Apr 08, 2021 (Baystreet.ca via COMTEX) -- VANCOUVER – 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 /zigman2/quotes/200603886/composite CGC -0.82% /zigman2/quotes/202205609/delayed CA:WEED -0.86% commenced trading with his new Michigan-based cannabis vehicle Gage Growth Corp. /zigman2/quotes/225913647/delayed CA:GAGE +4.15% . 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. /zigman2/quotes/202137327/delayed PRXTF -4.41% /zigman2/quotes/222359307/delayed CA:PULL +1.59% 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. /zigman2/quotes/208038978/composite IIPR -1.04% , Cresco Labs Inc. /zigman2/quotes/200392306/delayed CRLBF +1.09% /zigman2/quotes/205276242/delayed CA:CL +1.12% , and Red White & Bloom Brands Inc. /zigman2/quotes/202670950/delayed RWBYF 0.00% /zigman2/quotes/202363148/delayed CA:RWB 0.00% .
Through an LOI signed with an Oregon-based multi-state operator (MSO), Pure Extracts Technologies Corp. /zigman2/quotes/222359307/delayed CA:PULL +1.59% /zigman2/quotes/202137327/delayed PRXTF -4.41% 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 within 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.
Now with Pure Extracts’ extraction, vape, live resin and edibles manufacturing skills, the JV can provide a much wider offering of products to the state—a necessary move, given the rising popularity of sales in cannabis 2.0 products seen across multiple states, in particular concentrates and edibles.
Nikolaevsky added, “With immediate access to the MSO affiliate’s 100+ dispensary customers out of Michigan’s nearly 400 licensed dispensaries, we expect our products to be distributed and on-shelves in Q4 of this year.”
In addition to manufacturing Pure Extracts’ proprietary brands of vapes and edibles, the JV partners anticipate an initial white-label order for live-resin concentrates from the MSO affiliate as that company continues to build on the outstanding reputation its dry-flower products have already garnered within the Michigan marketplace.
Already established in the state is Red White & Bloom Brands Inc. /zigman2/quotes/202670950/delayed RWBYF 0.00% /zigman2/quotes/202363148/delayed CA:RWB 0.00% , which saw its own Platinum Vape brand achieve record sales of about US$6.5 million in Michigan alone during the month of February—a feat that represents nearly 28% of the state’s market share according to data from the Michigan Marijuana Regulatory Agency (MRA).
Now the company is set to launch its new High Times product in Michigan, with the aim to accelerate towards a full launch that will include over 50 dispensaries to carry the product. In addition to multiple strains of packaged flower already released, the line will bring pre-rolls, vapes and edibles in a number of varieties.
Long-standing industry publication High Times is also gearing up for the Michigan Cannabis Cup, which has been featured in multiple stories and on air, including through FOX 2 Detroit and Michigan Live.