LOS ANGELES, Feb. 11, 2013 (GLOBE NEWSWIRE) -- MediSwipe Inc. ( www.MediSwipe.com ) (OTCBB:MWIP), a patient security solutions and financial products company for the medicinal marijuana and health care industry, today announced Friday's ruling in the state of Michigan to no longer allow "patient to patient" dispensary operations will not have a meaningful effect on the overall business strategy of the Company's plans to provide patient and state services in Michigan, or the other 17 legally approved states where the company is seeking to provide its services.
The Michigan Medical Marihuana Program (MMMP) currently only allows patients to buy the drug from registered caregivers, of which there are nearly 26,000 in the state. They supply marijuana to about 126,000 people, according to the program's application database, and individuals are allowed to possess up to 2.5 ounces of prepared marijuana, or 12 plants.
While that's not going to change, the court's 4-1 ruling Friday means that individuals who are properly registered as patients must purchase marijuana from a licensed caregiver or grow their own, and cannot sell it to anyone else, even another licensed patient. Therefore, there is no longer the opportunity for any storefront marijuana sales under the current law, the court ruled.The case arose after a dispensary called Compassionate Apothecary was shut down by Isabella County for setting up a profit-making venture that let licensed patients sell leftover marijuana to one another, saying that activity was legal because the law allows "delivery" and "transfer" of medical marijuana. The Michigan Supreme Court disagreed, siding with a lower court's ruling in banning the sales. Recently, an annual report to the state Legislature as required by the Michigan Medical Marihuana Act showed that over $10 million in revenue was collected from administration of the state's medical marijuana program in 2012, more than double the cost of running the program. The state collected ten million dollars in application fees from medical cannabis patients during its most recent budget year, which ended Sept. 30. After subtracting costs, Michigan netted a surplus of more than $5 million through the program, according to the new report. Based on this information, the state could make tens of millions of dollars.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts