Supply of cannabis flower in Michigan has exploded in the past year, creating a consumer's market. The price for an ounce of flower has dropped from $152 in Jan 2022 to just $80 in Jan 2023.
While other states limit the number of growers, Michigan can have as many growers as municipalities will allow. It appears they may have overestimated the rate of growth of the market, which is forcing stiff competition.
Skymint and at least 4 other cannabis companies in MI have been placed under receivership. A receiver is a person appointed as custodian of an entity's property, finances, general assets, or business operations. Receivers seek to realize and secure assets and manage affairs to pay debts.
Chris Jackson, vice chair of the board for the National Cannabis Industry Association, told Wood-TV, "We have a very infant industry overall and so this industry, like every other industry, needs the ability to correct itself. The businesses that will thrive are the ones that are small, locally owned and unique. They're going to become staples in their community, just like any other industry over time. I think there's a lesson in not getting too big too quickly, understanding what you do best, being as conservative as possible."
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