Jones Soda Co., known for its bold flavors and unique branding, recently announced its financial results for the third quarter of 2023, which ended on September 30th. Amidst the financial details, a significant highlight for Michigan residents is the company's imminent expansion into the state's burgeoning cannabis market.
With the Michigan market showing a strong appetite for innovative cannabis products, Jones Soda's entry could be a game-changer. The company is not only focusing on expanding its geographic footprint but is also working on bringing new cannabis-infused flavors and formats to the market. This expansion is anticipated to bolster Jones Soda's position in the cannabis industry and contribute to its overall growth trajectory. Michigan residents can look forward to experiencing Mary Jones' unique offerings in the cannabis sector as the company gears up for its end-of-year launch in the state.
Michigan's cannabis community is buzzing with excitement as boxing icon Mike Tyson is set to grace the grand opening of LIV Cannabis: Westland, the city's inaugural recreational cannabis dispensary. This landmark event, hosted by Common Citizen retail partner LIV Cannabis, is scheduled for Sunday, November 12th, at 1:30 p.m. at 37655 Ford Road, Westland.
In a move that blends sports fame with cannabis culture, Tyson will be present to commemorate this significant milestone in Michigan's cannabis industry. The opening of LIV Cannabis: Westland not only marks a new chapter for the city but also highlights the growing acceptance and integration of cannabis in mainstream society.
The celebration kicked off earlier, on Friday, November 10th, with a special offer for the first 120 customers purchasing the $60 Tyson 2.0 Knockout Bundle at LIV Cannabis: Westland. These early birds will be rewarded with a VIP wristband, granting them an exclusive meet and greet opportunity with Tyson himself on November 12th. The Tyson Bundle, a testament to Tyson's foray into the cannabis market, includes two 3.5-gram flower packets, two 1-gram distillate cartridges, and two 200-mg Mike Bites packages. This bundle, showcasing Tyson's premium cannabis line Tyson 2.0, under the umbrella of parent company Carma HoldCo, is also available through November 12 at all LIV Cannabis stores across Michigan, including Pure Lapeer and Xplore Cannabis Co. in Lapeer.
"We are ecstatic to welcome the champion, Mike Tyson, back to Michigan to celebrate this pivotal opening," expressed Michael Elias, CEO of Common Citizen. "It's an honor to offer our customers exclusive access to Tyson's high-quality, safe, and affordable cannabis products, which align perfectly with our mission to provide unique cannabis experiences."
Adam Wilks, Co-founder and CEO of CarmaHold Co., reflected on the growth trajectory, "The launch of LIV Cannabis: Westland builds on the successful partnership we initiated with the Common Citizen team in 2022. Their dedication has been instrumental in introducing our premium products to Michigan's cannabis enthusiasts. We look forward to this continued expansion and more openings in the future."
Tyson 2.0's collaboration with Common Citizen extends beyond retail, encompassing a cultivation partnership where Tyson's cannabis line is grown in a state-of-the-art hybrid greenhouse in Marshall, Michigan. Tyson 2.0 products are widely available across Michigan, including all Common Citizen retail partner locations.
Mike Tyson, a former undisputed world heavyweight champion and now an entrepreneur and actor, is a prominent advocate for cannabis. His partnership with Common Citizen reflects a shared vision of promoting cannabis's wellness benefits to a diverse audience.
"Our ongoing collaboration with Common Citizen is rooted in our mutual goal of connecting people through cannabis," Tyson, now the Chief Brand Officer for Tyson 2.0, stated. "As someone whose life has been positively transformed by cannabis, I am passionate about making these safe, high-quality, and affordable products accessible to more people, starting here in Westland and across all Common Citizen retail partner locations."
As Michigan's cannabis landscape continues to evolve, the entry of celebrities like Mike Tyson into the market underscores the industry's dynamic nature and its broadening appeal. The grand opening of LIV Cannabis: Westland is more than just a new store launch; it's a celebration of the growing synergy between sports, culture, and cannabis in today's society.
