Pure Options, a cannabis chain in Michigan, has announced that rapper 2 Chainz will headline its Back 2 School Block Party on September 7th. This event, celebrating cannabis, culture, and community, will take place in the parking lot of Pure Options' location at 203 N. Clippert St. in Lansing.
The Block Party promises a day filled with music, food, games, and various activities. Alongside 2 Chainz, local artists will perform live music, creating a vibrant atmosphere for attendees. Additionally, the Michigan State vs. Maryland college football game will be broadcasted on a big screen, catering to sports enthusiasts.
Cannabis enthusiasts will have the chance to explore a variety of products from different vendors, with exclusive deals and promotions available only at the event. On-site cannabis consumption will be permitted for those aged 21 and older, making it a unique experience for attendees.
To satisfy appetites, local food trucks will offer a range of culinary options, ensuring that everyone can find something to enjoy. Various games and activities will be available throughout the day to keep attendees entertained.
Past events hosted by Pure Options, such as the 420 Block Party in April, have drawn large crowds and featured performances by artists like Sean Kingston. The success of these events has inspired the Back 2 School Block Party, which aims to be the first in a series of festival-style events designed to foster community spirit.
General admission tickets are priced at $20 and will provide access to all event areas, including the vendor showcase, live performances, and food trucks. A limited number of VIP tickets are available for $200, offering extra perks such as access to private seating areas and a premium goody bag containing cannabis products from various vendors.
Susan Radway, the ex-wife of Jeff Radway, a prominent figure in Michigan's early legal cannabis industry, has made a significant entry into the state's cannabis market. According to court documents, Susan Radway has acquired cannabis plants and processing equipment from a former Skymint facility located at 1669 E. Jolly Road in Lansing.
This facility, initially established by Jeff Radway in 2018, faced substantial challenges after Skymint entered receivership last year amid accusations of financial mismanagement. Susan Radway's company, Fantasy Farms LLC, purchased the assets from the receivership for $350,000. The North Carolina-based company received prequalification approval from the state to operate the grow operation in January.
Jeff Donahue, Skymint's executive vice president and general counsel, confirmed that Fantasy Farms is now managing the grow operation and has retained approximately 75% of the former Skymint staff.
The acquisition marks a new chapter in the complex saga of Skymint, which led to Jeff Radway's departure and subsequent divorce from Susan Radway. Several attempts to contact Jeff and Susan Radway for comments were unsuccessful.
Jeff Radway was at the center of controversy surrounding Skymint, which was placed into receivership by an Ingham County Circuit Court judge in March of last year due to unpaid debts. Skymint, primarily operating under Green Peak Innovations Inc., owed over $127 million to Canadian investment firm Tropics LP, which alleged the company was losing $3 million monthly while generating only $110 million in revenue in 2022, far below the forecasted $263 million.
Additionally, a lawsuit filed by New York-based cannabis investment firm Merida Capital Holdings accused Skymint and its executives of financial misrepresentation and mismanagement. Merida also alleged that Jeff Radway used Skymint's funds for personal expenses and engaged in inappropriate relationships with employees, which included settlements using company funds to silence allegations.
Although an Oakland County judge dismissed a lawsuit by Merida that sought to prevent the sale of former 3Fifteen properties, Merida has appealed the decision.
Despite the turbulent history, Susan Radway and Fantasy Farms are moving forward with their cannabis operations. Jeff Radway, though not involved with Fantasy Farms, co-owns the building at 1669 E. Jolly Road with Susan. The property, initially acquired for $659,000, was sold to 1669 E. Jolly Road LLC for $100 in March. Both Jeff and Susan are owners of the LLC, according to court records, and Fantasy Farms is leasing the building.
Susan Radway's prior business experience includes running Moxifit Body Fuel LLC, a health supplement company dissolved in December. She had no known involvement in the cannabis industry during her marriage to Jeff Radway. Jeff Donahue of Skymint confirmed her lack of prior engagement with Skymint.
The future for Fantasy Farms could be challenging, given the high production costs at former Skymint facilities, which averaged over $1,000 per pound—significantly higher than the $450 per pound that is considered profitable. This cost issue contributed to Skymint's decision to cease all growing operations this year, including closing its 56,000-square-foot facility in Dimondale in March. The facility has since been leased to Lume Cannabis.
Currently, Skymint focuses solely on retail sales, operating 20 stores across Michigan. Despite the receivership, Skymint remains competitive, according to Donahue, who emphasized the company's stability and ongoing efforts to reduce costs.
Tropics LP, through Skymint Acquisition Co., acquired Green Peak Industries' assets, doing business as Skymint, for $109.4 million in a receivership auction. However, the deal is pending closure due to ongoing lawsuits that must be resolved before Tropics can take control.
The city of Mason may soon join other Lansing-area municipalities in allowing recreational cannabis sales, pending the outcome of a city ordinance proposal set for the November ballot.
