GRAND RAPIDS, Mich. (WOOD) — Cannabis company TerrAscend Corp. is pulling out of Michigan, calling the state an “extremely difficult market.”

TerrAscend is the parent company of brands like GAGE and Cookies, which have locations in West Michigan. In fact, TerrAscend has 20 locations throughout the state that will be closing, as well as four cultivation and processing facilities. The company expects to be out of Michigan by the end of the year. Proceeds will be put toward paying company debt.

The company will still operate 19 dispensaries and four cultivation and processing facilities across New Jersey, Maryland, Pennsylvania, Ohio, California and Toronto, Ontario.

TerrAscend said the move is financial.

“Michigan is an extremely difficult market and we have come to the realization that our resources can be better utilized in our other markets. … 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.”

About 1,200 employees are expected to lose their jobs due to the move, a release from TerrAscend said.