With long lines forming outside Michigan's first recreational marijuana dispensaries Sunday, investors and consumers alike are closely following followed the evolving legal landscape of the state's multibillion-dollar cannabis market.
From designated consumption establishments to recreational events, a litany of business opportunities have opened up in Michigan.
Marijuana activist John Sinclair, who was notoriously sentenced to up to 10 years in jail in 1969 for giving two joints to an undercover cop, was the first to make a recreational purchase at one Ann Arbor dispensary Sunday, according to The Detroit News.
Hundreds waited in line outside dispensaries on Michigan's first day of recreational sales. Another early bird purchaser, 25-year-old Kelly Savage of Columbus, Ohio, paid $480 for an ounce of Platinum OG, The News reported.
Cannabis Supply Woes In 2019
Michigan’s dispensaries have faced supply shortages this year similar to what Ontario retailers are facing.
While MSOs and LPs such as Harvest Health & Recreation Inc (OTC: HRVSF) and Aurora Cannabis Inc's (NYSE: ACB) wholly owned subsidiary CanniMed Therapeutics are racing to expand production capabilities, established caregivers have helped power the market up to this point.
Want to hear exclusive updates on the adult-use licensing process? Check out the next meetup with MRA Executive Director, Andrew Brisbo on Dec. 18 at the Benzinga Headquarters! Get your tickets here before they sell out!
Caregivers: The Core Of The Medical Market
On March 21, Michigan's Medical Marihuana Licensing Board passed a resolution on marijuana product access for patients.
This resolution grants the right for caregivers to sell lab-tested cannabis to dispensaries to meet supply needs.
Since then, more than 200 caregivers have supplied over $2 million in lab-tested flower and concentrates.
More extensive corporate producers may temper Michigan's shortage as the infrastructure to supply at scale is developed. But at this moment, caregivers are lucratively capitalizing on their existing products and building supplier relationships with licensed producers and provisioning centers.
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