- December 1, 2020 marked one-year anniversary since recreational marijuana use was approved for sale in Michigan
- Retailers have sold approximately $450 million worth of recreational marijuana products over the last year, with sales averaging $13 million per week in recent months
- Gage Cannabis has leveraged upon rising growth rate through rapid store expansion, which will see its store footprint grow by over 10 locations in 2021
- Michigan’s governor recently signed legislation which will allow veterinarians to speak to pet owners about giving cannabis to their animals for therapeutic use
On December 1, 2020, Michigan marked the one-year anniversary following the legalization of recreational marijuana use within the state. Initially approved by voters in November of 2018, retail sales would have to wait a further 13 months until state officials had built a regulatory system to manage the fledgling industry. Gage Cannabis, a leading vertically integrated cannabis operator currently focused exclusively on the Michigan market, has been one of the prime beneficiaries from the legislative measures.
Since retail sales began on December 1, 2019, weekly sales numbers for adult use products have enjoyed a steady climb. Over the past twelve months, retailers have sold approximately $450 million-worth of recreational marijuana products in the state of Michigan – with average sales rising to over $13 million a week in recent months (https://ibn.fm/Hurkh).
“I would say we’re not even close to market saturation yet,” said Michigan Cannabis Industry Association executive director Robin Schneider in relation to explosive growth in sales.
Gage Cannabis has been able to partake in the region’s rapid growth trajectory as a by-product of the company’s aggressive expansion plan – one that has seen them open 6 medical or adult-use locations across the state, with a further 10+ locations slated to open in 2021. The company has also announced its intentions to raise up to $50 million in gross proceeds through a regulation A+ offering (https://ibn.fm/uv2uj), with a portion of the proceeds set to be re-invested towards financing the company’s various growth initiatives.
The new year has brought about the prospect of a further distinctive sub-sector opening within the wider Michigan cannabis market. In early January, Michigan’s governor signed legislation allowing veterinarians to speak to pet owners regarding the possibility of giving cannabis to their animals for therapeutic use (https://ibn.fm/bLRXH). While the US Food and Drug Administration – which also oversees pet foods and drugs – has yet to authorize CBD for pets, sales of CBD products for pets has seen remarkable growth, with total annual sales in the United States rising from a mere $58 thousand in 2016 to over $7.3 million as of 2019, according to market analytics giant Nielsen Global Connect (https://ibn.fm/cmZ56).
Boasting a strong foothold within the domestic Michigan cannabis market and with the potential of further expansion within the state set to vastly expand the company’s total addressable market, Gage Cannabis now finds itself in an advantageous position to fuel its ongoing growth trajectory. With recent weekly growth trends implying potential recreational marijuana sales growth of over 50 percent over the next year, the Michigan cannabis market may just be the place to be.
For more information, visit the company’s website at www.GageUSA.com.
NOTE TO INVESTORS: The latest news and updates relating to Gage Cannabis are available in the company’s newsroom at https://ibn.fm/GAGE
