As tens of thousands of pounds of adult-use cannabis continue to fly off the shelves at Michigan dispensaries, the state set another record with more than $195 million in sales for September.
Through the first three quarters of 2022, adult-use retailers have sold $1.45 billion worth of cannabis, representing a whopping 56% increase compared to the same nine-month period from last year, according to the Michigan Cannabis Regulatory Agency’s (CRA) monthly reports.
Since the state first launched its expanded market in December 2019, adult-use customers have spent nearly $3.3 billion at licensed retailers.
The overall sales increases are a result of continued demand growth, which reached a record 53,758 pounds of adult-use flower sold in September, a 9.7% increase from the previous month. In other product categories, vape cartridges (12.7%) and edibles (3.9%) also experienced month-over-month growth.
Meanwhile, the average price per ounce for dried flower at adult-use retail dipped for the 13th consecutive month, falling to $109.88 in September, which mirrors the average ounce of medical flower at $109.63 for the month.
That price downtrend continued as small-scale operators in the state plead their case for a licensing moratorium with CRA officials last month, despite that power residing in the hands of state legislators.
RELATED: Demand Soars in Michigan as Flower Prices Dip to $116 Per Ounce
Regarding state inventory, the overall supply for adult-use cannabis flower dipped for the fourth consecutive month to 304,200 pounds. That overall supply includes roughly 57,450 pounds at cultivation (tested), 66,150 pounds at retail, 94,000 pounds at processors and 86,600 pounds of fresh frozen flower at processors.
Based on demand from September, that inventory represents roughly a six-month supply.
COMMERCE, California., Oct. 14, 2022 - PRESS RELEASE -Cheef Botanicals introduces private labeling for its CBD products to allow "store brands" to resell the product with exclusive branding. Cheef botanicals introduced the dynamic of private labeling to help small businesses and entrepreneurs to grow with the industry and become profitable. Cheef Botanicals wants people to consume vegan CBD products extracted from organic Colorado-grown hemp with multiple health benefits.
Why is Private Labeling Popular in the Hemp Industry?
Private labeling is where a third party forms an agreement with a manufacturer on terms where the concerned party uses the already manufactured products and sells them by putting custom-made labels and brand tags. Private labeling helps small businesses sell high-quality manufactured products with customized branding. Private labeling is slightly different from traditional white labeling. The manufacturer provides the base product and makes the specific design, branding, and labeling customizations regarding white labeling. The third party must choose only from the available options and make deals accordingly.
CBD Products Offered By Cheef Botanicals For Private Labeling:
CBD Gummies: Cheef offers CBD gummy cubes and potent vegan CBD gummies in 5 flavors.
CBD Lotions & Balms: CBD lotions and balms by Cheef botanicals are widely popular because of their fast-acting ability and skincare properties. The popular varieties are CBD body lotions, CBD salves, and balms.
CBD Flower: The brand provides high CBD % of CBD flower, pre-rolls, and joints which are available for private labeling.
MINNEAPOLIS and VANCOUVER, British Columbia, Oct. 14, 2022 – PRESS RELEASE – Goodness Growth Holdings Inc. announced that on Oct. 13, 2022, Verano Holdings Corp. delivered notice to Goodness purporting to terminate the arrangement agreement between Verano and Goodness dated Jan. 31, 2022, as amended. Under the arrangement agreement, Verano agreed to acquire all of the issued and outstanding subordinate voting shares, multiple voting shares and super voting shares of Goodness.
RELATED: Verano to Acquire Goodness Growth for $413 Million
Goodness believes that Verano has no legal basis to terminate the arrangement agreement, and that Verano has committed various material breaches of the arrangement agreement. Verano’s repudiation of the agreement has been acknowledged by Goodness, and the transaction will not proceed. Goodness intends to immediately commence legal proceedings against Verano to seek significant damages for, among other things, Verano’s material breaches of the arrangement agreement, Verano’s failure to discharge its obligations thereunder and Verano’s breach of the duties of good faith and honest contractual performance.
The termination notice claims that Verano has grounds to terminate the arrangement agreement on the basis of:
- alleged breaches of certain representations made by Goodness;
- Goodness’ alleged failure to give reasonable consideration to Verano’s comments on the draft Goodness proxy circular prepared by Goodness and reviewed and cleared by the U.S. Securities Exchange Commission (the “proxy”);
- the refusal of the board of directors of Goodness to reevaluate the terms of the transaction despite the fact that no material adverse changes had occurred to either Goodness or Verano; and
- Goodness’ alleged failure to reaffirm its recommendation to shareholders to vote for the transaction, which recommendation had not yet been made and was planned to be made in the proxy, which was anticipated to be mailed to the shareholders of Goodness next week.
