Michigan Cannabis Sales.
Michigan monthly cannabis sales for the month of August came in ~$208M compared to ~$210M in July which represents a 1% MoM decline in sales and a 25.5% decline on a YoY basis. Medical cannabis sales in August were ~$18M which represents a 12.5% decline a YoY decline of 46.1%. The adult-use market in August fared much better as Michigan saw ~$189M in sales which represents growth of 0.3% on a MoM basis and on a YoY increase of 150.9%. Michigan might have taken a step down on a MoM basis due to the decline in the medical market but overall it was a strong performance for the state and should be a positive indicator for companies operating in this market as both July and August saw elevated sales numbers.
Alabama Medical Market.
Alabama legalized medical cannabis on May 17th, 2021 and two weeks ago they opened up their application portal. In those two weeks, Alabama has received 221 requests for medical cannabis business applications. Some are estimating that this market could see $80M-$90M in cannabis sales in their first year and annual sales of $450M-$545M in the fourth year of this state having a legalized medical market. The Medical Cannabis Commission of Alabama will issue up to 12 cultivator licenses, up to 4 processor licenses, up to 4 dispensary licenses in which each licensees can open up 3 locations, and up to five integrated facility licenses. These licenses probably won't be announced until late 2Q23.
Movement on SAFE?
The National Cannabis Industry Association (NCIA) ramped up its advocacy for SAFE this week, bringing in more than 100 stakeholders for two days of lobbying on Capitol Hill involving more than 100 meetings with lawmakers and staff to drive home the point that they want to see the SAFE Banking Act enacted in 2022. As Senate leadership works to finalize a package of cannabis reforms that are expected to include banking provisions, the bipartisan and bicameral sponsors of SAFE say it’s time to take action on the House-passed standalone legislation. “It’s a political positive. It’s good policy and good politics,” Senator Jeff Merkley (OR) said. “So we’re here today to say it’s way past time to get the SAFE Banking bill done.” Senator Merkley added that the senate is also working on including a social equity component into the SAFE act, "The forthcoming legislation “might” include funding for Community Development Financial Institutions, expungements for prior cannabis convictions, and a “process of no job discrimination” for people with marijuana-related criminal records in now-legal states." The Senate needs to be cautious about adding too many social equity provisions that could turn off the Republican voters but at the same time, they need to balance at least some provisions to make the likes of Senator Corey Booker pleased enough to vote for this.
