CFN Media’s Exclusive Executive Interview With Grown Rogue on Michigan Expansion
Ryan Allway
January 23rd, 2019
Exclusive, News, Top Story
The cannabis industry is projected to generate upwards of $80 billion in revenue by 2022, according to Marijuana Business Daily, driven by the legalization of medical and recreational cannabis across a growing number of states. Investors may want to keep an eye on companies that capture market share early on in a state’s legalization efforts, since they could be best positioned to profit from the long-term growth.
Grown Rogue International Inc. (CSE: GRIN) (OTC: NVSIF) recently announced plans to build out a presence in Michigan, which recently legalized recreational cannabis in November 2018. The move marks the company’s ongoing expansion outside of its home state of Oregon, as well as California operations, and into new markets throughout the United States.
CFN Media Recently sat down with Grown Rogue CSO Jacques Habra at the Benzinga Capital Conference in Miami, Florida to discuss Grown Rogue’s strategic expansion into Michigan.
Michigan’s Cannabis Market
Michigan legalized cannabis for medical and recreational use in 2018. While cannabis was never decriminalized statewide, most cities had decriminalization laws in place to limit incarcerations and fines for cannabis consumers. Ann Arbor, home to the University of Michigan, has maintained some of the most liberal laws in the entire country since the 1970s, with marijuana possession classified as a civil infraction with a token fine.
In November 2017, cannabis supporters collected the 365,000 signatures needed for legal recreational cannabis to appear on the 2018 ballot. The state voted to legalize the recreational use of marijuana in the 2018 Michigan Regulation and Taxation of Marijuana Act (RMLA). The initiative allows adults 21 and older to possess up to 2.5 ounces of cannabis and grow up to 12 cannabis plants at home, as well as create a tax infrastructure.
The RMLA enables municipalities to prohibit or limit the number of marijuana establishments within their boundaries, as well as provide the Department of Licensing and Regulatory Affairs (LARA) with the authority to issue licenses. The Act also imposes a ten percent excise tax on the sale of recreational marijuana and a six percent sales tax on marijuana sales generated at retailers and microbusinesses (selling direct to consumers).
Analysts believe that Michigan’s current medical cannabis market is worth $711 million per year and generates about $21 million in tax revenue. With recreational legalization, analysts believe that the market could easily surpass $1 billion per year in sales. Colorado is half the size as Michigan and generates more than $1.5 billion in medical and recreational sales per year—although its cannabis market is much more mature.
Grown Rogue Plans Expansion
Grown Rogue recently announced plans to expand into Michigan through a strategic partnership with an established cannabis conglomerate. The initial expansion will include two retail dispensaries—referred to as provisional centers in Michigan, a 19,000 sq. ft. indoor cultivation and processing center in Detroit, and an interest in a 28 acre parcel located in the northern portion of the lower peninsula that can be used for cultivation.
“We invested significant time looking for the right partners for our Michigan expansion,” said Grown Rogue CEO Obie Strickler in a press release announcing the new partnership and entry into Michigan’s market. “Our Michigan partners include executives with multi-generational leadership track records in real estate development and business investment throughout the state, as well as experienced cannabis operators.”
With Michigan only recently legalizing cannabis, the company could enjoy an early-mover advantage in a $1+ billion market with high barriers to entry. The company’s fully-integrated approach of owning assets across the supply chain could make it extremely competitive in terms of price and quality compared to other operators. Finally, Grown Rogue’s existing brands provide a valuable jumpstart in commercial operations.
“There is already such a significant adoption of cannabis by the general population in Michigan that we really hit the ground running with our established brand and proven business processes,” said Grown Rogue CSO Jacques Habra in the same press release. “This strategic partnership, in one of the most exciting states in the U.S., continues our focus on building a multi-state cannabis company.”
Looking Ahead
Grown Rogue International Inc. (CSE: GRIN) (OTC: NVSIF) represents a compelling investment opportunity with a multi-state cannabis presence. With its existing strength in Oregon, the company is rapidly expanding into California, Nevada, and Michigan, where it could rapidly scale up its revenue and market share. Investors may want to take a look at the stock given these near-term catalysts and its long-term growth potential.
For more information, visit the company’s website.
For Investor Information please click here
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Rob is the co-founding President of Pelorus Equity Group and has more than 18 years of experience in the real estate finance industry. Since the formation of Pelorus in 2010, he has raised more than $175,000,000 in secured real estate transactions. Rob’s primary role at Pelorus Equity Group is the development of strategic alliances with […]
Technical420 is the premier provider of research and analysis on cannabis stocks. We provide investors with sponsored and non-sponsored information on the volatile and emerging cannabis industry. “Our research is our passion!” Your profit is our reward!
TransCanna™ specializes in assisting clients who are cannabis farmers and manufacturers get recognized by end consumers who in turn purchase their products.
City Green View is an early-stage cannabis cultivation firm that’s moving through the Health Canada application process.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
