Corktown is set to welcome a new addition to its vibrant scene: a bakery and café specializing in Delta-9 THC-infused treats and beverages. Wake-N-Bakery, a Chicago-based chain known for its CBD products since its inception in 2020, is preparing to open its first Michigan location at 1441 Elizabeth Street. The grand opening is expected in the coming weeks, contingent on final approval from city authorities.
The café, housed in the space formerly occupied by Michigan & Trumbull, is undergoing its final preparations. The interior promises a lively atmosphere with bright lounge seating and cannabis-themed murals adorning the walls. Countertops are set to feature playful decorations, including Jeff Koons-inspired figurines and bite-sized candies.
Once open, customers will be able to enjoy a variety of coffee beverages and unique drinks like the Poppin’ Pistachio, or the hibiscus-infused Purple Haze lemonade made with ginger, manuka honey, grenadine, and butterfly pea. For those preferring something warm, the Chitown Twist combines turmeric ginger chai, French vanilla, and steamed milk. All beverages are initially THC-free, with the option to add THC infusions ranging from a mild 10-milligram dose to a potent 100-milligram serving. The food menu will offer an array of THC-infused pastries, including brownies, rice crispy treats, cookies, and cheesecake, while a selection of THC-free muffins will also be available. Additionally, the café will stock a line of CBD treats for dogs, canned THC and CBD seltzers, pre-rolls, weed gummies, and topical skincare products.
Wake-N-Bakery was co-founded in 2020 by Brianna Banks and Mohamed Lofty. For their Corktown venture, they have partnered with Detroit-based owner-operators Adriana Plazas and Nicole Cebalt. The team has ambitious plans, including another Michigan location in Grand Rapids.
Michigan has emerged as a significant player in the cannabis industry since the legalization of recreational cannabis in late 2018, with the first sales commencing in 2019. The state now boasts the largest cannabis market in the United States by sales volume, surpassing even California and Colorado. Despite this success, Detroit officials have faced challenges in regulating where marijuana businesses can operate, leading to a concentration of dispensaries in nearby areas like Hamtramck and inner-ring suburbs such as Ferndale and River Rouge.
Consumption lounges, where patrons can use marijuana products on-site, have been legal in Michigan since the advent of recreational cannabis. However, the COVID-19 pandemic delayed the growth of these establishments due to social distancing restrictions. These lounges operate under regulations that prohibit the sale of cannabis products on-site, requiring customers to have their goods delivered from licensed dispensaries.
What distinguishes Wake-N-Bakery is its focus on Delta-9 THC, a compound naturally found in hemp. Delta-9 THC is federally legal when present at levels below 0.3% by dry weight. This characteristic allows Wake-N-Bakery to offer THC products in states with stricter cannabis laws, providing a unique advantage in the evolving market.
On Tuesday, the Meridian Township Board unanimously approved an ordinance amendment aimed at retaining funds from cannabis-related prosecutions within the township, rather than allowing them to go to Ingham County. The vote, which concluded with a 6-0 decision, marks a significant shift in how the township will handle financial penalties associated with cannabis offenses, especially those involving underage possession and distribution.
Meridian Township Police Chief Rick Grillo and Township Attorney Cullen Harkness first introduced the proposed ordinance amendment last month. The initiative was presented as a means for the township to better manage the resources generated from cannabis-related legal actions. Under the previous system, fines and penalties collected from these prosecutions were automatically directed to Ingham County, leaving the township without a share of these funds.
Trustee Marna Wilson provided insights into the township's existing cannabis-related prosecution powers, noting that Meridian Township has long had an ordinance in place to address violations, particularly those involving individuals under the age of 21. These cases typically involve possession or distribution, areas where the township has seen a need for continued enforcement.
"We have an ordinance that allows us to prosecute for marijuana issues and violations," Wilson stated during the meeting. "Primarily for possession in under 21-year-olds and distribution."
Before the newly passed amendment, any financial penalties resulting from these prosecutions were allocated to Ingham County. The ordinance change ensures that moving forward, such funds will remain within Meridian Township, providing a potential boost to local resources.
