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420 with CNW – Michigan Retailers Sell Recreational Weed Worth $3M in First Two Weeks

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It is the second week of marijuana sales in Michigan, and although the lines are not long, and the sales have reduced, the adult-use marijuana business remains brisk. Reports from the Marijuana Regulatory Agency in Michigan show that the few numbers of retail marijuana outlets selling recreational marijuana have been able to collect a total […]

It is the second week of marijuana sales in Michigan, and although the lines are not long, and the sales have reduced, the adult-use marijuana business remains brisk.

Reports from the Marijuana Regulatory Agency in Michigan show that the few numbers of retail marijuana outlets selling recreational marijuana have been able to collect a total of $3.1 million in sales so far.

The businesses located in Ann Arbor were able to collect $1.6 million in sales during the first week of recreational marijuana sales, which took place between December 1-8. During the second week of recreational cannabis sales, which was between Dec. 9 and 15, the shoppers spent approximately $1.4 in weed purchases.

Within the two weeks of sales, the state of Michigan collected a total of $515,051 in taxes, out of which sales tax is 6% while 10% is an excise tax.

According to the appropriation budget, the first $20 million generated in tax within the first two years of recreational marijuana sales is to be used in medical marijuana research. The rest of the funds are to be assigned as follows,

  • 15% to the municipalities, townships, or villages,
  • 15% is to be allotted to counties that have permitted the establishment of recreational weed businesses,
  • 35% to public schools, and
  • 35% to roads and infrastructure.

Out of 1,773 cities, townships and villages in Michigan, 1,400 of them have prohibited any recreational marijuana business in their jurisdictions.

The budget officials in Michigan are estimating that by late 2021 adult-use marijuana may become a $1.5 billion per year industry.

The state of Michigan had issued 16 licenses as of December 17, which is four more than what the Andrew Brisbo committee had projected by the new year. Brisbo is the Marijuana Regulatory Agency Director. However, most of the licensed businesses have not started operating due to delays in acquiring stock required to fill their shelves.

The only business allowed to obtain recreational marijuana businesses licenses till Dec 6, 2021, are those already operating businesses licensed under medical marijuana licensing laws.

The state allowed medical marijuana dispensaries to transfer half of the medical marijuana inventory which is older than 30 days to the recreational market.

Although some were pleased by the MRA move, some have expressed their concerns over the possible shortage of medical marijuana due to the high demand from recreational consumers.

During WKAR's off the record, the Executive Director of Michigan Cannabis Industry Association Robin Schneider said that the state of Michigan is already experiencing a shortage of medical marijuana and the early launch of recreational sales could exacerbate the situation. He further said that there is a probability of sending patients to the black market due to lack of legal marijuana.

Speaking to MLive.com, several businesses said that they are stocking up their business before opening their doors to avoid running out of stock.

Speaking to MLive.com, the owner of Herbology Cannabis Co. in Wayne County's River Rouge, Tarek Jawad said that he is uncertain when he will open his doors because the recreational marijuana is not enough to stock the stores. He added that he plans on placing large orders for medical marijuana so that after 30 days, he can transfer it to the recreational side.

Three of the largest licensed marijuana growers also own recreational outlets. This makes it hard for owners like Jawad to obtain recreational products.

The state also issued licenses for a testing laboratory, three recreational cannabis transportation companies, and to an event coordinator.

Experts are certain that cannabis industry actors like Canopy Rivers Inc. (TSX:RIV) (OTC:CNPOF) and Sproutly Canada Inc. (CSE:SPR) (OTCQB:SRUTF) (FRA: 38G) are happy for the people of Michigan who are finally getting to enjoy the benefits, such as jobs, created by the marijuana industry.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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