TerrAscend Announces Strategic Exit from Michigan Market
TerrAscend (OTCQX: TSNDF) has announced its strategic decision to exit the Michigan cannabis market, planning to divest all Michigan assets including four cultivation and processing facilities, twenty retail dispensaries, and associated real estate. The exit is expected to be completed in the second half of 2025.
The company will focus on its core northeastern U.S. markets across five states (New Jersey, Maryland, Pennsylvania, Ohio, and California) and Toronto, Ontario, operating nineteen dispensaries and four cultivation and processing facilities. The strategic move will result in a 21% reduction in workforce, affecting approximately 250 employees from its 1,200-person workforce.
Net proceeds from the Michigan asset sales will be used to pay down existing company debt. The Michigan operations will be reported as discontinued operations starting from Q2 2025. The company expects this strategic move to enhance its financial profile, including improvements in gross margin, adjusted EBITDA, and cash flow conversion.
TerrAscend (OTCQX: TSNDF) ha annunciato la sua decisione strategica di uscire dal mercato della cannabis del Michigan, pianificando la cessione di tutti gli asset in Michigan, inclusi quattro impianti di coltivazione e lavorazione, venti dispensari al dettaglio e le relative proprietà immobiliari. L'uscita è prevista per la seconda metà del 2025.
L'azienda si concentrerà sui suoi mercati principali nel nord-est degli Stati Uniti, in cinque stati (New Jersey, Maryland, Pennsylvania, Ohio e California) e a Toronto, Ontario, gestendo diciannove dispensari e quattro impianti di coltivazione e lavorazione. Questa mossa strategica comporterà una riduzione del 21% del personale, interessando circa 250 dipendenti su un totale di 1.200.
I proventi netti dalla vendita degli asset del Michigan saranno utilizzati per ridurre il debito aziendale esistente. Le operazioni in Michigan saranno riportate come operazioni cessate a partire dal secondo trimestre del 2025. L'azienda prevede che questa strategia migliorerà il suo profilo finanziario, con aumenti del margine lordo, dell'EBITDA rettificato e della conversione del flusso di cassa.
TerrAscend (OTCQX: TSNDF) ha anunciado su decisión estratégica de salir del mercado de cannabis de Michigan, planeando desinvertir todos los activos en Michigan, incluyendo cuatro instalaciones de cultivo y procesamiento, veinte dispensarios minoristas y bienes raíces asociados. Se espera que la salida se complete en la segunda mitad de 2025.
La compañía se enfocará en sus mercados principales del noreste de EE.UU. en cinco estados (Nueva Jersey, Maryland, Pensilvania, Ohio y California) y Toronto, Ontario, operando diecinueve dispensarios y cuatro instalaciones de cultivo y procesamiento. Este movimiento estratégico resultará en una reducción del 21% de la plantilla, afectando aproximadamente a 250 empleados de un total de 1,200.
Los ingresos netos de la venta de activos en Michigan se utilizarán para reducir la deuda existente de la empresa. Las operaciones en Michigan se reportarán como operaciones discontinuadas a partir del segundo trimestre de 2025. La compañía espera que esta estrategia mejore su perfil financiero, incluyendo mejoras en el margen bruto, EBITDA ajustado y la conversión del flujo de caja.
TerrAscend (OTCQX: TSNDF)는 미시간 주 대마초 시장에서 전략적으로 철수하기로 결정했으며, 네 개의 재배 및 가공 시설, 스무 개의 소매 판매점 및 관련 부동산을 포함한 미시간 자산 전부를 매각할 계획입니다. 철수는 2025년 하반기에 완료될 예정입니다.
회사는 뉴저지, 메릴랜드, 펜실베이니아, 오하이오, 캘리포니아 등 5개 주와 캐나다 온타리오주 토론토의 핵심 북동부 미국 시장에 집중할 것이며, 19개의 판매점과 4개의 재배 및 가공 시설을 운영할 예정입니다. 이번 전략적 조치로 인해 전체 직원 1,200명 중 약 250명, 즉 21%의 인력 감축이 이루어질 것입니다.
미시간 자산 매각에서 발생한 순수익은 기존 회사 부채 상환에 사용될 예정입니다. 미시간 사업부는 2025년 2분기부터 중단 영업으로 보고될 것입니다. 회사는 이번 전략적 조치가 총이익률, 조정 EBITDA, 현금 흐름 전환 개선 등 재무 프로필을 강화할 것으로 기대하고 있습니다.
TerrAscend (OTCQX : TSNDF) a annoncé sa décision stratégique de quitter le marché du cannabis du Michigan, prévoyant de céder tous ses actifs dans cet État, comprenant quatre installations de culture et de transformation, vingt dispensaires ainsi que les biens immobiliers associés. La sortie devrait être finalisée dans la seconde moitié de 2025.
