Business Archives

Israel’s Ministry of Health says tariffs on Canadian cannabis will harm patients, benefit illicit market

November 25, 2024

Canada’s Largest Women-in-Weed Networking Event Returns to Toronto

Written by Contributor on February 19, 2025. Posted in Business, Cannabis News, Ontario.

Marigold PR is proud to announce the return of Radicle Femmes on March 6, 2025 – an event series that is all-in on the empowerment, celebration, and advancement of women in cannabis.

Its largest annual gathering is taking place in Toronto, ON on Thursday, March 6, ahead of International Women’s Day. The event, sponsored by the Ontario Cannabis Store (OCS), will be held at Soluna Toronto and will bring together the bright minds and bold voices of women powering the Canadian cannabis industry and their allies. Other event partners include Green Monké, Glacial Gold, the Independent Retail Cannabis Collective (IRCC), Jane Dope, OB Consulting, and Sister Merci.

Radicle Femmes has quickly become a popular platform for women driving change in the cannabis sector. Since its launch in 2024, the community has partnered with more than 20 brands and attracted over 500 attendees from events held nationwide. This year, its International Women’s Day event promises to deliver even more value with thought-provoking panel discussions, industry data, and valuable B2B networking opportunities.

“Green Monké was built on community, and as a woman-led brand with a passion for the plant, we know the power of connection,” says Jen Lockwood, CMO and Co-founder of St. Peter’s Spirits. “This women-focused cannabis event matters to us as a brand—fostering authentic, supportive industry relationships helps us all thrive.”

The name “Radicle” was chosen with intention by event organizers. The radicle is the first part of a plant seedling to emerge, developing into the root and laying the foundation for growth. Much like its namesake, Radicle Femmes is about sparking growth in the cannabis industry. The event’s tagline, “I can’t believe we still need these events,” also captures a powerful reality. Despite the strides women have made, gender equality remains a work in progress in cannabis and beyond with only 20.9% of private sector businesses in Canada being women-owned.

Radicle Femmes Schedule of Events

Retail Revolution: Women Transforming Cannabis Retail
From women-led stores to crafting retail strategies that resonate with women consumers, we’ll hear from powerful women who lead this space and how businesses are targeting this growing demographic. Panellists include Janani Nadesananthan, National Director of Retail Sales at IRCC; Katy Perry, Founder and CEO of Toke Cannabis; Ritika Kumar, Director of Marketing at High Tide; and Zaira Gaudio, Co-founder and Creative Director of Curious Cannabis Co.

Women and Weed: Unveiling the Trends and Expectations of Consumers
Sarah England, Director of Market & Customer Experience Intelligence at the OCS, will share survey findings and trends that offer a deep dive into the intersection of women and the retail sector.

Crafting the Future: Women Shaping Cannabis Brands
Hear from women who are redefining the industry on topics like building authentic connections with consumers, creating products that resonate, and fostering inclusive brand communities. Panellists include Emma Andrews, CEO of Nextleaf Solutions; Jen Lockwood, CMO and Co-founder of St. Peter’s Spirits; Marina Gorin, Senior Director of Sales at Weed Me; and Maude Arsenault, Advisor, Communications & Content Creation at SQDC.

Lunch and Networking
The networking lunch at Radicle Femmes offers a relaxed, welcoming environment where attendees can engage in meaningful conversation.

“Radicle Femmes has become a space where people can find opportunity. We’ve seen women land new roles, businesses close deals, and attendees walk away feeling re-energized about the industry,” says Katie Pringle, CEO and Co-founder of Marigold PR. “It’s a reminder of the importance of community in driving real progress.”

Since 2017, Marigold PR has been at the forefront of hosting impactful events for women in cannabis, bringing together thought leaders and tastemakers from all corners of the country. Radicle Femmes has evolved into a cornerstone event for both the agency and the broader cannabis community, offering a platform that not only amplifies diverse voices but also creates strategic, targeted opportunities for partnering brands.

Radicle Femmes is proud to have the support of ADCANN, Cannabis MarketSpace, High Moon Magazine, and StratCann as esteemed media partners. For media inquiries and press passes to the event, please contact Ashley Buck at [email protected].

Attendance at Radicle Femmes is strictly limited to those aged 19+, and pre-registration is required. To stay updated with event details, follow @radiclefemmes and secure tickets early!

Content sponsored by Marigold PR

Metrc launches retail ID cannabis pilot project in Alberta

Written by Staff on February 19, 2025. Posted in Alberta, Business, Cannabis News, Products.

Two Edmonton-based cannabis companies—Plantlife, a cannabis retail chain, and Token Naturals, a cannabis producer—and US-based technology company, Metrc, are launching a pilot project in Alberta designed to improve the transparency and safety of cannabis products.

First shared in the trade publication Cannabis Equipment News, as part of the public-private partnership, Metrc will employ quick response (QR) codes using Retail ID to provide consumers with real-time access to data such as lab test results, Certificate of Analysis (COA), product origin, potency, authenticity, and supplemental information, including cannabinoids, terpenes, cultivar, and photos. Ultimately, this will help consumers identify legal cannabis products and learn more about them.

“Alberta is leading the charge in making government and markets more efficient by reducing red tape and unlocking the potential of private enterprise,” said Dale Nally, the Minister of Service Alberta and Red Tape Reduction. “This pilot is yet another example of that effort: using technology to increase consumer confidence and transparency, reduce inefficiencies, and keep Albertans safe.”

“Metrc Retail ID unlocks existing data from across the supply chain and makes it available to consumers.”
Michael Johnson, Metrc

Health Canada proposed amendments in 2024 to expand labelling options by permitting the use of QR codes on any container used to package a cannabis product. The proposed changes would authorize QR codes on cannabis products for any purpose, such as inventory and tracking purposes, or providing consumers access to websites or other information.

Those changes could come into force in the coming weeks, but an early election could pause those efforts. Health Canada in the past has instructed producers to remove QR codes.

“Metrc Retail ID unlocks existing data from across the supply chain and makes it available to consumers,” said Metrc’s Chief Executive Officer (CEO), Michael Johnson. “Instead of product information being siloed within businesses, we’re creating transparency for the consumer.”

Keenan Pascal, CEO of Token Naturals, says the Metrc system will help the company make buying cannabis a more consumer-friendly process.

“Token Naturals works to make the cannabis industry more accessible to participate in,” said Keenan Pascal, CEO of Token Naturals.

“By adopting Metrc’s Retail ID system, we would be ushering in the next generation of the cannabis industry, one that is transparent, responsible and engaging by leveraging existing information to enhance consumer awareness.”

Token Naturals will use Metrc’s software to generate and print product-specific QR codes and ship them with select products to Plantlife dispensaries. When a consumer purchases the selected product, Plantlife will provide a QR code sticker for the consumer to scan with their phone. Once scanned, the QR code navigates to a landing page that provides additional product information in a user-friendly format.

Plantlife Cannabis’ vice-president of operations, Ian Scott, says the company often receives inquiries from customers who wish to better understand label and packaging information.

“The technology reinforces why consumers should be buying from the legal, regulated market,” said Scott. “These products are rigorously tested and safe for consumption, and with Retail ID, consumers will now know exactly what they’re putting into their bodies—something the illicit market can’t compete with.”

Throughout the pilot project, Metrc says it will look to streamline the evaluation process by bridging the gap between cannabis growers, distributors, manufacturers, retailers, and regulators. Metrc has previously announced several track-and-trace partnerships with cannabis businesses in the US and internationally.

Week in Weed – February 15, 2025

Written by Staff on February 15, 2025. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we looked at the double standard in cannabis advertising and the industry’s call to open up interprovincial cannabis sales.

Quebec has begun outreach for their 2025 cannabis survey, while the SQDC sold $40.5 million worth of weed in their most recently reported quarter.

Norfolk County in Ontario released a new report on five years of bylaw enforcement of designated cannabis production sites, and the OCS released a recall notice for 7ASHISH brand Lebanese Blonde hash.

Simply Solventless closed on $6M financing for its Delta 9 Bio Tech deal, Organigram released its Q1 2025 results, and MediPharm terminated the proposed deal with Kensana Health.

We also looked at a new Swiss health committee plan to legalize and regulate cannabis for adult use.

In law enforcement news, police in Quebec shared info on two recent seizures of cannabis, one in the Yamachiche region and one involving arrests across Quebec and New Brunswick. Police in Edmonton are asking for the public’s assistance in identifying a cannabis store robbery suspect.

In other cannabis news

Rubicon Organics Inc. announced that its Delta Facility has received its CUMCS Equivalency IMC-G.A.P. certification, a certification standard for medical cannabis cultivation, harvest, and primary processing. Rubicon expects to begin exports in 2025.

Tilray Brands, Inc. announced the completion of Phase I of its accelerated growth plan for its cannabis supply chain, which began with increased planting in late 2024. Phase II of the growth plan includes planting the outdoor cultivation site in Cayuga, Ontario, in spring 2025. The company expects an additional 60 metric tonnes of cannabis annually from this, plus its Aphria One and Aphria Diamond facilities, both operating at capacity.

Aphria Inc. has agreed to pay $30 million to settle a class-action lawsuit by shareholders alleging the company made misrepresentations to capital markets in 2018. The lawsuit alleged Aphria made misrepresentations in 2018 in connection with its acquisition of a company called Nuuvera Inc. Aphria was acquired by Tilray Inc. in 2021. The settlement requires court approval. A hearing at the Ontario Superior Court is set for March 26.

A 955-square-foot cannabis retail store in a high-traffic area of NE Calgary is for sale for $169,900.

Monthly wholesale cannabis inventories averaged $265 in 2023 and 2024.

The general manager of Kindling Cannabis Leaside in East York, Ontario, told the CBC her $10,000 OCS delivery was sent to the wrong store, left outside, and quickly stolen. An OCS spokesperson told CBC Toronto that incidents like these are “rare.” Toronto police and the AGCO both confirmed they are currently investigating.

The Telegraph Journal spoke with Cannabis Xpress owner Chris Jones about his new private retail store in New Brunswick, as well as Cannabis NB spokesperson Tanya Greer.

The owners of Dawson City, Yukon’s first and only cannabis shop, High North, are moving their store from its Second Avenue location to a larger space on Front Street. However, some residents are pushing back against the idea due to proximity to young people, reports the CBC.

The Stay Period for 420 Investments Ltd.’s CCAA proceedings has been extended up to and including March 31, 2025.

High Tide Inc. announced the opening of its 192nd Canna Cabana branded retail cannabis location in Canada, the 77th in the province of Ontario and the 6th in the City of Hamilton.

Hi Cannabis announced its second location in Summerland, BC.

Due North Cannabis in Ontario spoke with local media about using its new Spark Delivery marketplace app to enhance delivery services.

The owner of 99 North Cannabis in Squamish, BC, reflects on his decade-long journey from an illegal dispensary to a raid, to legalization, legitimization and awards.

The owner of Cannabission Cannabis in Kelowna, BC, is looking to open a second location.

Novem Pharmaceuticals, which provides services that include storage and processing of cannabis, has announced it closed on a final purchase agreement on the former BC Tree Fruit cold storage facility in Kelowna.

The Micmac Rights Association held a meeting on February 11, 2025, to discuss recent RCMP raids on February 4-5 of multiple Mi’kmaw truck houses that were allegedly selling cannabis. “Should any attempt be made to enter our community to execute any such warrants related to cannabis against our members or their privately owned businesses on our lands, we will take steps to engage Public Safety Canada and the Department of Justice to pursue self-administered policing services.” writes Chief Michelle Glasgow.

A BC Court of Appeals dismissed an appeal of the June 2023 denial of a retail cannabis application by the Salt Spring Island Local Trust Committee to Canna Northwest Enterprise Inc. in the Village of Ganges. Canna sought judicial review of the LTC’s decision, arguing it was unreasonable and procedurally unfair. You can read more about the background of that case here.

After four years on the run, a man who helped run a group called the Medical Cannabis Consumers Association in Quebec was sentenced to 38 months in prison (26 with time served) for fraud and cannabis trafficking.

In International cannabis news

Brazil’s agricultural research agency Embrapa expects the country’s health agency Anvisa to give a green light this year for a cannabis research program. Embrapa’s plans include creating a cannabis seed bank, adapting varieties to the Brazilian soil and climate, and helping to identify and develop regional cannabis production hubs nationwide.Bloomberg looked at the challenge state-legal operators in the US cannabis industry face when undergoing bankruptcy.

Cannabis sales continue to increase in Quebec

Written by David Brown on February 13, 2025. Posted in Business, Cannabis News, Financials, Quebec, Retail.

The SQDC reported a net and overall result of $40.5 million for the third quarter of the 2024-2025 fiscal year, which ended January 4, 2025. This was compared to $33 million for the same quarter in the previous year and $29.4 million in the previous quarter.

Cannabis sales in the province in the most recent quarter were $235.9 million, up year-over-year from $201.6 million in Q3 2023-2024 and up from $173.7 million in the previous quarter.

The SQDC saw a 17% year-over-year increase in sales compared to the same quarter of the previous fiscal year, and sales volume increased by 28.6% year-over-year. Quebec moved 47,843 kg of cannabis in the most recent three-month reporting period, up from 34,675 kg in the previous quarter and 37,215 kg for the same quarter of the 2023-2024 fiscal year.

