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blackhorse

Clone Distributor

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Will the clone distributor's still be allowed to sell clones and seeds with the MMFLA?

They are not included in the 5 categories and wondering if they will be forced out of business.

In the SE we have companies that only sell clones and seeds which makes it nice to pick up.

Or will this still be allowed under the MMMA?

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Did they bribe the locals? The locals are getting paid by the folks that are going through the MMFLA process. Then they get continuous kick backs. Everyone is going to have to get on board with that or be harassed by the locals. Caregivers included. The only folks that will be competing are those with the lowest profiles.  

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If the "Clone distributor" got a MMFLA "provisioning center" license, they can sell clones and seeds to registered patients and caregivers.

The MMFLA provisioning center license allows to sell any marihuana to a registered caregiver or registered patient. marihuana definition includes seeds.

Sec. 504. (1) A provisioning center license authorizes the purchase or transfer of marihuana only from a grower or processor and sale or transfer to only a registered qualifying patient or registered primary caregiver.

(ff) "Usable marihuana" means the dried leaves, flowers, plant resin, or extract of the marihuana plant, but does not include the seeds, stalks, and roots of the plant.

(i) "Marihuana" means that term as defined in section 7106 of the public health code, 1978 PA 368, MCL 333.7106.

(4) "Marihuana" means all parts of the plant Cannabis sativa L., growing or not; the seeds of that plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds or resin. Marihuana does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, except the resin extracted from those stalks, fiber, oil, or cake, or any sterilized seed of the plant that is incapable of germination. Marihuana does not include industrial hemp grown or cultivated, or both, for research purposes under the industrial hemp research act.

 

Currently as the MMMA law stands, a patient may not transfer to anyone.

A caregiver can only transfer to his/her registered connected patients.

 

Any other transfers people are doing at the clone and seed shops are probably not protected by the MMMA.

As the Michigan Supreme court said, patients and caregivers are protected wherever they acquire marijuana from, just that an unconnected patient or caregiver is not protected for transferring marijuana. 

 

Edit: thanks resto for catching error.

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Currently as the MMMA law stands, a patient may only transfer to his/her registered connected caregiver.

A patient can transfer to a caregiver? In what circumstances? 

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(n) A qualifying patient shall not transfer a marihuana-infused product or marihuana to any individual.

Sorry, forgot about the M-N-O amendment. A patient cannot transfer to his/her caregiver, according to Section 4(n).

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Btw, neither 4(n), nor people v mcqueen dealt with the definition of the word "delivery" , so maybe its all still on the table under that word.

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8 hours ago, Restorium2 said:

Did they bribe the locals? The locals are getting paid by the folks that are going through the MMFLA process. Then they get continuous kick backs. Everyone is going to have to get on board with that or be harassed by the locals. Caregivers included. The only folks that will be competing are those with the lowest profiles.  

Yes, I have seen where caregivers/patients are included into the local ordinances concerning the MMFLA. Then others do not include caregivers/patients. Majority do not include that I have read of the ordinances for townships.

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So what I am reading here is clone shops will be put out of business? Or underground.

Anyone needing clones or seeds will need to visit a provisioning center?

Who will the provisioning centers get the clones from?

Sorry for all the questions.

 

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Since the clone shops are technically underground/grey market now it is anyone's guess what will happen.

It is possible that there will be growers that just grow clones and sell to provisioning centers.  I have noticed that there are growers in other states advertising as exclusively clone growers.  

I have not done any financial projections, but it would be an interesting exercise.   Thinking about it, you could grow 1500 clones in a very small space with minimal energy requirements and much shorter inventory turn time than growing from cutting to finished flower.   Might be a very viable business model.

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The grower could sell clones that are under 8" in height and not have to tag the plant. 

Visited a clone shop recently, nice commercial store front and only sell clones and seeds. To get a grower license it would cost $150,000 plus for the license, plus the annual fee to city/township. This business would need to expand by selling product to make this feasible. 

I'm thinking this type of business will be gone.

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Remember Schuette wants seed to sale tracking. So only the qualified providers for the dispensaries who are being tracked will be providing clones to them. 

In my area one major investment group has spent millions bringing this cash cow home. This investment group will be selling clones out of the expensive building they purchased just for this. I'm sure they will be able to do at least as good as the illegal ones now. They aim to serve you and take your cash. They will eventually succeed.

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From what I'm reading, the plant gets tagged once it is 8" in diameter or 8" tall.

So the grower could sell to provisioning center before the clone is this size and not be part of count.

Clones will still be available, just through the provisioning center.

