Recreational Cannabis Sales Expand to Michigan – PR Newswire UK
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NEW YORK, Dec. 4, 2019 /PRNewswire/ — Over the weekend, Michigan kicked off its recreational cannabis sales, becoming the first state in the Midwest to legalize adult-use. Michigan voters backed the legalization of cannabis back in 2018, marking the 10th state to fully allow the use of both medical and recreational cannabis. State officials issued 18 licenses in total on the first day, including to growers and processors, according to Vox. Additionally, officials also allowed medical dispensaries to shift 50% of their medical supply to recreational if the products have been in inventory for at least 30 days. During the first day of legal sales, Michigan accumulated a total of USD 221,000 in sales, according to The Detroit News, with most of the sales stemming from Ann Arbor. The state stipulates that adults 21 years or older can purchase and possess cannabis. Additionally, residents are legally allowed to possess up to 2.5 ounces in person or up to 10 ounces at their homes. And while recreational cannabis sales might seem minuscule, Michigan’s medical segment has been booming. The Detroit News reported that between October 1st, 2018 to November 22nd, 2019, Michigan generated a total of USD 269.5 Million in sales. And according to mlive, Michigan budget planners are anticipating the recreational market to reach upwards of USD 1 Billion and deliver revenues of USD 1.43 Billion by 2022. In combination with other legal recreational states such as California, Colorado, Nevada, and Washington, the states are collectively delivering billions in revenue. According to data compiled by MarketsandMarkets, the global cannabis market was valued at USD 10.3 Billion in 2018. And by 2023, the market is expected to reach USD 39.4 Billion while exhibiting a CAGR of 30.7% during the forecast period. Global Payout, Inc. (OTC: GOHE), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), KushCo Holdings, Inc. (OTC: KSHB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), iAnthus Capital Holdings, Inc. (OTC: ITHUF) (CSE: IAN)
Michigan’s legalization of cannabis highlights just how fast the industry has accelerated in the U.S. since Colorado and Washington were the first two states to allow legal adult-use back in 2014. However, similar to most regions that begin legalization, government regulations usually tend to disrupt operations. For instance, Canada fully legalized cannabis last year yet still faces regulatory matters such as curtailed operation hours and limited licenses. Subsequently, Canada’s demand began to outpace the supply earlier this year, leading to nationwide shortages. And while Canada has fully legalized cannabis use, the U.S. has still not federally approved cannabis for either medical or recreational purposes. Instead, federal regulators have granted states the jurisdiction to legalize cannabis. And as a result, more than half the U.S. has moved to legalize medical use and just over a fifth have legalized recreational use. And even still companies face many legal barriers. Notably, one of the biggest concerns is securing partnerships or receiving third-party services. For example, many companies hire third-party services, whether it is for marketing, advertising, or shipping. However, due to legal matters, many companies have distanced themselves from the cannabis industry. In particular, many banks have decided to avoid offering services with cannabis-based operators. Consequently, operators are left struggling to manage and maintain their financials. Nevertheless, as the legal industry continues to ramp up, businesses are expected to acknowledge the growth and enter into the marketplace. “The recreational industry, once fully implemented, will have a significant impact on Michigan’s economy, with hundreds of millions of dollars in tax revenue flowing into state and local governments,” said Michigan Cannabis Industry Association Director Robin Schnedier.
Global Payout, Inc. (OTC: GOHE) announced yesterday that it has, “signed their first recreational cannabis dispensaries in Michigan, whose long lines and booming first day reveal the level of demand in the country’s newest addition to the legal cannabis market.
As a handful of shops this past Sunday in the Ann Arbor region of Michigan opened their doors for recreational sales hundreds of residents withstood inclement weather conditions and waited patiently in long lines to become some of the state’s first residents to legally purchase cannabis for recreational use. Michigan’s first medical dispensaries opened last November and posted enormous sales, raking in over $42,000,000 in the first four months of operation and to date have exceeded $200,000,000 in sales. Currently, 22 communities have formally passed regulations to allow new dispensaries to be licensed, presenting a compelling business opportunity for MTrac and its growth initiatives heading into the new fiscal year.
‘We are very excited to be one of the first cashless payment providers available to the residents of Michigan,’ said MTrac Tech CEO, Vanessa Luna. ‘The state’s medical sales have been enormous and estimates for recreational sales reach past one billion dollars, this is a huge opportunity for us to secure a state from the minute cannabis becomes legal. One of the first major obstacles new dispensaries run into is finding financial products such as ours, and we are very pleased to say that MTrac is there to solve that dilemma, and we hope we can do the same for the rest of the state’s dispensaries as they become licensed and open their doors.’
The Company will keep shareholders apprised of its continued expansion in Michigan as business develops.
