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TerrAscend (TSNDF), a constituent in the MunAiMarkets American Cannabis MSO Stocks Portfolio, is DOWN 58.3% as of June 27th but surged yesterday, June 30th, after announcing a strategic exit from the Michigan cannabis market—a move investors saw as a smart pivot toward profitability and focus. (Read: TerrAscend Announces Strategic Exit from Michigan Market)

Specifically:

• TerrAscend revealed it would divest all Michigan assets, including 20 dispensaries and 4 cultivation facilities, citing the market’s intense competition and margin pressure, and reinvest in core markets like New Jersey, Maryland, Pennsylvania, and Ohio—regions with stronger pricing power and regulatory clarity.
• The Company announced that proceeds from the Michigan exit will be used to pay down debt, improving the company’s balance sheet and cash flow outlook. (Read: TerrAscend Announces Results of Annual General Meeting)
• Management expects the move to boost gross margins, adjusted EBITDA, and operational efficiency starting in the second half of 2025.

The stock had been deeply oversold (DOWN 30.6% month-ending June 27th), so the news likely triggered short covering and technical buying.

Conclusion

In short, TerrAscend’s decision to cut losses in Michigan and double down on profitable markets gave investors a reason to believe in a turnaround and jump into the stock.

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