Michigan’s medical marijuana sales in February fell 61.5% year-over-year to $10.0 million, while adult-use sales rose 60.1% to $206.4 million.
The data from the Michigan Marijuana Regulatory Agency revealed that combined sales increased 4.4% sequentially, while on a daily basis they grew by 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 grossed around $4.78 million, while adult use grossed $99.98 million.
According to the report, the big problem is still a price drop, with the average price of $1282 per pound fell 46.3% from the previous year. More details on cannabis sales in the Great Lake State can be found in NCV’s report.
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Typos almost shut down the market
In early March, the marijuana market in Michigan came to a near-total halt due to what has been acknowledged as a “clerical error.”
METRIC (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 $40 monthly service fee. Allegedly, most of the companies had no idea that they were late with the payment.
The Michigan Cannabis Regulatory Agency proceeded to notify them immediately.
Soon after, METRC confirmed to Crain’s Detroit that it was all a “clerical error.” Of the Michigan cannabis businesses that used their services, only 11% were more than three months late with their payments.
4 Michigan weed companies now received
Michigan’s Skymint isn’t the only cannabis operator under the control of a receiver, according to Crain’s Detroit Business. At least four more marijuana companies are in receivership.
A receivership is a court-appointed legal mechanism that can serve several purposes, such as helping creditors recover defaulted funds, helping struggling businesses avoid bankruptcy, and streamlining the process for lenders to collect owed funds in the event of, that a borrower defaults on a loan.
This involves the appointment of a trustee, called a “receiver”, to take control of the business. During the suspension period, the power of the original managers is limited.
Skymint, which underwent rapid expansion, now employs 600 people in 24 retail dispensaries as well as three indoor growth companies.
However, a lawsuit filed in Ingham County Circuit Court in Lansing claims Skymint owes more than $127 million to Canadian investment firm Tropics LP, a subsidiary of Calgary-based Sundial Growers Inc.’s (NASDAQ:SNDL) investment firm SunStream Bancorp Inc. which announced in November 2022 that it had closed a $6.25M senior secured loan to SKYMINT Brands.
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