In the face of market obstacles, Michigan's cannabis industry is gearing up for growth. A recent study titled "2023 Michigan Cannabis CFO Outlook" revealed that 25% of the state's cannabis enterprises are actively pursuing funds to broaden their operations, with an additional 45% intending to do so within the coming year.
The research, conducted by A&K Research and employed by Rehman Business Consulting, encompassed a variety of cannabis businesses, with revenues spanning from $5 million to over $100 million. A significant 47% of the respondents identified as vertically integrated companies.
The findings suggest that the average annual revenue per cannabis storefront in Michigan falls between $1 million and $3 million. However, the era of rampant mergers seems to be waning, as a mere 22% of respondents indicated a likelihood of finalizing an acquisition in the forthcoming year. Conversely, 61% of companies disclosed that they were unlikely to close any acquisitions in the same period.
A noteworthy 66% of Chief Financial Officers (CFOs) surveyed expressed no intention of selling their respective businesses. On the flip side, 17% are actively seeking an exit, while an identical 17% are contemplating a sale. Interestingly, the anticipated selling price for companies has seen a decline since 2022; while 44% of respondents believed they could fetch a selling price equating to 4x-5x EBITDA then, over half in 2023 have adjusted their expectations to a more modest 2x-4x.
Taxation is a prominent concern for Michigan cannabis operators, with respondents citing an effective tax rate of 41% or higher in 2023. Surprisingly, 53% claimed not to be utilizing any state or local tax exemptions. The interest rates faced by these companies vary considerably. While a fortunate 18% reported having no debt, and 24% indicated an interest rate below 7%, there were also 18% who reported rates of 10-12%, and a further 24% facing hefty rates of 16% or above.
When it comes to employee benefits, the majority of cannabis business owners in Michigan seem reluctant to distribute company equity, with 71% not offering equity grants to their staff. Furthermore, less than half of the companies surveyed cover at least 50% of their employees' healthcare costs.
Despite the challenges, Michigan's cannabis entrepreneurs remain optimistic. Nearly half anticipate market prices stabilizing in the next one to three years. Nonetheless, a substantial 32% conceded uncertainty, expressing no clear expectations regarding when the market will find its footing.
The increasing acceptance and legalization of recreational cannabis have brought forth unique challenges in traffic safety and law enforcement. To address these concerns, a pivotal event is scheduled for those keen on understanding and navigating the intricacies of this evolving landscape. The 2023 Michigan Impaired Driving Summit, organized by AAA Michigan and the State of Michigan Office of Highway Safety Planning, aims to foster a constructive dialogue surrounding these issues.
The summit is set to take place on Wednesday, November 8, from 7:30 am to 4:30 pm EST. The venue chosen for this engaging discussion is the Crowne Plaza Lansing West, an IHG Hotel, located at 925 South Creyts Road, Lansing, MI 48917.
The event will commence with a Registration/Check-In and Networking session from 7:15 am to 8:15 am, giving attendees an opportunity to connect before the main agenda begins.
From 8:30 am to 4:30 pm, the summit will delve into a dynamic, full-day agenda. The organizers have invited national impaired driving experts to join AAA and the State of Michigan's Office of Highway Safety Planning in a comprehensive, statewide conversation. The dialogue will focus on the challenges and nuances of traffic safety and law enforcement, especially in light of the recreational use of cannabis in Michigan.
It's important to note that this event is designed for in-person participation only, with no provision for virtual access.
To ensure a comfortable experience, refreshments and lunch will be provided to all participants. Moreover, attendees seeking accommodation have an opportunity to avail of a small block of discounted rooms at the Crowne Plaza Lansing West. These rooms are available on a first-come, first-serve basis.
For those interested in securing a room, reservations can be made directly by identifying oneself as a MI Impaired Driving Summit attendee. Reservations can be initiated by calling the hotel at (877) 322-5544. Alternatively, online reservations can also be processed by visiting Crowne Plaza Lansing West and using the Group Code AAA while specifying the check-in and check-out dates.
Guests have the flexibility to cancel their reservations up until 4:00 p.m. EST the day before arrival. Failure to cancel in time will result in a charge equivalent to one night's stay, along with applicable taxes.
The 2023 Michigan Impaired Driving Summit promises to be an enlightening and necessary dialogue for stakeholders interested in the crossroads of traffic safety and cannabis legalization. It offers an invaluable opportunity to stay informed, network, and actively participate in shaping the future of safe driving practices in Michigan.
While October is drawing to a close, we recently came across this commendable initiative and felt it was essential to spotlight the positive actions being taken in our community.
