Could Michigan Be the Perfect Entry Point for Cannabis Investors
FN Media Group Presents USA News Group News Commentary
VANCOUVER, B.C., April 8, 2021 /PRNewswire/ -- USA News Group - A cannabis boom is underway, and perhaps one of the fastest growing markets of all is that of Michigan, which just saw its cannabis sales hit $105 million in February 2021, representing an increase of 160% year-over-year. Just last year, Michigan's top cannabis regulator predicted the state's market has $3 billion potential. This week, Bruce Linton, founder and former CEO of the world's most valued cannabis company Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED) commenced trading with his new Michigan-based cannabis vehicle Gage Growth Corp. (GAGE). Many more have seen Michigan's marijuana market potential and are wasting no time in getting established there, including premium plant-based extraction company Pure Extracts Technologies Corp. (OTC: PRXTF) (CSE: PULL) which recently announced its part in a JV that will install a cannabis and hemp extraction system in an existing Michigan facility. Others looking to cash in on the state's upward trend are Innovative Industrial Properties, Inc. (NYSE: IIPR), Cresco Labs Inc. (OTCQX:C RLBF) (CSE: CL), and Red White & Bloom Brands Inc. (OTCQX: RWBYF) (CSE: RWB).
Through an LOI signed with an Oregon-based multi-state operator (MSO), Pure Extracts Technologies Corp. (CSE: PULL) (OTC Pink: PRXTF) is set to embark on a joint venture to build-out 2,600 sq ft of existing, under-utilized space in the MSO's central Michigan facility—ideally located withing a 2-hour drive of several major markets.
"We are really excited about launching our first US initiative into the dynamic Michigan market, especially with experienced and entrenched partners," said Ben
Nikolaevsky, Pure Extracts CEO.
"There is strong demand throughout the state for the products we know best: full spectrum oil (FSO) vapes, live resin concentrates, and edibles."
It's anticipated that Michigan could follow similar consumer trend patterns experienced in other states such as California and Colorado, where sales of extracts and concentrates eventually overtook dry-flower sales.
By utilizing Pure Extracts' state-of-the-art extraction techniques and equipment, the publicly traded MSO is set to improve upon its family of products that include sun-grown and indoor premium flower, along with patented nitro-sealed pre-rolls and jars. These products were already grown and packaged in Michigan and sold in over 100+ dispensaries throughout the state.