In a recent development, Agrify Corp. (NASDAQ: AGFY), a prominent player in the marijuana technology industry, has received a critical extension from the Nasdaq stock exchange regarding its listing status. This development comes amidst the company's ongoing efforts to comply with Nasdaq's stringent listing requirements.
Agrify, headquartered in Troy, Michigan, has been grappling with compliance issues after failing to submit several financial reports on time. In October, the company was formally notified of its non-compliance with Nasdaq's listing rules, a situation that posed a significant threat to its continued presence on the stock exchange.
However, in a positive turn of events, Agrify announced in a press release on Wednesday that the Nasdaq has granted a stay on any potential suspension of its listing. This stay is set to last until a formal hearing is conducted, followed by a final decision from the Nasdaq panel. This development offers a crucial respite for Agrify, allowing it more time to rectify its compliance issues.
The company has expressed its commitment to completing and auditing the overdue financial reports before submitting them. Despite this assurance, Agrify has cautioned that there is no guarantee that it will be able to file the delayed reports within the extended period allowed by the Nasdaq panel.
In the interim, Agrify's shares continue to be traded on the Nasdaq under the ticker symbol AGFY. Earlier in July, the company took a strategic step to consolidate its shares, a move aimed at maintaining its listing status on the Nasdaq. This step underscores the company's proactive approach to addressing the challenges posed by the stringent listing regulations.
This ongoing situation highlights the complexities and regulatory challenges faced by companies in the rapidly evolving marijuana technology sector. As Agrify navigates these hurdles, its efforts to remain compliant and retain its listing on a prestigious stock exchange like Nasdaq will be closely watched by industry observers and stakeholders. The outcome of this situation could have broader implications for the sector, emphasizing the importance of regulatory compliance in an industry that is still finding its footing in the mainstream financial world.
For those interested in the financial side of the cannabis industry, an exclusive opportunity awaits. By signing up through our Robinhood referral link, you might secure a free portion of Agrify stock, making you a part of the groundbreaking journey of companies like Agrify in the cannabis sector. Explore this chance and potentially start your investment journey in the burgeoning cannabis market.
In a significant development for Michigan's cannabis industry, Pleasantrees has embarked on an ambitious project to transform the historic Gibraltar Trade Center into a dynamic cannabis retail and community event space. This initiative not only represents a milestone in the industry but also highlights Pleasantrees' commitment to community engagement and social responsibility, including their noteworthy homeless fundraising drive.
Since establishing a temporary dispensary in 2022, Pleasantrees has been a beacon of innovation and community integration in the cannabis sector. Their plan to convert approximately 9,000 square feet of the expansive 250,000-square-foot Gibraltar facility into a permanent location is a testament to their growth and foresight. This development, as detailed in an earlier article, is more than a retail expansion. It encompasses cultivation, processing, a consumption lounge, and an overhaul of the parking area for an enhanced customer experience.
The vision of Randall Buchman, Founder and CEO of Pleasantrees, extends beyond cannabis retail. He envisions a world where cannabis is destigmatized, and his plans for the Gibraltar site reflect this ethos. Buchman's dream, as he has articulated in prior discussions, is to create a space where cannabis enthusiasts and the wider community can come together in a shared, stigma-free environment.
An intriguing element of this redevelopment is the iconic Gibraltar man sign, a local landmark. In a nod to both history and contemporary aesthetics, Pleasantrees has commissioned Detroit Sign Painters to revamp this iconic figure, symbolizing the site's new chapter. Kelly Thomson McLeod, daughter of the original sign painter Leonard Thomson, is part of this artistic endeavor, adding a layer of personal and historical continuity to the project.
McLeod's involvement brings a poignant narrative to the site's transformation, linking the professional realm with personal history. Her stories about her father's work, including the Gibraltar Man, lend a unique, familial aspect to this redevelopment project.
