Core Insights - TerrAscend Corp. has decided to exit the Michigan market as part of a strategic review, selling all Michigan assets including cultivation and processing facilities, retail dispensaries, and real estate [1][2][3] - The net proceeds from these divestitures will be utilized to pay down existing company debt, enhancing the financial profile of TerrAscend [1][2] - The exit from Michigan is expected to be substantially completed in the second half of 2025, with the Michigan operations reported as discontinued starting from Q2 2025 [1][2] Financial Impact - Following the Michigan exit, TerrAscend will operate 19 dispensaries and 4 cultivation and processing facilities across five states, which is anticipated to improve key financial metrics such as gross margin, adjusted EBITDA, and cash flow conversion [2][3] - The company expects a reduction of approximately 21% of its overall workforce, which consists of about 1,200 employees, primarily by the end of Q3 2025 [3] Strategic Focus - The strategic decision to exit Michigan is aimed at reallocating resources to core markets in the northeastern U.S., specifically New Jersey, Maryland, Pennsylvania, and Ohio, to unlock value for the company and its shareholders [3] - The company believes that concentrating efforts in these core markets will lead to stronger financial performance, improved margins, and operational efficiencies [3] Company Overview - TerrAscend is a leading cannabis company listed on the TSX, with operations across North America, including vertically integrated operations in several states and retail operations in Canada [4] - The company operates various dispensary brands and has a portfolio of synergistic businesses and brands, providing a wide selection of cannabis products for both medical and adult-use markets [4]