MSO TerrAscend Sells 3 Stores as It Exits Michigan Cannabis Market
Michigan’s largest cannabis retailer, Lume Cannabis Co., has acquired three stores previously operated by multi-state operator TerrAscend Corp., cementing TerrAscend’s exit from the challenging Michigan cannabis market.
The deal transfers ownership of three dispensaries Lemonade in Center Line, Gage in Grand Rapids, and Pinnace Emporium in Morenci to Lume, according to a report by Crain’s Detroit Business.
While financial terms were not disclosed, Lume President and COO Doug Hellyar confirmed the transaction was completed under a non disclosure agreement.
“These acquisitions will allow Lume to serve even more of our loyal customers with the safe, high-quality products they expect from our top-notch cultivation team,” Hellyar said in a statement. “We are excited to continue growing our footprint in Michigan. These new locations allow us to expand our reach in key markets across the state.”
Lume Expands Its Retail Footprint
With the acquisition, Lume now operates 42 dispensaries across Michigan, strengthening its position as the state’s largest cannabis company. The company also operates a major cultivation facility in Evart, which supplies its retail network with branded flower, concentrates, and edibles.
Lume confirmed that many employees from the three newly acquired dispensaries will remain in their roles, helping ensure operational continuity for customers.
The company’s strategy reflects ongoing consolidation in Michigan’s crowded cannabis retail landscape, where competitive pricing and oversupply have driven margins down.
TerrAscend’s Strategic Withdrawal
The sale follows TerrAscend’s July 2025 announcement that it would exit the Michigan cannabis market entirely. Executive Chairman Jason Wild cited the state’s intensely competitive environment and oversupply issues as reasons for the move.
TerrAscend, headquartered in Toronto, is a publicly traded company that has built its strategy around vertically integrated operations in tightly regulated East Coast markets, where licensing is limited and competition less intense compared to Michigan.
Michigan Market Challenges
Michigan remains one of the largest cannabis markets in the United States, recording more than $3.6 billion in sales in 2024. But the market’s rapid growth has been accompanied by volatility, including steep price compression, an oversupply of flower, and a crowded retail landscape.
Dozens of cannabis companies have exited or consolidated operations in recent years, as businesses struggle to maintain profitability amid falling wholesale prices. Multi-state operators (MSOs), in particular, have reassessed their Michigan investments, shifting capital to states with higher barriers to entry and stronger long-term margins.
For TerrAscend, the decision to leave Michigan reflects a broader MSO trend of retrenchment and refocus. By selling its remaining retail assets, the company eliminates exposure to a highly competitive state and redirects capital to more profitable regions.
Lume’s Growth Trajectory
For Lume, however, the acquisitions represent an opportunity to double down on Michigan dominance. The company has steadily built its brand recognition through aggressive retail expansion, consistent product quality, and marketing aimed at both new and experienced cannabis consumers.
Lume’s 42-store network makes it the largest single-state cannabis operator in Michigan, far ahead of smaller competitors. The company’s vertically integrated model, from cultivation to retail, allows it to control pricing and maintain strong supply chain reliability critical factors in an environment where many independent operators struggle with fluctuating wholesale prices.
As TerrAscend exits Michigan, industry analysts suggest that more consolidation is likely, with dominant operators like Lume, Skymint, and others expected to acquire struggling competitors or close underperforming stores.
The acquisitions may help Lume cement its leadership in Michigan, but they also underscore the ongoing shakeout in one of the nation’s most competitive cannabis markets.
For TerrAscend, the focus now shifts firmly to its East Coast markets, where the company aims to leverage its vertically integrated model and limited-competition licenses to drive shareholder value.
Whether Lume can continue to thrive in Michigan’s turbulent market remains to be seen, but with 42 stores statewide, the company has positioned itself as the clear leader in one of the most dynamic cannabis markets in the country.
