Michigan Awards First Adult-Use Cannabis Business Licenses
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Michigan Awards First Adult-Use Cannabis Business Licenses

The state plans to launch adult-use sales Dec. 1.

November 20, 2019

The Michigan Marijuana Regulatory Agency issued its first five adult-use cannabis business licenses Nov. 19, taking another step toward launching adult-use sales Dec. 1.

According to a Detroit Free Press report, the first licenses were awarded to Exclusive Brands in Ann Arbor, which received permits for a cultivation operation, a processing facility and a dispensary; PSI Labs in Ann Arbor, which received a license for a cannabis testing facility; and Real Leaf Solutions in Kalkaska, which received an event organizer permit.

These businesses are existing medical cannabis licensees in the state and have already underwent extensive background checks and facility inspections, Detroit Free Press reported.

The state had pre-qualified 48 applicants as of mid-November, according to the news outlet.

Michigan announced the Dec. 1 launch date of its adult-use cannabis program last week and authorized licensed medical cannabis businesses that have applied for adult-use licenses to sell up to half their inventory to the broader adult-use market, as long as any products sold have been in the business’s inventory for at least 30 days.

Supply may be limited in the early days of the market as businesses find their footing. Supply shortages may also result from municipalities’ bans on adult-use sales within their jurisdictions. A provision of the state’s cannabis law allows communities to opt out of hosting adult-use cannabis businesses, and 1,400 of Michigan’s 1,773 cities, townships and villages have prohibited adult-use facilities.