Only the best cannabis companies can make it in this market…
A free market charts the surest path to continued prosperity.
The reason is simple: Free markets need competition, and that competition results in someone doing something better today than anyone else has ever done before.
And while it’s not too often we directly see the results of competition at work in the economy, state-by-state cannabis legalization is providing us with the perfect way to compare different competitive models in action.
With cannabis now legal in 42 states plus Washington, D.C., and every state taking a different approach, we have 43 separate experiments underway to see where each path leads.
Some states limit the number of licenses and thereby limit the competition. Others take an unlimited approach. Some regulate heavily, some tax heavily, and others, like Oklahoma, take a very hands-off approach.
But among these 43 experiments, one state has clearly set the conditions for extreme competition that has evolved the market to such a point that its consumers will only accept the highest quality cannabis.
The companies that make it in this hyper-competitive market will deliver the best quality and capture the highest premiums anywhere.
And those premiums will deliver incredible returns to shareholders that own a piece of this fierce competitor…
A Market Built for Competition
From the studs up, Michigan‘s cannabis market was designed to foster competition.
[RELATED READING] There’s a new law coming to Michigan that’s going to be huge for you. Because it will usher in even more cannabis sales in this already red-hot market…Click here for the full story.
The state first rolled out its medical market under the Michigan Compassionate Care Initiative (MCCC) in 2008. The resulting program limited any single cultivator to a maximum of 72 cannabis plants, and they could only sell the flower from those plants to no more than six patients.
Those operators were called “caregivers,” and becoming one was easy.
You didn’t have to plunk down $300,000 for a license. The application didn’t require a team of attorneys to complete. And they retained most of the rewards from their efforts rather than paying much of it back to the state in taxes.
As you would expect, the opportunity to earn a living (or at least pick up a lucrative side hustle) under such fair terms pulled prospective cannabis growers into the program in droves.
Michigan now hosts over 36,000 caregivers. And after 12 years of competing in the program, they grow some of the best pot in the country.
But to harness this expertise on a national scale will take more than selling top-notch weed as a side gig.
And one startup figured out exactly how to do it…
A Startup Dominating the Competition
Many cannabis companies like to focus on limited license jurisdictions where they will face little competition.
There’s nothing wrong with that approach – especially for an investor. It takes skill to win these licenses. You still have to deliver the right product. You have to run the company well. And profits can be significant, particularly for companies with monopoly-like positions.
Given the limited competition, consumers’ demand for quality in those markets isn’t as intense.
But that’s not the case in Michigan.
In fact, one company specifically targeted Michigan because of the high competition for quality.
It knew it could compete here.
The management team helped spearhead the caregiver market. They had an idea on how to scale high-quality indoor growing and connections among the caregivers to bring the best growers among them on board.
But most importantly, they understood the tastes and preferences of the marketplace.
By dominating the competition in the most demanding cannabis market in the United States, this company has proven that it can run a high-quality grow operation today better than any other company has done before.
But it will need fresh capital to compete beyond the borders of Michigan. That means new shareholders. And you could soon be one of them.
Because right now, my team is working around the clock to assemble due diligence on this startup – valuations, projections, and more – so that in the coming weeks, you’ll have the opportunity to own a piece of this fierce cannabis competitor.
Until then, there are plenty of great cannabis companies out there for you to invest in today. In fact, you can find out how to access my top cannabis stock recommendations right here.
Executive Director, National Institute for Cannabis Investors
Not once during this tour of what it takes to grow top-notch cannabis did my guide mention scaling operations. Nor did she talk about efficiency, maximizing space, or expensive processing equipment. But she did talk about what it takes to grow some of the priciest, highest-quality cannabis in the most lucrative and competitive market in the United States…Continue reading.
3 responses to “High Expectations: Only the Best Cannabis Allowed in Michigan”
November 17 2020