This article is reprinted with permission from Crain’s Detroit Business.

Michigan marijuana prices stabilized in March as sales recovered from a three-month slide.

The average price for an ounce of adult-use marijuana flower dropped only a tenth of a percent in the month to $65.14, the smallest slide since 2020. In February, the price dropped 2.2% and the price remains down more than 28% year-over-year.

Sales also recovered in March. The state’s legal industry recorded $276.95 million in sales, up 14.5% from February, according to newly released data from the Michigan Cannabis Regulatory Agency.

Sales growth occurred in all sales categories but the largest growth was in adult-use marijuana flower. The industry sold 15,000 more pounds of adult-use flower in March to the tune of $121.5 million, up nearly 15% from February.

But it’s not all good news. Year-over-year sales also remain down.

Through the first quarter of 2025, the legal market is trailing last year’s sales by nearly $26.5 million, hinting that the state’s regulated marijuana market may have peaked at $3.3 billion in sales last year.

If the sluggish sales continue, the state is on pace to only reach $2.94 billion in products sold – its lowest total since 2022 and the first year-over-year drop since legal sales began in late 2019.

And product oversupply remains a major problem The inventory of fresh frozen flower – product that is usually grown outside during the summer months, harvested in October and distributed around the year for infused liquids and edibles – remains historically high, driving down prices.

On March 31, growers and processors had 1.47 million pounds of fresh frozen marijuana flower in inventory.

That’s nearly 10% down from the 1.63 million pounds of fresh frozen on supply at processors and growers in February, but 316% above the 353,587.39 pounds of inventory in March of last year.

And the state continues to issue licenses. The CRA issued 35 prequalifications, mostly for growers, along with nine grower licenses and seven processor licenses in March, but only eight more retail licenses to sell the product.

Meanwhile, industry operators are collapsing under the pressure.

In January, Bay County marijuana operator Pincanna temporarily shuttered 31,500-square-feet of its grow facility and laid off employees to mitigate losses. Chicago-based PharmaCann shuttered its 207,000-square-foot LivWell Michigan cultivation site in Warren, laying off 222, in January. And last November, Fluresh shuttered its $46 million, 105,000-square-foot grow facility in Adrian.

Ohio’s legal market – sales began in September last year – is also beginning to cut into Michigan’s market.

Ohio’s legalized adult-use recreational market sold more than $242 million of product in the four months last year.

SNDL Inc. (Nasdaq: SNDL) began trading on the Canadian Securities Exchange under the symbol SNDL, while maintaining its Nasdaq listing. Meanwhile, IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) said it received word from Nasdaq that it no longer complies with the minimum stockholders’ equity requirement for continued listing, giving the company until May 26 to submit a compliance plan.

SNDL shares were trading up 1.82% at $1.3950 as of Friday morning following the CSE listing announcement, though the stock has struggled with a year-to-date decline of 22.07% and a one-year drop of 33.25%, according to Yahoo Finance data.

“Listing on the CSE enhances SNDL’s structural flexibility and creates optionality for shareholders while reinforcing our commitment to the Canadian market,” SNDL CEO Zach George said in a statement. “As regulated product markets continue to evolve, this listing positions us to pursue growth opportunities with greater agility and alignment to our long-term vision.”

The CSE’s regulatory framework specifically supports cannabis companies with U.S. exposure, according to SNDL, which could open doors for future moves as the company continues scaling. Despite a ever-more crowded national market, SNDL, which also operates as Canada’s largest private-sector liquor and cannabis retailer, says it continues to build its consumer-facing cannabis brands as it searches for strategic capital deployment opportunities throughout North America. Its retail banners including Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf and Superette.

For IM Cannabis, which operates in Israel and Germany, the Nasdaq notification came after the company reported stockholders’ equity of $2.2 million in its annual filing, below the $2.5 million minimum requirement for the Nasdaq Capital Market. The company’s shares were down 0.75% to $1.3299 on Friday, with the stock having declined 42.65% year-to-date and 69.51% over the past year.

IM Cannabis has 45 days, until May 26, to submit a compliance plan, and if accepted by Nasdaq, could receive up to 180 calendar days to regain compliance.

“The company’s business operations are not affected by the receipt of the Notification Letter,” IM Cannabis stated, adding that it is “looking into various options available to regain compliance.”

The company also announced plans to acquire the remaining 26% interest in Focus Medical Herbs Ltd. from Ewave Group Ltd., a privately held entity jointly owned by IMC’s related parties. The purchase would be settled through the issuance of common shares rather than cash to preserve the company’s finances.

Data collection company MoreBetter announced a new study aimed at understanding the impact of THC-infused beverages on alcohol consumption, mood and overall quality of life. The company said it is looking for 2,000 qualified participants to provide daily feedback over three weeks about their infused beverage and alcohol consumption patterns, as well as self-assessments on their overall quality of life.

Infused beverages have become the hottest thing in cannabis. It seems every week, more brands are introducing some form of seltzer or juice infused with either regulated THC or a hemp-based THC. However, there has been little research into the effects or benefits of consuming these products.

Participants in the study must be over the age of 21 and willing to share their day-to-day experiences with using infused beverages. Individuals can check if they’re eligible for the study at this website: mystudi.es/bevstudy.

The study is sponsored by several leading beverage brands, that will collectively supply study participants with free infused beverage products to consume throughout the study.

“By collecting consumer-reported outcomes from thousands of consumers, over a multiweek basis, we provide brands and industry advocates with the real world data they need to understand how infused beverages are impacting consumers’ quality of life,” MoreBetter COO Tyler Dautrich said.

Alcohol sales have been trending downward as interest in about THC-infused beverages has increased. Some of the largest alcohol distributors, such as Total Wine & More and Spec’s, now include large selections of infused beverages. The brands, however, want to gain insight into how consumers are using their products and what perceived lifestyle benefits or wellness outcomes might result after consumption.

“The cannabis plant should be better researched, and we are hopeful that this is just the first step in learning how these products can improve people’s lives as acceptance, access, and consumption of infused beverages expands across the US,” said Adam Terry, CEO of Cantrip, also a sponsor of the study.

The study will mainly focus on canned THC-Infused seltzers, but MoreBetter will also investigate 750ml bottles used as mixers, dry powder mixes and 1.5-2 oz “shots” to study how various doses and form factors impact consumers’ perceived experiences.

“As more consumers explore mindful options, real-world data like this will be essential in understanding how THC-infused beverages are enhancing quality of life and transforming social rituals. Our partnership with MoreBetter isn’t just about validating our brands – it’s about leading a cultural shift with integrity, innovation, and style,” said Evan Eneman, CEO and co-founder of Iconic Tonics.