Michigan’s largest cannabis company is set to acquire three former Gage Cannabis retail locations following the exit of multistate operator TerrAscend Corp., Gage’s parent company, from the state’s market.
Evart-based Lume Cannabis will take over:
- TerrAscend’s Lemonade store in Center Line.
- The Gage store in Grand Rapids.
- Pinnace Emporium in Morenci.
Terms of the deal were not disclosed, with Lume President and COO Doug Hellyar citing a non-disclosure agreement as the reason for withholding financial details, as first reported by Crain’s Detroit Business.
“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 Michigan.”
Michigan marijuana market still large, but difficult
The acquisition boosts Lume’s cannabis store count to 42 across Michigan, complementing its large cultivation facility in Evart.
Lume plans to retain many employees from the newly acquired locations.
The acquisitions follow TerrAscend’s July announcement that it would exit the Michigan market.
At $3.2 billion in annual sales, Michigan is the country’s second-biggest cannabis market, behind only California.
However, operators complain of a saturated market that’s depressing prices and squeezing already thin margins.
“Michigan is an extremely difficult market, and we have come to the realization that our resources can be better utilized in our other markets,” Jason Wild, TerrAscend’s executive chairman said in a statement. “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.”
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