On March 7, 2022, the Marijuana Regulatory Agency (MRA) announced a new adult-use cannabis license: the Class A Marihuana Microbusiness. Like the original Microbusiness license, this new license type is designed for smaller cannabis companies, former caregivers, or cannabis entrepreneurs interested in entering the Michigan commercial adult-use market. While both license types are similar, the new Class A Microbusiness differs from the original in several interesting ways which may create a more profitable business model.

Original Michigan Cannabis Microbusiness License

The original Microbusiness license is a one-location cultivator, processor, and retail establishment. Microbusinesses can grow up to 150 mature cannabis plants and process anything they cultivate into oils, extracts, and other cannabis products. Microbusinesses can then sell the flower and processed products direct to the consumer. 

In addition, it does not allow for the sale of flower or cannabis products not manufactured on-site. If a registered primary caregiver owns a Microbusiness, it is allowed a one-time transfer of the caregiver’s plants once the license is issued. After that, a Microbusiness can only obtain seeds, tissue culture, or clones that do not meet the definition of a “marihuana plant” under the Administrative Rules. 

New Class A Cannabis Microbusiness License

The new Class A Microbusiness license type is much more flexible, but at the expense of processing. It is a one-location establishment like the original, but the new type only provides for cultivation and retail. Class A licenses are allowed to cultivate up to 300 mature plants, doubling the original’s plant count. And unlike the original Microbusiness, Class A licenses can purchase concentrate and infused marihuana products from other licensed adult-use processors. 

As a tradeoff for allowing Class A Microbusinesses to obtain products from processors, Class A licenses are not permitted to process or manufacture their own oils, extracts, or infused products. These items must be obtained from other adult-use processors in the Michigan commercial system. 

The Class A Microbusiness is also permitted to purchase marihuana seeds, tissue cultures, clones, or marihuana plants from other adult-use licensed growers. Additionally, unlike the original Microbusiness license, the Class A Microbusiness can supplement its own products with outside goods from other processors.

Michigan Cannabis Microbusiness License Comparison