American cannabis MSO TerrAscend Corp (TSE: TSND) (OTCMKTS: TSNDF) (FRA: TED) is throwing in the towel in Michigan and closing 20 dispensaries. Four cultivation and processing facilities will also be shut down.
The strategic move was revealed in a news release last week and the process is expected to be wrapped up by the end of September.
“Michigan is an extremely difficult market and we have come to the realization that our resources can be better utilized in our other markets,” said Executive Chairman Jason Wild.
There is a vast oversupply in the state’s industry that has been driving a sharp drop in prices, making turning a profit difficult. TerrAscend’s Michigan sales dropped significantly last year in comparison to 2023 and the situation has evidently not been improving in 2025.
The exit will result in a 21 per cent reduction in the company’s workforce. Funds obtained from the divestitures will be utilized to pay off debts.
“To all of my former colleagues impacted by TerrAscend’s decision to exit the Michigan market, thank you for the incredible passion and dedication you brought to building the Gage brand [& Pinnacle & Cookies Michigan & Lemonnade] for so many years,” said TerrAscend’s former talent acquisition manager,
“You operated in a market that continued to throw wrench after wrench into your plans, but you always powered through for the sake of the communities you served until the very end.”
Going forward, TerrAscend will be focusing on its dispensaries and operations in New Jersey, Ohio, Maryland, Pennsylvania and Toronto, Canada.
The multinational distributor is not the only one to call it quits in Michigan recently. PharmaCann shuttered its cultivation facility in Warren earlier this year and Curaleaf Holdings Inc (TSE: CURA) (OTCMKTS: CURLF) made its exit at the end of 2024.
Several smaller businesses have also been shutting their doors due to rough market conditions in the 313 and the rest of the state.
Read more: ‘The First State’ will soon be the latest to open a recreational market
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