Opened in February, the store in Pinconning offers cannabis flower, vapes, and edibles produced just 300 yards away at Pincanna's 135,000-square-foot cultivation facility. The products are sold at wholesale prices, with premium flower brand Head Stash Harvest retailing for $12 an eighth at the Pinconning location, compared to $20 at Pincanna's East Lansing store.
Founder and owner Robert Nusbaum explains the strategy behind the store's rural location.
"It's in the middle of nowhere, but it's a gateway to Up North," Nusbaum said. "We're doing this to benefit ourselves and our wholesale partners. When they stop in, they can stock up on our product for much cheaper and decide whether they like it. If they do, they can seek out our goods at one of our stores downstate or another store that sells our goods."
Nusbaum's background in retail, stemming from his family's success with New York Carpet World, has influenced Pincanna's approach. This customer-focused strategy has propelled Pincanna to become one of Michigan's largest cannabis cultivators. Despite Nusbaum's lack of experience in cannabis cultivation, he has assembled a team of experienced growers and processors, many of whom previously operated in the black market.
Among them is Ju Juan Coleman, known in the cannabis community as "Funk." Coleman has been making cannabis edibles for over 20 years, initially from his home kitchen in Detroit to treat his sickle cell anemia. Today, under the Funky Extracts brand, Coleman produces 400,000 infused edibles a month from Pincanna's state-of-the-art commercial kitchen.
Coleman's journey is mirrored by Vince Volovlek, who transitioned from opioids to cannabis following a severe ATV accident. Volovlek founded Michigan Organic Rub in 2013, creating balms containing THC to alleviate pain and inflammation. Nusbaum acquired Michigan Organic Rub in 2019 and promoted Volovlek to director of processing.
Nusbaum's philosophy is to harness the expertise of those passionate about cannabis while guiding them through the business aspects. He frequently visits the Pinconning facility to engage with staff and oversee operations.
"This is a relationship business we're building," Nusbaum said, emphasizing the importance of teamwork and collaboration.
Pincanna's innovative approach extends to its hiring practices, promoting talent from within based on potential and creativity. For example, a packaging department worker was promoted to head of packaging design after his doodles were noticed by Nusbaum.
However, balancing passion and profitability can be challenging. Nusbaum acknowledges the difficulties but remains optimistic about the company's direction. Recently, Don Newman, former director of cultivation at High Life Farms, joined Pincanna to enhance their growing operations. Newman has doubled production to 30,000 pounds without expanding the facility by optimizing growing techniques.
"We're producing twice as much as we were a year ago and that's all because of Don," Nusbaum said. "We have better production and our quality has gone through the roof. We've really started something special here."
Pincanna currently operates four retail stores in Pinconning, Kalkaska, East Lansing, and Kalamazoo, with plans to open two more in Mount Pleasant and Saline. Nusbaum aims to expand to 12 stores, allowing Pincanna to sell most of its flower in-house, thus boosting profit margins.
"We want to control our own destiny," Nusbaum said.
While Nusbaum envisions eventually selling the company, he remains dedicated to its growth for the foreseeable future. At 63, he foresees an exit in three to five years but continues to learn from his team of cannabis experts.
Pincanna's journey exemplifies how combining retail expertise with a passion for cannabis can drive success in the burgeoning industry.
The Bad Axe City Council will need to rescind its previous motion to put its proposed cannabis ordinance to a public vote after learning it did not follow proper procedure.
The council will address this issue at the meeting on July 1st, where they will also vote on whether to approve the ordinance directly.
"According to the city attorney, we cannot put the ordinance on the ballot," stated Bad Axe City Manager Rebecca Bachman. "We were unaware that this was not permissible."
Bachman explained that the Bad Axe City Council must initially vote on the ordinance. The only way it could appear on the ballot is through a voter-initiated referendum.
A referendum requires signatures from 15% of the city's registered voters. If a petition with the necessary signatures is filed within the timeframe specified by the city charter, the clerk will present it to the council at the next regular meeting. These signatures must be collected within 30 days before the petition is filed with the clerk.
Previously, the council voted 4-3 to place the ordinance on the ballot.
Recreational cannabis was legalized in Michigan following the 2018 general election, where 56% of voters supported Proposal 18-1. However, Huron County voters opposed the proposal, with a vote count of 8,261 against and 5,479 in favor. In Bad Axe, the proposal was narrowly rejected by a margin of seven votes, 541-534.
In early 2019, the city voted unanimously to ban cannabis facilities within city limits.
