OFFICIAL TRADE JOURNAL OF THE MICHIGAN CANNABIS INDUSTRY ASSOCIATION
Founding (420) Fathers
Team behind Carbidex find success with Franklin Fields and Sweet Justice
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12 COVER
FOUNDING (420) FATHERS
Team behind Carbidex find success with Franklin Fields and Sweet Justice brands
By Wensdy Von Buskirk
20 WHAT’S NEXT FOR INTOXICATING HEMP?
Loophole products are raising safety concerns and prompting regulatory and legislative changes By
Patrick Dunn
24 MCT OIL TESTING IS HERE
Here’s what you need to know about Michigan’s new testing requirement for vapes By
Patrick Dunn
Lawyer Doug Mains weighs in on
Kathy Gibbons
Leah Spokojny, BDSA’s CRO, explains how cannabis businesses can benefit from
By Charlie Duerr
36
A
44
The MiCIA held the signature Summer
and Chronic Cup at Shanty Creek Resort in Bellaire
Crunching the Numbers
MICHIGAN CANNABIS INDUSTRY ASSOCIATION
AMichigan’s adult-use cannabis industry: Since retailers officially opened for business in December 2019, sales have skyrocketed. Today, adult-use cannabis is a multibillion-dollar industry; in 2024 alone, sales through October totaled more than $2.7 billion. Of course, our young industry continues to experience growing pains. The average retail price of adult-use flower has plummeted from $516.21 per ounce in December 2019 to $73.99 per ounce in October 2024. You’ll find more stats that show how the industry has grown and changed on page 36.
Numbers like these are more than interesting conversation starters. Data — a broad term that could include all kinds of information — is a powerful tool for any field, and the cannabis industry is no exception. Take it from Leah Spokojny, the chief revenue officer at BDSA, a Colorado-based data analytics firm. BDSA collects cannabis sales data that can provide valuable insights into consumer preferences, pricing, and trends. We spoke with Spokojny (page 32) to learn more about the role of data in the cannabis industry, trends she’s seeing, and the potential of artificial intelligence in this space.
Outside the retail stores, a lot has been
ANDREW DRIVER
CHAIR
Driven Grow
MARK PASSERINI
VICE CHAIR Om of Medicine
DAVE KRAMER
TREASURER
Driven Grow
RAYMOND ABRO
JARS Cannabis
happening on the legislative front recently. As
happening on the legislative front recently. As always, our lead lobbyist, Kevin A. McKinney, has sage advice about getting to know your legislators (page 10), especially now that there are some new faces at various levels postelection. We also connected with lawyer Doug Mains (page 28), who has extensive experience drafting cannabis-related legislation, to learn about the effort to merge the Medical Marihuana Facilities Licensing Act with the Michigan Regulation and Taxation of Marihuana Act.
As always, I like to shine a light on licensees who are doing things the right way in our industry and experiencing success. I’m pleased to feature Lansing-based Carbidex, the company behind Franklin Fields and The Botanical Co., on the cover this issue. The team at Carbidex has found success with unique branding, highquality products, and a processing partnership in the beverage space. You can read more about the company starting on page 12.
Best wishes for a happy and successful new year!
FOLLOW
MiCIA STAFF
ROBIN SCHNEIDER
Executive Director robin@micia.org
KENZIE TERPSTRA
Membership Coordinator kenzie@micia.org
MICHAEL J. PATTWELL
Corporation Legal Counsel mpattwell@clarkhill.com
KEVIN A. MCKINNEY Lobbyist kevin@mckinneyandassociates.net
For membership inquiries, email info@micia.org PUBLISHING
Robin Schneider, Executive Director
JEVIN WEYENBERG
Lake Effect
SAM USMAN PG Group
ALEX ADAMS
Cambium Analytica
CALVIN JOHNSON Primitiv
JERRY MILLEN
The Greenhouse of Walled Lake
NICK AGRO High Level Health
GEORGE LYNCH Green Stem and Simplicity Farms
MIKE DILAURA House of Dank
BOB LANDAAL Total Health Collective
JACOB FEIN Tend.Harvest.Cultivate.
GENERAL MANAGER
Ed Peabody
MANAGING EDITOR Emily Doran
SPECIAL PROJECTS EDITOR Olivia Sedlacek
ART DIRECTOR
Mike Wagester
PRODUCTION MANAGER
Crystal Nelson
SENIOR PRODUCTION ARTIST
Stephanie Daniel
PRODUCTION COORDINATOR
Amanda Kozlowski
ADVERTISING ACCOUNT EXECUTIVES
Cynthia Barnhart, Karli Brown, Donna Kassab, Mary Pantely
CONTRIBUTORS
Charlie Duerr, Patrick Dunn, Kathy Gibbons, Philip Hutchinson, Kevin A. McKinney, Wensdy Von Buskirk
Robin Schneider
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Get to Know Your Legislators
Building relationships with your policymakers is as important as ever
By Kevin A. McKinney
One of the most important points I continue to emphasize in this column is the value of engaging with your elected officials at all levels of government. This would extend to engaging with their respective staff and other key personnel, too. This is a simple but smart business strategy for any cannabis licensee, especially in such a highly competitive and heavily regulated industry. Policymakers at all levels of government — local, county, state, and federal — can have a significant impact on your current and future business operations. They make and shape policy by enacting statutes, by influencing the administrative rules process, and in other ways. Policymakers also control governmental budgets and can impact certain behaviors and outcomes through the appropriations process.
One of the basic building blocks of fostering these critical relationships is to know if the elected officials’ positions and values line up with your business objectives. Having cannabis-friendly legislators who are open to helping the industry grow and thrive is a much easier starting point than trying to change long-held values or even mispercep-
tions that are not helpful to the industry or the consumer.
That is why it is so important that the MiCIA always surveys candidates on key cannabis and regulatory issues and not only shares those results with members but also opens them up to the public at large. As we reported in the last issue of MiCIA Magazine, the MiCIA sent a survey to all the 2024 candidates for the Michigan House of Representatives and U.S Congress to gauge their stances on key cannabis-related issues. Most of the candidates who participated earned at least a B, and the MiCIA posted the complete scorecards at micia.org/election-scorecards Credit goes to the MiCIA staff for publishing the scorecards in a timely fashion so that voters could have this information before turning in their absentee ballots or going to the polls. In keeping with that focus on simply educating voters, the MiCIA purposely did not endorse any candidate and did not suggest any campaign contributions. Now that the election is over, those scorecards can serve as a foundation for you to engage with and educate your new representatives.
Kevin A. McKinney
it remains so important that you build that relationship in your district so we can boost levels of engagement with policymakers. It is also important for the MiCIA to remain politically visible, which adds credibility to the association and the industry. As the industry continues to mature, it remains strategic for the MiCIA to collaborate with its members to position the industry well in the eyes of both the public and policymakers. The survey will only become more sophisticated and effective in years to come.
Most candidates receive dozens of organizations’ questionnaires and surveys, but many do not fill them out if the sending organization or the surveyed issues do not seem relevant to the district. That is why
relevant to the district. That is why
While neither I nor the MiCIA team expects you to be experts in the legislative and political arenas, your valued and trusted relationships with your own policymakers help us help you — a lot. If you have any questions or need assistance with gaining access to your elected officials, you can always reach me by email at kevin@mckinneyandassociates. net. Thank you for your interest in a better Michigan.
