The adult-use marijuana market in Michigan has seen a plunge in the price of marijuana. According to the Cannabis Regulatory Agency, the average price of one ounce of marijuana in December 2020 was $350.88. In contrast, the average price fell to $109.22 in September 2022. This rapid price compression puts tremendous pressure on many marijuana businesses as they face greater competition with ever-slimming margins. For some, these market forces may present a financial or existential crisis.

Often, financially-distressed companies seek the protection afforded by federal bankruptcy courts to restructure their finances. There are several benefits to an overwhelmed debtor going through the bankruptcy process. As just one example, once a debtor files for bankruptcy, an automatic stay on actions prevents creditors from collecting against a debtor until the bankruptcy case is resolved or the Court allows the stay to be lifted. In addition, bankruptcy provides an orderly process that provides the debtor with the means of resolving creditor claims simultaneously.
Continue Reading Legal Options for Investors and Owners of a Financially Struggling Marijuana Business

Five states had marijuana on the ballot in last Tuesday’s elections (and another state had psychedelics). Here’s a deeper look at these measures, and what comes next for the cannabis industry.
Continue Reading 2022 Post-Election Analysis: Where Does Cannabis Go From Here?

The 2022 general election saw cannabis on the ballot in 32 municipalities across Michigan. With the votes tallied, it appears that 13 municipalities voted in favor of initiatives to expand cannabis access that were on the ballot. Some of those municipalities voted to allow cannabis businesses for the first time, while others voted to expand legal access from only medical to adult use. Many of the proposals, both for or against, came back very close, suggesting that the issue remains a divisive one despite the additional tax revenue received by municipalities that already allow cannabis businesses within their bounds.
Continue Reading 2022 Election Results – Cannabis Continues Its Spread Across Michigan

The lazy stoner jamming out to Pink Floyd in his VW van? That trope is long gone. Today’s enthusiasts are a diverse collection that includes executives, parents, healthcare workers, and everyone in between. As new markets continue to emerge and legislative hurdles ease, M&A activity in the cannabis industry is primed for a big year. Here’s what to expect in 2023: 
Continue Reading M&A Industry Spotlight: Cannabis

On August 30, 2022, the Wayne County Circuit Court issued rulings denying injunctive relief to several cannabis companies that challenged the implementation of the City of Detroit’s adult-use cannabis ordinance (the “Ordinance”). In addition to denying motions for preliminary injunctions, the Court also dismissed the cases entirely. In doing so, the court reached several conclusions that are at odds with a full reading of Michigan’s cannabis statutes and rules. The opinions can be found here: Case No. 22-006534-CZ Jars Holding LLC et al v. City of Detroit; and here: Case No. 22-00594-CZ House of Dank et al v. City of Detroit.

Following these rulings, the City began accepting adult-use applications on September 1 and will accept applications until September 30. It has been a long and torturous route to get to this point.
Continue Reading Detroit Opens Adult-Use Retail Licensing After Victory in Court