Michigan Opens Up investment Opportunities in Marijuana Businesses

The Michigan Legislature passed a bill on April 11, 2019 that will open up investment opportunities in marijuana establishments. The bill will become law if it is signed by Governor Whitmer. Currently, Michigan marijuana regulators will deny a marijuana business a license if any investor discloses a prior criminal conviction or other disqualifying factor. Under the bill, Michigan marijuana regulators will only evaluate the suitability of investors that own more than 10%. Investors that own 10% or less will avoid the disclosure requirements so long as the investor does not manage or exert control over the marijuana business. The new law would ease the administrative burden faced by state regulators as they begin implementing Michigan’s recreational marketplace. The change will also bring more investors into the marijuana industry. Public companies or hedge funds can attract additional money due to the lowered standards for potential investors.