"What we're trying to do with this ordinance is, if there are monetary penalties associated with the conviction, the Township gets to keep that money instead of turning it over to the county," Wilson explained. This shift is seen as a way to enhance the township's financial capabilities, particularly in areas like law enforcement.
Wilson highlighted that the funds recouped through these prosecutions could be utilized in various ways to benefit the township. While they might contribute to the general fund, Wilson indicated a strong likelihood that the money would be allocated to bolster police support, addressing public safety needs directly within the community.
The ordinance is set to take effect on September 18th, marking a new chapter in how Meridian Township manages its cannabis-related legal processes and the accompanying financial implications. The amendment's passage could lead to more focused and well-funded law enforcement efforts within the township, particularly as it relates to cannabis regulation and youth-related offenses.
Meridian Township Clerk Deborah Guthrie was not present for the vote, but the board's unanimous decision underscores strong support for the measure among township leaders. As the new ordinance takes effect, it is expected to provide the township with greater control over the financial outcomes of cannabis-related legal actions, ensuring that funds generated from these prosecutions directly benefit the local community.
Inflation has been a significant concern across the U.S., as the cost of basic necessities has surged over the past few years. While some of these increases have stabilized, many essential items remain much more expensive than they were just a few years ago.
In the past year alone, prices have risen by an average of 3.4%, following a 3.8% increase the previous year. However, one industry in Michigan has not only avoided these inflationary pressures but has also seen a significant price reduction: the cannabis industry.
Grocery shopping has become a strain on many household budgets. A week's worth of groceries, which once cost around $50, now easily surpasses $80 or $90. Shoppers are turning to off-brand products and even abandoning organic options in an effort to save money. Despite these efforts, the higher cost of living is a reality that many Michiganders are grappling with daily.
Yet, amidst these challenges, Michigan's cannabis consumers have found some relief. While nearly everything else has become more expensive post-pandemic, cannabis prices in the state have significantly decreased.
Unlike other industries, which have been hit hard by inflation, Michigan’s cannabis market has seen prices drop. In 2020, the average cost of an ounce of cannabis in the state was $419.39, placing Michigan among the most expensive states for cannabis, behind only Illinois and Maine.
However, competition within Michigan's cannabis industry has driven prices down rapidly. Today, the average price for an ounce of cannabis in Michigan is just $91.71, making it one of the most affordable states in the country for cannabis consumers.
The unique dynamics of the cannabis industry in Michigan have contributed to this price drop. Cannabis in the state is not subject to federal taxation and is not traded on national stock markets, meaning prices are driven primarily by local supply and demand.
Michigan's robust competition among dispensaries and cultivators has been a key factor in keeping prices low. Additionally, unlike states such as Illinois, Michigan does not impose exorbitant taxes on cannabis, which further contributes to the affordability of the product.
As Michiganders navigate the challenges of rising costs in nearly every sector, the state's cannabis industry offers a rare example of prices moving in the opposite direction. For those who use cannabis, this industry not only provides some financial relief but also underscores the benefits of strong local competition and thoughtful regulation.
While the side effect of cannabis might be an increased appetite, leading to higher grocery bills, at least the cannabis itself is more affordable than ever.
The Cannabis Regulatory Agency (CRA) has filed a series of formal complaints against HiCloud LLC, a licensed medical cannabis grower based in Hesperia, Michigan. The complaints, which could lead to significant penalties including fines, suspension, or even revocation of the company's license, arise from a series of alleged violations of the Michigan Medical Marihuana Facilities Licensing Act (MMFLA) and associated administrative rules.
HiCloud LLC, located at 7655 E. M-20, Hesperia, MI, holds a Class C medical grower license under the MMFLA. The company came under investigation by the CRA following a complaint from a concerned citizen in early November 2023. The complaint alleged that HiCloud was using an unapproved building at 4334 S. 184th Ave. in Hesperia for cannabis-related activities and was potentially diverting regulated cannabis products into the unregulated market.
