When people think of the US cannabis industry, California and Colorado are two of the first markets that come to mind. These were some of the first states to legalize recreational cannabis and they received significant media attention as a result of it.
During the last year, a few additional states have jumped on the recreational cannabis bandwagon and this is a trend that we are excited about. The Midwest has been a hotbed of activity for the US recreational cannabis industry which has come as a surprise to many. Of these markets, we are most excited about the opportunity in markets such as Illinois and Michigan and are impressed with the initial numbers coming out of these markets.
According to a news report, the state of Michigan generated $8.2 million of revenue from the sale of cannabis (between December 1st and January 5th) from 26 retailers, six growers and a handful of processors, transporters and labs. Illinois has put up more impressive numbers and has reported to have generated approx. $20 million of revenue in the first 12 days.
Over the next year, we expect to see increased interest in cannabis companies that are levered to these two markets and this is a trend that our readers should be aware of. Today, we have highlighted a leading operator in Michigan, and this is an opportunity that we will be closely following.
Cookies Is Coming To Michigan
Earlier this month, Gage announces that they will open Cookies, a new flagship cannabis dispensary in the heart of Detroit. Cookies, the leading lifestyle and cannabis brand in North America, will be located at 6030 E. 8 Mile, Detroit. We see this as a major move for Gage due to the brand power that Cookies brings. California cannabis brands are seen as the premier brands in the industry and planting the Cookies flag in Michigan is making a major statement.
The Cookies store will carry the entire family of Cookies products including, but not limited to the Cookies, Lemonnade, Runtz, PowerzzzUp, Minntz and Grandiflora lines. The store will be operated by Gage in an exclusive partnership with Cookies. In addition to the new Cookies dispensary, Gage will dedicate significant shelf space to the display and sale of Cookies products in their current locations in Ferndale and Adrian, as well as its soon-to-open locations in Lansing, Kalamazoo, Battle Creek, Bay City, Grand Rapids, Traverse City, Centerline, among others.
Gage also has in place a social equity program through which it will share $950,000 with social equity participants in cities disproportionately impacted by marijuana prohibition. The company plans to give up to $50,000 to a prospective cannabis business owner in each of the 19 social equity cities initially designated by the Michigan Marijuana Regulatory Agency. The Detroit award recipient has yet to be selected, and Gage looks forward to meeting potential candidates at the January 31 grand opening.
Bruce Linton Joins a Leading Michigan Cannabis Operator
Last year, one of the most significant developments in the cannabis industry was the firing of Bruce Linton as the CEO of Canopy Growth Corporation (WEED.TO) (CGC). This development sent shockwaves throughout the industry and the market did not respond favorably to the change.
Following his termination, Linton has been very active in the US cannabis industry and this transition caught our attention. When it comes to executives that have a proven track record of success, Linton is one of the first names to come to mind. He recently announced that he has joined Gage Cannabis as Executive Chairman and we are favorable on the pivot.
Gage Cannabis has been highly focused the recreational cannabis opportunity in Michigan and is positioned to be a leader in the market. Over the next year, we expect to see the company to benefit from the leadership, experience, and capital that Linton brings to the table and find this to be significant.
Gage Cannabis operates a large grow operation in Warren with plans for 13 total cannabis retail shops. Currently, its Adrian and Ferndale locations are open to sell medical cannabis and are preparing to start selling recreational cannabis soon. Gage will also open a Cookies-branded store and licensed the popular cannabis brand from California rapper Berner.w
When analyzing a cannabis company, the first thing we look at is the management team and this is an area where Gage Cannabis excels. We believe that the company has substantial growth prospects and will monitor how the operation continues to advance on a going forward basis. If you are interested in learning more about Gage Cannabis, please email email@example.com to be added to our distribution list.
Published at Thu, 23 Jan 2020 12:14:24 +0000