The provincial cannabis agency attributes this increase in sales to the growing demand for cannabis extracts, which includes cannabis oils and capsules, as well as the limited number of resins, rosins, and hash that can meet the province’s 30% THC limit. The province is also looking to allow sales of cannabis vapes by the end of 2025.

In the last quarter, SQDC sold more cannabis at a lower price than in the same quarter last year. In Q3 2023-2024, there were 6 million transactions for all cannabis products combined, with an average selling price of $5.67 per gram, including all taxes. This is compared to 4.9 million transactions in the same quarter last year at an average selling price of $6.23 per gram.

The vast majority of sales were from brick-and-mortar stores at $226.5 million, compared to $189.3 million for the third quarter of the previous fiscal year. Online sales were $9.4 million, down from $12.3 million in Q3 2023-2024, which SQDC attributes to the postal strike last November.

The SQDC currently has 101 brick-and-mortar retail locations open in the most recent quarter and currently lists 104 as licensed, with plans for more in 2025

The $40.5 million in revenue from the SQDC’s cannabis sales, in addition to the $51.5 million it brought in from its 75% share of the federal excise tax applied to cannabis, mean that the province brought in $92 million, which it says was reinvested into health-related issues like prevention and research into cannabis.

Cannabis caught in interprovincial barriers

Written by Jonathan Hiltz on February 11, 2025. Posted in Business, Cannabis News, Government, Insight.

If necessity is truly the mother of invention, President Trump’s ongoing melee over tariffs on Canadian goods is surely a doorway to innovation.

If nothing else, this looming financial burden for Canada has been a wake-up call for Canadians to realize that we can’t depend on over 70 percent of our exports being shipped to one country, no matter who it is. Doing so is a foolish exercise in dependency and sets the Great White North up to be beholden to a trading partner with a strong hand in determining our destiny.

So, as the initial shockwave clears and Canadian officials scramble to rebound from this weak negotiating position, many ideas have been floated to make trade more diverse. These include reaching out to countries in Europe and elsewhere and a renewed push to eliminate interprovincial trade barriers in order to expand domestic revenue.

This is because while Canada is a sovereign nation, many Canadians do not realize the incredible level of trade restrictions that exist from province to province, choking domestic trade and limiting the revenue Canada can make within its borders.

“We’re a giant country, but we forget that within that country there are a whole bunch of borders,”
Jonathan Wilson, CEO of Crystal Cure

While the threat of tariffs on goods entering the U.S. does not have a direct impact on the Canadian cannabis industry for obvious reasons, knocking down interprovincial trade barriers could be a fantastic and welcome opportunity for the sector and this has not gone unnoticed.

“This is something I’ve been discussing for a long time, from my previous experience in beverage alcohol in the Nova Scotian wine industry,” said Jonathan Wilson, CEO of Crystal Cure.

“We’re a giant country, but we forget that within that country there are a whole bunch of borders,” he said. Wilson added that in his experience, there are various instances where it can be easier to get products from international sources rather than from a different province—something that many sectors and companies have agreed with.

“Since confederation, all the provinces and territories have had their own governance [on trade], their own setup, and some are more protective than others. Now you see over 150 years later what it’s done. It’s caused a bunch of bureaucracy and red tape.”

Wilson went on to say that because of this, it has always been the norm for provinces to protect their borders by keeping a very watchful eye on what they deem ok to enter and exit in terms of goods and services.

“Let me sell to any retailer I want to, anywhere in Canada. I’ve got retailers in Ontario that would love to carry my product, but I can’t jump through their hurdles to supply six retailers, but I could do it if they weren’t in the way.”
Gord Nichol, North 40 Cannabis

Deja vu all over again

Reducing or eliminating Canadian trade barriers is not a new topic of discussion. In April 2017, provincial and territorial governments signed the Canadian Free Trade Agreement (CFTA), designed to open up trade restrictions and create more domestic revenue. While it was a step in the right direction, almost half of the 345-page agreement was filled with exceptions and opt-out measures.

At the time, a report released by the Senate, Tear Down These Walls: Dismantling Canada’s Internal Trade Barriers, showed that provincial trade restrictions were costing Canada as much as $130 billion per year. These restrictions included everything from truck tires to alcohol to carbon emissions to many other goods and services.

In 2018, the conversation continued again, sparked by a court case in which a New Brunswick resident named Gerard Comeau went to Quebec to buy alcohol and was fined $240 plus fees when he returned to his province. Comeau fought the fine, and the case eventually went all the way to the Supreme Court, which upheld the existing laws. Nevertheless, the superfluous nature of the restrictions was on full display for the country to see.

Then, as recently as 2023, a report by the Montreal Economic Institute said that interprovincial trade restrictions were costing Canada an added 7% country-wide on goods and services. The report advocated for the removal of these barriers.

How would eliminating trade restrictions help cannabis?

“The first group it would help is the smaller companies, the micro and craft producers: the ones that don’t have the infrastructure, size, or cash flow to get into OCS, BCLDB, any of them,” said Wilson. He added that it would allow for direct sales to consumers, increased competition across the country, which would improve product offerings, and more unique products would see the light of day from coast to coast.

Gord Nichol, the owner of North 40 Cannabis, a micro-cultivator and processor in Saskatchewan, would also agree. He has demand in other provinces but the process of getting approved by the boards in those provinces can be a real challenge.

“A very good example is that multiple retailers in BC have been requesting my product and have been rejected by the board because they prefer to support BC cannabis, which is exactly what we’re talking about, interprovincial trade barriers,” said Nichol.

He went on to say that there are barriers to entry to every province that has a regulatory board and acts as provincial gatekeepers. If Canada could drop all of that, Nichol feels he could sell his entire inventory.

“Let me sell to any retailer I want to, anywhere in Canada. I’ve got retailers in Ontario that would love to carry my product, but I can’t jump through their hurdles to supply six retailers, but I could do it if they weren’t in the way.”

The move would also undoubtedly assist in eliminating the illicit market, which pays no attention to trade restrictions, said Wilson.

“[Provinces] hold on to their monopolies and protect their borders thinking that they don’t want to give up any revenue from controlling liquor, cannabis, whatever, but there’s a tremendous amount of opportunity to not only make sales tax, but revenue from whatever they are sending out. The pie can actually be grown.”

Wilson went on to say that for any of this to happen, at least in the cannabis sector, it starts with the federal government as it created the Cannabis Act. Then, they’d have to get the provinces and territories on board, which has been the hardest part. Tweaks can be made to the existing systems, but for any real change, Canada needs to rethink the idea of provincial and territorial monopolies and realize that there are other, more profitable ways to do things.

Most recently, President Trump continued his warpath on trade with Canada by announcing a 25% tariff on Canadian steel and aluminum, a further wrinkle in the uncomfortable conversation Canada is having with its largest trading partner. Having said that, the upside of this whole scenario is that it has started a deluge of discussion to once again consider removing domestic trade barriers—an idea that seems more and more blatantly obvious as the days go on and the trade threats continue.

Whether or not the cannabis sector will witness any positive side effects from these discussions and implementations remains to be seen, but making it easier for Canadians to get their hands on domestic products and services, especially at a time when Canadian trade is being threatened, seems more important than ever before.

Canada’s legal cannabis industry contributed nearly $7B to GDP

February 4, 2025

Alberta and BC reach agreement over wine sales. Cool, now do cannabis

July 18, 2024

Cannabis industry wonders when their relief is coming, too

March 10, 2024

Week in Weed – February 8, 2025

Written by Staff on February 8, 2025. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we looked at the cannabis industry’s contribution to Canada’s GDP, and once again explored the challenges many legal Canadian cannabis companies face on some social media platforms.

Canadian cannabis companies are among the many participating in an upcoming Team Canada trade mission to Australia, sponsored by Global Affairs Canada.

A city councillor in Calgary is looking to propose bylaw and business licence amendments to allow for cannabis to be sold at adult-only events, and licensed cannabis producers can now enter into a private label agreement with multiple retailers in Alberta for the same product or products.

Aurora signed a supply deal with SNDL, Cannabis Xpress will soon open a new location in Dalhousie, New Brunswick, the OCS issued a product recall notice, and the OCS & DiversityTalk will be hosting a Black History Month event in Toronto later this month.

In financial news, Aurora shared their Q3 2025 and Canopy also released their Q3 2025.

In other cannabis news

The Cannabis Program in the Cannabis, Tobacco and Controlled Substances Directorate (CTCSD) at Health Canada has shared a Cannabis Inspection Data Questionnaire.

Monthly retail sales ticked up a bit in November 2024.

Bromont is the second city in Quebec, after Sainte-Julie, where the Société québécoise du cannabis (SQDC) will open its new “open-air” branch model. The SQDC currently lists 104 locations.

Organigram Holdings Inc. will report earnings results for its first quarter of fiscal 2025, which ended December 31, 2024, on Tuesday, February 11, 2025, before markets open.

DYK that out of the over 145 Canadian cannabis licensed producers AGLC works with, 40 are from Alberta?

The monitor in Delta 9’s CCAA process has been authorized and directed to make distributions to SNDL Inc. in excess of $13.8 million.

Freedom Cannabis’s new monitor has booked Court time at 10:30 a.m. on Wednesday, February 26, 2025, for an application (among other things) for an Order approving a sale and investment solicitation process, approval of a stalking horse agreement, and an extension of the stay. Freedom also recently changed its monitor.

420 Investments Ltd. is seeking to extend the current CCAA stay period which is set to expire on February 25, 2025 up to and including March 31, 2025.

City council in Kitimat, British Columbia, has voted against a business application for a new cannabis store, against staff recommendations. The decision was driven by concerns that Kitimat’s two existing cannabis stores are enough for the small town of about 8,500 people.

The District of Kent Council in Agassiz, British Columbia, heard the thoughts of some area residents as council considered approving Agassiz’s first and only cannabis retail permit.

Local media spoke with Tyson Wall and Chad Chisan of Kush Mountain Craft Cannabis in Prince George, British Columbia.

Tilray Brands, Inc. has reached a settlement agreement regarding a securities class action lawsuit against its subsidiary, Aphria.

Cannabis research

A new study making the rounds in the media says the proportion of new cases of schizophrenia associated with a cannabis use disorder has risen from 4% pre-legalization to 10% after cannabis legalization in Ontario (2006 and 2022). The authors say the study does not settle ongoing debates about whether or not heavy cannabis use can cause schizophrenia but notes that heavy cannabis use does worsen symptoms.

Cannabis use is rising among expecting mothers in Ontario: a new study from McMaster University researchers fills this gap in knowledge and has uncovered potential risks. Research in California found warning signs on the subject posted at retailers were not effective.

A research team from the University of Toronto is now looking for volunteers in Thunder Bay and Northwestern Ontario to help measure the long-term impacts of cannabis on oral health, especially on Indigenous populations.

International cannabis news

In a new series, NPR explores what consumers should know about the safety of the cannabis supply, especially regarding things like contaminant testing.

Amsterdam’s updated distance regulations for cannabis businesses were adopted by the city following a monthslong review. An ordinance modifying city code was adopted by the Common Council on Tuesday.

As France’s three-year medical cannabis trial program comes to an end later this year, Nadine Attal, head of the pain centre at the Ambroise-Paré hospital in Boulogne near Paris, is sounding the alarm over the hundreds of patients enrolled in the experiment who have benefited from medical cannabis but whose health is now being ignored.

And finally, Oregon’s cannabis industry is drowning in its own supply, reports Axios. According to a new state report, last year’s record-breaking harvest exacerbated an already oversaturated market and dropped consumer prices to their lowest ever.

Aurora signs new supply deal with SNDL

Written by Staff on February 6, 2025. Posted in Business, Cannabis News, Producers.

Aurora Cannabis Inc. has announced a strategic supply agreement with SNDL Inc.

Under the agreement, SNDL is expected to supply Aurora with cannabis flower grown at SNDL’s indoor facility in Atholville, New Brunswick, where SNDL handles all of its cultivation. They acquired the facility from Zenabis in 2022.

The term of the agreement between SNDL and Aurora is three years, with an option to extend and an estimated value of $27 million.

“Following our strong, third quarter performance driven by record setting growth in our international medical cannabis segment, Aurora remains focused on a balanced approach to operating a hybrid manufacturing network of in-house and third-party cultivation. We value our relationship with SNDL and their shared commitment to cultivation excellence,” said Miguel Martin, Executive Chairman and Chief Executive Officer of Aurora Cannabis.

“As Canada’s leading integrated cannabis company, SNDL is well positioned as a supplier of quality cannabis products to commercial partners like Aurora. We have a shared approach to quality and cultivation excellence and look forward to expanding this relationship further,” said Zach George, Chief Executive Officer of SNDL.

SNDL posted $236.9 million in revenue in the third quarter of 2024, with an $18.5 million loss in its most recent quarterly report last November.

On February 5, 2025, Aurora Cannabis reported nearly $100 million in revenue for the three months ended December 31, 2024 (Q3 2025), $88.2 million in net revenue, and $31.3 million in net income, a new high for the company.

