GRAND RAPIDS, Mich. (WOOD) — Michigan’s marijuana industry is facing growing pains as prices fall and supply increases.
In January 2022, the average cost for an ounce of flower in Michigan was $152 dollars. In January 2023, the average fell to $80, creating what some call a consumers’ market.
“When you go in you are now able to buy more for your dollars than you were before,” said Benham Wrigley Jr.
Wrigley is an attorney with CannaLex law in Grand Rapids, which works within the marijuana industry. He said part of the reason prices have dropped so steeply is due to “oversupply.”
“You might go to the state of Illinois and only find 12 growers, here you can have as many growers as municipalities will allow,” Wright said.
One of the companies feeling the impact is SKYMINT, which has 24 dispensaries in Michigan. The business recently had to enter a receivership due to financial challenges.
“SKYMINT made the difficult but necessary decision to enter a receivership to address our debt obligations and financial position, which were driven by the challenges facing many in Michigan’s cannabis industry, including excess supply, decreasing prices, limited access to capital and the increasing cost of capital,” the company said in a statement.
According to a report from Crain’s Detroit Business, there are also four other cannabis companies that have been…
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