KevinA.McKinneyistheleadlobbyistfor the MiCIA
Founding (420) Fathers
Team behind Carbidex find success with Franklin Fields and Sweet Justice brands
BY WENSDY VON BUSKIRK
OAccording to Carbidex CEO Russell Chambers, the company introduced the image about a year and a half earlier, and it’s been a hit. Franklin appears on packaging, clothing, and signage, along with the car, which serves as a rolling billboard. “He’s really fun to work with,” Chambers says. “It’s been really good for us.”
Franklin has become a differentiator for Carbidex as it carves out its corner of Michigan’s crowded cannabis market. The company also has set itself apart with Sweet Justice, an expanding line of cannabis beverages.
ne of the first things I see when I pull into the parking lot of Carbidex’s headquarters in Lansing is a vehicle wrapped in psychedelic graphics of Benjamin Franklin smoking a pre-roll. The image of the Founding Father — red eyes peering from behind his trademark round spectacles, smoke curling from the blunt he holds between his teeth — has become a recognizable symbol of Franklin Fields, one of Carbidex’s three cannabis-related brands. It’s a play on the company’s name as well as the fact that Franklin is said to have printed on hemp paper.
I arrive at Carbidex’s 40,000-square-foot headquarters on a beautiful summer day. The building, tucked in an industrial park just off Grand River Avenue, houses the paper.
As the cannabis industry shakes out, Carbidex is focusing on what it does best and pulling back from aggressive expansion to pursue measured growth. I am taking a tour to learn what’s new with the company and the plan for its future.
INSIDE THE DISPENSARY
company’s vertically integrated divisions: Franklin Fields, Franklin Fields Processing, and The Botanical Co.
I enter through The Botanical Co. dispensary, where, after signing in, I am greeted by a huge mural of cannabis colas in swirling greens and purples. Over the painting’s orange and yellow sky, a flatscreen TV live streams the grow rooms so customers can glimpse the tidy rows of plants growing, their leaves blowing under big fans mounted on the wall.
The modern dispensary is packed with the company’s signature Franklin Fields vape carts, pre-rolls, and prepackaged flower, along with products from other brands like Wyld, 517 Premier, and Rove. A refrigerator is stacked with colorful cans of the company’s Sweet Justice THC-infused sodas.
I, like many, gravitate to the counter where fresh loose flower is kept in stainless steel CVault containers to be measured out and sold deli-style. Assistant General Manager Brayla Garrett retrieves Orange Zkittlez and unlatches the lid to reveal perfectly uniform buds. She invites me to lean into the citrus scent. Other containers are labeled with names like Klumps, Chemistry, First Class Funk, and Zack’s Cake, all grown on-site. “People prefer more bulk flower versus prepack,” Garrett says.
As we chat, Chambers, Chief Operating Officer Matthew Mooney, and Director of Quality and Processing Shelby Hooper come to take me to see how the flower is grown and processed to end up here on the dispensary shelves.
BEHIND THE SCENES
I am ushered past corporate offices, a break room, and locker rooms to the 36,000-square-foot grow area, which has 26,000 square feet of canopy. The trio shows me the veg room, where mother plants are lined up on platforms as their baby cuttings huddle in humidity tents nearby. Then, they open the doors to their various flower rooms, where the plants grow under high-pressure sodium lights (at press time, Carbidex was working on applying for a grant to fund the conversion to LED lights).
The team shows me the state-of-the-art watering and fertigation equipment they’ve
installed to streamline processes and trim labor costs.
“From where we were to where we are now is leaps and bounds,” Chambers says.
One place where they won’t skimp is the trim room, where 10 employees work five days a week.
“We pride ourselves on hand-trimming everything we do,” Chambers says.
Before our tour is over, I’ve learned about the solventless processing used to produce bubble hash and rosin. I’ve seen the ethanol extraction lab, where the team extracts crude oil and then uses short-path distillation to purify it further. Hooper holds up a glass jar of amber-colored oil to the light. “Liquid gold,” she calls it.
We pass a room where employee Kevin Dault works to fill cones.
Spritzer Cola
“Two years ago, we were a footnote. Now, we’re in places where people ask for our products and dispensaries are wanting us in their stores. It feels good.”
—Matthew Mooney,
Carbidex
Russell Chambers
Matthew Mooney
Shelby Hooper
We focus on the kind of growth that doesn’t come from a seed.
Focused on your next move. Cannabis. It’s complicated. It’s capital intense. And it’s highly regulated. To focus on growing your company, you need a financial partner who understands state requirements, compliance issues and the unique landscape of the industry. As longtime members of the MiCIA, Maner Costerisan’s team of experts helps dispensaries, processors, secure transporters and cultivators across the state achieve their goals.
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“He’s one of our gurus on the Knockbox,” Hooper says. “He can make 8,000 pre-rolls by himself in one day.”
Frosted Frankies, pre-rolls painted in distillate and frosted in THCA, are one of the company’s most popular products.
“It is not an exaggeration when I say the second they are done they are literally gone,” Hooper says. “We can’t keep up.”
SWEET JUSTICE
Another up-and-coming product is the line of THC-infused sodas. According to a July 2024 report by Fortune Business Insights, the global cannabis beverage industry is expected to grow from $3 billion in 2024 to $117 billion by 2032, a compound annual growth rate of nearly 58%. Carbidex is carving out its share of this exploding market by partnering with the Canadian cannabis beverage company Sweet Justice to bring that brand to Michigan.
THC beverages may be popular in part because they make it easy to control dosing. “It takes about 10 to 15 minutes to kick in and lasts about one hour,” Hooper says. “We have customers who have stopped drinking alcohol and switched over to these. There’s no hangover.”
Each can of the nano-emulsified beverage contains 10 milligrams of THC, and there are six flavors available: OG Cola, Cherry Cola, Elderberry Pom, Pacific Island Punch, OG Ginger Ale, and Cranberry Ginger Ale. New OG Cola Zero is coming soon.
To produce beverages commercially, Carbidex’s lab earned Good Manufacturing Practice certification from the U.S. Food and Drug Administration, credentials it took a year to obtain. The company also partners with Forty Acres House of Cannabis to process its products.
ENTREPRENEURIAL DUO
Carbidex grew out of a longtime working relationship that began when Chambers hired Mooney as vice president of field operations for his facilities management company, Go Greener. When medical cannabis was legalized in Michigan in 2008, Mooney began to cultivate. Along the way, Chambers got involved, and they began a dual-caregiver grow. When voters approved adult-use cannabis in Michigan in 2018, the pair jumped at the opportunity,
Top: Cannabis plants grow tall at Franklin Fields. Above: Sweet Justice beverages move along the canning line.
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“We slept in our office a couple nights getting the paperwork ready,” Chambers says.
From there came brisk expansion. Within the next five years, they opened four dispensaries, launched growing and processing, and hired around 100 employees. “It was challenging but fun,” Mooney says.
As prices fell and competition increased, they were forced to close underperforming dispensaries in Tawas and Kalkaska and cut back to 76 employees.
