What Is A Marijuana Micro License

By Terry Hacienda, The Fresh Toast on

Published in Cannabis Daily

The cannabis industry is innovative – and now there is a new thing which has popped up – the micro license! The cannabis industry has to be innovative. With regulations, zoning, and banking restrictions all against a background of building public support…you have to be clever.  The latest idea to emerge is the micro license. What is a marijuana micro license and what does it do?  A key factor in this development is providing to entry to a growing industry with a low investment threshold.  This an advantage toward making it more socially equitable.

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Michigan started the micro license trend to help with engage more people with a way to start a business without having have major funds. It allows business owners to grow marijuana, process marijuana, and sell cannabis-infused products to adults 21 years or older without depending on other suppliers. However, a Michigan marijuana microbusiness is not permitted to sell or transfer marijuana or marijuana-infused products to other licensed recreational marijuana establishments. Also, they cannot sell their seeds to other marijuana growers. The essence is to enable a standalone marijuana business model independent of other marijuana establishments.  So, think of a good food truck model of go to where your customers are, develop your own products (not buying from Costco or Trader Joes and reheating) and selling directly to a small crowd.

Currently cananbis microbusiness licenses are offered in Oregon, California, Massachusetts, Michigan, New Jersey, and New Mexico. Missouri has just launched the program and have had a few hiccups. Their cannabis regulators may revoke 11 of the 48 social-equity cannabis licenses issued in October after finding they didn’t meet eligibility requirements. It seems they had misrepresented who backed them and longer term plans for the company.

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Arizona is now looking at folding it in to the mix of businesses. Marijuana sales hit $1 billion in 2023, meaning it a fresh cash cow for businesses and for state coffers.  Success seems to be allowing business to grow and prosper.

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