The investigation revealed multiple issues, beginning with an incident on November 9th, 2023, when the owner of HiCloud, identified only as E.C., was stopped by the Michigan State Police (MSP) while driving a rental truck on Interstate 96 near Lansing. The vehicle was found to contain 43.5 pounds of suspected cannabis flower, along with three jars each of suspected cannabis wax oil and powder. E.C. was subsequently arrested and charged with a felony for possession with intent to deliver cannabis.
The CRA's formal complaint details a series of alleged violations based on both the initial citizen report and the findings of their own investigation:
Unauthorized Transfer of Cannabis: HiCloud is accused of violating Rule 420.108(6), which mandates that any transfer of cannabis by a grower must be conducted through a secure transporter. The suspicion that HiCloud was moving cannabis without proper authorization is central to this charge.
Failure to Accurately Enter Data into Metrc: The investigation uncovered that HiCloud was not properly documenting its cannabis inventory within Metrc, the state's mandatory seed-to-sale tracking system, as required by Rule 420.108(8). Harvest batches were reportedly labeled with handwritten tags instead of the required Metrc tags, raising concerns about the accuracy and legality of the company's operations.
Inadequate Video Surveillance: According to the CRA, HiCloud failed to meet the video surveillance requirements outlined in Rule 420.209(5) and Rule 420.209(12). The surveillance system at HiCloud's licensed facility failed to record footage on critical dates, including the day of E.C.'s arrest. Additionally, when CRA agents requested 30 days of surveillance footage, HiCloud did not comply in a timely manner, delivering the requested recordings nearly a month later.
Improper Storage of Cannabis: The CRA alleges that HiCloud violated Rule 420.212(1), which requires that all cannabis products be stored in a secure, limited-access or restricted-access area. The presence of cannabis in an unapproved pole barn, as reported by the citizen and supported by MSP findings, is a direct violation of this rule.
Failure to Report Felony Charges: Another significant violation involved HiCloud's failure to report the felony charge against E.C. within the required three-business-day period, as stipulated by Rule 420.602(2)(a). This delay was compounded by discrepancies in visitor logs, suggesting that the company may have attempted to obscure relevant information from regulators.
Unmonitored Visitor Access: Finally, the CRA's complaint notes that HiCloud did not adequately monitor or log visitors, as required by Rule 420.602(7). This lack of oversight raises further questions about the company's adherence to security protocols.
The CRA's formal complaints are currently allegations, and HiCloud LLC has the right to respond to these charges. The company may request a hearing within 21 days to contest the complaints or seek a compliance conference with the CRA to discuss the allegations and demonstrate adherence to the MMFLA and related rules.
Should HiCloud be found in violation, the penalties could include fines, restrictions on their license, or the complete suspension or revocation of their operating license. The CRA's actions underscore the importance of compliance with state regulations in Michigan's tightly regulated cannabis industry.
This case serves as a critical reminder for all cannabis licensees in Michigan of the serious consequences that can arise from lapses in regulatory compliance, particularly concerning inventory management, secure transportation, and proper surveillance protocols.
Two key figures in Michigan's largest public corruption scandal in three decades, involving the bribery of former Michigan House Speaker Rick Johnson, have been released from federal prison after serving less than half of their sentences. The controversy surrounding their early release has sparked debate over whether justice has truly been served, as Johnson himself may soon be released.
Vince Brown, a lobbyist for the cannabis industry, was released on August 6 from a low-security prison in Pennsylvania after serving less than nine months of his 20-month sentence for conspiring to bribe Johnson. Three weeks prior, Oakland County businessman John Dawood Dalaly was granted compassionate release from a minimum-security prison in West Virginia, also after serving less than nine months of his 28-month sentence for bribing Johnson.
The lenient sentences for these high-profile individuals, both of whom played significant roles in a scandal that rocked Michigan's capital, have raised concerns about the integrity of the justice system. "This does seem like it’s not justice," commented Matthew Abel, a Detroit-based criminal defense attorney specializing in cannabis-related cases. Abel emphasized that the legacy of these actions continues to affect Michigan's cannabis industry.
The Federal Bureau of Prisons has not provided an explanation for Brown's release, which continues a pattern of early releases for Metro Detroit businessmen, labor leaders, and politicians convicted of public corruption. The trend highlights ongoing concerns about accountability in high-profile cases.
