TerrAscend Exits Michigan Market, Will Refocus on Growth in Northeast States

In a June 30, 2025, press release, North American cannabis company TerrAscend announced a strategic withdrawal from the Michigan cannabis market (1). All Michigan assets – including four cultivation and processing facilities, twenty retail dispensaries, and real estate – will be sold or divested with the net proceeds used to reduce company debt.

The withdrawal will reportedly allow for financial growth and increased business operations in other markets. TerrAscend owns or licenses several brands including The Apothecarium, Gage Cannabis, Cookies, and Wana.

“After an extensive evaluation, we have made the strategic decision to exit the Michigan market,” stated Jason Wild, Executive Chairman of TerrAscend, in the press release. “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. By concentrating our efforts and resources in the Company’s core northeastern US markets—New Jersey, Maryland, Pennsylvania, and Ohio—I am confident that we are now positioned to deliver stronger financial performance including improved margins and operational efficiencies.”

The withdrawal is anticipated to be mostly complete in the latter half of 2025. A reduction in workforce – approximately 1200 employees – is also anticipated to be nearly complete by the end of the third quarter. TerrAscend will continue to operate 19 dispensaries and four cultivation and processing facilities across the four mentioned US states, plus California, and in Toronto, Ontario.

On July 10, the company announced it would host its scheduled conference call on second quarter earnings starting at 5:00 pm Eastern time on August 7 (2). The businesses in Michigan will be reported as discontinued operations at this time.

The June 2025 Cultivation Classroom column of Cannabis Science and Technology examined wholesale cannabis prices across several regions, including Michigan, and the instability inherent in the marketplace, plus the pressure operators face to adapt to these conditions (3). Recent wholesale prices in Michigan, the authors explain, “have declined from $300–350 per ounce to approximately $225, reflecting the compression trend seen across legacy markets.” Additionally, disparities exist between new and established markets. In early 2025, “Michigan’s retail prices fell to $83.71 per ounce, while Illinois’s prices maintain significantly higher rates, averaging $257.22 per ounce, a 207% difference between neighboring states.”

The prices reflect how supply, market structure, and regional policy influence values. Some of the factors in these regional contrasts, the authors explain, are market maturity, licensing regulations, supply chain development, number of competitors, taxation, and costs of regulatory compliance. Long-term adaptations are crucial for competing and thriving in the evolving industry, the authors state.

References

1. TerrAscend. TerrAscend Announces Strategic Exit from Michigan Market https://www.globenewswire.com/news-release/2025/06/30/3107909/0/en/TerrAscend-Announces-Strategic-Exit-from-Michigan-Market.html (accessed July 21, 2025).
2. TerrAscend. TerrAscend to Host Second Quarter 2025 Earnings Conference Call https://www.globenewswire.com/news-release/2025/07/10/3113176/0/en/TerrAscend-to-Host-Second-Quarter-2025-Earnings-Conference-Call.html (accessed July 21, 2025).
3. Hildenbrand, Z., Mendoza-Dickey, H., Manes, R., Cannabis Pricing Crisis: Market Forces Shaping 2025 Trends, Cannabis Science and Technology, 2025, 8(3), 10-15.