Earlier this month, the Mason City Council decided to present the ordinance proposal to voters during the general election. This decision followed a letter from Ypsilanti attorney Anderson Grandstaff, who, representing an undisclosed group of clients, indicated intentions to initiate a petition drive to overturn Mason’s ban on recreational cannabis sales. This ban has been in place since the statewide approval of the 2018 Michigan Regulation and Taxation of Marihuana Act.
Should the ballot proposal pass, it would contribute to the broader expansion of recreational cannabis dispensaries in the region. To date, such dispensaries have primarily operated in Lansing, East Lansing, and Meridian Township. Eaton County saw its first dispensary open in Charlotte this summer, with a second one planned for the city. In contrast, Clinton County currently hosts one grower near Lansing but lacks recreational dispensaries.
Mason Mayor Russ Whipple noted that Grandstaff's petition was never circulated and was the sole petition brought before the council.
Grandstaff, who has been instrumental in promoting cannabis sales in various Michigan communities, declined to comment on his involvement with Mason or to disclose his client’s identity.
In 2018, Michigan voters approved the legalization of recreational cannabis by a 56% to 44% margin. However, the law permitted individual municipalities to opt out of allowing sales and related businesses. Mason chose to ban retail cannabis sales, a decision echoed by many other communities across the state.
Mason City Manager Deborah Stuart highlighted the distinction between legalizing recreational cannabis use and permitting retail establishments within a community. She pointed out that industry-driven ballot proposals often lack local initiative.
During their July 15th meeting, council members took into account the 2018 general election results in Mason, where 2,245 voters supported legalization and 1,612 opposed it. This led them to opt for placing their own ballot question on the November ballot, rather than one proposed by Grandstaff.
The city's proposed ordinance, if approved, would allow for two retail cannabis establishments. The application fee would be $5,000, with additional renewal fees applicable.
Stuart mentioned that the city would provide a draft ordinance and additional information on its website at least 60 days before the election for residents to review.
A previous petition to overturn the ban did not garner sufficient signatures to reach the ballot. However, Grandstaff's recent letter, threatening a new petition drive with a proposed ordinance, prompted the City Council to reconsider its stance.
Grandstaff’s letter to the City Council suggested that his client believed there would be substantial grassroots support for the proposed ordinance, aiming to avoid an adversarial relationship with the council.
Permitting retail cannabis licenses could also secure state tax revenues for Mason. Michigan's recreational cannabis market, valued at $3 billion, generated $87 million in tax proceeds distributed to 269 municipalities in February. Each city, township, village, or county with a dispensary received approximately $59,000 per establishment, potentially netting Mason $118,000 with two dispensaries.
Ingham County received $1.8 million from its 30 stores, ranking behind Bay, Kalamazoo, Washtenaw, and Wayne counties in store numbers. Lansing had about 24 businesses at that time, surpassed only by Ann Arbor and Detroit, with 26 and 59 shops, respectively.
Grandstaff’s 2023 letter included a draft ordinance limiting Mason to two retail cannabis establishments, excluding growers, processors, facilities, and transporters. According to a city staff memo to the City Council, this proposal would lift Mason's prohibition on recreational cannabis retail businesses, creating a regulatory framework for licensing and guidelines for city employees.
Mayor Whipple noted that the proposed adoption process was impractical and that establishing a municipal framework for cannabis businesses was uncomfortable for city officials. Grandstaff expressed a willingness to discuss ordinance adjustments to align better with the city’s preferences.
Mason officials collaborated with Grandstaff and reviewed Birmingham’s approach to cannabis regulation. Birmingham had similarly been approached by an external entity proposing cannabis establishments. Birmingham chose to draft its own ordinance for a ballot proposal, which ultimately failed by a significant margin in November 2023.
Grandstaff has pursued cannabis legalization in various Michigan communities through petition drives. Among these were Harbor Springs, Howell, Kinderhook Township, and several Oakland County cities, including Auburn Hills, Clarkston, Keego Harbor, Lathrup Village, and Leonard Village. Some of these efforts led to proposals on ballots, with mixed outcomes; for example, Keego Harbor and Auburn Hills approved ordinances, while others did not.
The escalating demand for high-THC cannabis products in Michigan is driving significant changes in the market. As consumer preferences shift towards more potent options, manufacturers are phasing out plants with THC levels below 20%, focusing primarily on high-THC strains. This trend is particularly evident in the pre-roll sector, where the competition for potency has led to an increase in the use of cannabis concentrates.
Producers are now infusing pre-rolls with live resin, live rosin, kief, and various other concentrates to boost THC content. Premium products from brands like Element and Ice Kream Hash Co. highlight the potential for high-quality, infused pre-rolls. However, the majority of infused pre-rolls are made using lower-quality flower combined with cheap distillates and non-naturally occurring terpenes and flavorings.
The widespread use of these additives raises several concerns. To counteract the harshness of low-quality flower and concentrates, manufacturers frequently add terpenes, which are compounds responsible for the distinct aroma and flavor of cannabis. Advances in technology have made it possible to isolate these terpenes from cannabis and other plants, but the addition of high concentrations of terpenes and flavorings, especially when combusted, poses potential health risks.
