Hero Technologies announced that its subsidiary, BlackBox Systems and Technologies LLC, continues to project aggressive growth for its planned cannabis operations in Michigan.
Michigan's legal cannabis market has surged since adult use was permitted in 2020. (Medical cannabis has been legal in the state since 2008.) According to statistics from the Michigan Marijuana Regulatory Agency:
- Sales of legal cannabis in Michigan neared $1.8 billion in 2021, with adult recreational use generating 73% of the total.
- For the first six months of 2022, legal cannabis sales exceeded $1 billion, an increase of 27% over the first six months of 2021. Adult recreational use increased 59% over the same period, soaring to 85% of all legal cannabis sales.
- In 2021, 55% of cannabis sales were recorded in the July-December period. Based on the same distribution, full-year 2022 sales of legal cannabis in Michigan are expected to approach $2.8 billion.
- The number of cannabis users in Michigan has increased 75% since 2010, to two million individuals (some 20% of the state's population).
- The market for illicit cannabis in Michigan is also large, with an estimated $1.2 billion in sales. This represents an immediate potential growth channel for legal sales, as the state enacts new laws to regulate cannabis quality and safety.
In September 2021, Hero Technologies' BlackBox subsidiary achieved the most significant milestone in Michigan's cannabis licensing process, with pre-qualification approval for an Adult and Medicinal Use cannabis license under the Michigan Regulation and Taxation of Marihuana Act.
The company's plans for in Michigan include a proprietary aeroponic growing system and state-of-the-art quality and safety controls. The company expects to produce high-yield cannabis crops year-round for both adult-use and medical use, and plans to market its products through distribution, retail, and dispensary operations.
"We are excited to see the continued rapid growth of the Michigan cannabis market as we finalize our state license and prepare for high-volume production," said Hero Technologies' CEO Gina Serkasevich. "We expect that the quality and high yields of our proprietary cannabis cultivation system will give us a competitive edge in the state."
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Hero Technologies Inc.