Featured image of SNDL’s Atholvill facility via Google Maps

SNDL posts $3.8 million in adjusted operating income from its cannabis businesses in Q3 2024

November 5, 2024

SNDL announces successful bid to purchase Indiva

August 29, 2024

Aurora Cannabis reports record-breaking quarter, continued increases in international market

February 5, 2025

Cannabis tech company taking part in Canadian trade mission to Australia

Written by David Brown on February 5, 2025. Posted in Business, Cannabis News, Government, International.

A Canadian cannabis ERP company, GrowerIQ, will represent Team Canada in an upcoming trade mission to Australia.

The program, which will take place from February 16 to February 21, 2025, is sponsored by Global Affairs Canada and will include visits to cannabis markets in Sydney and Brisbane.

Andrew Wilson, founder and CEO of GrowerIQ, says the mission provides an opportunity for the company to further engage with Australia’s rapidly evolving cannabis industry and build on its current presence in the market.

“We are honoured to join Team Canada on this important mission,” says Wilson. “This opportunity underscores our commitment to innovation and collaboration in the global cannabis industry. We look forward to building stronger ties with Australian cannabis businesses and helping them achieve new levels of traceability, compliance, and operational excellence.”

GrowerIQ will showcase its AI-powered technology designed to support GMP-compliant businesses. The company is also participating in the Australian Medical Cannabis Symposium.

Global Affairs Canada is a federal agency with duties that include managing Canada’s diplomatic and consular relations and promoting the country’s international trade.

The Team Canada Trade Mission to Australia was announced in October 2024 by Mary Ng, Minister of Export Promotion, International Trade, and Economic Development, as part of Canada’s Indo-Pacific Strategy.

These trade missions allow representatives from different Canadian organizations to gain market exposure and pursue commercial opportunities and partnerships.

During the Team Canada Trade Mission to Australia, Canadian companies will learn about opportunities in various sectors, including agri-food and agritech, clean energy, mining, and information and communications technologies.

Highlighting past program successes, the Canadian government says a 2023 Team Canada Trade Mission to Japan led to at least 70 new contracts with an overall value estimated at nearly $30 million.

Export-ready Canadian companies of all sizes with an interest in the Australian market were encouraged to participate in the mission.

Australia is the world’s 13th-largest economy (Canada’s is the ninth), and Australia’s medical cannabis industry is closely connected to Canada’s. The country legalized medical cannabis in 2016. In 2021, Canadian companies exported nearly 5,800 kg of cannabis to Australia and by 2023, that figure was over 34,000 kg.

GrowerIQ completes acquisition of Ample Organics

January 19, 2024

Australia’s cannabis regulator has issued more than $600,000 in fines

June 26, 2024

Some Australian cannabis companies growing weary of Canadian imports

October 29, 2024

Canada’s legal cannabis industry contributed nearly $7B to GDP

Written by Staff on February 4, 2025. Posted in Business, Cannabis News, Government, Producers, Retail.

Canada’s legal cannabis industry contributed nearly $7.7 billion to Canada’s GDP in 2023, according to the most recent figures from Statistics Canada.

The majority of this was cannabis production, at nearly $6.8 billion, while retail added almost $900 million on top of that.

That number grew in the first four years of legalization but declined somewhat in 2022. In 2022, the legal cannabis market contributed just under $8 billion to Canada’s GDP.

The illicit cannabis market added another nearly $2.7 billion to Canada’s GDP in 2023, with another $892 million from illicit cannabis retailers, both online and brick-and-mortar.

In comparison, legal cannabis’ contribution to Canada’s GDP surpassed that of breweries, wineries, and distilleries. In 2023, breweries contributed just over $3 billion to Canada’s GDP, while wineries and distilleries contributed just over $1 billion. Legal cannabis stores alone contributed nearly as much to the GDP in 2023 as wineries and distilleries combined.

Licensed cannabis production’s contribution to Canada’s GDP surpassed that of gold and silver ore mining, local credit unions, furniture and related product manufacturing, the postal service, gambling industries, potash mining, dairy product manufacturing, coal mining, radio and television broadcasting, electronics and appliance stores, grain and oilseed milling, fishing, hunting and trapping, and ship and boat building, just to name a few.

$11 billion in cannabis sales has created 151,000 new jobs and added $43.5 billion to Canada’s GDP

February 1, 2022

Cannabis sales and inventory figures through June 2024

January 10, 2025

Canada’s medical cannabis market remains steady, exports continue to increase

Village Farms’ first Leli Holland harvest to reach coffee shops soon

Written by David Brown on February 3, 2025. Posted in Business, Cannabis News, International, Producers.

Following its first commercial harvest in January, Canada-and-US-based Village Farms says it has now started processing orders and deliveries into the Dutch market from its facility in the Netherlands.

The company will begin cannabis deliveries to Dutch coffeeshops on February 7, 2025.

Village Farms is one of a handful of companies selected, through its wholly-owned Netherlands-based Leli Holland subsidiary, to provide a regulated supply of cannabis to some of the country’s famous coffeeshops. Ten such licenses have been issued.

In December 2023, the first cannabis under this program reached the first approved coffee shop. Leli Holland has also said it plans to build another much larger production facility in nearby Groningen with production beginning as early as 2026.

The Dutch government first announced its plans for the project in 2022, which included looking into a “closed cannabis chain” for cannabis coffee shops in several cities across the country. On April 7, 2025, all coffeeshops in municipalities participating in the program will be required to buy and sell cannabis products solely from regulated license holders.

The goal of the closed-loop experiment is to explore the possibility of a quality-controlled cannabis production and distribution system in the country as an alternative to the current “tolerance policy” that has not-legal-but-tolerated “coffee shop” style points of sale, and unregulated, illicit growers who supply them.

A research paper examines the subject here, and can also be explored in-depth here. Currently, there are around 565 cannabis coffee shops in the country.

The Leli Holland facility, one of just ten such licensed facilities in the Netherlands, is owned by Village Farms, the parent company of BC cannabis producer Pure Sunfarms. It’s approved for cultivation of up to 2,500 kilograms of cannabis a year.

“Today’s news marks the culmination of nearly five years of work by our team to commercialize Leli’s operations, and we are thrilled to begin deliveries to Dutch coffeeshops and meet our previously-disclosed timeline to launch of sales,” said Michael DeGiglio, president and CEO of Village Farms International.

“With a long-established culture of legal cannabis consumption, a zero-tax policy toward regulated products, and a considerably more favorable pricing environment than Canada, the Dutch market represents one of the most attractive cannabis investment opportunities globally. We are confident in our ability to continue executing a profitable international growth strategy, and look forward to continued collaboration with the Dutch government to create a model for success in regulating cannabis internationally.”

Village Farms also exports medical cannabis from its EU GMP-certified facility in Canada to international markets like Germany, the United Kingdom, Israel, and Australia.

First harvest from Village Farms’ Netherlands facility to reach stores in coming weeks

January 19, 2025

First regulated cannabis makes its way to Dutch coffeeshops in new pilot project

December 15, 2023

New retail cannabis project in Germany could be good news for Canadian cannabis exporters

Navigating social media for cannabis

Written by Jonathan Hiltz on February 3, 2025. Posted in Business, Cannabis News, Insight.

If you’ve been tasked with marketing a legal cannabis company or product online, chances are you’ve brushed up against, or even slammed into, various policies on social media that prevent these items from being promoted.

At the very least, a warning is usually issued, and banishment from the site altogether sits on the high end of punishment. That is why when Meta announced sweeping changes to its content moderation strategy in January, there was a flurry of chatter about what that meant for the cannabis sector.

Now that the dust has settled, it seems that Meta still considers cannabis, legality aside, to be on the no-no list. While they are a private company and can do what they want with their policies, it has left many in the legal Canadian industry scratching their heads as to why.

Jeff Aubin is the President of Smoker Farms in British Columbia, and he has a long history of trouble with Instagram and posting about cannabis.

“At the beginning, I posted whatever I wanted. They smacked me around a little, and then a year into it, they shut down my account,” Aubin says. “So I begged and pleaded for forgiveness and said I would do better, and then, after 7 days, I got my account back.”

Despite returning to the platform, Aubin cannot use the live setting on his primary business account on Instagram to this day. The company had initially said he would be barred from it for three months, but it still does not work. “I haven’t been able to go live for well over a year now.”

Aubin went on to say that the reason he was receiving from the company was that he couldn’t talk about anything illegal, but of course in his jurisdiction cannabis is legal. Nevertheless, Aubin did his best to comply with their demands.

“They always like to say ‘illegal’ but cannabis is legal in Canada. So the [implication] that I was talking about illegal things fell on deaf ears for me, but I knew I had to change it around a little bit.”

Aubin no longer talks about their products being available in any stores even though the Canadian government authorizes all the stores where his products are sold. Further, Aubin was shut down a couple of times when he was simply talking about clones and showing the process around their maintenance and cultivation.

“I was cutting clones, putting them in my rockwool substrate, misting them and putting them in domes, and I got shut down two to three times for that alone,” he said. “I’m not talking about anything that’s for sale, I’m showing how you take a plant, put a rooting gel on it and make it root.”

Aubin added that, at this point, when he visits a retailer selling his product, for example, he can post online that it was a “great store, great people, we talked about the industry,” and that’s about it.

Further insult to injury is the seemingly random rather than targeted policing on Instagram, Facebook, and the like, which Aubin has witnessed firsthand.

“It makes no sense to me. Even [processors I know] are always putting stuff on there saying their flower is available. If I went right now and posted something on Instagram saying my product is available I guarantee I’d be shut down within 24 hours.”

Despite the obvious challenges and double standards that exist for Smoker Farms, Aubin is still grateful he has an account to use, a luxury that some of his colleagues no longer have. “Two of my close buddies in the industry were shut down, and they have not gotten it back.”

What is Meta’s official stance?

StratCann reached out to Meta for comment but did not receive a response. However, this link on Meta’s transparency page states their current restrictions on cannabis and related products.

“Anything containing THC is listed,” said Brishna Kamal, President of Whistler Therapeutics. “That means all of the Canadian [cannabis] companies currently on Meta are in violation of one of their policies.”

As a cannabis business owner, Kamal keeps up with policy updates. She said that the current changes announced were not substantial enough for the legal cannabis industry to feel like advertising is now available to them. She handles the marketing for her organization and is still very cautious about how she discusses her business.

“I believe even simple information and characteristics are usually targeted. Even if you don’t mention the word cannabis you may get shadow-banned and then after that your account gets disabled,” she said.

Although Kamal has not had a specific issue with Meta, she recently encountered problems with another online marketing tool.

“I was using Mailchimp for five years and I was shut down right before the holidays,” she said. “I was told the reason was because Omnivore AI, which is a software they implement, picked up the word hash, and picked up the word Afghan. That’s how my campaign triggered an entire review by a human.”

You’ve got a friend in me

It may sound rather bleak if you’re a cannabis company trying to navigate these platforms to avoid triggering disciplinary action, but according to Kamal, some cannabis-friendly services do exist.

“There are [platforms] out there that are cannabis-friendly, but it’s all related to where the data is stored,” she said. Kamal went on to say that many popular newsletter platforms have servers in states where cannabis is illegal.

With her newsletter platform located in Atlanta, Georgia, Kamal discovered Flodesk, with servers in California, a vibrantly legal cannabis market. “Before I even paid them the annual fee, they confirmed over email, they are cannabis-friendly.”

Kamal concluded that if these various online platforms had servers in Canada, something that seemingly doesn’t exist now, it would go a long way for legal cannabis to market and advertise.

“[Social media and software] businesses who are marketing to different countries, the onus should be on them before they even come into the market to ensure that the data they are going to store for the people is in that country.”

Cannabis jobs update – February 2025

Written by Staff on February 2, 2025. Posted in Business, Cannabis News.

Cannabis jobs are available across Canada in a wide variety of roles, including retail, brand representation, cultivation, and production.

Whether you’re looking for an entry-level position or aiming to advance your career, there are plenty of opportunities in the industry. Here’s our February round-up of current postings.

British Columbia

Inspired Cannabis is hiring a Budtender/Key Holder in Vancouver.

The BC Cannabis Store is looking for a Store Manager in Nanaimo.

Aurora Cannabis is hiring a Maintenance Tech in Mount Currie.

Unity Cannabis is hiring a Budtender in Williams Lake.

Alberta

Stacks 306 Craft Cannabis is hiring a Facility Assistant in Lloydminster.

Weed Me Inc. is looking for a Key Account Manager in Edmonton.

High Ground Medica Inc. is hiring a Cannabis Technician in Oyen.

Aurora Cannabis Inc. is looking for a Supply Chain Analyst in Red Deer.

Saskatchewan

The Saskatchewan Liquor and Gaming Authority (SLGA), which is responsible for the wholesale distribution of liquor, and regulation of liquor, gaming and cannabis across the province, is hiring a Vice President, Regulatory Services Division.

Cova Software is looking for a Cannabis Retail Recruiter in Regina.

The Joint Cannabis is hiring Order Processing Clerks in Regina.

WeedPool Cannabis is seeking an In-market Representative/Educator in Regina.

Manitoba

Canna Cabana is looking to hire a Retail Operations Manager in Thompson.

