Detroit Issues 37 Cannabis Retail Licenses & First Consumption Lounge Is Approved

Detroit Michigan's cannabis authorities have granted licenses to 37 entrepreneurs for recreational marijuana businesses, including dispensaries and the city's first consumption lounge, reported the Detroit Free Press. Of these licenses, 13 are earmarked for businesses majority-owned by African Americans, five by women and 21 Detroit residents.

Kim James, director of the Office of Marijuana Ventures and Entrepreneurship (OMVE), praised the recipients, highlighting OMVE's commitment to transparency and fairness in the licensing process. “The Office encourages unsuccessful applicants to continue their pursuit of entrepreneurship and stands committed to offering support and guidance for future licensing opportunities,” James said.

Detroit awards 37 recreational marijuana licenses for retail, consumption lounges https://t.co/dMDxRxBpkq

— Detroit Free Press (@freep) November 14, 2023

This marks the second round of licenses issued a year after the initial 33 businesses received recreational marijuana licenses. Legal challenges arose due to a process reserving half of the limited licenses for equity applicants—individuals affected by marijuana prohibition and those with Detroit Legacy status.

City council president pro temp James Tate acknowledged the industry's progressive expansion, emphasizing that in the first round, over 50% of adult-use licenses were awarded to Detroit residents, with 16 of the newly licensed business owners being African-American.

Read also: Michigan's Cannabis Tax Revenue Surpasses Beer, Wine And Liquor Combined, Green Rush Gets Greener

Recreational marijuana became available for purchase in Detroit in early January, and there are currently 31 operational recreational marijuana retailers in the city. These businesses face a 10% state excise tax, and the Michigan Department of Treasury will soon announce revenue distribution from the Marihuana Regulation Fund, totaling $266.2 million in the 2023 fiscal year.

Detroit began issuing unlimited licenses in April 2022, with the latest round granting provisional certificates for consumption lounges and micro businesses. The city plans to assist these businesses in obtaining properties within the stipulated 18-month timeframe,  reported Crain’s Detroit.

It's important to note that businesses given licenses still require final approvals from the state of Michigan before commencing operations.

In related news, Gage Cannabis, a subsidiary of TerrAscend Corp. TSNDF announced last year, its fourth social equity grant recipient, Midwest CannaNurses (MCN), a Detroit education consulting business that seeks to spread more understanding about the benefits of cannabis and how to use it safely and for wellness.

Read Next: Michigan's 'Unrestricted But Limited' Cannabis Market Surges, Say Experts

Image by Benzinga