“It wasn’t the cash flow we were hoping for and expecting when we got into it,” Mooney says. “Now, we’re focused on slow growth. We put the cart before the horse for a while. Our end goal is to have more dispensaries in the right locations and be more strategic about it.”
LOOKING AHEAD
Even as the company stabilizes, Carbidex
“We’re focused on slow growth. We put the cart before the horse for a while. Our end goal is to have more dispensaries in the right locations and be more strategic about it.”
—Matthew Mooney, Carbidex
puts advocacy first. Over the past year alone, the company has donated nearly $25,000 to support organizations such as The Redemption Foundation’s Commissary Program, the Great Lakes Expungement Network, and Sons & Daughters United.
Chambers and his team continue to forge relationships with other organizations and dispensaries across the state. Currently, their products are sold at 250 retailers in Michigan, and Customer Success Manager Missy Jekel is always driving around in the Franklin Fields car looking to add to that list. Watch for Benjamin Franklin’s likeness
on a road near you.
“Two years ago, we were a footnote. Now, we’re in places where people ask for our products and dispensaries are wanting us in their stores,” Mooney says. “It feels good.”
CARBIDEX OVERVIEW
Headquartered in Lansing, Carbidex encompasses three cannabis-related brands and has two processing partners:
Franklin Fields — Cannabis cultivation
Franklin Fields Processing — Extraction and manufacturing
The Botanical Co. — Retail dispensaries in Lansing and Middleville
Processing Partners — Sweet Justice and Forty Acres House of Cannabis
Carbidex donates to multiple organizations, including The Redemption Foundation’s Commissary Program.
The loosening of federal hemp policy — and the lack of regulation for intoxicating hemp products in most states — has prompted an increase in intoxicating hemp products on the market.
What’s Next for Intoxicating Hemp?
Loophole products are raising safety concerns and prompting regulatory and legislative changes
BY PATRICK DUNN
While intoxicating cannabinoids and nonintoxicating hemp products are both carefully regulated under federal and state laws, regulatory gray areas have led to a rise in intoxicating hemp sales and prompted rapid action to promote consumer safety in some states. This past September, California Gov. Gavin Newsom announced emergency regulations requiring hemp products intended for human ingestion to have no detectable THC, and New Jersey Gov. Phil Murphy signed a law prohibiting the sale of consumable products with detectable THC to anyone under 21. In Michigan, the Cannabis Regulatory Agency has proposed a rule that would prohibit the conversion of one cannabinoid into another using a chemical reaction. The rule additionally would ban the sale and transfer of marijuana containing any cannabinoids produced this way and would require such marijuana’s disposal.
As Michigan, other states, and the federal government work to respond to this situation, here’s what you need to know about intoxicating hemp and the policy challenges surrounding it.
CAN UNREGULATED HEMP PRODUCTS BE A PUBLIC HEALTH HAZARD?
David Harns, public relations manager for the CRA, says intoxicating hemp products are often created by converting CBD to an intoxicating cannabinoid through a chemical synthesis process. He says many intoxicating hemp vendors tout the chemical synthesis process as “safe” but that their products may not be created by trained chemists or be properly tested.
“Pharmaceutical drugs undergo a rigorous screening and testing process that works to identify all products created during chemical synthesis as well as all byproducts,” he says. “Once identified, these chemical constituents
are assessed for toxicity and potential harm to humans. This level of review and care is not being performed in the intoxicating hemp space, as far as we have been made aware.”
WHY HAVE INTOXICATING HEMP PRODUCTS BECOME MORE
PREVALENT?
The rise of intoxicating hemp products is largely an unintended consequence of a groundbreaking change in the federal 2018 Farm Bill: the removal of hemp from Schedule I of the Controlled Substances Act and the legalization of hemp production. Hemp generally is not supposed to be intoxicating or contain significant levels of THC, and the Farm Bill indeed required that it contain no more than 0.3% THC to be considered hemp. However, the loosening of federal hemp policy — and the lack of regulation for intoxicating hemp products in most states — has prompted an increase in intoxicating hemp products on the market.
“It was not the intent of Congress to create this market,” says Sam Rodriguez, a consultant and policy and media adviser working with Good Farmers Great Neighbors, a group of cannabis farmers based in Santa Barbara County, California. “Therefore, [intoxicating hemp producers] are performing in an unregulated market, and one can basically say that is an unlawful activity and behavior driven by making money rather than bringing a tested, regulated product to consumers.”
Harns says the lack of regulation for these products adds to the safety concerns about them. “There is no oversight during the creation and production of these products, which means that they may be contaminated with unknown substances or otherwise be mislabeled,” he says. “Additionally, due to the lack of oversight on these products, they are widely available and may not be subject to any type of appropriate age-gating to keep them out of the hands of the youth.”
HOW IS MICHIGAN HANDLING INTOXICATING HEMP?
In the CRA’s public meeting on Sept. 11, 2024, CRA Executive Director Brian Hanna reiterated that the agency’s “proposed rules would prohibit the conversion of CBD to THC.” At the time of the meeting, the CRA had requested an expedited governmental review of those rules.
“The CRA continues to advocate at the state and federal levels to address loopholes that allow hemp-derived products to flood the market here in Michigan and across the United States,” Hanna said, adding that “as always, we are committed to making deliberate, well-informed decisions that protect consumer safety.”
On Nov. 25, the CRA released its draft rules for public review, and they do indeed contain language to ban the conversion of a cannabinoid into another via chemical reaction and to prohibit licensees from transferring or selling marijuana containing cannabinoids derived this way. Under the revised rules, cannabis businesses would have to dispose of marijuana containing converted cannabinoids as well.
Beyond the proposed rules, Harns says the
CRA is also “actively working with lawmakers to update our laws and rules to prohibit sales of intoxicating products outside of the regulated marijuana industry.”
“Additionally, we are in the process of building our reference laboratory and working with scientists across the nation and across the industry to validate test methods designed to detect the presence of the synthetic/semisynthetic intoxicating cannabinoids in hemp,” he says.
COULD MICHIGAN FOLLOW OTHER STATES’ EXAMPLES ON INTOXICATING HEMP?
While the Michigan Legislature could, like New Jersey’s, pass new laws regulating intoxicating hemp, Newsom’s executive action presents another potential path. The California State Assembly had sought to regulate intoxicating hemp through Assembly Bill 2223, but the bill died in committee. That was a matter of weeks before Newsom announced California’s new emergency rules.
“We’ve always viewed ourselves, whatever the federal law is, that we as a state have the authority, the jurisdiction, and the political will to incorporate higher standards to protect
“Our goal is for Michigan to have the most effective long-term framework for regulating intoxicating products and protecting Michigan consumers.”
—David Harns, PR manager for the CRA
consumers,” Rodriguez says. “We’ve done that on climate change, and now we’re doing that on the unregulated THC hemp market.”
Rodriguez says Newsom acted out of pressing concern for public safety, responding to growing pressure from public health experts and the widespread availability of intoxicating hemp products in California.
“What compels governors as well as legislators is the possibility of something going really wrong and a child or a regular consumer over the age of 21 consuming these products, falling sick, and having a fatality,” Rodriguez says. “No one wants to be a policymaker and have that happen under their watch.”