Farmer Jane Cannabis Co. seeks a Budtender and Key Lead in Winnipeg.

Flamingo+ Cannabis is hiring a Sales Associate at its store in Winkler.

Tilray is looking for a Warehouse Technician in Ste. Agathe.

Ontario

Mera Cannabis Corp is looking for a Sanitation Technician in St Thomas.

White Wolf Cannabis is hiring a Dispensary Technician in Ottawa.

BZAM is seeking a Cultivation Associate in Hamilton.

The Oz Store is seeking a Retail Associate for their Orléan location.

Quebec

The SQDC is looking for a Branch Advisor in Lebourgneuf and many other positions across the province.

Greentone wants to find a Senior Director of National Sales in Quebec City.

Lumino is hiring a Bilingual Patient Care Administrator in Québec City.

SUMO Cannabis is looking for Production/Culture staff in Quebec City.

New Brunswick

Cannabis NB is hiring a Bilingual Store Manager in Campbellton and several other positions across the province.

Purplefarm Genetics is looking for a Cultivation Specialist in Fredericton and several other positions.

Organigram Inc is hiring a Plant Care Technician in Moncton and several other positions.

Canopy Growth Corporation is hiring a Healthcare Support Professional in Moncton.

Nova Scotia

TEC Cannabis Services Cannabis is hiring someone for Trimming and Packaging in Liverpool.

Apollo Applied Research Inc. is looking for a Cannabis Clinic Administrator in Elmsdale.

AtlantiCann Medical Inc wants to hire a Facilities Maintenance Supervisor in Lower Sackville.

Kiva Confections is seeking a Territory Manager in East Bay.

PEI

Auxly Cannabis is hiring a Product Technician in Charlottetown.

Canada’s Island Garden is looking for an Integrated Pest Management Worker in Charlottetown.

Canna Cabana is hiring an Assistant Store Manager in Stratford.

Newfoundland and Labrador

Canna Cabana is looking for a Retail Shift Leader in Victoria.

Atlantic Cannabis is hiring a Store Manager in Placentia.

Oceanic Releaf Inc. is looking for a Budtender in Corner Brook.

Yukon

The Herbary – wants to hire an Assistant Store Manager in Whitehorse.

Fire & Flower is looking for a Store Manager in Whitehorse.

Nunavut

The Nunavut Territorial Government still needs Liquor and cannabis inspectors on a part-time contractual basis in Rankin Inlet, Cambridge Bay and Iqaluit.

Week in Weed – February 1, 2025

Written by Staff on February 1, 2025. Posted in Business, Cannabis News, Government, International, Producers, Retail.

It was a busy week in Canadian cannabis news. StratCann looked at how a new government could mean significant delays for cannabis industry demands. New Brunswick and British Columbia released their quarterly cannabis wholesale figures, and we looked at CCX’s newest annual cannabis wholesale report.

New Brunswick also released an RFQ for four new private retail stores.

A Canadian CEO is suing US agencies over harassment at the border for his and his company’s connections to the cannabis industry.

In financial news, High Tide and Nextleaf both released their 2024 annual reports, and Cannara Biotech shared their Q1 2025 financials.

A court rejected the CRA’s concerns involving Delta 9’s creditor protection case, allowing the Winnipeg company to move forward with several deals. Simply Solventless also announced $5 million in convertible debenture financing for their Delta 9 deal, and True North and its associated companies filed for creditor protection.

In law enforcement news, the RCMP charged a BC man in connection to a $47 million money laundering scheme involving illegal online cannabis sales, and the BC CSU raided two of Dana Larsen’s cannabis stores, seizing products.

Finally, two Ontario men were arrested in two different cannabis store break-ins in one day in North Bay.

In other Canadian cannabis news

Radio Canada spoke with Christian Leclerc, who has been growing hemp on his JCL Abitibi farm for two years.

The AGLC says reducing listing fees for cannabis helped the industry save an estimated $4 million.

Christina Lake Cannabis provided an update on their 2024 harvest. The total from the Christina Lake and new Midway site yielded approximately 105,000 kilograms of combined weight in extraction grade biomass and flower, up from 38,000 kg of biomass and flower harvested in 2023.

Cannabis company The Good Shroom Co Inc. announced a corporate name change to Mercanto Holdings Inc.

The town of Salisbury, New Brunswick will be considering a proposed by-law to allow a micro-cultivation facility.

Greenway announced that two of its new MillRite SKUs will be available for purchase in Ontario in the coming weeks.

UFCW is hiring General Organizers for its Cannabis Program. The United Food and Commercial Workers International Union (UFCW) is a labour union that represents 1.2 million people in the US and Canada.

Cannabis Council of Canada president Paul McCarthy was in attendance at a recent fundraiser in Ottawa.

Highlighting the diversity of opinion about cannabis in First Nations communities, a cannabis rights group, a Nova Scotia Mi’kmaw rights group, the Micmac Rights Association, is pushing back against what they say is the Membertou First Nation in Nova Scotia’s efforts to ban cannabis sales in their community, reports The Cape Breton Post and Saltwire.

New research suggests that cannabis use is associated with short- and long-term brain function outcomes, especially during…wait, what was it? Oh right, working memory tasks. Recent cannabis use was associated with poorer performance and lower brain activation in the working memory and motor tasks, but the associations between recent use and brain activation did not survive false discovery rate correction.

A new study looks at the development and validation of a minimal SNP genotyping panel for the differentiation of Cannabis sativa cultivars. Fresh leaf material from 31 clonally propagated C. sativa cultivars was provided by Organigram Inc.

The Tyee reports that BC’s raids on Dana Larsen’s unlicensed medical cannabis stores threaten his drug-testing services.

TerrAscend, which operates in the US and Canada, announced its preliminary and unaudited financial results for the quarter ended December 31, 2024.

The Saskatchewan RCMP’s Roving Traffic Unit recovered about nine kilograms of cannabis and an undisclosed amount of money near Ponteix on January 22.

International cannabis news

Israeli cannabis company Canndoc has returned to the market, and has acquired the Canadian brands PurplePharm and All Nations for distribution in Israel. Canndoc will also continue its long-term agreement with the Canadian company Organigram.

Prices of cannabis dispensed in pharmacies in Uruguay have been updated for February 2025. A five-gram package goes from $450 to $600, or around $14-20 Canadian dollars.

Cannabis companies in Illinois are facing a class action lawsuit for allegedly labelling cannabis-infused products as concentrates in order to exceed the state’s THC limits.

Scientists have discovered cannabidiol, or CBD, in a common Brazilian plant, opening potential new avenues to produce the increasingly popular substance.

Researchers in the Netherlands found that a high-fat meal significantly impacts the bioavailability and biphasic absorption of cannabidiol (CBD) from a CBD-rich extract in men and women.

A New York Times review of 20 of the largest US cannabis brands found that most were selling products with unsupported health claims, potentially violating federal and state regulations. At the same time, the market continues to chase increasingly higher-potency products, concerning public health officials.

There are 130 cultivation clubs in Germany now allowed to grow cannabis, according to a recent survey, but hundreds of applications are still pending, reports the RedaktionsNetzwerk Deutschland.

And finally, Scotts Miracle-Gro Co. plans to spin off its cannabis unit, Hawthorne Gardening Co., into a stand-alone operation.

Wholesale flower prices expected to continue to rebound in 2025, domestic market will continue to slow

Written by David Brown on January 31, 2025. Posted in Business, Cannabis News, Products.

Tightened domestic supply and approved canopy, a growing export market, and greater demand for premium, hand-trimmed and craft products are continuing to drive wholesale cannabis prices up. This is according to the newest annual report from the Global Cannabis Exchange Ltd. and the Canadian Cannabis Exchange Ltd.

The Bulk Wholesale Cannabis and Distillate Pricing Report provides an overview of the 2024 market and looks ahead at what 2025 holds.

According to the report, the average wholesale price of cannabis flower increased from $1.07 per gram in 2023 to $1.28 in 2024. The Canadian Cannabis Exchange projects that it will continue to rise to around $1.61 a gram in 2025, on average.

The quality of the product also weighed significantly on the price, with hand-trimmed flower trading at an average price of $1.39/gram in 2024, 31.1% higher than the $1.06/gram average price for machine-trimmed flower. Higher THC levels also tend to command a higher price, as expected.

The price of trim also nearly doubled in 2024, trading at a weighted average price of $0.11/gram, compared to the 2023 average of $0.06/gram.

While producers in Ontario continue to dominate supply, their share of the volume of cannabis flower traded on the exchange has declined from a 69.7% market share in 2022 to 33.3% in 2024.

At the same time, Quebec’s market share increased from 10.5% in 2022 to 34.9% in 2024, while Alberta increased from 4% in 2022 to 16.5% in 2024, and BC increased from 5.2% in 2022 to 7.8% in 2024. The rest of the Canadian provinces combined saw a decline from 10.6% market share in 2022 to 7.6% in 2024.

The age of cannabis being traded on the exchange has also been steadily declining, with cannabis harvested less than six months prior making up the biggest share of the market by the end of 2024. Price volatility also calmed down in 2024 compared to 2023.

For whole cannabis extracts and concentrates, the price of a kilogram of CBD isolate listed on the exchange in 2024 was $18,000, while CBG isolate was $6,633, CBN isolate was $7,380, and THCV distillate was $14,000.

THC distillate ranged from $1,000 to $2,800, while CBD distillate ranged from $675 a kilogram to $1,800. Wholesale THC distillate prices declined somewhat in 2024 from the previous year, as did THCa Isolate and CBD isolate.

THC and terpene inflation continues

The average reported THC and terpene levels of cannabis traded on the exchange have risen from 22.42% THC and 2.29% terpenes in 2022 to 25.92% THC and 2.75% terpenes in 2024.

Cannabis exports

While Canada has dominated the export market for several years, the report also cautions that products from countries like Thailand and South Africa will continue to gain a foothold in 2025, bringing more competition to the international cannabis market.

Focusing on quality and consistency can help Canadian companies maintain their market share. However, the possibility of a weakening Canadian dollar and other international economic factors, especially the threat of US tariffs, can also impact Canada’s cannabis export market.

According to the Canadian government, exports of cannabis for medical purposes continued to show significant increases. There were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 and 79,279.75 kilograms exported in 2023.

Editor’s Note: The export above figures have been corrected to reflect the information in the above citation.

Australia received the most—3,512.5 kilograms, a 5% year-over-year increase. Germany was second with 1,546.2 kg, down by 27% year-over-year. Czechia was third, receiving 1,151.3 kg, followed by Israel with 1,085.3 kg, Portugal with 960.5 kg, the Netherlands with 154.6 kg, and the UK with 145.8 kg.

While the report predicts exports will continue to increase in 2025, it also notes declining domestic sales, a trend StratCann has been following. This trend is expected to continue in 2025 as overall consumer spending in Canada is expected to decline.

The full report can be viewed here.

About GCX: The Global Cannabis Exchange Ltd. (GCX) and its subsidiaries—Canadian Cannabis Exchange Ltd. (CCX), American Cannabis Exchange Inc. (ACX), and Loud Lion Supply Ltd.—have been providing integrated wholesale brokerage and exchange services to the legal global cannabis industry since 2020.

GCX and CCX operate a live, transparent trading platform where all bids, offers, and trades are executed. This ensures members receive timely, accurate, and equitable access to market price information.

With a network of over 700 counterparties, GCX and CCX are uniquely positioned to deliver impartial, aggregated market data and insights, empowering buyers and sellers to make informed trading decisions. Market participation is governed by the standardized GCX and CCX Client Agreement, which outlines the rules for access, engagement, and transactions. These standardized rules streamline purchasing and sales processes for market participants.

Canada’s medical cannabis market remains steady, exports continue to increase

Canada’s wholesale cannabis market shifting from buyers’ to sellers’

August 19, 2024

Cannabis sales continue to show signs of levelling off in Canada

September 23, 2024

Canadian CEO sues US agencies over harassment at the border for connections to cannabis industry

Written by David Brown on January 30, 2025. Posted in Business, Cannabis News, Government.

The CEO of a BC-based company that specializes in manufacturing, importing, and distributing agricultural machinery, including cannabis-related equipment, has sued the United States Department of Homeland Security, saying they detained, interrogated, and harassed him over the cannabis-related equipment his company sells.

As first reported by law360, Aaron McKellar, the CEO of Eteros Technologies, a custom engineering, design, and manufacturing firm based in Surrey, British Columbia, is suing the US agency after he was detained at the Blaine, Washington, port of entry. Eteros Technologies is the parent company of the Mobius and Triminator brands of cannabis-industry equipment.

In the court filing, McKellar says he believes US Customs and Border Protection officials’ actions were retaliatory and sought to “harass and penalize” McKellar for Eteros’ legal success in a previous case, which confirmed that Eteros’ cannabis-related equipment is entirely legal under US law.

Although McKellar says he provided information supporting his admissibility into the United States, including the court-approved legality of Eteros’ operations, he claims CBP Officers made several comments to him, such as “Your customers should buy from an American company,” and “buy from an American citizen.”