Rick Johnson, a 71-year-old former Republican lawmaker from LeRoy, has also petitioned for compassionate release, citing various health issues. Johnson was sentenced last year to 55 months in federal prison for accepting $110,200 in bribes while serving as chairman of the Michigan Medical Marijuana Licensing Board. His actions, described by U.S. District Judge Jane Beckering as an "unfettered abuse of power," included accepting bribes ranging from $1,000 to $20,000 and engaging in illicit activities.
Johnson is seeking early release from a minimum-security federal prison camp in Minnesota, where he has served less than nine months of his sentence. The judge had previously rejected his request, noting that Johnson had served only 4% of his sentence and that his medical condition was neither terminal nor severely debilitating.
Johnson's chances of early release appear slim, given that federal judges in Michigan's Western District, where his case was prosecuted, have only granted compassionate release to 3% of the 410 inmates who applied since the COVID-19 pandemic began. This rejection rate is one of the highest in the country, trailing only behind districts in Arkansas, Georgia, Oklahoma, and Texas.
Defense attorney Wade Fink acknowledged the importance of compassionate release as a safety valve for courts, allowing them to consider extraordinary and compelling circumstances. However, he cautioned against interpreting early releases as leniency, noting that underlying factors, such as terminal health conditions or family responsibilities, often play a role.
The bribery scandal resulted in the convictions of four individuals last year, including Brian Pierce, a 46-year-old lobbyist from Lansing who is serving a two-year sentence in a medium-security prison in Pennsylvania. Brown and Dalaly, despite their early release, are required to remain under court supervision for two years.
Brown attributed his early release to credits earned for good behavior under the First Step Act, a federal law that allows inmates to reduce their sentences based on various factors such as age, health, and lack of a prior criminal record. He emphasized that the bribery case represented a small part of his career, which he described as overshadowed by youthful mistakes and poor partnerships.
The scandal continues to reverberate in Michigan's cannabis industry, with some still questioning the extent of favoritism granted to certain businesses during the industry's formative years. As Abel pointed out, "Johnson's never come clean and told what actually happened here. He really single-handedly perverted the industry."
The release of Dalaly, a 72-year-old businessman who bribed Johnson with at least $68,200, has further fueled the debate. Despite objections from federal prosecutors who argued that Dalaly should serve his full sentence, Judge Beckering granted his release, citing Dalaly's worsening health and the need for medical care outside of prison.
Dalaly's release is the first compassionate release granted by a federal judge in Michigan's Western District in two years. Johnson, citing his own deteriorating health, hopes to follow suit. His request includes support from his daughter and the Osceola County Sheriff, who argue that Johnson has shown remorse and taken steps toward rehabilitation.
However, Johnson's previous attempts to shorten his sentence have been unsuccessful, with Judge Beckering rejecting a request in April under federal sentencing guideline changes. The judge emphasized that Johnson had already benefited from shorter guidelines during his sentencing, underscoring the seriousness of his crimes.
As the legal battles continue, questions remain about the true extent of justice served in this high-profile corruption case and the ongoing impact on Michigan's cannabis industry.
As Michigan approaches the fifth anniversary of legal cannabis sales, Ohio has joined the growing list of U.S. states offering recreational cannabis. Ohio's market officially opened on Tuesday, August 6th, with 120 stores licensed to sell cannabis to adults aged 21 and over who present valid identification.
In its first five days, Ohio's cannabis sales reached $11.5 million, averaging nearly $2.3 million per day, according to data from the Ohio Department of Commerce. In comparison, Michigan's cannabis market is generating approximately $9 million in daily sales—more than triple Ohio's average.
Despite Ohio's noteworthy launch, the new competition has had little noticeable impact on Michigan's cannabis market, even for retailers near the border who rely heavily on sales to Ohio residents.
Camden Miller, a manager at Pinnacle Emporium in Morenci, Michigan, located near the Ohio border, expressed minimal concern about Ohio's entry into the market. "At the moment, we're not too worried about it," Miller said. "The supply and demand isn't there yet in Ohio, and just like Michigan ... until you get it oversaturated, you're not going to see prices come down. Within the next few years, I'm sure it will start having more of an impact."