Sources of content:
Detroit Free Press: Sales of recreational marijuana could begin as soon as Dec. 1 in Michigan
Detroit Free Press: After 4 months, medical marijuana sales in Michigan exceed $42 million
About Global Payout, Inc. (OTC Pink: GOHE): Since the Company’s inception in 2009, Global Payout, Inc. has been a leading provider of comprehensive and customized prepaid payment solutions. From 2014 to 2017 Global focused on identifying new state of the art technologies in a variety of industry sectors and successfully helped launch MoneyTrac Technology Inc. and other companies within the FinTech space. In 2018, Global completed a reverse triangular merger with MoneyTrac Technology Inc. resulting in Global retaining the wholly owned subsidiary, MTrac Tech Corporation. Global’s current focus is continuing to identify new business opportunities while it reorganizes its future business endeavors.”
For our latest “Buzz on the Street” Show featuring Global Payout, Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=tXnKAygZT7E
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents, is one of the world’s largest and leading cannabis companies. Aurora Cannabis Inc. recently announced that one of the Company’s oil products had now been approved for use under Ireland’s new Medical Cannabis Access Programme. Aurora’s High CBD Oil Drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the scheme and is to date, one of only two products to gain such authorization. Dr. Shane Morris, Chief Product Officer at Aurora said, “Aurora is pleased to be able to assist patients who are seeking treatment with high quality EU-GMP (good manufacturing practice) certified pharmaceutical-grade medical cannabis in Ireland. We are very proud to be one of the first approved suppliers of medical cannabis under the MCAP. We want to acknowledge the efforts made by many people, especially the patients and doctors who have campaigned for access to these medicines. We look forward to more of Aurora’s high-quality medicines being approved, so that more patients can benefit from the MCAP in Ireland. We will continue to work closely with all parties and state agencies to facilitate further availability.”
KushCo Holdings, Inc. (OTCQX: KSHB) is the premier producer of ancillary products and services to the cannabis and hemp industries. KushCo Holdings, Inc. recently announced that it had entered an exclusive distribution agreement with De La Rue, a global leader in anti-counterfeiting and authentication solutions. In accordance with the agreement, KushCo will offer the growing cannabis industry standard and custom branded anti-counterfeit security labels. The solution will also provide unique IDs to support product serialization and a digital verification system to enable authentication throughout the regulated cannabis supply chain. The regulated cannabis industry is being actively targeted by counterfeiters aiming to benefit from the industry’s explosive growth. The KushCo proposition will provide companies with enhanced packaging, with the most secure visual authentication technology using 3D photopolymer images, unique serialization, e-verification, label tracking, and data capturing capabilities. “It is our responsibility as a leader in the space to build consumer trust in addition to empowering governments and brands. Counterfeit products undermine the legitimate cannabis industry by hurting sales, cheating governments out of tax revenue, and eroding consumer confidence while putting their health at risk. KushCo wants to provide the tools for our clients to have greater transparency and accountability,” said Nick Kovacevich, KushCo’s Chief Executive Officer.
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD) is a premium certified organic cannabis company focused on the health and wellness market. The Green Organic Dutchman Holdings Ltd. recently announced that it had received its inaugural purchase order from the BC Liquor Distribution Branch, further expanding its Canadian distribution footprint. The Company also obtained a license amendment from Health Canada, allowing it to launch cultivation operations at its flagship Valleyfield hybrid greenhouse. The addition of British Columbia means that TGOD now has the ability to distribute its products to a total of 527 retail locations across five provinces, or 82% of Canada’s current store count. With the number of cannabis stores poised to increase from 639 to over a thousand in 2020, the Company is continuing to strategically develop and nurture solid relationships with provincial boards and retailers, cementing its position as the leading certified organic brand. “TGOD’s high-quality certified organic product and commitment to sustainable cultivation practices resonate with BC consumers. Based on the exceptionally positive feedback we received from our BC medical patients as well as on market research, we believe the province represents an enormous market opportunity for our brand,” commented Brian Athaide, Chief Executive Officer of TGOD. “As we continue ramping up production, we remain focused on expanding our distribution channels and achieving our goal of distributing nationally in Q1 2020.”
iAnthus Capital Holdings, Inc. (OTCQX: ITHUF) (CSE: IAN) owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. iAnthus Capital Holdings, Inc. recently announced that its U.S. subsidiary had entered into an agreement to acquire WSCC, Inc., a leading Nevada-based vertically licensed cannabis company with two dispensary locations and over 20,000 sq. ft. of cultivation/production facilities in Reno and Carson City. The acquisition will enhance iAnthus’ presence and accelerate growth efforts in Nevada, which represents an approximately USD 640 Million adult-use and medical cannabis market growing at over 20% annually, based on data made publicly available by the Nevada Department of Taxation. “Strengthening our foothold in one of the most successful adult-use cannabis markets is consistent with our strategy to deliver iAnthus’ nationally recognized products in premier markets,” said Hadley Ford, Chief Executive Officer of iAnthus. “This strategic transaction will allow us to scale our Nevada operations, add talent, and solidify both our retail and brand presence in both the Northern and Southern portions of the state.”
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