Is Recreational Weed Killing Medical Marijuana? Michigan MMJ Sales Drop A LOT As Rec Sales Boom

Michigan's February medical marijuana sales dropped 61.5% year-over-year to $10.0 million, while adult-use sales improved 60.1% to $206.4 million.

The data from the Michigan Marijuana Regulatory agency revealed that combined sales improved 4.4% sequentially, while on a per-day basis, they grew 39.8% reported New Cannabis Ventures.

When it comes to sales data by product type in both the medical and recreational programs, cannabis flower generated the most revenue. Medical marijuana flower garnered some $4.78 million, while adult use amassed $99.98 million.

According to the report, the big issue is still a price decline, with the average price of $1282 per pound falling 46.3% from the previous year. More details about cannabis sales in the Great Lake State can be found in NCV’s report.

Recent Cannabis Updates In Michigan

Clerical Error Nearly Shuts Down The Market

At the beginning of March, the Michigan marijuana market nearly came to a total stop, due to, what’s been acknowledged as a “clerical error.”

METRC (Marijuana Enforcement, Reporting, Tracking, and Compliance), which provides cannabis regulatory technology systems and has a contract with Michigan, reported that more than 85% of the 800 marijuana-licensed businesses failed to pay a monthly service fee of $40. Allegedly, most of the businesses had no idea they were late with the payment.

The Michigan Cannabis Regulatory Agency proceeded to immediately notify them.

Shortly thereafter, METRC confirmed to Crain’s Detroit that it was all a “clerical error.” Of the Michigan cannabis companies using its services, only 11% were more than three months late with their payments.

4 Michigan Weed Companies Now In Receivership

Michigan's Skymint is not the only cannabis operator under the control of a receiver, according to Crain’s Detroit Business. At least another four marijuana companies are in receivership.

receivership is a legal mechanism appointed by the court that can serve multiple purposes such as helping creditors to reclaim defaulted funds, aiding struggling companies in avoiding bankruptcy, and streamlining the process for lenders to retrieve owed funds in case a borrower defaults on a loan.

This involves the appointment of a trustee, referred to as a "receiver," to assume control of the company. During the receivership period, the power of the original managers is restricted.

Skymint, which underwent rapid expansion, now employs 600 people in 24 retail dispensaries as well as three indoor grow operations.

However, a lawsuit filed at the Ingham County Circuit Court in Lansing alleges Skymint owes more than $127 million to Canadian investment firm Tropics LP, a subsidiary of Calgary-based Sundial Growers Inc.’s SNDL investment firm SunStream Bancorp Inc, which announced in November 2022 that it had closed a $6.25M senior secured term loan to SKYMINT Brands.

Photo: Courtesy of Kindel Media on Pexels

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Posted In: CannabisNewsPenny StocksSmall CapMarketsCrain's DetroitMetrcMichigan cannabisMichigan Cannabis salesNew Cannabis VenturesSkymint
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