Spring is here! Michiganites are ready for their medical marijuana licenses.

Mega-growers of medical marijuana will soon find out if their applications have been accepted by the state of Michigan. Medical marijuana licenses will be released this spring. Three levels of licenses were developed within the state: Class A (allowing up to 500 plants); Class B (allowing up to 1,000 plants); and Class C (allowing up to 1,500 plants).

In December of 2017, Michigan began accepting applications for medical marijuana growers. These licenses were for growers, processors, transporters, testers, and dispensaries. But applicants don’t have long to wait. The Michigan Medical Marijuana Licensing Board announced license release in the Spring of 2018, which means any time now. Over the last few years, the cannabis market has been mostly centralized in the western United States. Expanding in MI means less market saturation.

Windfall for the State

Michigan will get over $700 million in sales each year, once medical marijuana licenses are fully released and the industry is fully operating. This means over $20 million in tax revenue.

Unlimited Licenses Guarantees Tracking

Class C licenses have no limit. Businesses and individuals can apply and receive unlimited numbers of them – hence just the desire of big-time growers.

The Michigan state department of Licensing and Regulatory Affairs (LARA), plans on using this license stacking option as a more efficient manner to track big time growers in the state. Additionally, this could also be more efficient for the growers themselves.

But can the little grower compete with all these great big operations going on? There is concern that holders of Class A and Class B licenses simply won’t be able to compete against holders of multiple Class C licenses. But Kristopher Fowlkes of Pinnacle Consultation suggests an upshot for Michigan’s unlimited license markets.

“Michigan allows local jurisdictions to make regulations which makes it more unlikely that there will be a supply glut on the market, as is the case with Oregon.”

A Monopoly on Medical Marijuana Licenses?

Many current caregivers in Michigan want Class A or B medical marijuana licenses. But some see the top license merely as a cop out by the state. They see it as a way for Michigan not to have to manage multiple license holders. They are expecting to award Class Cs to basically the same group of people or businesses. So, if you are a small-time grower, is there still a place for you in the Michigan medical marijuana industry? Again, Fowlkes adds, this is where business savviness rears its head.

“It may be easier to secure a license in an unlimited/uncapped market, but branding becomes important because of increased competition.” It becomes critical to differentiate your product from all the rest in order to stand out.

It Won’t be Cheap Though

Application fees range from $4,000 to $8,000. Regulation-related fees will raise costs to almost $60,000 if you are a big-time grower, and to $10,000 for smaller ones. And along with these high fees, professional-level growers must prove to the state that they have enough capital for this higher level of growing. Also, more insurance and security are two more requirements.

Sort of Legal

Michigan legalized medical marijuana in 2008. Caregivers were permitted to grow 12 plants for each of five patients who had obtained medical marijuana cards. Because of this, dispensaries began popping up in various areas as caregivers joined forces. But it wasn’t until 2016 that the state implemented additional regulations concerning medical cannabis. The recent law passing last December will officially regulate and tax the substance. The state recently shuttered numerous illegally operating dispensaries. Businesses that refuse to close risk being out of compliance and not being able to receive a state license.

Get in on the Action

The Michigan market is building. Let Pinnacle Consultation facilitate a new grow or investment opportunity. Let us assist you with your cannabusiness or help maximize your current production today. Give us a call at (719) 330-5301 or schedule a consultation today for assistance with any of your production or business needs.