LANSING, Mich. (Michigan News Source) – Leading North American cannabis company TerrAscend announced it will exit the Michigan market, shutting down over 20 dispensaries in the state.

The company will also close four of its cultivation and processing facilities. TerrAscend will use the money it makes from selling its Michigan real estate to pay down existing debt, according to a press release.

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“After an extensive evaluation, we have made the strategic decision to exit the Michigan market,” Executive Chairman of TerrAscend 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.”

With the closure of its Michigan facilities, TerrAscend is expected to undergo a reduction of approximately 21% of its overall workforce, which would mean about 1,200 employees will lose their jobs. The Michigan exit should be “substantially completed” by the second half of this year.