Court records say that CBP officers concluded that McKellar is “knowingly and intentionally contributing to the proliferation of the marijuana industry in the United States,” and issued an expedited removal order against McKellar that included a five-year entry ban and warnings that any attempt to re-enter the U.S. would lead to felony prosecution and imprisonment.

CBP officers then also revoked his NEXUS membership and confiscated his NEXUS membership card.

For their part, the defendants CBP and Port Director Harmit S. Gill are said to have refused to reconsider or vacate the Enforcement and Removal Operations (ERO) issued against McKellar, denying the Reconsideration Request.

“CBP’s own actions in granting McKellar L-1A work authorization on multiple occasions, including after the CIT decision, affirm that CBP previously found no basis or “reason to believe” his conduct was unlawful,” reads the lawsuit.

“The absence of any facts or allegations against Eteros undermines Defendants’ assertion that a ‘reason to believe’ finding that Plaintiffs are aiding and abetting narcotics trafficking is now warranted.”

The lawsuit also argues that the CPB’s actions created fears of travel bans, expedited removal orders, and criminal prosecution for Canadian employees. McKellar alleges that these actions disrupt cross-border operations and harm Eteros USA’s competitiveness and collaboration with its Canadian counterpart, Eteros Canada.

Concerns about legal Canadian cannabis companies doing business in the US are not new. In 2018, the CEO of another Surrey, BC-based company that sells equipment to cannabis companies, Kierton Inc., was banned for life after CPB officers determined he was entering the country to do business with US cannabis companies. McKeller is the co-founder & former COO of Keirton Inc., although he left the company in 2016.

In 2018, the US government clarified that while Canadian citizens “working in or facilitating the proliferation of the legal cannabis industry in Canada” who come to the US “for reasons unrelated to the cannabis industry will generally be admissible to the US.” However, if a traveller is found to be coming to the US for reasons related to the cannabis industry, the US government says they may be deemed inadmissible.

Wholesale cannabis sales in BC remain relatively stable in Q3 2024, direct delivery sales rebound

Written by David Brown on January 30, 2025. Posted in British Columbia, Business, Cannabis News.

Wholesale cannabis sales in BC in the last three months of 2024 (Q3 2024) were $146.9 million, up 7.5% from the same period in 2023, but down slightly from the previous quarter ($147.2).

The province wholesaled 38,727,543 grams of cannabis in October, November, and December 2024. The average price of all cannabis products continued to decline to $3.79 per gram, while the average price of dried flower also reached its lowest yet at $3.14 a gram.

At the end of the reporting period, there were 512 retail cannabis stores in BC, up from 510 in the previous quarter and 496 in Q3 2023.

Sales of 1, 3.5, and 14/15 gram SKUs declined year-over-year by 8.4%, 24.3%, and 0.9%, respectively, while sales of 7-gram SKUs increased by 26% and 28-gram SKUs increased by 7.2%.

The total grams sold for 1-gram and 3.5-gram SKUs declined by 9.6% and 19.8%, respectively. However, the total grams sold for 7-gram SKUs increased by 33.4%, while 14/15-gram SKUs increased by 6.8%, and 28-gram SKUs increased by 8.3%.

Inhalable extracts sales were $55.4 million, cannabis flower was $44.2 million, and pre-rolls were $31.9 million.

Edibles sales totalled $7.8 million, while ingestible extracts (capsules and oils) were $4.2 million, and beverages were $2.7 million.

Topicals sales were $751,403, and seeds were just $5,600.

Inhalable extract sales increased by 15.7% year-over-year, and units sold increased by 13.8%. Dried flower sales increased by just 0.8%, while units sold decreased by 1.7%.

Beverage sales increased year-over-year by 18.5% and 12% by units sold, while pre-rolls sales increased by 8.2% and units sold increased by 9%.

Edibles sales increased year-over-year by 2.1%, while units sold increased by 18.9%.

Disposable vape pen sales increased by a whopping 193.9% year-over-year and 92.6% in terms of units sold (258,418 units sold), continuing an ongoing trend. Sales of infused pre-rolls increased by 19.3%.

Sales in BC’s direct delivery program, which allows some BC cannabis companies to ship directly to retailers, bypassing the provincial central warehouse, showed quarterly increases following several previous declines.

While the total grams sold of cannabis (including equivalence) through the program were down 21.1% year-over-year at 554,102 grams, this figure was up from the 484,000 grams sold in the previous quarter, reversing an earlier trend.

Similarly, wholesale sales through the direct delivery program were down 19.8% year-over-year to $2.5 million, up from the $2.3 million sold in the previous quarter.

The average price of cannabis sold in the program was $4.58, up from $4.51 in Q3 2023, but down from $4.79 in the previous quarter.

The average price of dried flower in direct delivery was $3.91, down from $3.93 in the same quarter last year, but down from $4.34 in the previous quarter of 2024.

Sales of cannabis edibles and beverages were $57,047 in Q3 2024, up from $47,831 in Q2 and $16,169 in Q3 2023.

Sales of cannabis flower were $1.20 million, down from $1.24 in the previous quarter and $1.9 million in the same quarter last year.

Ingestible extracts sales in terms of dollars sold increased by 20.9% year-over-year, inhalable extracts increased by 89.9%, pre-rolls declined by 38%, seeds declined by 67.4%, and topicals increased by 94.5%.

Wholesale cannabis sales increase in BC while prices decline

August 19, 2024

BC wholesales nearly 40,000 kg of cannabis in Q2 2024, while direct delivery sees big declines

November 1, 2024

BC LDB warehouse making changes to improve product freshness

May 17, 2024

New government could mean big delays in cannabis industry demands

Written by David Brown on January 28, 2025. Posted in Business, Cannabis News, Government, Insight.

The Canadian cannabis industry is preparing for potential change in government while also managing a current federal government that is largely in limbo as the Liberals choose a new leader.

A change in government could mean a significant reset and subsequent delay in any ongoing issues the industry has been trying to communicate to the federal government, says the CEO of one cannabis company.

Realistic expectations

Emma Andrews, the CEO of Nextleaf Solutions, which manufactures cannabis extracts like oils, capsules, and vape pens, says she is preparing for a three to five-year time period following the upcoming election before the industry can expect to see changes to the kind of big-ticket items industry have focussed on over the years. These include excise tax reforms and changing the THC potency limits, such as the 10mg THC limit for edibles.

I’m projecting at least kind of a three to five-year timeline before we can ever anticipate any momentum, change, or regulatory reform that could dramatically effect the industry, whether that’s THC potency limits, whether that’s excise tax.
Emma Andrews, CEO, Nextleaf Solutions

In an online “fireside chat” on Friday, January 24, Andrews spoke with Shadd Dales, host of The Dales Report, which covers the publicly traded side of the industry. When asked where she sees the industry going in the coming years, especially with an expected change of government soon, Andrews said she is captaining the ship at Nextleaf by focusing on realistic expectations.

“You cannot hope for the best in this industry and be, you know, skating towards where you hope the puck is going to go,” Andrews told Dales. “You have to be very clear about your immediate opportunity, yet have kind of an opportunistic lens about where things could shift. But you can’t count on that. I’ve seen businesses fold for that reason.

“So for us it’s understanding that yes there’s a leadership change. There’s likely to be an election soon which would potentially change the party in power, which means that there’s a delay or prolonged ability for that [future new] cabinet to evaluate anything that’s coming from industry in regards to requests for excise tax relief or just to listen to us as an industry, so I’m projecting at least kind of a three to five-year timeline before we can ever anticipate any momentum, change, or regulatory reform that could dramatically effect the industry, whether that’s THC potency limits, whether that’s excise tax, but a patience-game to let the new cabinet sit, settle, assess, and follow protocol.”

Navigating proposed regulatory changes

The current shift in government could also mean more immediate challenges for the sector, with a large package of proposed regulatory changes expected to be finalized later this year. A package which is now in potential limbo with the possibility of an early election.

If the election is called after the summer, it’s possible the package could still go through—if not, it could be delayed well into the next government. The recent discussion around harmonizing the excise tax into one single national stamp would also likely be, at best, seriously delayed by this current upheaval in government with Trudeau stepping down.

If the Liberals do not form government again later this year, the shift could also mean a change in priorities, including spending, which could have an immediate and long-term impact on the industry. Less funding for agencies connected to cannabis, namely Health Canada’s various cannabis-touching files and departments, can mean longer processing times for applications, amendments, or general correspondence.

I would expect there to be very little activity outside of Canada US/relations issues.
Hugo Alves, CEO, Auxly Cannabis Group

For Hugo Alves, the CEO of Auxly Cannabis Group, the current situation means lowering expectations for any immediate changes while also preparing to work with any possible incoming ministers, whether there is an early election call or one later in the year as scheduled.

Even if the Liberals manage to hold off an early election call, Alves says he sees the federal government focusing most of their attention on US/Canada relations, with cannabis-industry issues taking a back seat.

“The way I see it is if there is a vote of no confidence that passes, then you’re really into a kind of caretaker government pending a May election, and I would expect there to be very little activity outside of Canada US/relations issues,” explains Alves. “If the vote of non-confidence doesn’t pass for whatever reasons, and there’s an October election, then I still think what you’ll really get is US/Canada relations kind of items dominating where the government spends their time.”

“I just don’t see the government focussed on anything other than US/Canada relationships,” he continues, “and resolving government leadership until a new government is installed. So that’s the way we are planning it. Just business as usual. In terms of the way Auxly operates, I don’t think we’ll change anything until there’s a reason to do so.”

Future optimism

On the retail front, Omar Khan, Chief Communications and Public Affairs Officer at High Tide Inc., which owns and operates the largest chain of cannabis stores in Canada, says he is optimistic that if the next government in Canada is Conservative, they will be more receptive to industry concerns than the current Liberal government.

While Khan emphasizes that as a retailer, they engage primarily with provincial governments rather than the federal government, he says his optimism about a potential Conservative federal government is informed by his experience with various conservative governments at the provincial level.

“I am cautiously optimistic, based on my experience dealing with provincial conservative governments, that they’ll take a constructive approach when dealing with industry,” says Khan.

“We do generate taxes for governments at different levels and, more importantly, we generate a lot of employment, which also generates even more taxes. And I think they understand that.

I am cautiously optimistic, based on my experience dealing with provincial conservative governments, that they’ll take a constructive approach when dealing with industry.
Omar Khan, Chief Communications and Public Affairs Officer, High Tide Inc.

“So I’m cautiously optimistic that if there is a federal Conservative government… that they’ll take a similar approach,” he continues. “They are not going to shout from the rooftops ‘rah rah cannabis’, but I’m cautiously optimistic that if they do get in, they will want to work with industry because I think they understand that we are job creators, we’re contributing immensely to Canada’s GDP, a lot of middle-class families, their livelihoods depend on this industry surviving and thriving. And I think they’ll understand that.”

With that said, Khan also acknowledged, like Andrews and Alves, that a potential change in government can mean a big reset in terms of getting new ministers up to speed on industry issues and getting enough wind in the sail for cannabis-industry related issues with these various ministries.

“Whenever there’s a change of government, even when there’s a change of ministers, things tend to slow down, they need to be briefed and get up to speed.”

That will include issues like excise reform, he adds, but there are other excise-related issues the industry can focus on.

“In terms of tax reform, I think the hope would be there would eventually be some tax reform that would correct the windfall that has gone to the provincial and federal governments at the expense of industry, but in the interim, you can look at more low hanging fruit.”

“Maybe in the interim you would look for lower hanging fruit, including how those tax proceeds could be used to help the cannabis industry and promote the objectives of the (federal) Cannabis Act.”

The Canadian Parliament is currently prorogued to March 24, 2025.

Prime Minister Justin Trudeau announced on January 6 that he would step down as soon as the Liberals elected a new leader, who will be announced on March 9.

NDP Leader Jagmeet Singh has said he would vote to topple the sitting government in late March once the House returns following the Liberal leadership race. Other opposition leaders have shared similar sentiments, but an early election is not guaranteed, and it’s possible that Singh will hold off.

Under Canadian law, the next election is set for no later than October 20, 2025, but an election called in March or April could lead to an election as early as May.

What could an early election mean for the cannabis industry and pending regulatory changes?

December 23, 2024

Once a prominent topic, cannabis has taken a back seat in this year’s federal election

September 17, 2021

Could a new Conservative government in Canada address cannabis industry concerns?

January 8, 2025

New Brunswick issues RFQ for several new private cannabis stores

Written by David Brown on January 27, 2025. Posted in Business, Cannabis News, Government, New Brunswick, Retail.

The New Brunswick Liquor Corporation (NBLC) has issued new Requests for Quotations (RFQ) for several new privately-run cannabis stores in the province.

On January 27, NBLC posted RFQs for retail cannabis store locations in Cap Pelé, Saint John, Rogersville, and St George. New Brunswick has already issued nine different private retail cannabis store licences.

Note: On February 3, Cannabis NB added a RFQ for a fifth retail location, this one in Belle Baie.

The provincial government, which first announced its plans for around a dozen new stores in 2021 under the previous PC government, began the vetting process for ten new private cannabis stores following a tender process that ended in October 2022. The first, a Cannabis Xpress, opened in the summer of 2023. The tenth, located in Dalhousie, is expected to be licensed later this year. The Liberal Party of New Brunswick formed government in the province in late 2024, following the most recent provincial election.