Harns says CRA staff are “reviewing what was done in California and are working to assess all our options for moving forward.”
“Our goal is for Michigan to have the most effective long-term framework for regulating intoxicating products and protecting Michigan consumers,” he says.
COULD FEDERAL POLICY RESOLVE THE ISSUE?
The draft 2024 Farm Bill includes an amendment proposed by Rep. Mary Miller, R-Illinois, which would change the definition of hemp to
Sam Rodriguez
David Harns
include only “naturally occurring, naturally derived, and nonintoxicating cannabinoids.” Rodriguez says he thinks consensus has consolidated in support of the amendment in the U.S. House.
“There may be a concurrent process here, where states once again are taking the lead and regulating this untested, unregulated product,” he says. “And then … Congress may pass a Farm Bill, signed by the president, that will also include a fix.”
Although questions remain on the future of both state and federal policy surrounding intoxicating hemp, Rodriguez seems confident that the current Wild-Wild-West era of intoxicating hemp sales is drawing to a close.
“It was not the intention of the Congress to create an unregulated, THC, intoxicating hemp market,” he says. “This was specifically for industrial hemp, for fibers, for feed and other industrial purposes. … Unintentional consequences, therefore, have to be fixed in the 2024 Farm Bill.”
CRA Executive Director Brian Hanna California Gov. Gavin Newsom
New Jersey Gov. Phil Murphy
MCT Oil Testing Is Here
Here’s what you need to know about Michigan’s new testing requirement for vapes
BY PATRICK DUNN
On Oct. 1, Michigan’s Cannabis Regulatory Agency began requiring cannabis vape cartridges to be tested for MCT (medium-chain triglyceride) oil. The oil, sometimes used to dilute cannabis oil in vape cartridges, has been linked to lung illness.
“From a public health and safety standpoint, the potential for adverse effects with MCT oil underscores the importance of safety guidelines for product development,” said CRA Executive Director Brian Hanna in a press release issued three months before the new requirement took effect. “Michigan’s licensed marijuana businesses must prioritize respiratory safety when formulating or using inhalable products, opting for ingredients that have been thoroughly evaluated for their compatibility with lung health.”
The new requirement raises several important questions for Michigan licensees. Here’s what you need to know about MCT oil, its health effects, its use in vape products, and how the new requirement may affect the industry.
“From a public health and safety standpoint, the potential for adverse effects with MCT oil underscores the importance of safety guidelines for product development.”
—CRA Executive Director Brian Hanna
WHAT IS MCT OIL, AND WHY IS IT A PROBLEM?
MCT oil contains fats known as medium-chain triglycerides and is usually derived from coconut or palm oil. It is safe to eat and is used in some food products and nutritional supplements. However, health concerns arise when the oil is aerosolized and inhaled. Studies show that aerosolized MCT oil leaves deposits in the respiratory tract, where they may cause inflammation and lung damage. Oregon banned MCT oil in cannabis products intended for inhalation in 2020, as did Colorado in 2021.
MCT oil’s presence in some vape cartridges drew fresh attention in Michigan earlier this year as a result of tests conducted by Infinite Chemical Analysis Labs, which has a location in Jackson, Michigan. Josh Swider, the lab’s co-founder and CEO, says he and his colleagues noticed declining percentages of cannabinoids in many vape cartridges and decided to examine what other substances were making up the difference. More than 30% of the cartridges they tested contained MCT oil, synthetically converted cannabis oil, or pesticides. Swider says the tests revealed many diluents, or diluting agents, in the cartridges, but MCT oil was the most common.
Swider notes that it’s not yet known if, or how much, aerosolized MCT oil can be safely inhaled, but he thinks it’s important to err on the side of caution.
“I’d rather the public be safe when consuming a cannabis product, or any product, and to do the studies that way,” he says. “Don’t prove something to be unsafe. Prove something to be safe.”
WHY WAS MCT OIL BEING USED IN VAPE CARTRIDGES IN MICHIGAN?
Cassin Coleman, founder of Cassin Consulting LLC and chair of the National Cannabis Industry Association’s Scientific Advisory Committee, says the production of some vape cartridges may have involved incidental MCT oil contamination as a result of MCT oil’s use in extracting terpenes from botanical products. But far more commonly, they say, producers were using MCT oil “so they [could] stretch the cannabinoids to create more product using filler.”
“For decades, people have been cutting drugs, and that’s what this is,” Coleman says.
Noting years of studies on MCT oil’s adverse effects, and the bans on it in other states, Coleman says anyone using it in vape cartridges around the time of the CRA’s announcement should have known better. Those who used it were also violating CRA requirements that inactive ingredients in cannabis products be listed on product labels and be approved by the FDA for the intended use.
“This is not news. And they’re choosing to do it anyway,” Coleman says, adding that “they just really don’t care. It’s all about the dollars.”
Josh Swider, Infinite Chemical Analysis Labs
Cassin Coleman, Cassin Consulting LLC
WHAT DOES THIS MEAN FOR LICENSEES?
For starters, retailers needed to make sure they did not have any vape cartridges containing MCT oil on their shelves by Oct. 1. Some had already begun to pull and test products of their own volition before the CRA’s announcement back in late June.
“Moving forward, this testing will take place before the retailers purchase inventory from producers, easing the burden on retailers and ensuring that the products they sell are safe,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association, in the CRA’s press release.
Coleman suggests that better supplier management protocols are in order to address similar issues in the future. While they note that the Code of Federal Regulations, Part 117, requires edible manufacturers to sample, test, and verify safety records for ingredients in their products, regulations for nonedible products like vapes are less clear. That’s despite the fact that, as Coleman says, “the harms [caused by vapes] are a little
more direct.” Coleman says self-regulation is not the answer — and is indeed what led to MCT oil’s persistent use in Michigan vape cartridges.
“We could have that requirement and we could be looking at better control over the raw materials for the vape cartridges themselves that are being used, but we don’t,” they say. “And I’ll tell you, it’s so dog-eat-dog out there right now, people aren’t trying to spend more money to have a higher-quality product. They’re just trying to survive.”
ARE OTHER NEW TESTING REQUIREMENTS COMING?
Most likely, yes. MCT oil was just one of many contaminants that Infinite Chemical Analysis Labs found in vape cartridges being sold in Michigan. Swider’s lab is now conducting additional research on 10 other contaminants found in the cartridges. He says his main motivation in studying vape contaminants is that he doesn’t want cannabis to be “seen as a negative thing.”
“I want everybody to remember that on
every pack of tobacco, it says you’re going to get cancer if you consume it,” he says. “So unless the cannabis industry wants to start putting that on their packaging, I think that’s the road we’re going down. And it’s not necessarily going to be caused by the cannabinoids and things like that, or the method of consumption. It’s going to be caused by these [contaminants].”
Coleman expresses similar sentiments. They say that as a consumer, they want to know “what the last 15% is in [their] 85% THC vape” — and other consumers have a right to know, too.
“What’s the other stuff?” Coleman says. “If we know what it is, great. If we don’t, that’s not safe for consumers. It’d be like putting a bunch of random stuff in milk and still calling it milk.”
