Michigan Cannabis Sales.
Michigan sales for the month of September came in at ~$212M which compares to ~$208M in the previous year. Michigan has shown strong growth numbers despite the continued pricing pressure that this industry is going through. Sales grew 2% MoM and 31.4% YoY. The average price per product has declined 32.9% YoY. The growth in the industry is coming from the unit volume which grew 2% on an MoM basis in September and 96% YoY. This was the first month in well over a year that we saw a sequential increase in average price per unit which gives us signs that the biggest headwind in this market might at least be slowing. If you would like more state-by-state cannabis breakdowns, check out our Monthly Q&A + Industry Trends call replay (CLICK HERE).
Cultivation Licenses?
As we wrote about above, and a topic we have been harping on endlessly for the last several months, falling prices in the industry have crushed the cannabis industry in most states across North America. The earlier adopters of legalized cannabis are going through the worse of the pricing pressure now, while less mature markets have just started to feel the beginnings of this headwind. Cultivators in Michigan, Washington, Colorado, and California have been calling their local officials to ask them to pause handing out more cultivation licenses. Cannabis operators in Colorado and Michigan are following the lead established by Oregon, which earlier this year passed legislation requiring regulators to stop issuing marijuana business licenses to applicants who submitted applications after Jan. 1. This is coming a bit too late in these markets as we have already started to see signs of the trough for the average price per product in the more mature markets listed above and younger markets should take notes about this so they can be more proactive about protecting their cannabis markets.
Gage Gives Out Fourth Social Equity Grant.
Gage Cannabis (a subsidiary of TerrAscend Corp) announced earlier today that it has named its fourth social equity grant, Midwest CannaNurses. MCN is a Detroit-based minority-owned holistic health and wellness education consulting company dedicated to health advocacy, education, and inclusion with a focus on cannabis as an alternative therapy.“Gage and TerrAscend are proud to award our social equity grant to Midwest CannaNurses, a valuable organization focused on advocating for safe, effective cannabis use while demanding destigmatization and decriminalization in communities of color,” said Mike Finos, President and EVP of Operations at Gage Cannabis. “Biyyiah and MCN are an exceptionally talented group of health experts providing education and resources to patients and medical professionals throughout Michigan. We look forward to supporting MCN as it continues to eliminate disparities of access and improve their patient's quality of life for years to come.”
