$20M Medical Marijuana Plant Proposed For Kingsley

[+Malamute]

I have a lot of friends in other marijuana states. Most residents do not use dispensaries at all.

 

If they have growing, there is absolutely no need to go to retail. It is everywhere.

 

Heck, just buy from the people standing outside the dispensary selling for cheaper. ;-p

 

Hahaha,...

 

Most of the quoting i see being done comes directly from corporate marijuana sources who wish to show major favourability to investors or potential corporate buyers.

 

One must remember they lie.

[GregS]

Greg, the scenario I suggested above represents a classic retail business, the numbers are complete.   As a retail store, i.e. Dispensary, you buy a product ($1000/#) and then hopefully sell it at twice($2,000/#) what you paid for it.  The Difference between product cost and retail sale/revenue is your gross profit ($1,000/#).  Your rent, taxes (other than sales and excise), labor, energy, advertising, overhead, all costs come out of the gross profit.  With regards to the wholesale side, "the grower", he/she/it gets $700/lb for their product.  They pay for their labor, rent, equipment, supplies, utilities, taxes, fees, etc out of that $700 and whatever is leftover is their profit.

 

The only assumptions are the $700/lb and the cost of transport and testing.  The $300/lb guesstimate for testing and transport is hopefully an educated guess.   Testing currently seems to run $30/sample currently for a caregiver on an individual basis.  Given a commercial size operation I would guess testing costs should come down.  What should transport of a pound cost? $100?  Ok, 100 for testing, 100 to ship grower to lab, 100 lab to dispensary.   The $700/# wholesale figure comes from the seminars currently being held around the country for future industrial size growers.   Experienced industrial size growers are advising new startups to plan for sales at the $700/lb level.    Currently spot market prices you are currently seeing out of Colorado are currently running twice that, i.e. 1,200-1,400/lb, but they are projected to come down to $700 with a possible floor at $500 if greenhouse growing takes hold and interstate commerce is allowed.  

 

Understand, the above is not an immediate picture of the market come early 2018.  What I have laid out is a projection of what the market will evolve to in say 3 years of commercialization.  The point of this exercise was to respond to the question of what the financial future might hold for a caregiver.  If a caregiver is currently getting their patients to pay them $200/z, I think it is reasonable to consider that their revenue stream may drop drastically over the next 4 years.  

It will be interesting to see how well we can compete. A spot check on Leafy shows an average Colorado dispensary price in the $250.00/oz range, with a high of $300.00. There is every reason to think that caregivers can compete with that. Colorado has, from what I have heard, a black market for medical mj that is doing well. It is possible now to buy it for $160.00 from a caregiver or a black market seller here. That is not to say that dispensaries will not shave costs and drop their prices in the next few years, but I will be surprised to see them competitive with caregivers. We do not have the economies of scale, but we do not have the regulatory and tax burden. Opening it up to interstate commerce would require federal control under the Commerce Clause. Is that expected to complicate matters? Are commercial growers able to produce the kind of quality that designer dope delivers? Wildcatters and cannabandos have historically produced the best, much like the best tomatoes come from home gardens, and not from agribusiness.

 

Cannabando (kah-neh-ban'-doh)

 

n. pl. cannabandos or cannabandoes

 

1. An elite resident of the State of Michigan who qualifies to use cannabis for medically necessary purposes, but declines the protections afforded in §4 of The Michigan Medical Marihuana Act, and instead enjoys the sparser requirements and the extensive protections found in §8 of that same law.

 

2. (a member of) a unit of geurilla growers specially trained for tasks requiring special courage and skill.

 

3. (modifier) denoting or relating to a cannabando or force of cannabandoes: a cannabando raid or a cannabando unit.

 

v. To go cannabando, i.e., with only the barest requirements.

Edited March 6, 2017 by GregS

[semicaregiver]

I do not disagree with Mal or Greg.  My projection was in response to the question of "what is the potential for a caregiver here in MI to earn income going forward?"  As Mal pointed out most caregivers are serving just 2 patients, this is more like sharing costs as opposed to income.   The potential for income that one might live on is more in the realm of being a "craft" grower which may or may not be in the final draft of the MPP initiative.  

