For recreational cannabis, it's a matter of location, location, location, Cannabis Property Brokers CEO Nickolas Calkins said Thursday at the Benzinga Cannabis Capital Conference in Thursday.
Calkins shed light upon some of the struggles that entrepreneurs in the cannabis industry face in a conversation with Mike DiLaura, partner at Cannabis Attorneys of Michigan.
“You have to understand there's a very, very select number of grow operations in the state of Michigan. We have over 1,700 municipalities in the state," Calkins said.
Less than 10% of those communities will opt in for marijuana, he said.
“Location is key when it comes to recreational usage.”
Click here more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.
The supply chain is incredibly important for LPs in Michigan, Calkins said.
Secured transporters, lab testing and more bite into margins and limit profits, he said. Yet this hasn’t diminished out-of-state demand for Michigan property.
"Michigan's the second-largest market in terms of overall population-to-patient ratio," he said.
“But you have to understand the supply chain is really, really important. Those logistics could really give you that competitive advantage when you're deciding how to get into this market, and more importantly, how to stay in it.”
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
Cannabis Property Brokers CEO Nickolas Calkins speaks at the Benzinga Cannabis Capital Conference on Thursday in Detroit. Photo by Dustin Blitchok.
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.