The Michigan Regulatory Agency("MRA") opened up the medical caregiver program in 2008, resulting in mature supply chains within the Michigan cannabis industry. When adult use legislation was passed in 2019, the MRA allowed medical caregivers to supply adult use retail and manufacturing operators. This allowed the Michigan adult use cannabis market to have immediate supply until the MRA cut-off medical caregivers' ability to supply the adult use operators in September 2020 as the adult use market matured.

Michigan is an unlimited license market; however, the MRA has given the power to local municipalities to opt-in or out to the state's cannabis regulatory framework, of which nearly 80% have opted out.

January 2024 | Stash Ventures acquired 11 stores from Cloud Cannabis Co.

August 2022 | TerrAscend Corp completed its acquisition of Kisa Enterprises fro $29MM

February 2022 | Red White and Bloom completed its acquisition of PharmaCo in an all-stock transaction

September 2021 | Skymint acquired 3Fifteen to become the largest Michigan SSO

September 2021 | TerrAscend announced its acquisition of GAGE for $545MM

September 2020 | Red White and Bloom acquired Platinum Vape

Wholesale prices for biomass plummeted over the last few years, resulting in a plethora of new and inexpensive carts, infused products, and cheap flower flooding the market. Marginal market participants need to seek acquirers as their businesses are not sustainable over the long term. Larger, stronger market participants need to consolidate to take cultivation capacity out of the market and stabilize pricing. In short, all players in Michigan better be making moves this upcoming year.

Even as prices have dropped, sales have continued to grow through this period demonstrating the ever-growing demand and adoption from MI citizens. The market grew 33% from a $2.3B market in 2022 to a $3.1B in 2023, and the state is expected to release 2024 numbers around $3.3B (~8% YoY increase). Despite the large market size, Michigan has generated little interest from the major MSO's. They have seen fit to deploy scarce capital resources in states with much more restrictive licensing regimes. The MSO's have taken a "wait and see" approach and will constrain capital flows into the Michigan market. In other words, in-state operators are effectively on their own for the foreseeable future.