L'entreprise se concentrera sur ses marchés principaux du nord-est des États-Unis, dans cinq États (New Jersey, Maryland, Pennsylvanie, Ohio et Californie) ainsi qu'à Toronto, Ontario, exploitant dix-neuf dispensaires et quatre installations de culture et de transformation. Ce choix stratégique entraînera une réduction de 21 % des effectifs, impactant environ 250 employés sur un total de 1 200.
Le produit net issu de la vente des actifs du Michigan sera utilisé pour rembourser la dette existante de l’entreprise. Les opérations du Michigan seront comptabilisées comme activités abandonnées à partir du deuxième trimestre 2025. La société s’attend à ce que cette décision stratégique améliore son profil financier, notamment en termes de marge brute, d’EBITDA ajusté et de conversion du flux de trésorerie.
TerrAscend (OTCQX: TSNDF) hat seine strategische Entscheidung bekannt gegeben, den Cannabismarkt in Michigan zu verlassen und plant den Verkauf aller Vermögenswerte in Michigan, darunter vier Anbau- und Verarbeitungsanlagen, zwanzig Einzelhandelsdispensaries sowie die zugehörigen Immobilien. Der Ausstieg soll in der zweiten Hälfte des Jahres 2025 abgeschlossen sein.
Das Unternehmen wird sich auf seine Kernmärkte im nordöstlichen US-Bereich in fünf Bundesstaaten (New Jersey, Maryland, Pennsylvania, Ohio und Kalifornien) sowie Toronto, Ontario konzentrieren und neunzehn Dispensaries sowie vier Anbau- und Verarbeitungsanlagen betreiben. Dieser strategische Schritt führt zu einer Reduzierung der Belegschaft um 21%, was etwa 250 Mitarbeiter von insgesamt 1.200 betrifft.
Die Nettoerlöse aus dem Verkauf der Vermögenswerte in Michigan werden zur Tilgung bestehender Unternehmensschulden verwendet. Die Michigan-Geschäfte werden ab dem zweiten Quartal 2025 als aufgegebene Geschäftsbereiche ausgewiesen. Das Unternehmen erwartet, dass dieser strategische Schritt das finanzielle Profil verbessert, einschließlich Verbesserungen bei der Bruttomarge, dem bereinigten EBITDA und der Cashflow-Umsetzung.
- Net proceeds from Michigan asset sales will reduce company debt
- Expected improvements in gross margin, adjusted EBITDA, and cash flow conversion
- Strategic focus on core northeastern U.S. markets for better resource utilization
- Anticipated strengthening of balance sheet through debt reduction
- Complete exit from Michigan market, losing presence in a major cannabis state
- 21% reduction in overall workforce, affecting approximately 250 employees
- Admission of Michigan being an 'extremely difficult market' for operations
- Discontinuation of operations across 20 retail locations and 4 facilities in Michigan
Net Proceeds from divestitures to pay down Company debt
Enables concentrated growth and improved profitability in core markets
TORONTO, June 30, 2025 (GLOBE NEWSWIRE) -- TerrAscend Corp. (“TerrAscend”) (TSX: TSND, OTCQX: TSNDF), a leading North American cannabis company, today 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 (collectively, the “Company”) intend to sell or divest all of the Company’s Michigan assets, including four cultivation and processing facilities, twenty 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 nineteen 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,” said Jason Wild, Executive Chairman of TerrAscend. “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
About TerrAscend
TerrAscend is a leading TSX-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through TerrAscend Growth Corp., and retail operations in Canada. TerrAscend operates The Apothecarium, Gage and other dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend’s cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns or licenses several synergistic businesses and brands including Gage Cannabis, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana, and Valhalla Confections. For more information visit www.terrascend.com.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and includes, but is not limited to, statements with respect to the Company’s expectations with respect to the anticipated outcome and impacts of the Michigan exit plan, including the amount and use of net proceeds resulting from intended divestitures; the amount of prepayment of existing Company debt that may be achieved; the likelihood that the divestitures will lead to improvements in the key financial metrics; the impact of the divestitures on the Company’s balance sheet; the anticipated timing and occurrence of substantially completing the Michigan exit plan; the estimated timing and scope of the Company’s anticipated workforce reduction; the potential increase in value for the Company and its shareholders; or improvements to the Company’s financial position and performance, operational efficiency, and opportunities for strategic acquisitions. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, the financial and operational outcomes resulting from the Michigan exit plan, or the future financial profile or key metrics of the Company.; and the risk factors set out in the Company’s most recently filed MD&A, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca and in the section titled “Risk Factors” in the Company’s Annual Report for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 6, 2025.
The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether, as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.
For more information regarding TerrAscend:
Ziad Ghanem
Chief Executive Officer
IR@terrascend.com
717-343-5386
Investor Relations Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
Valter@KCSA.com
212-896-1254
FAQ
Why is TerrAscend (TSNDF) exiting the Michigan cannabis market?
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When will TerrAscend complete its exit from Michigan?
