Debra BorchardtNovember 14, 2022
Optimism remains for Michigan's cannabis market.
Michigan Archives - Page 2 of 5 - Green Market Report
Debra BorchardtNovember 14, 2022
StaffNovember 9, 2022
This story was reprinted with permission from Crain’s Detroit Business news and written by Dustin Walsh.
Wayne County
- Belleville: Voters approved an amendment to allow for two marijuana retailers, one marijuana processor, five class C grow licenses (each license allows an operator to grow up to 1,500 plants and a single operator at a single address can hold five of those licenses), two medical marijuana retailers and two consumption lounges.
- Flat Rock: Voters said no to an amendment that would have allowed for a single marijuana retailer and a prohibition on all other forms of marijuana businesses.
- Taylor: Voters approved a measure to repeal a previous ordinance that banned marijuana businesses in the city. Under the measure, “certain” marijuana businesses will be allowed to operate only in industrial areas of the city and not within 2,500 feet of another marijuana business, schools, churches, libraries and residential areas.
Oakland County
- Auburn Hills: Voters approved the proposal to repeal a previous ordinance that banned marijuana businesses within the city and adopt a new ordinance that allows for up to four adult-use recreational marijuana businesses. It does not specify whether those businesses are retail, grow operations or processors. The new ordinance also allows for retail establishments to use delivery services, drive-through facilities and exterior walk-up windows.
- Brandon Township: Voters said no to an amendment that would have allowed for one additional marijuana retailer in the township, while maintaining a prohibition on all other marijuana businesses. The Village of Ortonville, a community within Brandon Township, approved an ordinance in August that allows for two marijuana retailers to operate for at least three years within the village.
- Clarkston: Voters said no to a proposal that would have allowed two medical marijuana retail locations to operate in the city.
- Keego Harbor: Voters approved an ordinance that allows for medical marijuana operations in the city and establishes a licensing process.
- Lathrup Village: Residents approved a measure to ban all marijuana operations in the village. The village has entertained proposals for two retailers and two testing labs since legalization but has no marijuana operations currently.
- Leonard Village: Voters approved the initiation of an ordinance to allow a single adult-use recreational marijuana business in the village with no zoning restrictions, including allowing the business to operate in a residential zone.
- Royal Oak Township: Voters approved a measure to repeal the township’s current ban on marijuana businesses. The ballot language states an ordinance would be established to assist patients in need of medical marijuana but does not specify whether the repeal would allow for both medical and recreational marijuana facilities in the township.
Macomb County
- Memphis: Voters said no to a ban on marijuana businesses and no to repealing its current marijuana ordinance.
- Chesterfield Township: Voters approved a proposal to establish an ordinance “to provide for the number of marihuana establishments allowed within the municipality.” It’s unclear exactly what number the township would deem acceptable.
Washtenaw County
Livingston County
St. Clair County
- Memphis: Same ballot language as in Macomb County in the city that straddles the counties’ border.
Monroe County
StaffNovember 7, 2022
Michigan-based private company JARS Cannabis is buying Colorado-based Euflora LLC for an undisclosed amount. The acquisition and rebranding of Euflora retail stores are expected to be completed by the end of the fourth quarter.
The deal includes one cultivation center and greenhouse, along with six recreational storefronts to its portfolio. JARS said the deal will increase its retail operations to include a total of 26 storefronts across three states and solidify its positioning as a leading purveyor of affordable and accessible cannabis products in the nation’s second- and third-largest cannabis markets.
“Since the inception of JARS Cannabis, it has been our mission to deliver only the highest quality of products and service to our community and customers,” said JARS Cannabis COO Raymond Abro. “In this evolving industry, the move to acquire Euflora demonstrates a strategic opportunity for JARS to service new customers as we continue to expand our retail footprint across the nation, while aiming to create new jobs and increase access to affordable and accessible recreational cannabis products for all.”
Ronnie Kassab is listed as the company’s CEO according to ZoomInfo.
The acquisition will create a combined workforce of 670 employees, and a combined loyalty base of more than 290,000 customers. The cultivation facility is a 7,200-square-foot cultivation center and greenhouse facility. The combined company will also create an expanded product availability and offerings to feature a combination of more than 250 brands and 6,000 product SKUs across various categories and price points.