The provincial government’s goal in adding private stores was to bring cannabis to smaller, underserved communities. The province currently operates 27 public Cannabis NB stores, nine privately run cannabis stores, and seven cannabis farmgate stores.

The Cannabis NB FarmGate program allows licensed New Brunswick cannabis producers to sell their own products on-site at their facilities. However, privately operated cannabis stores in the province still must purchase their products from Cannabis NB, which controls distribution in the province.

Cap Pelé has a population of around 2,500 and is located about a 30-minute drive from Moncton. Rogersville has a population of about 1,200 and is located about an hour’s drive north of Moncton. St. George has a population of about 1,500 and is located in the southwest corner of the province, near the border with Maine.

Loch Lomond Rd. is in east Saint John, NB, with a population of around 71,000 and four current CannabisNB locations.

Cannabis NB also recently posted a job listing for a new store in Fredericton.

The closing date for four of potential new private cannabis stores in New Brunswick is currently listed as February 26, 2025. Questions must be submitted by 4:30 PM AST on February 10, 2025. The fifth RFQ, shared on February 3, has a close date of March 3, 2025, at 1:30 PM AST.

In its 2024-2026 Strategic Plan, the provincial cannabis agency also says it’s looking to increase opportunities for private sector participation in the legal cannabis market in New Brunswick and explore possible options for “on-site consumption opportunities” that can increase legal access and “meet the needs of current and potential customers.”

A recent annual report from Cannabis NB shows that while dried cannabis flower continues to make up the majority of sales, its market share, like in many other provincial markets, is shrinking as concentrate sales increase. New Brunswickers prefer more “convenient” cannabis products as the market continues to shift to products like vape pens, concentrates, and pre-rolls, especially infused pre-rolls, notes the report.

New Brunswick sold nearly $27 million worth of cannabis in the second quarter of 2024.

Featured image of Cap Pelé, via Google Street View.

New Brunswick’s eighth private cannabis store opens in Hampton

February 23, 2024

Bill tabled in New Brunswick to allow private cannabis stores

November 30, 2021

New Brunswick sold nearly $27 million worth of weed in the second quarter of 2024

November 1, 2024

Medical cannabis committee the newest investment from Philip Morris

Written by Sarah Clark on January 26, 2025. Posted in Business, Cannabis News, International, Producers.

A Canadian cannabis company, Avicanna, recently entered into a research project with an international healthcare and wellness product company, Vectura Fertin Pharma, focusing on cannabinoid-based products.

The agreement between the two companies will create a joint Scientific and Medical Affairs Committee focused on improving understanding of medical cannabis access and applications in Canada.

Vectura Fertin Pharma was formed in March 2022 following Philip Morris International’s (PMI) acquisition of Fertin Pharma, Vectura Group PLC, and OtiTopic. Vectura’s website states that it operates as a separate company under PMI’s ownership.

Avicanna is focused on cannabinoid-based products and operates the medical cannabis care platform MyMedi.ca, the Medical Cannabis brand RHO Phyto, as well as focusing on R&D and clinical development.

The company also acquired Medical Cannabis from Shoppers Drug Mart in 2023, which it transitioned to the MyMedi platform.

In their most recent quarterly report, North American net revenue for Avicanna for the nine months ended September 30, 2024, was $17.5 million, compared to $10.4 million for the nine months ended September 30, 2023. The increase over the nine months was a direct result of the acquisition of Medical Cannabis by Shoppers and the introduction of MyMedi.

This is not the first entry of a tobacco company into the Canadian cannabis market or the first for Philip Morris, even if indirectly. In 2016, the company invested US$20 million in the Israeli company Syqe Medical. Syqe created an inhaler for use with cannabis for medical purposes.

In 2019, Altria Group, the parent company of Philip Morris USA, paid C$2.4 billion for a 45% ownership interest in Cronos Group, the Canadian cannabis company behind brands like Spinach and Peace Natural. Altria later declined options to purchase additional shares.

It’s not only American tobacco companies connected to the Canadian cannabis industry. In 2019, Imperial Brands, a British multinational tobacco company, invested C$123 million in Canada’s Auxly Cannabis Group. That deal also included a research and development partnership similar to other deals.

In 2021, Organigram Holdings Inc. announced a C$221 million strategic investment from a wholly-owned subsidiary of British American Tobacco (BAT). The deal has continued to evolve over the years. A third round of funding is expected in early 2025.

In 2023, Organigram said most of a $124.6 million investment from BAT would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.

In 2024, Organigram announced a $21 million investment from its Jupiter strategic investment pool, which gave it a minority stake in German cannabis company Sanity Group GmbH and gave it a foothold in the German market.

In the same year, Organigram also announced a USD$2 million minority investment in Steady State LLC (dba Open Book Extracts or OBX) from the Jupiter fund. Based in North Carolina, OBX specializes in cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer.

Avicanna reports $6.3 million in net revenue and decreasing losses in Q3 2024

November 15, 2024

Group seeking to enrol 1,000 Canadian medical cannabis patients for observational study

December 3, 2024

Organigram announces new nanoemulsion technology in collaboration with British American Tobacco

August 7, 2024

Week in Weed – January 25, 2025

Written by Staff on January 25, 2025. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we spoke with retailers in Brampton, Ontario, who are frustrated with a recent spree of robberies, and the former owners of an unlicensed dispensary in BC lost their appeal of a hefty fine following a 2019 enforcement action.

Researchers at the University of British Columbia looked at a new way to quantify what constitutes a single serving of cannabis, and we looked at researchers at the University of Montreal who surveyed illicit online cannabis stores.

Aurora Cannabis announced the launch of its first German harvest, while Village Farms announced its first harvest at its facility in the Netherlands.

In our profile series, we spoke with Green Acre, a micro cultivator in Alberta with products in the Ontario and Alberta markets.

In law enforcement news, the CBSA seized around 1,300 kilograms of cannabis destined for Nigeria, and police in Winnipeg are asking the public for help in identifying two men behind a recent cannabis store robbery.

In other Canadian cannabis news

Cannabis NB resumed regular service almost two weeks after a cybersecurity threat prompted it to shut down all debit and credit card machines.

Deepak Anand took an in-depth look at Trudeau’s legacy with cannabis legalization and what a change in government could mean for the industry. He argues that while giving credit to Trudeau and the Liberals for creating this industry, the current Liberal Party government should prioritize advancing proposals already in progress before the next election or risk being blamed by a potential Conservative government for creating a financially unsustainable and unviable industry.

CBC spoke with Jonathan Wilson of Crystal Cure, Toronto lawyer Harrison Jordan, and StratCann’s David Brown about the economic challenges facing the cannabis industry.

The Star spoke with Clifford Tindal, owner of the Spiritleaf franchise in Little Italy, about the recent announcements from Toronto Bylaw and Toronto Police about de-prioritizing enforcement of the province’s retail cannabis regulations. The article also includes comments from Mayor Olivia Chow, who said enforcement “needs to happen, no one should walk away from this responsibility.”

HYTN Innovations Inc. announced that it entered into a collaboration agreement with SNDL Inc. to jointly develop Good Manufacturing Practices (GMP) compliant vape cartridges. Such a designation would improve the ability for international distribution.

Segra International announced a partnership with GreenBe Pharma, a European medicinal cannabis producer, that they say will allow European cultivators to access Segra’s tissue culture cannabis clones through a localized European hub.

The District of Kent Council in BC (near Agassiz) is set to host a public hearing to discuss the community’s possible first permit for cannabis sales.

A new cannabis store, Nest, opened in Whistler, BC.

Irwin Simon, president and CEO of Tilray Brands, says he’s optimistic about the cannabis industry and cannabis legalization as Trump takes office due to his experience as a businessman.

A new study concluded that the presence of recreational cannabis stores did not increase emergency department visits in an area.

The New York Times writes that the drinking culture that was once pervasive across the NHL is waning while the use of cannabis products is on the upswing.

Radio-Canada ran a report on cannabis addiction.

It appears that some retailers in Newfoundland faced penalties following enforcement actions relating to ID checks by the NLC.

In International cannabis news

A wave of medical cannabis company closures has swept Israel in recent weeks, reports Israel’s Cannabis Magazine. In less than a month, the police and the Medical Cannabis Unit (MCU) have ordered the closure of at least seven companies in the industry or the removal of their owners from dealing in cannabis, all based on “intelligence information” the contents of which were not disclosed to the companies.

A study in the Netherlands looked at contaminants in cannabis sold in some coffee shops with the intention of creating a baseline for future research as the country moves forward with its cannabis production pilot project.

A Washington State House committee endorsed a bill giving workers on cannabis farms collective-bargaining rights.And, believe it or not, X was wrong and President DonaldTrump did not magically legalize cannabis on his first day as President. But tomorrow’s a new day, right?

Aurora launches its first cannabis brand in Germany under new cultivation license

Written by Staff on January 23, 2025. Posted in Business, Cannabis News, International, Producers.

Aurora Cannabis Inc. has announced the launch of its first German-cultivated medical cannabis product under the brand IndiMed.

Produced at Aurora’s EU-GMP facility in Leuna, Germany, one of only three licensed cannabis production facilities in the country, the new brand will be available for Germany’s expanding medical cannabis patient base.

“Aurora is proud to deliver to the rapidly growing German market our first domestically produced medical cannabis product—a significant step forward since Germany’s move to decriminalize cannabis earlier this year,” says Michael Simon, President, Aurora Europe (Interim).

“As one of three facilities licensed to cultivate in Germany, we are uniquely positioned to offer domestic product from our EU-GMP facility in Leuna, Germany, which operates within Aurora’s global manufacturing network. It is through our expertise in cultivation and deep commitment to science and innovation that we introduce IndiMed to the German patients.”

Aurora was not able to immediately respond to a request for more details about the harvest, such as total volume.

Cultivated under GACP and EU-GMP guidelines, Island Sweet Skunk is the new product from Aurora’s IndiMed brand, listed as having 20% THC and less than 1% CBD.

In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.

Aurora is one of three companies with a cannabis production licence in Germany. The American cannabis company Tilray, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a commercial cannabis production licence in the country in 2024. Aurora and the German company Demecan were also licensed for production in the country.

In November 2024, Tilray Medical announced that it had launched its first commercially-grown medical cannabis flowers from its Aphria RX GmbH facility in Germany.

Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence for the cultivation of medical cannabis in Germany, from the German Federal Institute for Drugs and Medical Devices (the “BfArM”).

In July 2024, Aurora announced it was expanding its footprint in the emerging German cannabis market when the company was granted two licences by Germany’s Federal Institute for Drugs and Medical Devices (BfArM) under the country’s new Medical Cannabis Act (MedCanG).

Aurora’s medical cannabis production facility in Leuna, Saxony-Anhalt, in eastern Germany, has been operating since 2021. The facility cultivates approximately 1,000 kg of cannabis flower annually for the medical supply chain. In addition to Canada and Germany, Aurora operates in the UK, Poland, and Australia.

Germany is being eyed by large cannabis companies like Aurora and Tilray as it’s seen as a gateway into the expanding European market and is considered the largest medical cannabis market in Europe, with a population of 83 million, more than double that of Canada.

Tilray’s Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence from the German Federal Institute for Drugs and Medical Devices (the “BfArM”) to cultivate medical cannabis in the country.

Other European countries, including Switzerland, Spain, France, the Czech Republic, Malta, the Netherlands, and Ukraine, are also considering or in the process of implementing various cannabis markets being eyed by companies like these.

Germany legalized cannabis for non medical purposes this past March, with the law coming into effect in stages. On April 1, personal possession and cultivation became legal. On July 1, the country began allowing cannabis growing clubs. However, the country does not allow the sale of cannabis except for medical purposes. That bill also made amendments to the country’s medical cannabis laws (MedCanG), paving the way for Tilray’s most recent announcement.

Germany first legalized cannabis flowers for medical purposes in 2017. Although annual domestic production was capped at 10,400 kg, since that time, the amount of cannabis prescribed under the program has steadily increased, fed by imports from countries like Canada. In the first three quarters of 2017, there were just 530 kg of cannabis imported into Germany. By the completion of the first three quarters of 2023, that increased to 14,315 kg.

Cannabis exports from Canada have been increasing and are expected to continue, especially as the issue of oversupply still plagues the Canadian market. Expanding production into new markets like Germany allows companies to better address supply issues in emerging markets without undergoing extensive export requirements and costs from Canada.

Cannabis exports from Canada continue to increase, with Germany one of the largest recipients of these exports, along with countries like Australia and Israel.

Canada’s medical cannabis market remains steady, exports continue to increase

International sales increase for Aurora Cannabis, but company reports $13 million loss in Q2 2025

November 6, 2024

New retail cannabis project in Germany could be good news for Canadian cannabis exporters

Ontario cannabis retailers frustrated after recent string of robberies

Written by David Brown on January 23, 2025. Posted in Business, Cannabis News, Government, Retail.

Some Ontario cannabis retailers are again calling on the provincial government to make changes to provincial rules that they say are making them targets for robberies and break-ins.

