerrAscend Corp has announced plans to withdraw entirely from the Michigan medical and recreational marijuana market by the end of 2025. This decision involves the closure of all 20 of its retail locations, as well as its cultivation center located in Bay City. These closures will result in approximately 250 employees losing their jobs across the state.

The company operates several brands in Michigan, including Gage Cannabis, Pinnacle Emporium, Cookies, and Lemonnade. Notable locations set to close include the Gage Cannabis dispensary situated at 1234 N. Center Road in Burton, as well as retail outlets in prominent cities such as Detroit, Ferndale, Lansing, Kalamazoo, Traverse City, Grand Rapids, and Battle Creek.

This strategic shift comes as TerrAscend’s Michigan operations, which account for nearly half of the company’s footprint, have faced significant challenges in the state’s marijuana market. The company aims to reallocate resources to focus on operations in five other states and Canada, citing the oversupplied market and declining profit margins as primary factors behind the decision. As the Michigan cannabis market has experienced price drops exceeding 28% year-over-year, TerrAscend has decided to streamline its operations.

Executive Chairman Jason Wild has indicated that the savings from closing its Michigan facilities will primarily be utilized to pay down the company’s debts. The anticipated cessation of operations in Michigan is expected by September 2025, as TerrAscend also plans to sell off all its Michigan assets, including real estate, to meet its financial obligations.

This closure represents a significant workforce reduction, accounting for over 21% of TerrAscend’s total employee count, which was approximately 1,200 as of June 30. The company’s sales figures have also shown a decline, dropping from $317.3 million in 2023 to $306.7 million in 2024, which has been attributed to diminishing foot traffic and overall sales in the state.

TerrAscend’s exit from Michigan is part of a broader trend within the cannabis industry. Other multi-state operators have similarly withdrawn from the Michigan market due to unfavorable economic conditions. The market’s oversupply and intense competition have driven down prices and profit margins, compelling companies to reassess their strategies.

In addition to the operational changes, the company is facing a proposed class action lawsuit in a Michigan federal court. This lawsuit accuses TerrAscend of sending unsolicited marketing text messages, adding to the company’s complexities as it navigates its exit from the state.

Despite these challenges in Michigan, TerrAscend plans to maintain its presence in other regions, continuing operations in New Jersey, Maryland, Pennsylvania, Ohio, and selected areas of California. This plan reflects the company’s ongoing efforts to restructure and stabilize its business amid fluctuating market dynamics.

As TerrAscend proceeds with its exit from Michigan, the implications of these closures will reverberate through the local community, impacting employment and local economies dependent on the cannabis industry. With the market’s current conditions and the company’s strategies in focus, the future landscape of cannabis operations in Michigan remains uncertain.