Editor’s note: The interviews for this story were conducted before the MCT oil testing requirement went into effect on Oct. 1.
Q&A
with Lawyer Doug Mains
The prominent cannabis attorney weighs in on challenges facing the Michigan cannabis industry and what’s next
BY KATHY GIBBONS
Doug Mains has long been at the forefront of Michigan’s evolving cannabis and hemp laws. A partner in the Lansing office of the Honigman law firm, he helped draft and provided counsel for state and local ballot initiatives, including 2018’s Proposal 1, which legalized adult-use cannabis in Michigan, as well as the 2018 ballot initiative to authorize medical marijuana facilities in Pontiac. He has also been involved in the development of numerous state laws and local ordinances relating to cannabis.
In his practice, he has represented and advised clients ranging from national and international companies and trade associations to ballot question committees and individuals. In addition to helping more than 250 applicants secure state marijuana and hemp licenses in Michigan, he regularly represents clients in administrative matters before state regulatory bodies.
Michigan Lawyers Weekly included Mains in its inaugural list of “Go To Lawyers” for cannabis law this past summer. Those included are deemed to be experts in their field, have demonstrated a record of success, and tend to be lawyers to whom other attorneys refer clients because of their expertise and accomplishments.
Here, Mains responds to questions about his background and provides insights into Michigan’s cannabis industry earlier on, today, and looking forward.
WHAT LED TO YOUR SPECIALIZING IN THE CANNABIS SPACE IN MICHIGAN?
Pure luck. In 2011, just out of law school, I started working in the Michigan Legislature. Around that time, people had really begun to realize that there were significant issues with the 2008 Michigan Medical Marihuana Act and that it was causing a lot of litigation and legal confusion. The speaker of the House that I worked for at that time, Jase Bolger, decided that the Legislature needed to try and address at least some of those issues, so he asked a colleague of mine to spearhead an effort to do so. She had no interest in doing cannabis policy, so she delegated the task to me. I was able to help draft the first legislation to substantively amend the Michigan Medical Marihuana Act, as well as the earliest versions of the bills that became the Medical Marihuana Facilities Licensing Act. After I left the Legislature to go into private practice, I was lucky enough that some of the cannabis-related groups I had worked with, including the MiCIA’s predecessor, the National Patients’ Rights Association, wanted me to continue advising on legislative issues for them, and I’ve managed to turn that into a career.
WHAT APPEALS TO YOU ABOUT WORKING IN THIS SPACE?
I love that the industry is at the crossroads of law, politics, and policy, which are the areas where I cut my teeth as a young lawyer. Since the industry is still new and evolving, it can be difficult to advise clients since there are rarely black-and-white answers to their questions. Almost everything you do and any question you face is a “first” in some respect, so you are constantly setting new precedent. For me, it’s fascinating to be at the vanguard of a new industry and in a new area of law, where I can be considered a thought leader and veteran practitioner.
YOU ARE NOW INVOLVED IN LEGISLATION TO MERGE THE MEDICAL MARIHUANA FACILITIES LICENSING ACT AND THE MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT. WHAT HAS YOUR ROLE BEEN?
I have been lucky to be part of the work
group that drafted the legislation, along with state Reps. Graham Filler and Jimmie Wilson, state Sen. Jeff Irwin, MiCIA Executive Director Robin Schneider, member Ben Sobczak from law firm Dickinson Wright, and a number of others. My primary role has been in drafting the bills themselves and working with Ben to develop a transition process that makes sense and works for licensees and other stakeholders.
To me, the legislation represents a commonsense and good government approach to the industry. Because the Cannabis Regulatory Agency has allowed cannabis to be transferred between equivalent medical and adult-use licenses, we have two systems that have largely morphed into a single system. Yet licensees generally still have to obtain two sets of licenses and deal with two sets of rules and application processes, which are largely the same aside from a few fundamental differences. By statutorily combining the two systems into a single, unified regulatory regime, we remove an extraneous layer of
government oversight, make compliance easier, and save licensees money.
YOU’VE REPRESENTED A LOT OF CLIENTS IN SECURING LICENSES IN MICHIGAN. WHAT HURDLES DO THEY HAVE TO OVERCOME, AND IS IT GETTING ANY EASIER?
I give the CRA a lot of credit in how much they have streamlined the application process in the past five years or so. In the beginning, the process was entirely tedious and cumbersome. We had clients who had to submit banker’s boxes worth of financial, property, and tax records and then would receive questions regarding a $2,000 charge in their checking account from two years ago. All of that meant that the prequalification process took months and months to navigate. Now, the process is much, much easier and more efficient at the state level. Because of that, we do very little new license application work now. Most businesses who have already gone through the process understand
State Reps. Graham Filler (center) and Jimmie Wilson Jr. (right) introduce a plan to modernize Michigan’s cannabis laws.
“The legislation [to merge the MMFLA and MRTMA] represents a commonsense and good government approach to the industry. … By statutorily combining the two systems into a single, unified regulatory regime, we remove an extraneous layer of government oversight, make compliance easier, and save licensees money.”
it and can go through the application process themselves. Larger businesses and multistate operators also generally have their own licensing personnel who can navigate the process.
The other piece of licensing is at the municipal level, and that is often more difficult than state licensing. That’s because under the Michigan Regulation and Taxation of Marihuana Act, municipalities have to have some sort of competitive system in place to award licenses if they limit the number available. Most of these municipalities have detailed ordinances and scoring rubrics, so the process is very competitive and every point matters. In these municipalities, we help prepare and review application materials to make sure all of the required information is present and to strategize about how best to package and
present it for maximum scoring effect. Then, if and when litigation ensues, we also help them navigate that process.
WHAT DO YOU THINK IS NEXT FOR THIS INDUSTRY IN MICHIGAN?
Over the next few years, I think we will see the free market do what it does, and there will be contraction and consolidation in the industry. To an extent, we are already seeing this. For example, for a lot of businesses, the early strategy was to get as many retail locations as possible, regardless of the attractiveness of those locations. There were a few reasons for this strategy. First, nobody was exactly sure what municipalities would actually allow stores, so it was imperative to try and get a location in any area that did. As more communities have come online, a lot
of those locations no longer make financial sense in a way that they did three to four years ago. Second, a lot of businesses wanted a lot of stores to make them attractive for acquisition or to contemplate initial public offerings, so they sought to expand for the sake of expansion. Now, however, a lot of those locations are being abandoned or sold off because they don’t make geographic or economic sense.
I think prices will eventually stabilize but at a level that is lower than a lot of businesses planned for, so you will continue to see businesses shutter or be placed in receivership. A lot of businesses overextended themselves, thinking that “bigger is better,” and took on a lot of debt — usually at close to usurious rates — in order to extend their retail footprint or build palatial grow facilities.
Because of that, I think that there are, and will continue to be, a lot of distressed assets that can be bought up at fire-sale prices.
Third, Michigan continues to deal with the fallout from the fact that the state began awarding all license types at the same time. Early on, most businesses focused on their retail footprint, since so few municipalities had opted in to allowing stores and, as a result, those were the most difficult licenses to obtain. Consequently, the focus on cultivation was pushed off a bit, and that is part of the reason that we’ve seen so many new growers come online in the past few years.