In observance of October's designation as Breast Cancer Awareness Month, the Michigan-based cannabis retailer, House of Dank (H.O.D.), is reaffirming their dedication to making a positive mark in the community. For the second consecutive year, H.O.D. is pledging to allocate a portion of their proceeds, collected every Wednesday from all nine retail locations, to bolster awareness initiatives of the month. Additionally, the full earnings from the sales of their custom H.O.D. x D.R.F. t-shirts will be channeled to the Dianna Rasha Foundation (D.R.F.).
The previous year witnessed H.O.D. making a noteworthy donation of $10,000 to the D.R.F. This is emblematic of their persistent endeavors to back institutions that focus on enhancing the lives of those grappling with breast cancer, with an emphasis on supporting young women navigating this daunting path.
Available both in-store and online across all H.O.D. locations, the H.O.D. x D.R.F. Faith Short Sleeve Tees are priced at $20. It's worth noting that every cent from the sale of these t-shirts will find its way to D.R.F.
Marvin Jamo, the proprietor of House of Dank, expressed, "The impact of breast cancer extends to countless women and their families. It's imperative that we consistently back foundations like the Dianna Rasha Foundation, which devote themselves to elevating the lives of those afflicted. Our donations are more than mere symbols of support; they represent hope and a tangible contribution to the wellbeing of myriad community members."
The Dianna Rasha Foundation stands out for its commitment to supporting young women currently undergoing breast cancer treatment. Their mission is to offer these women the resources to lead a quality life without the financial strains, infusing them with hope, love, and the zest for life.
To culminate their month-long drive, House of Dank is set to host an official check presentation ceremony to the D.R.F. The event, the date for which is yet to be finalized, will be held at their principal location on 8 Mile.
A Glimpse into the Dianna Rasha Foundation
Established as a tribute to Dianna, the Dianna Rasha Foundation aims to mirror the zeal with which Dianna led her life. Their primary goal is to furnish services that mitigate the psychological and emotional stresses faced by young women with breast cancer. By doing so, the foundation strives to ensure that these women can embrace their life with the same vigor and charm that Dianna embodied during her battle.
Cannabis legalization is a topic that has occupied debates and discussions for many years. The state of Michigan stands at a crossroads, where understanding the history, nuances, and current data can guide informed decisions for the betterment of its communities. With an in-depth look, the advantages of embracing retail cannabis become unmistakably evident.
Cannabis retailers are more than just outlets; they're integral small businesses. These establishments operate similarly to any other retail store, accepting both cash and debit card payments. Their collaboration with local banks and credit unions not only encourages financial growth but also boosts the circulation of money within the community. This symbiotic relationship aids in reinforcing the local economy.
The safety of Michigan's residents remains a primary concern. Retail cannabis outlets uphold rigorous standards, necessitating a valid ID for adults 21 and above. Furthermore, Michigan state ensures a thorough monitoring process, overseeing every product right from its growth phase to its sale. This meticulous oversight surpasses even that of many local liquor stores, safeguarding the younger generation and the broader community.
Contrary to some critics' beliefs, there's no evidence linking the rise of cannabis retailers to an uptick in crime. Comprehensive data from numerous Michigan communities indicate that crime rates have remained consistent despite the influx of cannabis retail establishments. These statistics underscore the potential of a harmonious coexistence between cannabis retailers and their surrounding communities when proper regulations are in place.
2023 saw a remarkable contribution from the Marihuana Regulation Fund. A sum of $59.5 million was allocated to 224 municipalities and counties. Moreover, both the School Aid Fund for K-12 education and the Michigan Transportation Fund received a substantial $69.4 million each. Such considerable funds underscore the potential financial boost that communities could receive by welcoming cannabis retail ventures.
Michigan communities that give the green light to cannabis retail can expect an influx of over $50,000 annually from every licensed cannabis outlet. Beyond this, the Community Benefits programs, initiated by retailers and their affiliated organizations, pledge annual donations for public utilities, parks, and community welfare schemes. Collaborations between retailers and non-profit organizations have also burgeoned, fostering charitable contributions, volunteering, and fundraising endeavors.
The introduction of cannabis retailers is synonymous with local job creation, offering employment avenues without unduly straining the city's infrastructure or traffic flow.
Historically, the narrative around cannabis has been tainted by racial and societal prejudices, with the 1937 ban being a stark reminder. By championing cannabis initiatives, communities are not only bolstering economic growth but also mending long-standing social disparities. Over the years, racial inequalities have persisted, using cannabis prohibition as an instrument. Correcting this wrong is long overdue.
Embracing the cannabis industry in Michigan translates to dismantling outdated misapprehensions and recognizing its numerous benefits. This sector has already showcased its positive influence on Michigan's economy. To truly harness its potential, it's crucial to eradicate the stigmas around this well-regulated commodity. By doing so, Michigan can ensure economic prosperity and promote inclusivity and equity for all its residents. The time has come to focus on the future and appreciate the immense promise this burgeoning industry holds for Michigan's economic landscape and the well-being of its communities.