JARS currently has four locations in Arizona and 15 stores in Michigan. Five more stores are planned for Michigan, according to the company’s website.
“We are pleased to join forces with JARS Cannabis to pursue a shared vision for the future of cannabis retail through sustainable expansion in core recreational markets,” said Euflora COO Scott Rybicki. “Today marks a transformative moment in the evolution of Euflora, and we anticipate this acquisition will drive significant leadership, operational, and retail opportunities amongst both parties to better meet the varying needs of our combined staff and loyal customer base.”
StaffOctober 27, 2022
The Daily Hit is a recap of cannabis business news for Oct. 27, 2022.
ON THE SITE
Trulieve Worker Death Could Spur Changes in Massachusetts Cannabis Industry
The death of a Trulieve employee at a Massachusetts product manufacturing facility in January may lead to significant shifts within the state’s cannabis industry. That could include additional industry oversight, momentum for unionization efforts, and perhaps more yet-unforeseen shifts such as the founding of a state-run testing lab to act as a check on privately owned marijuana labs, sources told Green Market Report. That doesn’t include the still-unclear blowback for Trulieve (OTC: TCNNF) (CSE: TRUL) itself. Read more here.
Florida Chills Plan to Sell Cannabis at Circle K Gas Stations
Investors and others bullish on the news that Green Thumb Industries (OTCQX: GTBIF) would start selling medical marijuana out of stores attached to Florida Circle K gas stations next year may have to curb their enthusiasm. The state’s Department of Health told Green Market Report that the project “has not been approved by the state.” Read more here.
Verano Refinances Debt Extending Maturity Dates
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) has entered into a credit agreement to refinance its existing $350 million credit facility, extending the maturity date to Oct. 30, 2026. Refinancing comes amid the company’s new legal battles with its spurned acquisition of Goodness Growth. Read more here.
Dozens of Michigan Cities to Vote on Fate of Cannabis Businesses
Marijuana is on the ballot next month in at least 32 communities across Michigan. The vast majority are asking voters whether the community should allow marijuana retailers and growers to operate. The state’s marijuana industry has suffered a massive blow in recent months due to oversupply of product, collapsing prices more than 45% in the last year. Read more here.
IN OTHER NEWS
Nevada
A Clark County District Court judge has ruled in favor of local cannabis advocates and declared that the Nevada State Board of Pharmacy is no longer authorized to govern cannabis and must remove marijuana, cannabis, and cannabis derivatives from the controlled substances list. Read more here.
Bloomios
Bloomios Inc. (OTCQB: BLMS), a white-label and private-label manufacturer and wholesaler of hemp-derived nutraceutical, cosmetics, and pet products, has acquired Infusionz, a wholly owned subsidiary of Upexi (NASDAQ: UPXI). Moving forward, Bloomios will manufacture products retained by Upexi, and Upexi has provided significant financing to enable this transaction. The acquisition includes Infusionz’s portfolio of CBD gummy brands and customers, along with its associated order flow, product formulations, manufacturing operations, equipment, and sales team. Read more here.
Chemistree Technology Inc.
Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) has negotiated the conditional sale of its Washington state subsidiary. The company executed a Share Purchase Agreement with an arms-length party, whereby the company under certain circumstances would sell 100% of its Washington Assets via the sale of subsidiary, Chemistree Washington, to the other party in exchange for consideration of $500,000. Read more here.
StaffOctober 27, 2022
Marijuana is on the ballot next month in at least 32 communities across Michigan.
StaffOctober 25, 2022The Daily Hit is a recap of cannabis business news for Oct. 25, 2022.
ON THE SITE
Canopy Growth Forms New Holding Company to Speed US Entry
Canadian cannabis producer Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) has agreed to absorb a trio of companies within its newly formed holdings entity, Canopy USA. Under the deals, which still need approvals from shareholders, Canopy USA will acquire all of Acreage Holdings (OTC: ACRHF), as well as Jetty Extracts and Wana Brands, in a longstanding bid to gain entry into the U.S. cannabis industry. Read more here.
SEC Charges Cronos Group With Accounting Fraud
The Securities and Exchange Commission (SEC) charged Cronos Group Inc. (Nasdaq: CRON) for improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods. The SEC said in a statement that it also charged Cronos’s former Chief Commercial Officer, William Hilson, with fraud and aiding and abetting the company’s violations. Read more here.
