LANSING, Mich. (WILX) – A major player in the cannabis industry is pulling out of Michigan, and that includes shutting down one of Lansing’s licensed dispensaries.

TerrAscend Corp., a national cannabis company with dispensaries and facilities across the U.S. and Canada, has announced it will cease all operations in Michigan, closing 20 dispensaries and four cultivation/processing facilities statewide.

That includes Gage Cannabis in Lansing and Cookies Dispensary in Jackson. Gage is one of 26 licensed dispensaries currently operating within city limits. The city’s ordinance allows up to 28 marijuana business licenses.

“It is an industry that I think people had unreasonable expectations of where it was going to go,” Lansing City Clerk Chris Swope said. “So, it’s kind of interesting to see it kind of in this position where it’s in a little bit of a retract action mode.”

In a statement, TerrAscend’s 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.”

The company said it plans to sell or divest all its Michigan assets, including real estate, to help pay down company debt. The exit is expected to be completed by the end of 2025.

Despite the closure, Swope says the marijuana industry has provided economic value to Lansing.

“The whole industry has provided a lot of renovations to a lot of buildings. Obviously, a lot of jobs and the retail stores, they do create some state tax revenue, which is shared with us,” he said.

TerrAscend’s withdrawal will also impact hundreds of workers across the state. According to the company’s WARN notice, 236 employees will be laid off. That includes both dispensary staff and those at cultivation sites in Bay City, Warren, and Harrison Township.

You can view the full breakdown of job impacts here:

Local businesses still operating in the Lansing area say they’re focused on staying flexible as the market shifts.

“Anytime a player exits the market, it creates a lot of challenges and opportunities for everybody else,” said Evie Hernandez, manager at The Cake House dispensary. “We see it as a reminder to stay adaptable and keep listening to the customer base, that way we can keep moving forward and keep giving them what they want.”

While Gage and departure will leave one less dispensary in the city, two licenses still remain available under Lansing’s ordinance, though Swope says the city may reevaluate that number as the market evolves.

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