Join 'Train with Sensei' at the Ape's Clubhouse-a dedicated mind, body, and spirit gym-for a truly distinctive event that merges the holistic benefits of cannabis with physical and mental relaxation techniques. Located in the heart of Detroit, this event promises to be an immersive experience for all attendees.
Ape's Clubhouse (Mind, Body, Spirit Gym)
Inside the Art building at Russell Industrial Center
1610 Clay Street, Suite 204
Detroit, MI 48211
Tickets available for $20 each on the Eventbrite page.
Designed as a sanctuary from the chaos of everyday life, Ape's Clubhouse is not just another space-it's an oasis. Participants have previously reported feelings of rejuvenation, relief from long-standing tension, enhanced clarity, and even alleviation of pain.
The session will kick off with an enlightening conversation about our psychological connection to the cannabis plant. Following this, participants will be guided through a series of self-stretches led by the renowned instructor, Sensei. Each attendee will also have the unique opportunity to experience an individual stretching session with Sensei.
But the experience doesn't stop there. After the stretching, attendees are encouraged to meditate and focus on the beauty and gift of life, aided by controlled breathing techniques. Ensuring a wholesome experience, your aura will be purified with Palo Santo to ward off negative energies. Furthermore, 'Breathe Again' essential oil will be used, which is known to enhance oxygen flow, alleviate mucus, reduce stress, and promote relaxation.
Remember, daily stretching is paramount for our overall health, improving circulation, and ensuring the adequate delivery of oxygen throughout the body. This lack of oxygen can lead to a plethora of issues, including inflammation, tissue damage, emotional disturbances, low immunity, and mobility issues. Let Sensei's signature stretches guide you back to a state of equilibrium.
To make the most of this transformative evening:
Embark on this journey of physical and spiritual revitalization with us. Please bring along positive energy, and stay assured, everyone else will reciprocate. We look forward to seeing you there. Blessings!
The marijuana plant, renowned for its psychoactive properties, has recently garnered legal status in Michigan. As the acceptance and use of cannabis increase, it prompts a myriad of questions about its origin, biology, and the historical context associated with it.
On the evening of October 10th, Marquette residents and enthusiasts congregated at Blackrocks Brewery. They were there for Northern Michigan University's (NMU) esteemed "Science on Tap" series, a monthly initiative held every second Thursday. Sponsored by the Department of Biology and the Department of Earth, Environmental and Geographical Sciences (EEGS), these sessions present an array of educational insights. In October, Lex Koltowicz, an industrial hygienist with TriMedia Environmental & Engineering Services, stepped in with a comprehensive and intriguing discourse on the history, botany, and intricate biology of cannabis.
Koltowicz's exploration began with hemp's ancient roots. The origins of this versatile plant remain a topic of debate. Nonetheless, historical records depict its journey through Afghanistan, its maritime shipment from Portugal, and its notable utilization across regions like Southeast Asia. He delved further into a genetic examination of the cannabis plant, shedding light on the diverse variants stemming from each geographical area.
Highlighting cannabis as one of humanity's most ancient crops, Koltowicz elucidated its multifaceted anatomy. Beyond its renowned psychoactive traits and oil extraction capabilities, its stems played a pivotal role in creating cords, fabrics, paper, and several other products. This enlightening session sparked a flurry of queries from NMU students.
Witnessing a burgeoning interest in cannabis programs at NMU, more students are veering towards specialized fields like medicinal plant chemistry. For many, "Science on Tap" was not just another event but a chance to deepen their understanding and incorporate newfound knowledge into their academic pursuits. One such student, Cole Edgcombe, in his third year at NMU and enrolled in the cannabis law course, found the session particularly enlightening.
Edgcombe's revelations from the session were twofold. Firstly, he was captivated by the plant's genetics and the ease with which marijuana could be cloned. Secondly, the intricate association between the origins of cannabis and the historical slave trade was an unexpected revelation. He emphasized the cruciality of dispelling misconceptions surrounding marijuana, especially in the academic environment of Michigan. "In this evolving era with pervasive cannabis presence, we must transcend existing stigmas. It's paramount to be well-informed, especially given NMU's extensive programs. It helps in understanding what our peers are delving into," Edgcombe remarked.
The "Science on Tap" series has consistently served as an enlightening platform, with the latest session on marijuana being testament to its success. From contemporary research to intricate debates on cannabis use, anatomy, and proliferation, attendees were privy to a wealth of information. For those eager to continue their academic journey, NMU's "Science on Tap" promises more insightful sessions in the coming months. Details of forthcoming events can be gleaned from NMU's official "Science on Tap" webpage.
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