 

Is the $700/z wholesale price real?   Not sure why one would try to discredit the messengers.   This is a number that is being discussed in the various business seminars for people looking to open a commercial grow op.    The people proposing these $ are people who are interesting in signing up seminar attendees.  Seems a low potential revenue number would discourage folks from considering the business and hence hurt signups for their seminars.

[Restorium2]

Ahhh, dreams. Is it the dispensary people running these seminars? 

I was going to quote the same line out of that post. It's exactly like a timeshare sales pitch. 

[GregS]

I do not disagree with Mal or Greg.  My projection was in response to the question of "what is the potential for a caregiver here in MI to earn income going forward?"  As Mal pointed out most caregivers are serving just 2 patients, this is more like sharing costs as opposed to income.   The potential for income that one might live on is more in the realm of being a "craft" grower which may or may not be in the final draft of the MPP initiative.  

 

Is the $700/z wholesale price real?   Not sure why one would try to discredit the messengers.   This is a number that is being discussed in the various business seminars for people looking to open a commercial grow op.    The people proposing these $ are people who are interesting in signing up seminar attendees.  Seems a low potential revenue number would discourage folks from considehjring the business and hence hurt signups for their seminars.

Have these nunbers been proven? I have not seen them in practice.

[Jjamh]

Those numbers are not even close enough to make an educated comparison.

[semicaregiver]

Those numbers are not even close enough to make an educated comparison.

 

Have these nunbers been proven? I have not seen them in practice.

 

No the current #'s seem to be almost twice the 700 at 1400.   The people making the projections are involved in the large commercial grows out of Colorado and they are advising people planning new facilities to build their financial model based on the wholesale price dropping dramatically to 700.   Is it realistic?   I think so given large user energy deals, i.e. time of day demand pricing, nutrient formulations where your use is large enough that your nutrients are assembled onsite from raw materials, and high efficiency environmental systems to control heat and humidity for optimum yield.   Will this yield the the quality of mj preferred by Mal and others on here, probably not, but it will set a benchmark price that the marketplace will respond to.  

[Jjamh]

Nope

[mibrains]

can someone correct me if i am wrong here...(like i even need to ask around here)

 

I thought it was never illegal to sell cannabis in Michigan?  for some reason i am thinking it is about the transfer of cannabis and if caught won't you be charged with manufacture or distribution but not sales? and that sales only go to prove distribution?

 

also i thought MIsupreme in McQueen said that to receive compensation from connected patient is not a sale...but goes on to explain it does not matter really because P2P transfers are not allowed and the point is that you can not transfer cannabis to someone your not directly connected to through the registry or you are violating distribution...they specifically said with or without remuneration.. so would that not negate any argument about sales?

 

it became a section 8 defense case only on that day to transfer cannabis to anyone in Michigan whom you are not connected to through LARA with or without remuneration.

 

i think it also go on to say that properly registered patients are protected to procure cannabis from any source?

 

so a properly carded patient should not distribute any cannabis or you may face charges...however feel safe to acquire your cannabis from anyone, anywhere at the best possible price and scenario that works for you and your condition.

[Restorium2]

Doesn't hurt to go back over the old stuff. Seems like a lot of people missed it. Then you have dispensaries warping reality all around to get some people to sell to them. Making them think that it is safe but no other sales are. A dispensary is the least safe place to sell your overages. You might as well be selling it straight to law enforcement when you sell to a dispensary. It's like selling marijuana on a reality show with real cops watching. They can just sit there eating donuts and watching the camera waiting for a big fish to enter the screen. 

[GregS]

can someone correct me if i am wrong here...(like i even need to ask around here)

 

I thought it was never illegal to sell cannabis in Michigan?  for some reason i am thinking it is about the transfer of cannabis and if caught won't you be charged with manufacture or distribution but not sales? and that sales only go to prove distribution?

 

also i thought MIsupreme in McQueen said that to receive compensation from connected patient is not a sale...but goes on to explain it does not matter really because P2P transfers are not allowed and the point is that you can not transfer cannabis to someone your not directly connected to through the registry or you are violating distribution...they specifically said with or without remuneration.. so would that not negate any argument about sales?