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Looks like a free bonus for the suppliers to the centers. I'm sure it's one of those pieces of pie up in the sky for them. Sometimes it's not the main product that makes them the most money. It could turn out that they make more off of the clones and other periphery sales than the buds. Like a gas station. 

Edited by Restorium2

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With legalization on the horizon I'm thinking that the clone market is going to skyrocket. Especially when all the newbs find out about the major short cut a clone is. EVERYONE is going to want 12 clones. They will have clones that do good outdoors in Michigan. I see the whole cannabis landscape changing here in Michigan. It's going to be like a huge dam bursting. Then the glut will take away all the diversified small sales people are enjoying these days. Growers need to be ready to lose some of their importance. Most all of it. Like a phone land line. History. Like Underdog. Who? Oh yeah, the stinky guy. He always had it when we needed it. Then the world moved on....

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11 hours ago, blackhorse said:

To get a grower license it would cost $150,000 plus for the license, plus the annual fee to city/township.

You do not need to spend $150K, you just need to demonstrate that you have it.  

Interesting observation on the 8" size and tagging.  I had not noticed that.  That makes everything even more interesting.  Using tissue culture propagation and keeping things under the 8" size you could have a 500 plant license and sell thousands of clones.    Allowing for 8"x 8" spacing, you could have 2,000 clones in a stacked shelve set up in under 500 sq. ft.    Wholesale the clones at $10/clone an you have a gross income of 20K per month.    No massive lighting systems needed and with that no massive power sucking lighting needed.   Could be a great mom and pop set up.

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45 minutes ago, semicaregiver said:

You do not need to spend $150K, you just need to demonstrate that you have it.  

Interesting observation on the 8" size and tagging.  I had not noticed that.  That makes everything even more interesting.  Using tissue culture propagation and keeping things under the 8" size you could have a 500 plant license and sell thousands of clones.    Allowing for 8"x 8" spacing, you could have 2,000 clones in a stacked shelve set up in under 500 sq. ft.    Wholesale the clones at $10/clone an you have a gross income of 20K per month.    No massive lighting systems needed and with that no massive power sucking lighting needed.   Could be a great mom and pop set up.

Like every other "easy money" scheme, as soon as word gets out every body jumps in and very soon clones will sell for $2 apiece. Maybe even $1.

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We have to remember that rules are different for MMFLA and the MMMA.

The large growers could very well be the producers of clones for provisioning centers. Sell off the clones before reaching the 8" height and be legal.

Are any of the grow operations up and running under the MMFLA?

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12 hours ago, AmishRnot4ganja said:

Like every other "easy money" scheme, as soon as word gets out every body jumps in and very soon clones will sell for $2 apiece. Maybe even $1.

You are quite right, the marketplace will probably create a commodity price floor for clones and push the price down significantly.  The same can be said for a commercial grow operation.   The key for the successful grower will be to differentiate their offering much the way the micro brewers command a higher price point than A-B.

 

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1 hour ago, blackhorse said:

We have to remember that rules are different for MMFLA and the MMMA.

The large growers could very well be the producers of clones for provisioning centers. Sell off the clones before reaching the 8" height and be legal.

Are any of the grow operations up and running under the MMFLA?

(5) The department shall issue or deny a state operating license on or before June 15, 2018.

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32 minutes ago, semicaregiver said:

You are quite right, the marketplace will probably create a commodity price floor for clones and push the price down significantly.  The same can be said for a commercial grow operation.   The key for the successful grower will be to differentiate their offering much the way the micro brewers command a higher price point than A-B.

 

A micro brewer would be comparable to a non licensed supplier.

Craigslist will be chock full of clones for sale. I doubt that the keystone cops will have any more direction than a beagle in a field of thousands of rabbits. 

Michigan will be the first state to kick the retail outlets to the curb because we have been taught to make do for generations. We don't really need provisioning but we will greatly enjoy a work around. Dam busting since the 70's. 

I can't imagine buying anything from a provisioning center. 

But I'm thankful that some of the buyers I have met over the years will have somewhere to go after they burn their connection. 

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3 hours ago, Restorium2 said:

(5) The department shall issue or deny a state operating license on or before June 15, 2018.

So are you  saying no licenses have been issued at this time?

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3 hours ago, blackhorse said:

So are you  saying no licenses have been issued at this time?

The state has issued no licenses at this time. They expect the first to go out in April.

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Rick Thompson interviewed Brisbo the other day and of completed applications, the Director said, “For the growers A, B and C we have 12, 3 and 36 respectively, 27 processors, 57 provisioning centers, 4 safety compliance facilities and still no secure transporters.”

That does not mean that any have been approved, just that they have handed in their complete application (about 100 pages when you consider attachments) plus the assorted fees.

 

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