Mr. Ziad Ghanem reports

TERRASCEND ANNOUNCES STRATEGIC EXIT FROM MICHIGAN MARKET

Terrascend Corp. has completed a strategic review of its Michigan business operations and has decided to exit the Michigan market. As part of the exit plan, Terrascend and its consolidated entities intend to sell or divest all of the company's Michigan assets, including four cultivation and processing facilities, 20 retail dispensaries, and real estate. Net proceeds from the divestitures will be used to pay down existing company debt. The Michigan exit is expected to be substantially completed in the second half of 2025. The company's business in Michigan will be reported as discontinued operations beginning with the company's financial results for the second quarter of 2025.

Following the completion of the Michigan exit, the company will operate 19 dispensaries and four cultivation and processing facilities across five states, including New Jersey, Maryland, Pennsylvania, Ohio and California, and in Toronto, Ont. The strategic move is expected to meaningfully enhance Terrascend's financial profile. The company anticipates improvements across key metrics on a consolidated basis, including gross margin, adjusted earnings before interest, taxes, depreciation and amortization, and cash flow conversion, in addition to a strengthened balance sheet.

"After an extensive evaluation, we have made the strategic decision to exit the Michigan market," said Jason Wild, executive chairman of Terrascend. "Michigan is an extremely difficult market, and we have come to the realization that our resources can be better utilized in our other markets. 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."

The actions associated with the Michigan exit plan are expected to include a reduction of approximately 21 per cent of the company's overall work force, which consists of about 1,200 employees as of June 30, 2025. Most of this reduction is expected to occur by the end of the third quarter of fiscal year 2025.

About Terrascend Corp.

Terrascend is a leading Toronto Stock Exchange-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through Terrascend Growth Corp., and retail operations in Canada. Terrascend operates The Apothecarium, Gage and other dispensary retail locations, as well as scaled cultivation, processing and manufacturing facilities in its core markets. Terrascend's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The company owns or licenses several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana and Valhalla Confections.

We seek Safe Harbor.