Following a recent series of robberies and break-ins, cannabis retailers in the province are again highlighting provincial regulations that they say require their windows to have blackout coverings, preventing people from seeing inside and putting their stores at greater risk for robbery and burglary.

Although provincial regulations only require that cannabis stores must ensure that cannabis and accessories are not visible from the exterior of the premises, many store owners say provincial inspectors have pushed them to interpret this as requiring coverings across all public-facing windows.

Jazz Samra, the owner and founder of Sativa Bliss Cannabis, with five locations in Ontario, says he would like to see the Alcohol and Gaming Commission of Ontario (AGCO), which oversees provincial regulations, take action.

“This isn’t even making the news outside the cannabis industry and our own little bubble. It’s just within our network that we’re finding out about these robberies because we’re warning each other. This is how we’re trying to protect each other.”
Jazz Samra, Sativa Bliss Cannabis

“Ontario cannabis retailers are part of the legal, regulated economy,” says Samra. “We deserve the same level of security as any other business. I urge the Ontario Government and AGCO to remove the window covering requirement before it’s too late.”

*Saini removing coverings from his windows*

Samra says he was spurred to make this call after a series of recent cannabis store robberies in the city of Brampton. A representative with Peel Regional Police, which covers the Brampton area, confirmed one incident at a cannabis store on December 9, two on January 19, and one on January 20. In all of these incidents cannabis and/or cash was taken and no arrests made. The investigations are ongoing.

Raju Saini, the president at Piffingtons Cannabis Co., which has stores in Brampton, Kitchener, and Milton, says that following a recent armed robbery at his Brampton store on January 20, he has now decided to remove such window coverings, regardless of provincial requirements.

The covers make it easier for criminals’ actions inside a store to go undetected, says Saini, and also make it harder for those inside the store to see potential robbers coming.

“We’re actually taking the right steps now to go in the direction of protecting my staff as well as the other individuals in our community that come visit our store, and I suggest everyone else to do so.”

Saini says he is part of a network of retailers who communicate with each other about such issues. Because of this, he recognized the vehicle associated with the three other recent robberies in Brampton when it pulled up next to his store. However, when he went to confront them, he says he saw they were carrying firearms, leading him to reconsider his efforts.

*Piffington’s windows now have the covering removed*

“We’re actually taking the right steps now to go in the direction of protecting my staff as well as the other individuals in our community that come visit our store, and I suggest everyone else to do so.”
Raju Saini, Piffingtons Cannabis Co

Samra, at Sativa Bliss, says communication among retailers is important because there is so little reporting of this ongoing issue, leaving many feeling their concerns are neglected and ignored.

“We are not hearing anything from any government about this right now,” says Samra. “This isn’t even making the news outside the cannabis industry and our own little bubble. It’s just within our network that we’re finding out about these robberies because we’re warning each other. This is how we’re trying to protect each other.”

In addition, he says the window coverings add to a negative public perception of cannabis, adding to the existing stigma around the plant and the industry itself.

“When you have those window conversing the public is always thinking there must be something illegal or unsavoury happening. And I don’t think after five or six years we should have to be fighting the battles.”

Katy Perry, founder and CEO at TOKE Cannabis, which has eight retail locations in Ontario, tells StratCann she took her own window covers down years ago, and in some instances never put any up.

“First, the window coverings further stigmatize cannabis consumption. It’s unnecessary. Secondly, it’s quite dangerous for our staff. No one can see from the outside in and we can’t see out. They can just go in, lock the doors and do terrible things to the people who work there and nobody walking down the street is the wiser.

“To be clear, the AGCO’s regulatory standards do not require cannabis retail stores to cover their windows. Through continued engagement with licensees and sector partners, we use every opportunity to remind that the Standards only specify that products must not be visible from outside the store.”
A media representative for the AGCO

“In some of my stores I never put the coverings up and I told AGCO it’s dangerous. I’m not going to put my budtenders in harm’s way.”

Perry spoke with inspectors about the issue, who she says confirmed such coverings are not required.

“Some inspectors were more accepting of it immediately, while some we had a longer conversation with. Some inspectors believed the window coverings were necessary, but when we broke down the regulations, it’s not a rule you have to have a window covering, just that cannabis products cannot be seen from outside.”

“In some of my stores I never put the coverings up and I told AGCO it’s dangerous. I’m not going to put my budtenders in harm’s way.”
Katy Perry, TOKE Cannabis,

A representative for the AGCO provided this comment to StratCann.

“Like everyone in the sector, the AGCO is concerned by the series of recent robberies at cannabis retail stores in Ontario and the safety of store employees. We’ve been in contact with affected licensees and police services and will continue to assist in every way we can.

“To be clear, the AGCO’s regulatory standards do not require cannabis retail stores to cover their windows. Through continued engagement with licensees and sector partners, we use every opportunity to remind that the Standards only specify that products must not be visible from outside the store. Licensees can determine how best to meet this standard including through approaches such as interior wall dividers, opaque cabinetry, the layout of their shelving and other approaches.

“We continue to pay attention to this matter with the goal of supporting licensees in enhancing the safety of their employees and the security of their stores.”

Note: This article has been updated to include the above comments from the AGCO.

Retailers in other provinces have also made similar arguments about provincial requirements for window coverings. In 2022, Alberta removed such requirements. At the time, the provincial regulator’s executive VP said the board approved the change “to ensure that AGLC policy is not inadvertently contributing to [criminals] targeting these locations due to a lack of visibility into the site”.

In 2023, BC’s cannabis regulator removed similar requirements for stores in that province, citing similar security concerns. Both provincial regulators had previously argued that such requirements were in line with federal regulations before walking it back.

Cannabis stores in Canada, however, continue to be targets for robbers and burglars, including in provinces that have removed such requirements.

Calgary Police recently identified suspects in a string of at least a dozen cannabis store robberies. Three teens were recently charged in connection with several of those robberies.

In November 2024, Renfrew OPP were looking for three suspects in a cannabis store robbery. In the same month, Calgary police arrested a man involved in several cannabis store robberies.

In December 2024, police in Ontario arrested one man in connection to a cannabis store robbery, and in January one man was arrested and $3,000 in cannabis products were recovered following multiple break-and-enters in Windsor.In January, police in Quebec arrested a man following a robbery at the Saint-Georges SQDC.

Featured image of Spiritleaf in Brampton, via Google Maps

Four arrests in connection with cannabis store break-ins in Toronto and Durham Region

September 10, 2024

Ontario looking at cannabis marketing rules and window covering requirements for cannabis stores

June 20, 2023

Cannabis stores in Canada continue to be targets for robbers and burglars

December 22, 2023

Medical cannabis dispensary owners in BC lose appeal of provincial fine

Written by Staff on January 23, 2025. Posted in Business, Cannabis News, Government, Retail.

The owners of an unlicensed cannabis store in Gibsons, BC, recently lost their appeal of a $118,919 fine from the BC government following a raid by the BC Community Safety Unit (CSU) of their unlicensed store in 2019.

The store owners, Michelle Sikora and Doug Sikora, first filed their petition in June 2024, seeking to have the CSU’s fine retracted. In addition, in 2020, Michelle Sikora sought to have all cannabis seized from their store by the CSU returned.

Although the BC government refused an application for the return of cannabis that had been seized, the fine, also called an administrative monetary penalty (AMP), was lowered to $105,873.86.

The petitioner’s argument was that, in part, the BC government’s actions violated their Charter rights. That first application was denied in 2021, with the provincial government finding that there was no evidence that Sikora had any valid licence or permit for the cannabis.

In December 2021, both petitioners were issued a Notice of Administration Penalty (AMP) for $118,919.10. This amount was based on the estimated value of the seized cannabis, which was $54,459.55. The government calculates AMP penalties by doubling the value of seized material from a store operating without a provincial licence.

In January 2022, the couple challenged the monetary penalty by requesting an administrative hearing while furthering their Charter argument again, referencing the R v Smith case.

In June 2023, the deputy director of the CSU refined the administrative penalty, issuing the amount only to the corporate petitioner and not to each of the Sikoras individually. The director also rejected the petitioner’s claim that the CSU’s search and seizure was in violation of sections 7, 8, and 11 of the charter.

The new monetary penalty applied to the corporate petitioner was $105,873.86, based on the estimated retail value of the seized cannabis, which was $52,936.98.

In June 2024, the petitioners filed a case at the bar seeking to retract the administrative penalty and to have the seized cannabis returned.

The provincial government’s representatives again denied the merits of these arguments, seeking to have the petition denied in a filing in October 2024.

In her ruling, BC Supreme Court Justice Sandra Wilkinson wrote that the “presumed constitutionality” of Canada’s medical cannabis program meant alternatives to it are not allowed.

“I appreciate that the petitioners operated their business with the intent to benefit persons managing symptoms from a variety of medical conditions. They operated on a retail basis as an alternative to the federal scheme which requires medical cannabis to be obtained from a limited number of providers who must deliver their product by mail. However, given the presumed constitutionality of the legislative scheme, it is not open to the petitioners to offer an alternative and at the same time be compliant with the law.”

Featured image from Google Street View 2023

Week in Weed – January 18, 2025

Written by Staff on January 18, 2025. Posted in Business, Cannabis News, Government, International.

Last week, at StratCann, we covered the news that Toronto’s head of municipal licensing and standards says his agency no longer has the money to enforce the province’s cannabis regulations regarding unlicensed stores. We also shared a half-day cannabis insolvency conference coming to Toronto.

High Tide announced its plan to enter the German medical cannabis market by acquiring Purecan, and we examined the most recent figures for Canada’s domestic and international medical cannabis market. Stigma Grow also announced its first shipment of cannabis product to Portugal. Meanwhile, the CRA is asking the court to hold Delta 9 directors liable for more than $9 million in unpaid taxes.

In our Profile section, we looked at two new high-end Hash Hole products on the market, and in our Insight section, we shared a guest post looking at the potential of cannabis in the care of dementia patients.

In law enforcement news, one man was arrested and $3,000 in cannabis products were recovered following multiple break-and-enters in Windsor, Ontario; an unlicensed cannabis store again faced enforcement action in New Brunswick; and New Brunswick RCMP seized cannabis and equipment following a service call.

Quebec police arrested a man following a robbery at Saint-Georges SQDC, and a cargo van from BC with 1,500 pounds of cannabis stopped in Saskatchewan en route to Quebec.

In other Canadian cannabis news

HYTN Innovations Inc. announced receiving a new set of import permits from the UK’s Home Office and corresponding export permits from Health Canada. These permits enable the fulfilment of international orders totalling over 400 kilograms of Good Manufacturing Practice (GMP) cannabis products, advancing HYTN’s global reach and operational capabilities.

MediPharm Labs and Kensana Health agreed to extend the outside closing date as provided in the Purchase Agreement to January 31, 2025. The deal was initially expected to close by January 1, 2025.

CannabisNB stores continued to be impacted by an issue with its point-of-sale system and a potential cyber threat but remained open on a cash-only basis. Spokesperson Florence Gouton tells local media that “some anomalies” were found, but she did not disclose details about what went wrong, saying the corporation will not be offering interviews as the investigation continues.

The Yukon Cannabis Licensing Board approved Happy Trails Cannabis Ltd. for a Sub-Class 2 Cannabis Retail License, provided all the relevant requirements are met. Yukon currently lists six cannabis stores in the Territory, not including Happy Trails. Four of those are located in Whitehorse.

Kelowna City Council has approved the rezoning of a property to allow for the sale of cannabis. The retail cannabis subzone will allow for one of the units within the small strip mall to be converted into a retail cannabis outlet to be operated by Flora Cannabis, which operates three other retail stores in the city.

Avicanna announced the creation of a Canadian Scientific and Medical Affairs Committee with Singapore-based Vectura Fertin Pharma, an affiliate of Philip Morris International.

Business of Cannabis asked what Trudeau’s exit means for the cannabis industry.

The Hill Time’s Stuart Benson spoke with C3’s Paul McCarthy and Organigram’s Beena Goldenberg about cannabis excise tax again. Pollster Nik Nanos predicts the Conservatives won’t be interested in burning any political capital on cannabis until well after the election.

Sami Majadla at CertiCraft shared a white paper on the state of the cannabis industry

A new study from researchers in Canada suggests the importance of safer use guidelines tailored for medical cannabis use among veterans. The study says almost 85% of veterans engaged in daily use of cannabis for medical purposes.

Winnipeg police launched a don’t drive high campaign with a focus on cannabis edibles. During last year’s Drug Impaired Driver enforcement project, there were 243 traffic stops and 148 Oral Fluid Tests, which resulted in 64 (43%) positive for cannabis. 36 Provincial Offences Act notices were issued, including for unlawful storage of cannabis in a vehicle and consuming cannabis in a vehicle (passenger).

A Dartmouth, NS parent is upset after she says her 12-year-old son’s junior high school did not respond with enough concern after he consumed cannabis edibles and had to visit the hospital as a result. The description of the edibles (two handfuls of sour apple gummy candies) appears to have been sourced from the illicit market.

Glow LifeTech Corp. announced the expansion of its flagship MOD drops brand into the New Brunswick market.

A New Brunswick man was in for a scary few hours over the weekend when his usually excitable 10-month-old puppy became wobbly, shaky, and lethargic and tested positive for cannabis.

