Oversupply and low, low prices could result in more cannabis companies shuttering in Michigan in 2025, Crain's Detroit Business reports, noting "Michigan’s cannabis industry faces a reckoning in 2025."
Crain's reports:
The average price for an ounce of cannabis flower in Michigan’s adult-use market fell nearly 23% to $71.80 — a record low — between the start of the year and the end of November, cutting into margins for the industry. Two major cultivators have recently announced closures.
Chicago-based PharmaCann told employees it would shutter its 207,000-square-foot LivWell Michigan cultivation site in Warren, laying off 222, in January.
Fluresh LLC, doing business as Tend.Harvest.Cultivate, announced it was closing down its $46 million, 105,000-square-foot grow facility in Adrian at the end of November.
Ultimately, the closures could help other cannabis businesses survive, Crain's reports.
