Cannabis flower prices per ounce have fallen in Michigan from $152 in January 2022 to $80 in January 2023, WOOD-TV reports. Benham Wrigley Jr., an attorney with CannaLex law, attributed the price decline to “oversupply.”
“You might go to the state of Illinois and only find 12 growers, here you can have as many growers as municipalities will allow.” — Wrigley to WOOD TV
According to a Crain’s Detroit Business report, there are five Michigan cannabis companies that have been placed under receiverships in the state. A receivership is a court-appointed tool that can assist creditors in recovering funds in default and can help troubled companies avoid bankruptcy.
SKYMINT, which has 24 dispensaries in Michigan and has entered into a receivership, said in a statement it was forced to do so because the company was facing many challenges in the state, “including excess supply, decreasing prices, limited access to capital and the increasing cost of capital.”
Wrigley said he expects cannabis prices in the state to level out as stores inevitably go out of business and growers produce less.
According to the Michigan Department of Treasury, adult-use cannabis sales in Michigan topped $1.8 billion during the 2022 fiscal year. There are 574 adult-use licensees throughout the state.
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