TerrAscend, a prominent North American marijuana company, has announced plans to fully exit Michigan’s cannabis industry, with the divestment process expected to be largely complete by the second half of 2025.
The move comes after a strategic review of the company’s operations in the state, where executives say market conditions have made continued investment unsustainable. As part of the exit, TerrAscend intends to sell off all its Michigan assets—including four cultivation and processing facilities, 20 retail dispensaries, and related real estate—with the net proceeds earmarked for reducing company debt.
Once the Michigan exit is finalized, TerrAscend will shift its focus to five other U.S. states—New Jersey, Maryland, Pennsylvania, Ohio, and California—along with ongoing operations in Toronto, Ontario. The company expects the consolidation to improve its financial performance across several key metrics, including gross margins, adjusted EBITDA, and cash flow conversion.
“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 Jason Wild, Executive Chairman of TerrAscend. “By concentrating our efforts in the Company’s core northeastern U.S. markets, I am confident that we are now positioned to deliver stronger financial performance including improved margins and operational efficiencies.”
The decision will also result in significant staffing reductions. The company plans to cut about 21% of its workforce, which currently includes approximately 1,200 employees. Most of those reductions are expected by the end of the third quarter of this fiscal year.
TerrAscend will begin classifying its Michigan operations as discontinued starting with its second quarter 2025 financial report. Once the exit is complete, the company will operate 19 dispensaries and four cultivation and processing sites across its remaining U.S. markets.
TerrAscend currently owns or licenses a portfolio of marijuana brands, including Gage, The Apothecarium, Cookies, Ilera Healthcare, Kind Tree, and others, serving both medical and adult-use markets.
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