Michigan Licenses Could Be In Jeopardy If Bills Go Unpaid
Price volatility has continued to loom like a dark cloud
Although Michigan’s marijuana market surpassed $2 billion in profits last year, price volatility has continued to loom like a dark cloud.
The recreational flower price per ounce was $90.64 in May, slowly inching up month-over-month but far from the $221.21 price point just two years ago.
This is one of many contributing factors leaving growers and processors shorted by retailers who are slow to fulfill their end of the deal.
The multi-billion-dollar industry is reckoning with how to stabilize a supply chain leaning on credit by introducing new rules. The Cannabis Regulatory Agency has proposed denying a license or license renewal based on civil judgments or court orders resulting from unpaid debt.
This comes on the heels of court filings exposing millions in debt from major names in the industry, like Skymint’s $127 million default in March.
Skymint’s parent company, Green Peak Industries, is one of eight licensees that have fallen into receivership since 2019.
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