Jason Allen, co-founder of Lapeer-based Old School Organics, underscores the uncertainty surrounding the long-term effects of inhaling combusted terpenes. “No one knows enough about the long-term effects of combusting these types of terpenes and flavorings,” Allen notes. Old School Organics adheres to more traditional practices, offering 100% flower pre-rolls made from strains selected for their natural terpene profiles.
Despite the potential risks, the industry has largely embraced this trend. Infused pre-rolls offer a way for producers to utilize lower-tier buds by enhancing them with distillates and terpenes, thereby producing high-THC pre-rolls at a low cost. This caters to the prevalent consumer demand for affordable products with maximum THC content.
The focus on THC potency and low cost reflects a broader issue within the cannabis industry. Many consumers equate high THC levels with quality, often overlooking other important factors such as the overall quality of the flower and the presence of potentially harmful additives. Consumer education and awareness are crucial in addressing these issues. Knowing the composition of cannabis products and consulting knowledgeable budtenders can help consumers make safer choices.
In summary, while the trend of infused pre-rolls meets current market demands, it is essential for consumers to remain informed and cautious. Cannabis, while generally safe, should be consumed responsibly. Awareness and accountability from both producers and consumers are key to ensuring the safe and enjoyable use of cannabis products.
During a Dickinson County Board meeting on Monday, a mental health professional addressed potential negative effects associated with cannabis use. The intention was not to challenge Michigan's legalization of cannabis, but to shed light on associated risks.
Diedra Hinds-Springstroh, a nurse practitioner offering telehealth services for Northpointe Behavioral Healthcare System, emphasized the lack of medications available to treat cannabis addiction. Citing data from the Hazelden Betty Ford Foundation, Hinds-Springstroh noted that research suggests approximately 9% of cannabis users develop an addiction. This rate increases for individuals who begin using at a young age or consume cannabis daily.
Hinds-Springstroh referenced studies that link chronic cannabis use to mental health issues, including potential connections to psychosis. "It's something to put out there," she said, expressing concerns that the use of other substances could amplify these risks. She highlighted the surge in emergency room visits among youth due to overdoses from cannabis-infused edibles, such as gummies.
While acknowledging the medical benefits of cannabis, Hinds-Springstroh stressed the importance of recognizing the risks associated with recreational use. Commissioner Ann Martin, a member of the Northpointe Board who invited Hinds-Springstroh to present her concerns, pointed out that only a small portion of marijuana tax revenues is allocated to substance abuse prevention and treatment.
Six years after Michigan legalized recreational cannabis, the state's dispensary landscape is undergoing significant changes, with numerous stores closing due to market adjustments. Experts attribute this to the natural evolution and maturation of the industry.
In Lowell, one of the pioneering cities for cannabis dispensaries in Michigan, the initial boom is now witnessing a contraction. City Manager Mike Burns noted that Lowell once boasted nine recreational cannabis dispensaries and three cultivation centers at its peak in 2022. However, the city currently has only five operational dispensaries.
"We anticipated a market correction," Burns said. "We never expected all nine facilities to remain open indefinitely."
Josh Covert, CEO of Meds Cafe—the first cannabis shop in Lowell—highlighted several factors contributing to the city's initial high number of dispensaries. "When Lowell allowed dispensary licenses, there weren't many other cities doing the same. This scarcity drove interest from investors nationwide," Covert explained.
Covert, who also founded Michigan Cannabis Lawyers and served on the board of MI Legalize, emphasized Lowell's early recognition of dispensaries' economic benefits. "Dispensaries created jobs and generated significant tax revenue for the city, varying from $50,000 to $60,000 per establishment annually," he said.
Lowell benefits from a 10% excise tax on cannabis sales, plus an additional 6% adult use sales tax. This revenue has been instrumental in funding infrastructure projects. "We've paved numerous streets in the past four years thanks to cannabis tax revenue," Burns noted.
The decline in dispensaries is partly due to nearby towns adopting cannabis licensing, which reduces Lowell's customer base. Despite this, Burns remains optimistic. "Statewide cannabis sales continue to rise, so our revenue should remain stable even with fewer dispensaries," he said.
Covert pointed out the complexities of operating in the cannabis industry, which include stringent state regulations, unique IRS taxation, and the inherent unpredictability of agricultural production. "A bad harvest can disrupt the supply chain significantly," he said.
Despite these challenges, Covert believes the market will eventually stabilize, with experienced operators prevailing. "The industry is still volatile, but we'll see a balance as more municipalities opt in and less sustainable businesses close," he predicted.
Looking ahead, Covert sees continued growth potential in Michigan's cannabis sector. "We haven't reached peak cannabis sales yet, mainly because large parts of the state still lack access to cannabis products," he stated. "As access expands, we expect the market to plateau at a sustainable level over the next few years."
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