TerrAscend Corp. Shuts Down Operations in Michigan

News Summary

TerrAscend Corp., a national cannabis company, has announced its withdrawal from the Michigan market, resulting in the closure of 20 dispensaries and four cultivation facilities. This decision will lead to 236 layoffs and reflects a broader trend of multi-state cannabis companies exiting the state due to market oversaturation and declining prices. The impact of this exit is significant for Lansing’s cannabis industry, which has been a source of job creation and economic growth.

Lansing, Michigan

TerrAscend Corp., a national cannabis company, has announced its decision to cease all operations in Michigan, which will lead to the closure of 20 dispensaries and four cultivation/processing facilities across the state. The closures affect notable locations such as Gage Cannabis in Lansing and Cookies Dispensary in Jackson.

The shutdown significantly impacts the workforce, resulting in the layoff of 236 employees. This includes staff members from dispensaries as well as those working at cultivation sites located in Bay City, Warren, and Harrison Township. The company’s exit from Michigan is part of a broader trend where multi-state cannabis companies have been pulling out due to issues like market oversaturation and declining prices.

Lansing’s cannabis market currently consists of 26 licensed dispensaries, with city regulations permitting a maximum of 28 marijuana business licenses. Although TerrAscend’s departure means fewer options for consumers, the city retains two available dispensary licenses. However, local officials may reconsider this number as the market continues to fluctuate.

Jason Wild, Executive Chairman of TerrAscend, indicated that the Michigan market presents difficulties that hinder optimal resource allocation. The company has decided to divest all assets in Michigan, which includes selling real estate, to manage and reduce its overall debt. The complete exit process is projected to conclude by the end of 2025.

This withdrawal from Michigan marks a significant transition for TerrAscend, which currently operates additional dispensaries across multiple states, including New Jersey, Maryland, Pennsylvania, Ohio, and California. The company was established in 2017 and expanded into the U.S. market in 2018, entering Michigan in 2022. Following the layoffs from this exit, TerrAscend’s workforce will experience a 21% reduction, leaving approximately 964 workers remaining across its operations.

The cannabis industry has been a contributor to Lansing’s economic landscape, prompting the renovation of old buildings and the generation of jobs and tax revenue. In light of the recent changes, local businesses are focusing on adaptability to navigate the evolving market presented by these developments.

Lansing City Clerk Chris Swope addressed the industry’s shift, noting the trend as a “retract action mode,” which reflects the decreasing expectations for cannabis operations within the city. Other cannabis companies, such as PharmaCann and Curaleaf, have similarly exited the Michigan market in the face of these challenges, emphasizing a prevalent issue within the industry.

As the cannabis landscape in Michigan continues to evolve, the full impact of TerrAscend’s exit will be observed in the coming months leading up to the final closures after August 31, 2025. With the industry experiencing significant adjustments, local stakeholders and businesses in Lansing are poised to respond to the changes ahead.

Deeper Dive: News & Info About This Topic

• WILX: Major Cannabis Company Ends Operations in Michigan
• Lenconnect: TerrAscend Marijuana Dispensaries Closing
• Lansing City Pulse: The Green Graveyard Expands
• Metro Times: Cannabis Giant Plans to Close 20 Dispensaries
• Wikipedia
• Google Search: Cannabis Industry Michigan