- Cannabis sales numbers in Michigan reaching record highs
- HENC, Blackbox strategy includes developing 120-acre Michigan farmland into cannabis cultivation
Cannabis medicinal and recreational sales numbers in Michigan are reaching record highs: year-end totals for 2020 approached $1 billion (https://ibn.fm/tCdQa), and sales in 2021 have shown even more impressive growth, with March numbers hitting a record $115.4 million (https://ibn.fm/sRj0Y) and April numbers approaching $154 million (https://ibn.fm/LOiJS). Cannabis company Hero Technologies (OTC: HENC) is paying close attention to Michigan’s performance because the company’s majority-owned subsidiary, BlackBox Systems and Technologies LLC, earlier this year signed a purchase agreement to acquire 120 acres of Michigan farmland for cannabis cultivation (https://ibn.fm/yuCi3).
“Michigan generated $985 million in cannabis sales in 2020, and the program should continue to expand this year as supply becomes more available and as distribution expands,” stated a recent New Cannabis Ventures article. “So far in 2021, year-to-date combined sales are up 171% to $513.1 million.”
The trend bodes well for Hero Technologies and Blackbox, whose plans for its Michigan property include building state-of-the-art sun chambers and high-tech greenhouses that produce cost-effective, high-yield cannabis year-round. In fact, the company estimates that the Michigan property supports up to 500 sun chambers, and each sun chamber can potentially generate $5 to $10 million annually in high-margin revenue.
The process of obtaining a cannabis license in Michigan is a two-step process handled by Michigan’s Department of Licensing and Regulatory Affairs. The process involves meeting certain prequalification steps, which allows applicants to begin the process while seeking approved locations and facilities and also encompasses a full background investigation of all applicants and payment of a nonrefundable $6,000 fee (https://ibn.fm/5PEco).
The second step is the actual license application, which identifies the specific facility license being applied for (grower, processor, provisioning center, safety compliance or secure transporter) and provides information and supporting documentation specific to the license sought. Applicants may apply for more than one facility license.
“The numbers for our cannabis cultivation plan in Michigan look exceptionally strong,” said Hero Technologies CEO Gina Serkasevich. “We have thoroughly analyzed startup costs, ongoing costs and a wide range of revenue scenarios. Even our most conservative estimates, using the low end of the wholesale price range, put us over $1 billion in revenue by the end of our multiphase plan. And the upside potential is much bigger. A higher percentage of retail sales and a higher price per pound could support annual revenue from our Michigan operations in excess of $3 billion.” The company anticipates taking anywhere from five to ten years to complete its master plan for the Jackson, Michigan, property.
Hero Technologies Inc. is a cannabis company working toward a vertically integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and cultivation of large flowering plants, creating increased harvest efficiencies. The company’s strategic business plan includes cannabis genetic engineering, farmland for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multistate operator.
For more information, visit the company’s website at www.HeroTechnologiesInc.com.
NOTE TO INVESTORS: The latest news and updates relating to HENC are available in the company’s newsroom at https://ibn.fm/HENC
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