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Marijuana multistate operator TerrAscend Corp. is pulling out of the Michigan market after completing a review of its business operations in the state.
The company, which has offices in New York and Toronto, plans to sell or divest all of its Michigan assets, including four cultivation and processing facilities, 20 retail stores and real estate, according to a Monday news release.
TerrAscend said in the release it expects its exit from Michigan to be completed in the second half of 2025.
The move will result in the loss of roughly 250 employees from its 1,200-member team.
Proceeds from the sales of the company’s Michigan assets will be used to pay down debt.
In October, TerrAscend announced it had withdrawn $26 million from a $140 million loan to pay off higher-interest debt it holds in Michigan.
“Michigan is an extremely difficult market, and we have come to the realization that our resources can be better utilized in our other markets,” TerrAscend Executive Chair Jason Wild said in a statement.
Wild said the company would focus on its core markets in the Northeastern United States – Maryland, New Jersey, Ohio and Pennsylvania – which should position TerrAscend to deliver stronger financial performance and operational efficiencies.
The company also has operations in California and Canada.
“This move will unlock value for TerrAscend and its shareholders,” Wild said.
The company went on an acquisition spree in Michigan in 2021 and 2022, acquiring a six-store chain for $28.5 million in a move that expanded its operation in the state to 17 medical and adult-use marijuana outlets.
Shares of TerrAscend trade as TSND on the Toronto Stock Exchange.
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