Projections suggest Ohio's cannabis market could reach $1.5 billion in its first year, potentially bringing in nearly $150 million in new excise taxes. However, Ohio currently has only a few stores within a 30-minute drive of the Michigan border, including two in Toledo and one in Bowling Green. The Ohio Department of Cannabis Control has plans to license more stores in the future.
For now, Ohio residents appear willing to travel to Michigan for better deals and more extensive product selections. Miller noted that a significant portion of Pinnacle Emporium's business comes from out-of-state customers, including many from Ohio, who often place large orders. "We've already had customers coming in and saying the prices in Ohio are crazy right now," Miller said.
Price discrepancies between the two states are striking. Ohio stores are reportedly selling 1.6 grams of cannabis flower for nearly $50, while Michigan retailers offer eighths (2 grams) for as low as $8. In Ohio, the average price for an ounce of cannabis during the first week of sales was about $266, whereas in Michigan, the average price dipped to just under $80 per ounce in July, according to the Michigan Cannabis Regulatory Agency (CRA).
Harrison Carter, a manager and co-owner of NAR Cannabis in Monroe, Michigan, about 12 miles north of the Ohio border, emphasized the price advantage Michigan holds. "There is such a large price discrepancy with the abundance of supply that exists in Michigan and the under-supply that currently exists in Ohio that consumers are making decisions that are very much budget-based," Carter said.
Although Ohio's tax structure is slightly higher, with a 10% excise tax and a state sales tax of 5.75% (plus varying local taxes), compared to Michigan's 10% excise tax and 6% state sales tax, the higher product costs in Ohio may deter some consumers from shopping locally.
The Michigan Cannabis Regulatory Agency declined to comment on Ohio's market launch or its potential impact on Michigan. Meanwhile, Ohio officials have expressed satisfaction with the initial rollout of their recreational cannabis market. "The Division of Cannabis Control has been closely monitoring these first days of non-medical sales and has been extremely impressed with the level of seriousness and responsiveness the industry has shown in meeting the requirements," said Jamie Crawford, spokesperson for the Ohio Department of Commerce. "As we move forward, the division's top priority will remain on the safe and legal sale and regulation of both medical and non-medical cannabis for Ohioans who choose to use them."
Michigan's cannabis market, which has been growing since the first licensed businesses began operating in December 2019, benefits from a more flexible licensing program than Ohio's. This has led to significant growth, with Michigan stores having sold nearly $10 billion in cannabis products to date, including approximately $1.3 billion in medical marijuana sales.
The recreational market in Michigan is expected to surpass $3.3 billion in sales over the next year. As of July, Michigan had over 800 licensed stores, with grow and processing operations managing 1.7 million cannabis plants in the pipeline.
In contrast, Ohio's cannabis infrastructure is still developing. The Ohio Department of Commerce recently listed 46 licensed processors, 37 growers, and 120 stores with certificates of operation. Ohio's Division of Cannabis Control, established following a November 2023 ballot initiative passed by 57% of voters, oversees the state's cannabis licenses, similar to a state liquor control commission. Local municipalities in Ohio can impose zoning restrictions or moratoriums on cannabis businesses, further limiting market growth.
Michigan's less restrictive licensing approach has led to clusters of cannabis shops in municipalities that permit recreational sales, particularly along state borders. For example, Monroe, Michigan, near the Ohio border, is home to 18 licensed cannabis shops despite a population of only about 20,300. In Morenci, there is one cannabis shop for every 450 residents.
This liberal licensing has resulted in unique market dynamics in Michigan, including low prices and high competition. Nearly 20% of the retail licenses issued since the market's inception no longer exist, reflecting the market's volatility. Despite these challenges, Michigan retailers view the competitive environment as beneficial for consumers, offering them a wide range of options at low prices.
"We're very much focused on ourselves here in Michigan," said Carter of NAR Cannabis. "We're continuing to offer not only good service but good products at affordable prices ... We're very much in an oversupply moment, and we're able to hit certain price points that a lot of Ohio consumers are frankly used to at this point."
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