Finally, the evolution of regulatory enforcement has also been an issue. This is still a new industry, and the vast majority of licensees want to abide by the rules and do things the correct, lawful way. However, the rules are vast and complicated, and the
CRA’s interpretation of them is evolving, so it’s difficult to always be completely compliant. Early on, enforcement was geared more towards educating licensees on expectations and how to improve compliance, but that has shifted lately to a more punitive enforcement action, where businesses are seemingly being hammered for technical missteps that aren’t made maliciously or in bad faith.
WHAT KINDS OF THINGS ARE PEOPLE GETTING CITED FOR?
There’s a little bit of a grab bag in terms of what we’re seeing. Some common ones? You periodically have to submit an annual financial statement, which is essentially a mini audit. We see a lot of people who don’t realize the first time how extensive that is and how long it takes, so they get hit with filing that late. We see a lot of violations
where a licensee sold a product placed on administrative hold or it was past its expiration date. Or simply not uploading things correctly to Metrc or having packaging that is not compliant.
What I always tell clients is that there are so many rules and they’re very technical and some are ambiguous, so if the CRA visits any facility for any amount of time, they are likely going to find some sort of violation. The key is trying to be as communicative as possible once the violation does come in and to be proactive in taking remedial actions.
It is no secret that we are living in a data-driven world. In fact, according to the World Economic Forum, an estimated 463 exabytes of data will be created globally every day by 2025. To put that number in perspective, that is the equivalent of 212,765,957 DVDs (remember those?), the WEF reports. In other words, it’s a whole lot of data. And with all that information come profound implications and opportunities for consumers and businesses alike — including those in the cannabis industry.
“Cannabis is so unique in so many ways, but it is by no means an exception to the rule of the value of investing in data to inform decision-making,” says Leah Spokojny, chief revenue officer at BDSA, a Colorado-based data analytics company that specializes in the cannabis industry.
Since 2015, BDSA has collected and analyzed a variety of consumer and market data to provide clients with actionable insights to make informed decisions when it comes to menu pricing, product selection, and meeting consumer demand. Recently, BDSA’s 2024 retail sales tracking found that Michigan’s cannabis market continued to grow while other mature markets stalled or, in some cases, even shrank. The data also revealed that in June 2024, the state had the second-lowest average retail price of flower, at $3.43 per gram.
So, with the Michigan market growing and prices dropping, we spoke to Spokojny about the power and importance of data in the cannabis industry, the role of artificial
intelligence, and much more.
This interview has been edited for length and clarity.
WHAT TYPES OF DATA DOES BDSA COLLECT?
Our core is scan data, which we call retail sales tracking, so really understanding what’s selling in dispensaries and getting visibility on trends and pricing to inform innovation, expansion, and investment pricing. We also started expanding into things like consumer insights where we understood the “why” behind the buy — what consumers really wanted and needed. We also have market forecasts; taking into account how markets grow, regulatory changes, and dozens of other factors, we forecast the next five years by state, by category, and even in-
Leah
ternationally. Finally, and more recently, we are leaning into the menu — what’s selling and where.
WHY IS THIS DATA VALUABLE FOR CANNABIS BUSINESSES?
If I am a retailer, I am spending resources, time, and energy trying to make sure that I am keeping tabs on what it is the consumer wants and what my competitors are doing. From there, you have to make a decision: What am I going to do with that information?
Data allows you to get a definitive, clear picture of that landscape, from a pricing perspective and from an assortment perspective. So, are you carrying the top products and brands that consumers are coming into your store looking for? Are you pricing them competitively? That’s both in regards to the price that you advertise on your menus, but what about after you add the three layers of discounts that you are doing? What about after you add your “buy one, get one 50% off” edibles deal or your loyalty discount?
“Cannabis is so unique in so many ways, but it is by no means an exception to the rule of the value of investing in data to inform decision-making.”
Leah Spokojny, BDSA’s chief revenue officer, explains how data can help cannabis businesses make better decisions
Spokojny, BDSA
MICHIGAN MARKET SNAPSHOT
WHERE DOES THE PRICE END UP?
Having that data in hand gives dispensaries a clear and actionable way to say, “OK, here’s what I need to be saying externally to drive people into my store, and here is what I ultimately need to be getting down to in order to be competitive on a decisionmaking, purchasing front.”
WHAT ABOUT FROM A BRAND PERSPECTIVE?
On the brand side, it’s not so different. It’s still about pricing, but it’s about wholesale pricing. It’s still about promotions, but it’s the promotions that you are running with your retailers. Instead of “What products should I be carrying on my shelf?,” it’s “What products should I be developing? What products should I be discontinuing because either there is a trend going in the
“AI allows you to better and more easily make sense of this massive landscape of data. But it does take training.”
opposite direction or I need to focus my resources on a growth category?” You can use data to quantify what those opportunities and risks are to make the best bet.
WHAT TRENDS ARE YOU SEEING BASED ON THE DATA YOU COLLECT?
We are seeing less and less about indicasativa hybrids, which we’ve known for a long time has been happening. For sure the
minor cannabinoids in the edible space; a very large chunk of the top edible brands in cannabis all have top products with minor cannabinoids in them.
An example of something we saw happen very early on was the infused pre-roll. We saw it starting in California from one brand and saw it gaining steam. People have access to data and can see this brand growing. It was undeniable where the opportunity was, so more brands started offering it and the category started growing even more. Now, nobody can deny what the size and potential of the infused pre-roll is. Just a few years ago, that was a very niche, one-brand trend.
A lot of companies are making proprietary strains and really having a lot of success down that line. A lot of times it’s blending other popular strains that have already
existed. To some degree, it is state by state, but some things you certainly start to see nationally.
WHAT ROLE DOES AI PLAY IN ALL OF THIS?
To some degree, the sky is our limit, and yet we have to recognize that AI requires a strong base of something to build off of. As it pertains to data, AI can help make sense of a ton of messy data. There are so many different data sources that you could possibly have, and so layering this data becomes a really in-depth exercise that requires advanced analytics that most small and emerging companies don’t have the resources to invest in.
AI allows you to better and more easily
make sense of this massive landscape of data. But again, it does take training. It’s not something where you press the AI button and it’s going to answer all my questions for me.
We know that there is huge opportunity, but it’s still a work in progress in what we know in terms of what it can accomplish for us.
WHAT WOULD YOU SAY TO CANNABIS BUSINESSES THAT MAY HAVE LIMITED RESOURCES TO DEVOTE TO USING DATA AS A WAY TO INFORM THEIR DECISIONS?
The reality is, data doesn’t have to be a payto-play situation. Data is everywhere. You collect data by interviewing people as they
DRAWNTO INJUSTICE
TimothyMasterswasonlyfifteenwhenhestumbledacrossthemutilatedcorpse ofPeggyHettrickinafieldonhiswaytoschool.Almostassoonasthepoliceset eyesonhim,theyweresurehewasthekiller—evenwithnothingbutacollection ofgorydrawingshe’dcreatedasateenagehorrorfanasevidence. Fortenyearstheyhoundedhim,until—withthehelpofanastoundingamount ofmisconduct—theyfinallysucceededinputtinghimbehindbars. In DrawntoInjustice,Timrecountshisjourneytoexoneratehimselfforacrime hedidn’tcommitand,intheprocess,laysbarethecorruptionthatenabledthe criminaljusticesystemtorailroadaninnocentman.
walk into your store or by utilizing the data that you get through your POS system.
