Michigan’s marijuana sales total $3.1 million in two weeks

In the first two weeks of sales, $3.1 million worth of cannabis products were sold at five state-licensed cannabis shops in the state. It was a speedy start to a new industry in Michigan that only began on December 1. Sales in the first week were $1.6 million and the state has awarded 10 Class C grow licenses, which allows up to 2,000 plants. Cannabis can only be sold to those over 21 years old.

Michigan’s marijuana sales have already achieved $3.1 million in revenue in just two weeks and earned $515,051 from sales taxes. Michigan is the first state in the Midwestern U.S. to introduce a recreational cannabis program.

In order to find more on this subject, one potentially useful cannabis investing tool is the Hemp.im app. This app collects the latest marijuana news among cannabis sectors that investors operate in.

Shortages will be a problem for Michigan’s marijuana sales

The recreational cannabis program in Michigan has just begun, and currently, only five stores in the state can legally sell cannabis to adults. In the first week of sales, only two stores were open.

Meanwhile, there are just over 1,000 licensed cannabis stores in Colorado and over 100 in Washington State. So $3.1 million comes from five retail stores in Michigan with less than 10 million inhabitants.

On the first day of legal sale in Michigan, hemp worth $221,000 was sold. During the first week, customers legally bought more than $1.6 million worth of cannabis. However, the State of Michigan made the same mistake that was made in almost every state that legalized cannabis.

Not enough time to develop Michigan’s cannabis sales strategies

The government did not give companies enough time to grow, process, test and pack their products. The state is already struggling with serious cannabis shortages, and sales have only recently started.

“As a shop owner, you may have trouble finding the right quantities of product. Licensed breeders are not able to produce sufficient quantities in such a short time,” said Jeff Hank, a local cannabis activist who led the validation initiative in Michigan, in an interview for Detroit Free Press.

More states follow through on cannabis legalization

Illinois is the next state to start selling cannabis legally in 2020. Like Michigan, Illinois will also have to learn how to deal with the inevitable cannabis shortages.

The $3,102,714 of Michigan’s cannabis sale total, since Dec. 1, translates into $310,271 from the state’s 10% excise tax and $204,779 in revenues from the state’s 6% sales tax.

The revenues from the 6% sales tax are earmarked for the school aid fund and revenue-sharing payments to cities, townships, villages, and counties, and the state’s general fund.
__

(Featured image by albertoadan via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in FaktyKonopne, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.