Cannabis Regulatory
METRC
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Also called: seed to sale · seed-to-sale system
METRC (Marijuana Enforcement Tracking Reporting Compliance) is the software platform the Michigan CRA requires all licensees to use to tag and track cannabis inventory at every stage — plant, harvest, package, transfer, and sale — creating a chain-of-custody record regulators use for compliance and tax verification.
For a real estate or M&A transaction involving an operating license, METRC records are a core diligence item: reconciling physical inventory against METRC data can reveal shrinkage, compliance violations, or discrepancies that affect both valuation and the CRA's willingness to approve a license transfer or change of ownership.
A buyer acquiring a licensed operation should request METRC access or exported reports as part of diligence rather than relying solely on the seller's internal inventory records, since METRC is the system of record the CRA itself will reference in any compliance review tied to the transaction.
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Terms that travel with this one
- Due DiligenceThe contractual period after an offer is accepted during which a buyer investigates a property's physical, financial, legal, and regulatory condition before the purchase becomes non-contingent.
- Sale of Licensed PremisesA combined transaction structure in which a cannabis license and the real estate it operates from are sold together, requiring the deal to be sequenced against the Michigan CRA's license transfer or change-of-ownership approval process.
- ReceivershipA court-supervised process in which a neutral receiver takes control of a distressed property or business — including licensed cannabis operations — to preserve value and, often, sell the assets under court approval.
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