I believe in it, but I don’t believe that the only place to start must be in purchasing data. You start with a data-driven culture — where can we look for data to support what it is we are trying to accomplish? As you start asking yourself those data-driven questions, you start to realize where you have gaps.
It can seem like a really scary investment to start, but when you look at the return of refining your pricing by even 5%, it’s all dollars and cents; it comes back to you. It’s an investment. It’s not a sunk cost.
At the end of the day, I believe in it. It makes business better. Any business.
he stumbled across a mutilated corpse lying in a field. For ten years, the police hounded him until – with the help of an astounding amount of misconduct – they finally succeeded in putting him behind bars. Drawn to Injustice recounts his journey to exonerate himself for a crime he didn’t commit.
BY THE NUMBERS:
Adult-Use Cannabis After 5 Years
A lot has changed since Michigan’s first recreational sales half a decade ago
The retail side of Michigan’s adult-use cannabis industry has been up and running for five years now. A lot has happened in that time, both good and bad. Sales have grown considerably since they first started in December 2019, while the average price of flower per ounce has plummeted. Here, we take a look at how the adultuse industry has changed over the past five years.
ADULT-USE PRODUCT SALES
$6,989,305.65 December
$61,559,735.14
$135,039,177.84
$208,318,037.46
$276,732,645.94
Source:
Source: The Michigan Department of Treasury
Source: Michigan’s Cannabis Regulatory Agency Active Adult-Use Licenses
JUNE 2024
The Detroit Free Press reports that more cannabis products are sold in Michigan than in California, making Michigan the largest cannabis market in the country by that metric.
As of Dec. 31, 2021: 1,189
As of Dec. 31, 2022: 1,876
As of Dec. 31, 2023: 2,170
As of Oct. 31, 2024***: 2,268
Source: Michigan’s Cannabis Regulatory Agency
Ask the Experts
PLUNKETT COONEY
5
1. WHAT HAPPENED WITH THE ANTICIPATED BALLOT PROPOSALS REGARDING CANNABIS?
QUESTIONS WITH Jeffrey M. Schroder, Partner
A
partner in Plunkett Cooney’s Bloomfield Hills office, Jeffrey M. Schroder is the firm’s expert on cannabis law and all aspects of state and local regulatory compliance.
A Michigan Court of Appeals order on Sept. 3 essentially killed a lot of ballot proposals because they were not under the Michigan Regulation and Taxation of Marihuana Act of 2018. Advocates may now only seek a cannabis ballot proposal under MRTMA, and these petitions only allow voters to choose the number of facilities. Industry advocates were using other petition options that created license election criteria, submitted to municipalities, but ultimately could not appear on the ballot due to the appellate court ruling. This changed the landscape for ballot proposals for the cannabis industry in Michigan but did not affect anything that was previously adopted.
2. WHAT IS THE STATUS OF RECLASSIFYING CANNABIS FROM A SCHEDULE I TO A SCHEDULE III DRUG?
The Department of Justice, which oversees the Drug Enforcement Administration, has recommended that cannabis be reclassified from a Schedule I to a Schedule III drug. The DEA postponed a hearing on the matter until Dec. 2. This delay was a setback for the industry, and some cannabis stock prices fell because of the announcement in August. In the long term,
rescheduling will likely be a major boost for the industry, with the biggest impact being on interstate commerce.
3. HOW WOULD THIS RECLASSIFICATION AFFECT INTERSTATE COMMERCE?
Legal cannabis produced in this state cannot cross state lines. We have had a supply and demand issue in Michigan for a few years in that cannabis supply exceeds demand. Our cannabis farmers and suppliers cannot legally export this product to other states where there are shortages. Federal law currently prevents a true economic supply and demand pricing of the product nationwide. Reclassification of cannabis by the DOJ could change that.
4. MOST LARGER LAW FIRMS HAVE CANNABIS REPRESENTATION, AND THERE ARE MANY SOLO PRACTICES. WHAT ARE YOU ABLE TO OFFER CANNABIS CLIENTS AND MUNICIPALITIES?
I’ve been doing this since 2016, when the state first allowed medical marijuana licensing. I provide a depth of experience and help clients understand the challenges. I also represent governmental entities, and part of the reason operators in the cannabis industry come to me is because I know how government works, I know the regulations, I have relationships with government officials, and I can help clients achieve their goals. For municipalities, additional income to the tune of $87 million was distributed to 269 cities, towns,
and villages in 2024. This additional funding is going to parks and roads and helping to fund the basic needs of communities.
5. WHAT TRENDS ARE YOU SEEING IN THE CURRENT NEEDS OF YOUR CLIENTS?
We are seeing a lot of operators in the industry looking to collaborate and enter joint ventures. Some of this is being fueled by economics and some by opportunity. We help negotiate the joint venture agreements and the mergers, and we assist with the licensing changes that accompany the corporate changes. We have been working with clients on enforcement issues, as there can often be expensive fines for all types of alleged violations. We work very hard to defend our clients against alleged regulatory violations, and we have been very successful in reducing fines or having disciplinary actions withdrawn.
JEFFREY M. SCHRODER PARTNER
38505 Woodward Ave., Suite 100
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Direct: (248) 594-2796
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Ask the Experts
YEO & YEO CPAS & ADVISORS
5
QUESTIONS WITH Thomas
O’Sullivan, CPA, CFE, Managing Principal at Yeo & Yeo CPAs & Advisors
A trusted cannabis advisor specializing in tax and accounting, Thomas O’Sullivan helps cannabis leaders navigate the complexities and regulations of the industry and guides them to grow their operations.
1. HOW WILL THE PROPOSED FEDERAL RESCHEDULING OF CANNABIS FROM SCHEDULE I TO SCHEDULE III IMPACT SECTION 280E?
The proposed rescheduling of cannabis from Schedule I to Schedule III is a significant development, but it’s crucial to understand that this change hasn’t been implemented yet. Even if rescheduling occurs, the IRS has not provided clear guidance on how it will affect Section 280E. As a cannabis-specialized CPA, I advise clients to continue operating under the assumption that 280E still applies. The IRS commissioner has committed to working with the industry to clarify tax obligations, but until concrete changes are made, we must adhere to current regulations. It’s important to maintain meticulous records distinguishing between medical and recreational sales, as future guidance may differentiate between these categories. Remember, rescheduling alone doesn’t make cannabis federally legal, and the IRS may still enforce 280E or similar restrictions. Stay compliant, keep detailed documentation, and be prepared for potential changes in the future.
2. WHAT STRATEGIES CAN I IMPLEMENT TO OPTIMIZE MY CASH FLOW AND MANAGE EXPENSES EFFECTIVELY?
To optimize cash flow and manage expenses effectively, it is important to establish clear procedures and document them thoroughly.
