When Greenhouse of Walled Lake opened in 2019, it catered to Michigan’s medical marijuana market, and business was booming. Recreational marijuana sales began later that year statewide, opening the door to new customers — and competitors.
As the state’s cannabis market took off, new operators flooded in and profit margins thinned.
“We’re oversaturated,” said Jerry Millen, owner of Greenhouse. “Too much product, too many stores to the point where people are just giving the product away.”
Michigan’s marijuana industry is showing signs of strain as companies deal with oversupply, falling prices and tightening margins. And it’s forcing some operators to scale back or shut down entirely: the most notable recent retreat from the once-booming Michigan market is Canadian cannabis giant TerrAscend.
In late June, the publicly traded corporation announced its “strategic exit” from Michigan, declaring it intended to sell or divest all its assets in the state, which include four growing facilities, 20 dispensaries and real estate. The net proceeds from that pullback, the company said, would be used to pay down its debt.
TerrAscend officials declined comment for this story. However, in the company’s June statement, Executive Chairman Jason Wild said: “Michigan is an extremely difficult market and we have to come to the realization that our resources can be better utilized in other markets. This move will unlock value for TerrAscend and its shareholders.”
The industry’s retreat has hit the college town of Ann Arbor, too. Dispensaries Arbors Wellness, Leaf and Bud, and Misty Mountain have all recently closed. TerrAscend’s Cookies location in Ann Arbor is set to close on Aug. 31, a front desk worker said.
Read the rest of the story at the Detroit News
