Michigan Archives - Page 2 of 2 - Green Market Report

Kaitlin DomangueDecember 3, 2019
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Over a year has passed since Michigan voted to legalize recreational cannabis for those 21 and older. Sales for adult-use cannabis began on December 1st and the Michigan Regulatory Agency reported that consumers spent $221,000 on their first day. People lined up for blocks in the cold to have a chance to buy legal marijuana for the first time.

Michigan already had a strong medical cannabis program already in place, bringing in approximately $970 million in sales this year. Though they have a strong medical program, at this time, Ann Arbor is the only place in Michigan where customers can purchase cannabis recreationally. Exclusive Brands, Arbor Wellness and Greenstone Provisions are currently the only three shops in operation in the state. T

Three additional retail shops, Lit Provisioning Center in Evart, Skymint in Ann Arbor, and Michigan Supply and Provisions in Morenci were approved for their state licenses to sell recreational cannabis on Wednesday, but they weren’t expected to be ready to start sales on Sunday. Cities in Wayne, Oakland, and Macomb county, for example, have either banned recreational use in their area entirely or are working on regulations in their area/deciding who will receive a license to operate.

In November, Detroit’s city council unanimously voted to opt-out of recreational sales until January 31st. They cited their reasoning as wanting more time to draft regulations for their area. USA Today reported that approximately 80% of municipalities in Michigan voted to opt-out of recreational cannabis sales being permitted in their communities, at least at this time. This does not seem to affect the states’ projections for its newest industry, Canaccord Genuity estimated the market to reach $1.5 billion in 2020. The state House Fiscal Agency has estimated that when the market is fully established after 2020, annual sales will be approximately $949 million, bringing in $94.9 million from the states’ excise tax and $57 million from the 6% sales tax.  

Michigan only began accepting applications for business licenses on November 1st. It has awarded a total of 18 licenses thus far, including dispensaries, processors, and growers. Another 63 licenses have been pre-qualified already.

 


Debra BorchardtMarch 14, 2019
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Michigan-based cannabis ag-tech company Green Peak Innovations LLC closed on a $30+ million capital raise in an oversubscribed mezzanine debt round. The company plans to use the money for expansion purposes within its home state.

“This is an important step for Green Peak Innovations as Michigan’s largest holder of vertical medical marijuana licenses,” CEO Jeff Radway said. Canaccord Genuity and Beacon Securities acted as co-lead agents for this funding round.

Green Peak Innovations is fully licensed by the LARA Bureau of Medical Marijuana Regulation as the largest holder of “Class C” cultivation licenses, processing, and has plans in place to open 19 provisioning centers.  The company said it anticipates opening the first of its 19 Skymint-branded provisioning centers within the next few months.

Radway continued: “Significant demand resulted in exceeding our planned funding goal in record time. Clearly, our investors are excited about our business strategy and our first mover advantage in the Michigan marketplace.”

Plans are currently in place to expand the Windsor facility up to two times its current footprint.  “Our investors participated in this funding based on the team we’ve built, our business and financial strategy, and the assets we have amassed,” added CFO Al Gever.  “All of this speaks volumes about how serious Green Peak is about being the country’s premier cannabis company.”

“Our first priority is to solidify our position as the state’s premier cannabis company that supplies Michiganders with the safest, highest quality products,” added Radway. “Only then can we begin our next step of taking our proprietary and scalable model to other states.”

“Green Peak has invested significant capital into our fully operational 60,000 square foot state-of-the-art headquarters facility in Windsor Township and our R&D facility on Jolly Road to produce a quality product in a clean, contaminant-free environment,” said CFO Al Gever.

During the recent, mid-term elections Michigan voters passed a ballot initiative to legalize, regulate, and tax marijuana for adult use through the measure known as Proposal 1.

 


Emerson BrownDecember 11, 2017
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In all aspects of life, the ability to start strong and finish even stronger is a must, but what happens in between the start and the finish varies depending on the situation, and I must say, the state of Michigan is surely shaking things up going forward when it comes to the culture of cannabis.  Michigan has been able to produce and provide medical marijuana to patients since 2008, but this Friday all this is going to change. The state department of licensing and the regulatory board will start accepting and rejecting people looking to set up shop within the state boundaries of Michigan.

Last year,  the Michigan Legislature passed and the governor signed into law three bills (House Bills 4209, 4827 and 4210) that will create a licensing and regulatory framework for medical marihuana that must be implemented by December 15, 2017. This new deadline for a prequalifying licensor has been the topic of discussion for some time now because at the moment any dispensary that’s operating in Michigan is under a legal, but illegal cloud.  

Michigan is the home to nearly 272,215 medical marijuana patients. There are expectations of adding nearly $71 million in tax revenue for the state and you best believe that there’s major competition for the right space to operate. Michigan is second to California for medical marijuana users and outside investors believe that number could go even higher.

Harvest Park Uses Industrial Park Model

An example of this is Harvest Park in Windsor, Michigan. It is using the industrial park model and applying it to medical marijuana. This company has 130 acres positioned and poised to become the state of Michigan’s epicenter for medical marijuana cultivation, processing, testing and secure transportation. I know you’re wondering how this township of Windsor, a place slightly west of Lansing, Michigan executed this future economic and medical platform for the culture of cannabis and how this recent announcement made Windsor the largest medical marijuana development east of the Mississippi.  The Township has set up its program for approval of 138 medical marijuana licenses, 10 class A, 10 class B and 100 class C cultivation licenses. Then another 10 for processing, 3 for secure transporting and 5 for lab testing.

This is where  Hudson Park Managing Director Jeff Donahue comes into play. “We’ve worked with the Township and gained approval for the local zoning and ordinances required to enable licensure for all levels of cultivation, processing, testing and secure transport,” said Donahue. Harvest Park has been granted easy access to I69 and I96, which is located directly in the center of Michigan. When it comes to the heavy power demands of this industry, Harvest Park has partnered with one of the major utility companies to ensure all licensed operators have an ample supply of power, redundancy, and competitive rates.

The state of Michigan plans to begin licensing, regulating and taxing medical marijuana by early 2018. Harvest Park is already one leg up on the competition with 70 percent of their fully improved lots sold or pending approval.  Also, with the projection of phase two opening early first quarter of 2018 the economic and medical future for the state of Michigan is looking modernly massive with the opening of Harvest Park. The industrial park expects to bring 1000 new jobs. According to the Bureau of Labor Statistics, Michigan is experiencing  4.5% unemployment as of October 2017, which is higher than the nationwide average of 4.1%. Making this a desirable project for the community.

Michigan’s Recreational Use Status

According to the Marijuana Policy Project, “Coalition to Regulate Marijuana Like Alcohol officially submitted ballot language to the state of Michigan today that would legalize adult consumption of marijuana in Michigan and establish a system in which marijuana is regulated and taxed similarly to alcohol. The Coalition to Regulate Marijuana Like Alcohol’s initiative would create six categories of licensed marijuana businesses that would be regulated by the state and also be subject to local control.” The site said that the coalition must submit a petition with at least 252,523 valid signatures of registered Michigan voters. MPP also stated that if approved by voters in November 2018, Michigan would follow Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, and Washington in legalizing marijuana.


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