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420 with CNW – Michigan Sees 29% Sales Growth for Recreational Marijuana in January

A statistical report on marijuana is published every month, and Michigan has released its report for the month of January. The report shows that in the month of January, adult-use marijuana sales in the state continued to grow at a steady pace.

In January, adult-use sales rose to $9.8 million while previously in the month of December, the sales were $7 million. Michigan launched recreational sales of marijuana on December 1.

For the month of January, the state will collect approximately $1.63 million in adult-use marijuana tax proceeds. Excise tax, which is 10%, accounts for $980,000 and $646,800 in sales tax.

The first $20 million earned in the first two years after the launch of adult-use marijuana sales would be used to fund research into cannabis use in the health care industry. Fifteen percent of the remaining amount from tax revenue would be allotted to cities, towns, or villages that allow the sale of marijuana within their jurisdiction. The proportions would be based on the number of micro-businesses and retailers operating in the regions. Another fifteen percent would also be allotted to counties based on the number of marijuana small businesses and retailers operating in the area. Thirty-five percent would be allocated to the School Aid Fund for K-12 education, and the remaining 35% would be assigned to the Transportation Fund for road and bridge repair within Michigan.

There was a slight increase in medical marijuana sales in the month of January ($25.2 million) up from $24.9 million in December.

It was also noted that the average cost of retail adult-use marijuana dropped from $516 per ounce in December to $512 per ounce in January, while the average price of medical marijuana increased to $276 per ounce in January from $267 per ounce in December.

In January, the Marijuana Regulatory Agency approved 24 new permits for adult-use marijuana licenses, which was less than the 32 permits approved in December. The agency also approved 53 medical marijuana dispensary licenses in January, which was an increase from 29 medical cannabis permits issued in December.

The agency also rejected three medical marijuana and nineteen adult-use marijuana applications.

Although the state experienced about 30% increase in recreational marijuana sales in January, the cost of administering licensing and registration of programs increased by 20%.

In January, Michigan spent $766,910 on medical licensing, which was an increase from $655,109 in December. While recreational marijuana licensing cost the state $556,892 in January, an increase from $444,720 in December. And, $280,389 went to the patient-caregiver registry in December but this increased to $412,419 in January.

The overall cost for Marijuana Regulatory Agency programs increased to $1.74 million in January from $356,000 in December, and about $1.16 million was used to pay salaries and benefits to the employees.

These costs are expected to level off while product sales and tax collections increase, so the future outlook is a positive one. Experts say this positive outlook is exactly when cannabis industry players, such as ChineseInvestors.com Inc. (OTCQB: CIIX), have come to expect in all states that legalize marijuana.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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