In 2021, non-residents expressed interest in establishing cannabis businesses in Bad Axe. The council, however, voted 4-2 against pursuing these discussions. Subsequently, the council authorized the Bad Axe Police Department to research ordinances from other municipalities.
In November 2023, the city finally decided to begin the process of developing a recreational cannabis ordinance for Bad Axe.
An incident involving potential discrimination against a disabled combat veteran at a provisioning center in Ann Arbor has sparked concerns about the cannabis industry's adherence to the Americans with Disabilities Act (ADA). The event, which took place on June 29th, 2024, underscores the necessity for better education and awareness among cannabis business operators regarding their legal obligations toward customers with disabilities.
A disabled veteran, whose name has been withheld due to an impending formal complaint, reported being denied entry to a provisioning center because of their service dog. According to the veteran, the situation escalated until they mentioned contacting the Cannabis Regulatory Agency (CRA), which led to a sudden change in the employees' demeanor. The veteran also reported being asked for documentation for their service animal, a request that is explicitly prohibited under the ADA.
This veteran's distressing experience is not an isolated case. Reports of similar incidents have surfaced in recent months, with at least four veterans reporting denial of entry to cannabis provisioning centers due to their service animals. Such incidents highlight a troubling pattern of non-compliance with ADA regulations, which mandate that businesses must allow individuals with service animals to enter their premises without requiring any special documentation or identification for the animals.
Under the ADA, businesses must accommodate individuals with disabilities and their service animals. The law is clear: service animals are not required to wear special vests, nor can businesses ask for documentation proving the animal's status. The only permissible inquiries are whether the animal is required because of a disability and what work or task the animal has been trained to perform. Failure to comply with these requirements constitutes discrimination, regardless of whether the violation stems from ignorance or deliberate action.
The incident in Ann Arbor is a reminder of the cannabis industry's duty to adhere to these laws. Licensees must ensure their staff are fully aware of and compliant with ADA requirements as a condition of maintaining their licenses. Discrimination, whether intentional or due to lack of knowledge, poses significant legal risks and can damage the reputation of the businesses involved.
In response to the incident, the concerned party who alerted the CRA has pledged to address this issue directly with CRA Director Brian Hanna. The aim is to ensure that the provisioning center involved, as well as the broader industry, receives proper education on ADA compliance. This proactive approach seeks to prevent future incidents and promote a more inclusive environment for all customers.
The repeated nature of these complaints highlights a need for systemic change. The CRA has been urged to issue educational reminders to all licensees, reinforcing the importance of ADA compliance and the rights of individuals with service animals. Education and awareness are crucial to prevent unnecessary legal conflicts and to foster a welcoming atmosphere for veterans and other individuals with disabilities.
Reactions within the industry have been mixed. Some argue that the lack of familiarity with service animals in dispensaries could lead to misunderstandings, emphasizing the need for education rather than punitive measures. Others stress that ignorance of the law is not an excuse for non-compliance and that businesses must be held accountable for their actions.
Veterans, in particular, are a significant demographic within the cannabis community, often using cannabis for therapeutic purposes. Ensuring their rights and comfort within provisioning centers is not only a legal obligation but also a matter of respect and gratitude for their service.
The cannabis industry in Michigan must prioritize ADA compliance to avoid discrimination and create an inclusive environment for all customers. This incident serves as a crucial reminder of the importance of education and the need for continuous efforts to uphold the rights of individuals with disabilities.
For further information on ADA requirements, please refer to the official ADA website.
House Republicans recently blocked a provision within a crucial funding bill that aimed to protect financial institutions serving legal cannabis businesses. According to a report by The Hill, the provision would have prohibited the use of government funds to penalize banks and credit unions for offering services to legal hemp and cannabis businesses. This decision came after significant internal opposition and highlights the ongoing debate over federal cannabis policies.
In Michigan, cannabis businesses face limited banking options. Only a few small banks and credit unions provide services to the industry, and these come at high monthly costs. Larger financial institutions refrain from engaging with cannabis businesses due to the fear of losing their federal charters. The federal classification of cannabis as a Schedule I drug, alongside heroin and cocaine, perpetuates these challenges.
Representative David Joyce (R-Ohio), chair of the subcommittee overseeing the funding bill, addressed concerns about the removal of cannabis banking protections. He emphasized the importance of respecting state laws and the potential benefits of cannabis regulations for public safety and quality of life. Joyce's Financial Services and General Government bill initially included provisions to protect states' rights in regulating cannabis, aiming to harmonize federal and state laws.