CBD Beverage Company Targeted by SEC For False Statements
The SEC is issuing cease-and-desist orders against a CBD beverage company called NewAge Inc. The SEC said in its Administrative Proceeding dated Oct. 19, 2022 that from approximately July 2017 through April 2019, NewAge, through its former chief executive officer and director Brent D. Willis, made numerous false and misleading public statements concerning NewAge’s business operations and activities. Read more here.
Michigan’s Top Cannabis Regulator Promises Crackdown as Prices Free-Fall
For Michigan’s marijuana industry, a crackdown is coming. The state’s Cannabis Regulatory Agency is preparing to launch a new offensive to combat illicit market product that’s been long-rumored to be making its way into the regulated industry, Brian Hanna, the newly appointed acting director of the agency, told reporters in a media roundtable Tuesday morning at the CRA’s Lansing headquarters. Read more here.
IN OTHER NEWS
New York
Leaders of NY’s largest cannabis business association say certain aspects of the state’s marijuana testing regulations are unnecessarily strict and that if they’re not changed, most of NY’s conditionally licensed growers won’t be able to sell their weed. The Office of Cannabis Management last month posted testing requirements for marijuana flower and extract. Read more here.
Goodness Growth/Verano Holdings
Cannabis company Goodness Growth saw its market cap drop by more than 60% after Verano Holdings backed out of a deal to buy the Canadian firm for $413 million, according to a lawsuit filed Friday in the Supreme Court of British Columbia accusing the Chicago-based company of “undermining” the deal. Read more here.
StaffOctober 25, 2022
The state's Cannabis Regulatory Agency is preparing to launch a new offensive to combat illicit market product.
StaffOctober 18, 2022The Daily Hit is a recap of cannabis business news for Oct. 18, 2022.
ON THE SITE
Flower One Files for Canadian Bankruptcy, Plans to Go Private
After the markets closed on Monday, Flower One Holdings (CSE: FONE) (OTC: FLOOF) announced that it and its Canadian subsidiaries obtained an Initial Order of the Supreme Court of British Columbia pursuant to the Companies’ Creditors Arrangement Act, which is considered the equivalent of the U.S. bankruptcy court. The company also said it planned to become a private company by the end of the year to reduce the expense of being a publicly traded company. Read more here.
Audacious Ready for New York (Even if NY Isn’t Ready)
New York may not have an adult-use cannabis program in place, but that doesn’t mean cannabis companies are waiting. Australis Capital (CSE: AUSA)(OTCQB: AUSAF), also known as Audacious, said it has successfully completed its first harvest of adult-use cannabis in New York state with its partner Hempire. Audacious said it shipped its flower for processing and manufacturing into vapes and edibles. Read more here.
Fire & Flower Finds $16 Million From Circle K Owner
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) has fashioned a financing deal with Alimentation Couche-Tard, the owner of Circle K convenience stores, in which ACT would supply the company with a $11 million principal amount loan. The two have also revised a stock purchasing agreement, in which ACT will snap up $5 million worth of common shares of Fire & Flower. Read more here.
Commentary: Does Crime Pay in Regulated Cannabis Market?
Now that recreational marijuana prices have collapsed and margins have evaporated, Michigan’s legal marijuana industry is all in on rooting out bad seeds. Pressure on the Cannabis Regulatory Agency (CRA) is on the rise from the state’s largest growers and retailers to identify and eliminate illegal marijuana making it into the legal market. Read more here.
IN OTHER NEWS
Oklahoma
The Oklahoma Bureau of Narcotics (OBN) is investigating and dismantling criminal organizations operating within the state’s medical marijuana program. Over the past two weeks, OBN has served Search Warrants at nearly a dozen marijuana farms across Oklahoma. Read more here.
Alabama Medical Cannabis Commission
The Alabama Medical Cannabis Commission said it had received 566 application requests for cannabis licenses before the deadline expired Monday. The commission will issue just 37 dispensary licenses for the first year. Applications for licenses will go out October 24 along with guidelines on what the AMCC is looking for in a potential applicant. Read more here.
StaffOctober 18, 2022
Michigan's legal cannabis industry is all in on rooting out bad seeds.
Debra BorchardtOctober 11, 2022
Variscite NY One filed the suit to gain access to the first round of licensing in the state.
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