Pleasantrees' commitment to community integration is further exemplified by their plans for the site. The revamped Gibraltar Trade Center is poised to host a range of community events, including concerts, auto shows, and farmers markets, continuing the legacy of the historic center as a communal hub. This initiative not only brings together cannabis users but also invites the broader community to engage in diverse activities, fostering a spirit of inclusivity and connection.
In tandem with these developments, Pleasantrees is also actively engaged in community welfare projects, like their homeless fundraising drive. This initiative underscores the company's dedication to social responsibility, extending their impact beyond the realm of cannabis retail. By supporting vulnerable groups within the community, Pleasantrees is setting a precedent for how businesses in the cannabis industry can contribute positively and meaningfully to societal issues.
In essence, the transformation of the Gibraltar Trade Center by Pleasantrees is a multifaceted project that signifies a new era in Michigan's cannabis industry. It embodies a unique blend of historical preservation, modern cannabis culture, community engagement, and social responsibility. As Pleasantrees continues to expand its presence in the cannabis retail sector, its commitment to being a constructive and compassionate force within the community is clearly evident. This initiative is set to become a landmark in Michigan, symbolizing the harmonious coexistence of a storied past and a progressive, inclusive future.
In the coming weeks, Port Huron is set to welcome the establishment of three new cannabis-related businesses, enriching the local marijuana landscape. The businesses set to open include two retail storefronts and a unique combination of a store and a consumption lounge, strategically located in distinct areas of the city.
Earlier this year, JARS Cannabis, Ox Tail Inc., and Exhibit Cannabis presented their cases before the city's planning commission to secure the necessary special use permits. Subsequently, construction activities for these establishments have been progressing through the summer and fall.
JARS Cannabis, after acquiring the provisional license for a retail location at the intersection of Huron Avenue and Quay Street in downtown Port Huron, has announced its intention to open by December 1st. Ally Galanty, a spokesperson for JARS, expressed excitement about completing the construction at the facility and mentioned that the recruitment process is underway. This establishment is poised to complement the burgeoning entertainment district which includes Wings Etc., Bootleggers Axe Co., and the MoonCursor speakeasy.
Meanwhile, Ox Tail Inc. is set to repurpose the erstwhile Ernest Camera Shoppe at 1600 Pine Grove Ave., aiming for a mid-January launch. The facility, to be named "Moses Roses," will replace the iconic circular camera shop. Chris Aiello, a partner at Ox Tail, shared that construction is in full swing and they are eager for the inauguration.
Exhibit Cannabis Co., on the other hand, is transforming a small office building at 1033 River St. The renovated establishment, sporting a solid black façade, will house a dispensary on the lower level and a lounge on the upper floor. Mark Aubrey of Exhibit Cannabis emphasized the modern aesthetic of the location, aptly named "the Exhibit", and its advantageous positioning by the Black River with ample parking space for over 60 cars.
The city had initially approved provisional licenses for seven operators across 10 locations, which also included two microbusinesses and marijuana processors, early in 2021. This decision was in accordance with the application scoring criteria approved by the voters in November 2020. However, legal challenges against the city regarding the scoring results briefly stalled the progress.
Despite ongoing legal disputes in the Michigan Court of Appeals, the city managed to proceed after a favorable circuit court order in January. Presently, only the aforementioned three establishments have made it past the planning commission stage.
The voter-endorsed ordinance, which still stands, had been proposed by an external committee and replaced a previous ordinance that was formulated with inputs from planning commissioners. The city's venture into the cannabis industry began with site visits to marijuana establishments in metro Detroit four years ago.
Commending Port Huron City Manager James Freed's initiatives, Aiello mentioned that Freed's diligent research played a pivotal role in shaping the city's cannabis landscape. Additionally, Aubrey indicated that more information about Exhibit Cannabis would be made available on their website and through a QR code at the River Street building in the near future.
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.
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