Multi-state cannabis company TerrAscend Corp. on Tuesday announced it is exiting the Michigan market, planning to sell or divest the company’s assets in the state, which include four cultivation and processing facilities, 20 retail dispensaries, and real estate.  

The company plans to use proceeds from the sales to pay down existing debt. 

In a statement, TerrAscend Executive Chairman Jason Wild called the decision “strategic” and said it followed “an extensive evaluation.”  

“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.” — Wild in a press release 

The actions associated with the Michigan exit plan are expected to include a reduction of approximately 21% of the company’s overall workforce, TerrAscend said, which consists of about 1,200 employees as of June 30, 2025. Most of the reduction is expected to occur by the end of the third quarter of fiscal year 2025. 

Following the completion of the plan, the company will operate 19 dispensaries and four cultivation and processing facilities across five U.S. states, including New Jersey, Maryland, Pennsylvania, Ohio and California, along with facilities in Toronto, Ontario, Canada. 

The Michigan exit is expected to be mostly completed in the second half of this year and the company’s business in Michigan will be reported as discontinued operations beginning with the company’s financial results for the second quarter.  

A study published Tuesday in the journal Scientific Reports found just 56.7% of flower products tested within 15% of their labeled THC content, while 96% of concentrate products tested by the researchers contained within 15% of their labeled THC content. 

Researchers from the University of Colorado, Boulder, and MedPharm Holdings LLC, which operates as Bud & Mary’s, sampled 182 flower and 99 concentrate products – including 27 unique concentrate forms – from 52 Colorado dispensaries in 19 counties for the study between November 29, 2022, and October 3, 2023. Four flower products were excluded from the analysis due to misprinted or absent THC potency labeling.        

“Observed THC potency was significantly lower than labeled potency in both flower and concentrate products. Nearly all tested concentrate products met the accuracy threshold for THC content, whereas flower products frequently did not. Both product types had lower observed THC content compared to labeled values.” — “Accuracy of labeled THC potency across flower and concentrate cannabis products,” Scientific Reports, July 1, 2025    

The researchers found, for flower products, the mean labeled THC potency was 22.5% while the observed potency was 20.8%, while for concentrates, the mean labeled THC potency was 73.0% with an observed potency of 70.7%. 

The researchers note that “discrepancies between federal and state cannabis laws have resulted in varied regulation and oversight.” 

Inflated THC levels reported on cannabis product labels have long been an issue in the industry, and lawsuits have been filed against cannabis companies and laboratories in Arkansas, California, and Massachusetts. In 2020, regulators in Washington state suspended the license of Praxis Labs after finding it had falsified over 1,200 results in order to inflate THC levels. A study published last year in the Journal of Cannabis Research that analyzed 107 adult-use flower products collected at random by law enforcement in California, Oregon, and Colorado found over 70% of products fell outside of a 20% accuracy threshold for THC potency – of which all but one of the inaccurately labeled products included inflated THC levels.