Train your staff to execute these procedures. Regularly analyze accounts receivable, accounts payable, and inventory with the help of an accountant to identify and resolve any issues promptly. Monitor and control expenses, negotiate with suppliers, and prioritize payments strategically. Develop a robust cash-flow forecasting system to anticipate gaps and take proactive measures.
3. IN THE CASHINTENSIVE CANNABIS INDUSTRY, WHAT INTERNAL CONTROLS CAN MITIGATE THEFT RISK?
A comprehensive grasp of internal controls is essential for minimizing theft risk. Among recommended controls, prioritizing documentation is vital. Maintaining records of cash register operators and operator transitions can help to alleviate risk. Verifying cash registers at the end of each shift further diminishes theft potential, ensuring cash reconciliation and the identification of discrepancies. Improving the documentation process provides a clear trail to identify any source of irregularities.
4. WHAT DO OWNERS NEED TO CONSIDER WHEN LOOKING AT GROWTH AND THE DRIVERS OF SUCCESS?
Owners who experience the most success embrace big-picture thinking as the driver of growth. In this respect, there are five steps to drive growth.
1. Know the value of your business and identify the drivers that affect the value.
2. Know the KPIs that enable you to operate your business more efficiently and effectively.
3. Have a handle on your plan and prepare yourself for setbacks.
4. Understand how your business and personal wealth support each other.
5. Have a clear vision for your business with specific, measurable objectives.
5. WHAT APPROACH DOES YEO & YEO TAKE TO ADVISING CANNABIS CLIENTS?
We are our clients’ partners in success. We work with them to build customized, rightsized relationships that help our clients remain compliant, organized, and growing. Our clients’ goals vary, but whatever their goals are — vertical integration, preparing for mergers and acquisitions, adding licenses, or opening a new location — we ensure they have the information they need to make data-driven decisions. We are there to support them every step of the way.
THOMAS O’SULLIVAN, CPA, CFE MANAGING PRINCIPAL YEO & YEO CPAS & ADVISORS
734-769-1331
Strict regulations. Tax implications. Security procedures. Surging competition. It all requires a trusted partner with wide capabilities and a personal, customized approach. Our Cannabis Services Group brings a wealth of experience in cannabis, agribusiness, manufacturing and retail, making us uniquely qualified to help you navigate the complexities. Let us help you thrive.
CONSULTING | TAX |
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Thomas O’Sullivan, CPA, CFE
Alex Wilson, CPA
Ask the Experts
COMMUNITY CHOICE CREDIT UNION
5
QUESTIONS WITH Donna Bashi, CBPA™ , Vice President of Business Development
With over 20 years of experience in financial services and a specialization in cannabis banking, Donna Bashi, CBPA, Vice President of Business Development at Community Choice Credit Union, is known for her expert guidance, personalized solutions, and dedication to her members and community.
1. HOW LONG HAVE YOU BEEN WITH COMMUNITY CHOICE CREDIT UNION, AND WERE YOU ALWAYS INVOLVED WITH THE CANNABIS PROGRAM?
I’ve had the privilege of being with Community Choice Credit Union for over nine years. Four years ago, I took on a pivotal role in creating and growing our cannabis banking program. It has been incredibly fulfilling to watch it expand and to see the positive impact we’ve been able to make for businesses in this space.
2. HOW HAVE YOU HELPED THE PROGRAM EXPAND, AND IN WHAT WAYS?
I was part of the team that developed and piloted our cannabis banking program from the ground up. We’ve now grown to serve over 560 cannabisrelated businesses, and this number continues to increase as we refine our services and meet the evolving needs of the industry. One of the key aspects of our success has been our investment in supporting the unique needs of cannabis businesses. Our Choice Cash Services team offers personalized, white-glove service and partners with both our members and a compliance partner to ensure that operations are as smooth and compliant as possible. This partnership has been crucial in providing our members with peace of mind; they know they are in safe hands as they navigate this complex industry.
3. HOW DO THOSE IN THE CANNABIS COMMUNITY USE CHOICE CASH?
Cannabis business owners use Choice Cash for a wide range of financial needs. We offer not just standard business banking services but also lending, mortgages, home equity loans, personal accounts, treasury services, and investment solutions. What really sets us apart is our commitment to personal service; we have a dedicated team that specializes in the cannabis sector, ensuring that every member receives tailored support that aligns with their specific business goals.
4. WHERE ARE YOUR LOCATIONS IN MICHIGAN?
Community Choice Credit Union has a strong presence throughout Michigan, with 24 brick-andmortar locations in cities such as Shelby Township, Warren, Redford, and Dearborn Heights, just to name a few. This allows us to provide convenient, in-person service while also maintaining a deep connection with the local communities we serve. Our extensive footprint ensures that members, regardless of where they are, can easily access the services and support they need.
5. WHAT MAKES COMMUNITY CHOICE CREDIT UNION DIFFERENT FROM OTHER FINANCIAL INSTITUTIONS IN THE CANNABIS SPACE?
At Community Choice, we recognized early on that the cannabis industry had unique needs, and we wanted to be part of the solution. From day one,
we have been committed to helping cannabis businesses thrive by providing a comprehensive range of financial services. What really distinguishes us is the hands-on, personalized approach we take. Our Choice Cash Services team continues to grow, providing white-glove service to our members and collaborating with a compliance partner to ensure that all regulatory requirements are met. This partnership not only helps our members operate with confidence but also reinforces our dedication to supporting the cannabis space in a way that few others can. We are truly invested in this industry and remain committed to being a trusted partner for our members as they grow their businesses.
DONNA BASHI, CBPA VICE PRESIDENT OF BUSINESS DEVELOPMENT
COMMUNITY CHOICE CREDIT UNION
31155 Northwestern Highway
Farmington Hills, MI 48334
586-255-4979 (call/text) choicecashservices.com
dbashi@communitychoicecu.com
Take your cannabis business to a new high by optimizing your financial services.
Community Choice Credit Union knows the cannabis industry inside and out, and we serve your whole business. We power the industry from seed to sale and beyond with Choice Cash Services:
• Dedicated, full-service cannabis banking team with one-on-one, 24/7 personalized support
• Best-in-class compliance support
• S ecure and convenient cash management
• C omplete banking services, including personal and business lending
• E xperts with nearly five years serving more than 550 cannabis related businesses
Our ability to connect you in the industry, is a competitive advantage to your business.
(586) 255-4979 (call/text)
2024 MiCIA Summer Annual Conference and Chronic Cup Championship
MiCIA members gathered once again Aug. 7–9, 2024, for the networking event of the season: the MiCIA’s Summer Annual Conference and Chronic Cup Championship, held at the Shanty Creek Resort in Bellaire, Michigan. This was the MiCIA’s sixth time holding the signature event, which included networking opportunities, educational sessions, the annual golfing competition, wine tasting at nearby Torch Lake Cellars, and more.
The butterfly lift is always a fun part of the conference festivities.
The annual golfing competition is one of the most anticipated events.
A group of golfers participates in the Chronic Cup Championship.
From left: Russell Chambers, Robin Schneider, Kevin Pybus, and Matthew Mooney. Kim James, director of Detroit’s Office of Marijuana Ventures & Entrepreneurship.
PHOTOS BY PHILIP HUTCHINSON
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