During a recent subcommittee markup, Representative Chuck Edwards (R-N.C.) voiced strong opposition to the banking protections. Edwards argued that permitting banking for a federally illegal substance like cannabis could be seen as tacit approval of its use. He stressed the need for clear federal policies amid the evolving landscape of state cannabis laws, asserting that cannabis should remain illegal due to its potential harms.
The debate within Congress reveals a division, especially among Republicans, over cannabis legalization. Despite this, there is growing support for reforms that would allow cannabis businesses better access to banking services. The increasing number of states legalizing recreational marijuana and the growing public support for legalization are driving this momentum. These factors are reshaping federal cannabis policies and banking regulations.
The Secure and Fair Enforcement (SAFER) Banking Act of 2023, introduced by a bipartisan group in Congress, seeks to provide protections for financial institutions serving state-sanctioned cannabis businesses. The act aims to resolve conflicts between federal and state laws by creating a safe harbor for banks, credit unions, and other financial institutions. If enacted, the SAFER Banking Act could significantly impact the cannabis industry by promoting public safety, expanding access to deposit accounts, and enabling more efficient business operations.
Representative Joyce highlighted the strong bipartisan support for cannabis banking measures. He acknowledged concerns but emphasized his commitment to funding the government and advancing his legislation.
The decision by House Republicans to remove cannabis banking protections from the government funding bill underscores the complex political divisions and policy concerns surrounding cannabis legalization in the U.S. Proponents argue for states' rights and improved banking access for legal cannabis businesses, while opponents raise issues about federal law and potential risks. This debate highlights the evolving nature of cannabis regulation and the challenges faced by policymakers in aligning state-level reforms with federal mandates.
Michigan has firmly positioned itself as a top destination for cannabis enthusiasts, thanks to its progressive stance on marijuana legalization. With recreational cannabis fully legalized, the state offers a variety of options for both residents and visitors to enjoy cannabis-related activities and amenities. Whether you're looking for dispensaries, 420-friendly accommodations, or cannabis-themed events, Michigan's cities have something special to offer. Let's take a closer look at what makes some of these cities particularly welcoming to those who appreciate the herb.
The Cannabis Regulatory Agency (CRA) in Michigan has announced a significant update to its Sampling and Testing Technical Guidance for Cannabis Products. Starting October 1st, 2024, medium-chain triglyceride (MCT) oil will be included as a target analyte for vape cartridge testing. This update aims to enhance consumer safety by identifying and eliminating potentially harmful ingredients in inhalable cannabis products.
MCT oil, often derived from coconut or palm oil, is widely used in food and oral supplements. However, its safety as an inhalable substance is questionable. When aerosolized and inhaled, MCT oil can pose respiratory health risks. Consequently, any cannabis vape products that test positive for MCT oil will not be eligible for remediation.
"From a public health and safety standpoint, the potential for adverse effects with MCT oil underscores the importance of safety guidelines for product development," stated CRA Executive Director Brian Hanna. "Michigan's licensed cannabis businesses must prioritize respiratory safety when formulating or using inhalable products, opting for ingredients that have been thoroughly evaluated for their compatibility with lung health. I look forward to when our new state reference laboratory is up and running, advancing the health and safety of Michigan cannabis consumers with advanced testing for diluents."
Robin Schneider, executive director of the Michigan Cannabis Industry Association, highlighted the proactive measures taken by some retailers. "Several of our retail members have been proactively pulling and testing their inventory to ensure the brands they showcase on their shelves do not contain MCT oil," she said. "Moving forward, this testing will take place before the retailers purchase inventory from producers, easing the burden on retailers and ensuring that the products they sell are safe. Required testing for MCT oil will further protect cannabis customers from vape-related lung illnesses and is a win for both the industry and consumers."
MiNORML Executive Director Anqunette Sarfoh expressed strong support for the new regulations. "The health and safety of cannabis consumers must always be our top priority. Emerging evidence suggests that inhaling MCT oil can pose serious respiratory risks, and it's imperative that we take proactive measures to prevent potential harm. By enforcing stricter regulations on vape product ingredients, Michigan is taking a significant step towards ensuring a safer cannabis industry for everyone, and we commend the state's commitment to protecting consumers."
Anton Harb Jr., an Iraq combat veteran and founder of the Veteran Access Program in Michigan, also praised the decision. "As the cannabis industry matures, so will the scientific and regulatory safety measures protecting it. This regulatory decision helps ensure the continued safety and well-being of all Michigan cannabis consumers."
The CRA is dedicated to evidence-based decision-making in its regulatory practices. As ongoing research into cannabis use, safety, and testing evolves, the Sampling and Testing Technical Guidance for Cannabis Products will be updated to reflect the latest findings and best practices.
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