[PRESS RELEASE] – TORONTO, June 30, 2025 – TerrAscend Corp., a leading North American cannabis company, announced that it has completed a strategic review of its Michigan business operations and decided to exit the Michigan market.
As part of the exit plan, TerrAscend and its consolidated entities intend to sell or divest all of the company’s Michigan assets, including four cultivation and processing facilities, 20 retail dispensaries, and real estate. Net proceeds from the divestitures will be used to pay down existing company debt.
The Michigan exit is expected to be substantially completed in the second half of 2025. The company’s business in Michigan will be reported as discontinued operations beginning with the company’s financial results for the second quarter of 2025.
Following the completion of the Michigan exit, the company will operate 19 dispensaries and four cultivation and processing facilities across five states, including New Jersey, Maryland, Pennsylvania, Ohio and California, and in Toronto, Ontario. The strategic move is expected to meaningfully enhance TerrAscend’s financial profile. The company anticipates improvements across key metrics on a consolidated basis, including gross margin, adjusted EBITDA, and cash flow conversion, in addition to a strengthened balance sheet.
“After an extensive evaluation, we have made the strategic decision to exit the Michigan market,” TerrAscend Executive Chairman Jason Wild said. “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 U.S. 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 actions associated with the Michigan exit plan are expected to include a reduction of approximately 21% of the company’s overall workforce, which consists of about 1,200 employees as of June 30, 2025. Most of this reduction is expected to occur by the end of the third quarter of fiscal year 2025.