Goodness vehemently denies all of Verano’s allegations and has complied with its obligations under the arrangement agreement in all material respects at all times. Verano has no factual or legal basis to justify or support its purported grounds for termination of the arrangement agreement. Goodness believes that Verano is repudiating the arrangement agreement to avoid fulfilling its obligations thereunder after Goodness refused Verano’s request to reduce the agreed-upon consideration payable by Verano under the arrangement agreement.
Goodness will file suit promptly to recover all damages available to it under the arrangement agreement and at law, and hold Verano responsible for its breaches and failure to consummate the transactions contemplated thereunder.
The foregoing summary of certain provisions of the arrangement agreement is qualified in its entirety by the provisions of the arrangement agreement, a copy of which is available on SEDAR atwww.sedar.com.
Adult-use cannabis legalization advocates succeeded in landing another petition on the South Dakota ballot, but polls are not in their favor this time around.
While South Dakota voters already passed an adult-use legalization referendum with a 54.2% majority in 2020—but had their voices cut off following a state Supreme Court decision in 2021—two polls show that enthusiasm for reform is now lagging behind heading into next month’s election.
Most recently, pollsters from South Dakota State University (SDSU) found that 47% of the state’s likely voters oppose Initiated Measure 27—the 2022 adult-use legalization ballot question—while 45% support the referendum and 8% are undecided. Those results are from the “2022 South Dakota Election Study” that was conducted from Sept. 28 to Oct. 10 by a nonpartisan research group housed in the School of American and Global Studies at SDSU.
The poll, which included input from 565 registered voters, has a four-point margin of error.
“This shows that the electorate may have shifted on the issue since approving a similar measure in 2020 and is bucking the national trend,” SDSU pollsters wrote in their findings, recognizing the growing support for reform elsewhere in the U.S.
That poll deviates slightly from a mid-July 2022 poll of 500 registered voters conducted by Mason-Dixon Polling & Strategies, which revealed 54.4% of South Dakotans opposed adult-use legalization while 43.8% supported it—a 10.6-point margin verses the 2-point margin in the more recent poll.
RELATED: South Dakota’s Adult-Use Cannabis Legalization Measure Could Fail, Poll Shows
In the meantime, organizers from South Dakotans for Better Marijuana Laws (SDBML), dubbed the “Yes on 27” campaign, are set to embark on a 10-day statewide tour that includes stops in at least a dozen cities, Dakota News Now reported. The tour path includes Watertown, Aberdeen, Sisseton, Huron, Mitchell, Yankton, Wagner, Pierre, Eagle Butte, Rapid City, Belle Fouche and Pine Ridge, concluding on Oct. 24—the last day South Dakotans can register for the Nov. 8 election.
SDBML Campaign Director Matthew Schweich said during an Oct. 12 press conference that the tour includes two main goals: to register voters and provide them accurate information about legal cannabis.
“The reason why I hope you’ll come talk to us is because there’s a lot of misinformation out there right now, and I think that what we’re seeing in 2022 is a much more misleading opposition campaign than what we saw in 2020,” he said.
California Attorney General Rob Bonta announced this week a broader effort to eliminate illicit cannabis operations in the state as California’s state-legal cannabis businesses struggle to thrive.
Bonta plans to expand the state’s Campaign Against Marijuana Planting (CAMP) program, a multi-agency seasonal eradication program started in 1983 under former Gov. Deukmejian, into a year-round effort to investigate illegal grows, the Associated Press reported.
The new effort will become a permanent Eradication and Prevention of Illicit Cannabis (EPIC) task force, according to the news outlet.
The CAMP program is already the largest in the country, lasting about 90 days each summer, AP reported.
The program rounded up nearly a million illicit cannabis plants this year alone, according to the news outlet.
RELATED: California’s DCC Has Seized More Than $1 Billion in Illegal Cannabis
In its expanded form, the program aims to prosecute underlying labor crimes, environmental crimes and the underground economy associated with illegal cannabis grows, according to AP.
The broader program will rely on the cooperation of other federal, state and local agencies, the news outlet reported, including the U.S. Forest Service, U.S. Bureau of Land Management, U.S. Drug Enforcement Administration, National Parks Service, the California Department of Fish and Wildlife, California State Parks, and the California National Guard. Some of these agencies will also participate in the EPIC task force, according to AP.
Bonta called the change “an important shift in mindset,” the news outlet reported.
“The illicit marketplace outweighs the legal marketplace,” he said. “It’s upside down and our goal is complete eradication of the illegal market.”
The task force will ultimately work with state Department of Justice prosecutors, the department’s Cannabis Control Section and an existing Tax Recovery in the Underground Economy (TRUE) task force that was established by a 2020 law that aimed to file civil and criminal cases against the operators of illicit cannabis operations, according to AP.
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