One of the leading cannabis companies in the U.S., TerrAscend Corp, has announced its decision to withdraw from the Michigan market in a major restructuring move. The company, which owns several prominent cannabis brands like Gage, Cookies, State Flower, and Valhalla, revealed plans to sell or divest all of its Michigan assets by the end of 2025.
TerrAscend currently operates 20 retail dispensaries across Michigan, including multiple locations in West Michigan, as well as four cultivation and processing facilities. The company’s exit from the state marks a significant shift in strategy, as it looks to pay down debt and focus resources on more profitable markets.
“After an extensive evaluation, we have made the strategic decision to exit the Michigan market,” said Jason Wild, Executive Chairman of TerrAscend. “Michigan is an extremely difficult market and we have come to the realization that our resources can be better utilized in our other markets. This move will unlock value for TerrAscend and its shareholders.”
The company will now redirect its focus to operating 19 dispensaries and four cultivation and processing facilities across five other U.S. states—New Jersey, Maryland, Pennsylvania, Ohio, and California—where it sees more potential for growth. TerrAscend also maintains operations in Canada.
Wild added that by narrowing their efforts to core northeastern markets, TerrAscend expects to improve its overall financial performance, increase profit margins, and streamline operations.
This strategic exit, however, comes at a human cost. Approximately 240 Michigan-based employees—about 21% of TerrAscend's total workforce of 1,200—will be affected by the shutdown.
Michigan’s cannabis market has been described as oversaturated and fiercely competitive, with many operators struggling to maintain profitability due to falling wholesale prices and regulatory challenges. TerrAscend’s move reflects broader trends within the cannabis industry, where companies are increasingly consolidating operations and pulling out of markets that no longer meet financial targets.
While disappointing news for the Michigan cannabis community and affected employees, TerrAscend believes this pivot will position the company for long-term growth and sustainability in more strategic regions. As the cannabis industry continues to evolve, such shifts are likely to become more common among major players aiming to survive and thrive in a rapidly changing landscape.