 

it became a section 8 defense case only on that day to transfer cannabis to anyone in Michigan whom you are not connected to through LARA with or without remuneration.

 

i think it also go on to say that properly registered patients are protected to procure cannabis from any source?

 

so a properly carded patient should not distribute any cannabis or you may face charges...however feel safe to acquire your cannabis from anyone, anywhere at the best possible price and scenario that works for you and your condition.

If you can find something to back up your claims, let's hear it. Speculation does not work. Reading the decision in McQueen would be a real plus.

 

Per the MMA, Sec. 3(h) "Medical use of marihuana" means the acquisition, possession, cultivation, manufacture, extraction, use, internal possession, delivery, transfer, or transportation of marihuana, marihuana-infused products, or paraphernalia relating to the administration of marihuana to treat or alleviate a registered qualifying patient's debilitating medical condition or symptoms associated with the debilitating medical condition.

 

Sales addressed in McQueen were decided with this definition at issue. Receiving compensation from a connected patient was ruled a sale, and legal. Screw the donation hooey. The Supreme Court wrote, "Contrary to the conclusion of the Court of Appeals, the definition of "medical use" in the MMMA includes the sale of marijuana." and, "The term “medical use,” as defined in § 3(e) of the Michigan Medical Marihuana Act (MMMA), MCL 333.26423(e), encompasses the sale of marijuana “to treat or alleviate a registered qualifying patient’s debilitating medical condition or symptoms associated with the debilitating medical condition.”"

 

Per sec. 8(a)(3), the Affirmative Defense: The patient and the patient's primary caregiver, if any, were engaged in the acquisition, possession, cultivation, manufacture, use, delivery, transfer, or transportation of marihuana or paraphernalia relating to the use of marihuana to treat or alleviate the patient's serious or debilitating medical condition or symptoms of the patient's serious or debilitating medical condition.

 

Subsequently, sales between designated caregivers and patients without connection through the registry are protected from conviction. So long as a patient or caregiver can provide prima facie proof of of a caregiver designation and sec. 8 elements, or other evidence can be proved establishing the same, that patient and/or that caregiver are to have charges dismissed if they land in court. Any patient, properly carded or not, can act as caregiver, properly carded or not, to any other patient, properly carded or not, and sales can ensue.

 

http://michiganmedicalmarijuana.org/blog/584/entry-1192-doubling-down-on-protection-from-conviction/

Edited March 8, 2017 by GregS

[GregS]

Yeah but just proves that lots of people believe it's illegal for caregivers to sell weed.

It is time then to disabuse those people from that mistaken belief.

[keyring86]

It is time then to disabuse those people from that mistaken belief.

Oh you guys are doing a fine job of that lol

[GregS]

Oh you guys are doing a fine job of that lol

How is it then you did not know a few short days ago? I guess we can't expect you to help spread the word then?

[keyring86]

How is it then you did not know a few short days ago? I guess we can't expect you to help spread the word then?

So that I can go back and forth with more people? No thanks

[GregS]

So that I can go back and forth with more people? No thanks

You're no fun.

[keyring86]

You're no fun.

Nope not at all. I have a husband to argue with.

[Restorium2]

[bobandtorey]

KINGSLEY, MI - Those who would like to see a $20 million medical marijuana plant come to the village of Kingsley have cleared their first hurdle.

The Northern Michigan village's Downtown Development Authority unanimously voted to support the project at its meeting before more than 100 people on Wednesday, March 8.

 

$20M medical marijuana facility proposed in Northern Michigan

TheraCann USA Benchmark recently presented its plans to Kingsley's Downtown Development Authority.

 

The symbolic vote does not mean the project is approved. It simply means TheraCann USA Benchmark, whose parent company is Calgary-based TheraCann International, has the support of the DDA when it makes its likely proposal to the village council and planning commission.

"When we looked at all of it in a holistic view, we thought from a DDA perspective, which is economics, development and inviting jobs and growth, it might be a good fit," said DDA board member Marc McKellar II.

 

Read more here

 

http://www.mlive.com/news/grand-rapids/index.ssf/2017/03/dda_approval_is_first_step_in.html