Three teens were charged in connection with several cannabis store robberies in Calgary in 2023.

Radio Canada and La Presse spoke with Geneviève Giroux, the SQDC’s Vice President of Supply and Marketing, to discuss changes coming to the Quebec cannabis retail experience in 2025.

The Institut national de santé publique du Québec (INSPQ) released a scoping study on self-treatment with cannabis for pain, anxiety, or sleep disturbance symptoms.

The 2025 Nugswap Cannabis Festival and Grower’s Competition was held in Wiarton, Ontario last Saturday, January 11. The event is brought together, in part, by Lune Rise Farms, a cannabis grower in Teeswater, and High Society, a cannabis store in Owen Sound. The winners of the 2025 Nugswap will be revealed at the sixth annual Bongspiel set for Feb. 18 at the Wiarton and District Curling Club.

Barrie Today looked at the growing number of people trying to illegally export cannabis via Toronto Pearson Airport.

The Tyee examined the storied history of cannabis activism in Vancouver, especially David Malmo-Levine’s former Vancouver School of Drug War History and Organic Cultivation.

The Kahnawà:ke Cannabis Control Board (KCCB) announced that Jennifer Paul has been hired as the Operations Manager for the Kahnawà:ke Cannabis Control Office (KCCO). Ms. Paul began her new position on December 16, 2024, and has been actively participating in an onboarding process to ensure a smooth transition into her role.

The Ontario Cannabis Store (OCS) announced its second call for applications for the Social Impact Fund (the Fund) to promote social responsibility in connection with cannabis. Through the Fund, the OCS supports projects and research to benefit people, communities, and the Ontario cannabis sector by creating value and sharing knowledge.

International cannabis news

The US DEA’s refusal to comply with direct orders from the administrative law judge overseeing the marijuana rescheduling process is “unprecedented and astonishing,” said the judge.

A new study looks at compliance (and non-compliance) among medical cannabis websites in Australia.

The US FDA is soliciting public comments on the use of cannabis-derived products in Veterinary Medicine. The focus of this RFI is on cannabidiol (CBD) products and other products derived from hemp.

A US Cannabis Roundtable is forming with backing from Cresco Labs, Trulieve, Green Thumb Industries, Verano, and Curaleaf, reports Market Watch.

A data breach notification sent to the e Maine Attorney General’s Office by a Californian cannabis brand called Stiiizy has confirmed it is alerting some 380,000 users potentially impacted by an attack against a vendor.

“We no longer have funding for cannabis enforcement,” says Toronto’s head of municipal licensing and standards

Written by Staff on January 15, 2025. Posted in Business, Cannabis News, Government, Ontario.

Toronto’s head of municipal licensing and standards says his agency no longer has the money to enforce the province’s cannabis laws.

In a meeting of Toronto City Council’s budget committee on January 15, Carleton Grant, executive director of municipal licensing and standards, told council that his agency can no longer afford to handle retail cannabis enforcement.

“We no longer have funding for cannabis enforcement,” Grant told the committee in response to a question from Jennifer McKelvie, Toronto City Councillor for Scarborough Rouge-Park. McKelvie was asking about provincial funding from cannabis sales to deal with enforcement, something the province provided in the first few years of legalization.

Grant says his department has received $8.5 million in funding from the province over the last three or four years, which was used to help lower the number of illegal stores in the city from over 100 to “less than ten.” He says the number of illegal stores in the city is now back up to around 70.

“This industry has changed significantly. It is criminal. It is organized crime. It is not appropriate for me to send my staff into these locations where there are weapons and there is criminal activity taking place. No other city in the province of Ontario does this with bylaw enforcement. This budget signals my exit from cannabis enforcement.”

It’s not safe to send officers into these illegal establishments, he added.

Grant added that their enforcement efforts are often not effective because these businesses can afford to just keep paying the fines, and enforcement should be done by provincial police.

Councillor Chris Moise, Ward 13, asked Grant for more details about the efforts his department has made, in coordination with Toronto police, to shut down unlicensed stores and why stores so often quickly reopen following enforcement.

“We do not go into these locations without Toronto police,” Grant noted.

“What I’m saying is we’ve made efforts over the last five, six years to close them down, to put up concrete blocks that are only to be removed within 24 hours. We have boarded up buildings. We have been counter-sued for locking a tenant into a business. We have used every tool available to us. What I’m saying is they are reopening because of the financial benefits to them, and what I want to stress is that we are not the right level of enforcement to do this work.”

He went on to say that the province has identified $31 million for the OPP to do this work, and that’s where it needs to go.

“The city of Toronto is where the bulk of the stores are because of the population, [police and OPP] should get the bulk of the money.”

Toronto police asking for $1.5 million to deal with legal cannabis

April 12, 2021

Toronto police raid unlicensed dispensary, seize products and arrest 6

November 29, 2022

Ontario needs coordinated approach to deal with growing number of unlicensed cannabis stores

August 12, 2024

Toronto’s 2025 budget includes $86.9 million for Municipal Licensing & Standards, a 10.1% increase from the previous year. The budget also includes $1.4 billion for Toronto Police Services.

As part of Ontario’s 2024 economic and fiscal outlook in brief, the provincial government committed to investing $31 million over the next three years to support the Provincial Joint Forces Cannabis Enforcement Teams (PJFCET). This OPP-led centralized enforcement unit focuses on the cannabis file.

This investment, says the government, would enable the PJFCET to “respond to the challenge of illegal online operators and crack down further on the production, sale and distribution of illegal cannabis in the online and offline space.”

The economic and fiscal outlook, in brief, affirms the province’s previous 2024 budget, which had referenced the $31 million commitment.

Earlier in 2024, Toronto City Council passed a motion asking the province to undertake a comprehensive review of the Provincial Cannabis Control Act, 2017. The motion states that a review is “imperative to ensure the effective regulation and enforcement of cannabis-related matters” in Ontario.

Municipalities need more tools and resources to address these illegal cannabis businesses, the motion read, including “exploring options to strengthen enforcement measures, increase penalties for non-compliance, and improve collaboration between municipalities and provincial authorities.”

The illicit market in Ontario has grown considerably in the past year, and many retailers and other cannabis industry participants have been calling on the province to do more. By some estimates, several hundred new, unlicensed retailers have begun operating in different parts of Ontario, with close to 100 in Toronto alone. While some have faced enforcement, many have not, causing frustration for licensed retailers who incur numerous fees in order to operate with the province’s approval.

Grant’s comments to council echo those of Toronto cannabis store owner Paul McGovern, a former police officer with Toronto Police Services who stepped down in 2018 to open Vertie Cannabis. McGovern told StratCann last year that he believes Ontario needs more of a province-wide approach to enforcement, similar to the approaches provinces like British Columbia and New Brunswick have taken.

StratCann reached out to representatives at the City of Toronto in 2024, and their response revealed a need for the province to review the Cannabis Control Act, which has not been updated since before legalization.

“In March 2024 Toronto City Council requested the Province of Ontario undertake a comprehensive review of the Cannabis Control Act, 2017, in consultation with municipalities, including roles and responsibilities, funding, and enforcement, and addressing unlicensed cannabis establishments,” said Shane Gerard, Senior Communications Coordinator. “The Cannabis Control Act, 2017 has not undergone a comprehensive review since it was introduced seven years ago.”

He added that the province is responsible for licensing and regulating private cannabis retail stores through the AGCO, which in turn enforces the regulations. Further, Gerard said that the city does, in fact, go after property owners.

“The City can, and does, file charges against property owners who are in contravention of the Cannabis Control Act. Individuals charged can face fines of up to $250,000 and face imprisonment of two years (minus one day).”

The city also pointed out that the current Cannabis Control Act provides limited authority to municipal by-law officers.

“These officers do not have arrest powers and are not permitted or trained to use force while carrying out enforcement activities. This makes the enforcement of unlicensed cannabis dispensaries challenging and presents health and safety risks to officers.”

h/t Toronto Star

Canada’s medical cannabis market remains steady, exports continue to increase

Written by David Brown on January 14, 2025. Posted in Business, Cannabis News, International.

The number of client registrations with federally licensed sellers of cannabis for medical purposes continued to remain fairly stable from March 2023 to June 2024.

Health Canada’s newest figures for the medical cannabis market showed only a 1% decline from 180,878 in March 2023 to 179,931 in June 2024.

Meanwhile, the number of individuals registered with Health Canada for personal and designated cultivation of cannabis for their own medical purposes continues to increase. There were 15,726 such registrations in March 2024 and 16,609 in June 2024, a 6% increase.

The majority of the increase, 883 registrations for personal/designated production, came from three provinces. Ontario saw the most, with an increase of 329 registrations, Quebec accounted for 248, and British Columbia had 177.

The average daily amount of cannabis authorized by health care practitioners was again 2.4 grams per day. This amount has averaged around 2.0 and 2.4 grams per day since legalization began in October 2018.

As of June 2024, the average daily amount authorized by health care practitioners for individuals registered with Health Canada for personal or designated production was 34.6 grams per day, up from 33.0 grams per day as of December 2023.

Health Canada continues to express concern at this growing discrepancy in authorized daily totals of cannabis, engaging with provincial colleges of physicians, scrutinizing applications, and inspecting authorized production sites.

Health Canada has ramped up inspections of such licences, with more than 300 in the last two years. The most recent annual report also included 20 compliance and enforcement activities (other than inspection) for registered personal and designated production of cannabis for medical purposes, such as conducting seizures and destructions.

Of the 160 inspections of registered personal and designated production of cannabis for medical purposes locations in 2023-2024, 74 were in British Columbia, 63 in Ontario, 18 in Quebec, and five in New Brunswick. In the previous year, the majority of such inspections (115 out of 170) were in Ontario.

Unpackaged inventory of dried cannabis continued to decline in the first four months of 2024

September 16, 2024

Personal and designated medical registrations increase in early 2024 following years of declines

September 17, 2024

Health Canada may request supporting evidence for some medical cannabis authorizations

December 16, 2024

As of June 2024, 4,621 healthcare practitioners were associated with registrations made in the previous twelve months with federally licensed sellers, down from 4,879 as of December 2023.

There were 1,010 health care practitioners (HCPs) associated with active personal/designated production registrations, up from 941 as of December 2023. Of these, 232 healthcare practitioners authorized amounts equal to or above 25 grams per day, up from 222 as of December 2023. The number of HCPs associated with amounts equal to or above 100 grams per day dropped from 13 as of December 2023 to 8 as of June 2024.

The majority (78%) of HCPs having authorized amounts equal to or above 25 grams per day were still located in British Columbia and Ontario. Once again, 100% of HCPs having authorized amounts equal to or above 100 grams per day were located in British Columbia and Ontario.

The export market

Exports of cannabis for medical purposes continued to show significant increases. There were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 and 79,279.75 kilograms exported in 2023.

Exports of cannabis oil for medical purposes have also increased significantly in the last few years. In the first six months of 2024, Canada exported 10,489.38 litres of cannabis oil, and in 2023, 7,078.9 litres. In September 2023 alone, 1,011,74 litres were exported, the highest month on record.

New retail cannabis project in Germany could be good news for Canadian cannabis exporters

Canadian cannabis companies increasingly exploring export market

June 14, 2023

Canadian cannabis finds its way to foreign shores in more ways than one

September 4, 2023

Cannabis insolvency conference comes to Toronto

Written by Staff on January 13, 2025. Posted in Business, Cannabis News.

A cannabis conference focused on navigating Canada’s distressed cannabis market is coming to Toronto on January 29.

Insolvency Insider, an online publication focused on the Canadian market, is hosting a half-day conference from 8:30 a.m. to 12 p.m. The conference will include a handful of panels examining industry challenges and strategies for managing them.

Bankruptcies, insolvencies, and restructuring are becoming more common in Canada’s cannabis industry, even as new licences continue to come in every month.

The event is at the EY Tower at 100 Adelaide Street West. It is free for industry professionals and about $300 for insolvency professionals. Panels will feature experts from industry experts and executives, the OCS, and the CRA.

The three panels are:

High Stakes: The Cannabis Industry’s Current Market Landscape featuring Mauricio Zelaya (Ernst and Young ), David Hyde (Hyde Advisory), and David Goldstein (Stoke Inventory Partners)

This panel will provide an overview of the financial and operational challenges facing Canada’s cannabis industry, including oversupply, pricing pressures, regulatory hurdles, and shifting consumer demand. Industry executives and market analysts will share insights into how these factors have led to distress across the sector. Attendees will gain an understanding of the forces driving the current wave of insolvencies and business restructurings.

Turning Over a New Leaf: Restructuring Strategies and Executive Insights with Larry Ellis (Miller Thomson LLP), Karen Fung (Ernst & Young), and Howard Steinberg (Steinberg Advisory Corp)

This panel will combine the expertise of insolvency professionals and cannabis industry executives to explore practical strategies for navigating financial distress and operational challenges in the cannabis sector. Topics will include leveraging restructuring tools such as CCAA and BIA proceedings, addressing cannabis-specific licensing and asset valuation complexities, and stabilizing businesses through operational streamlining and strategic partnerships. Panelists will share real-world case studies and offer actionable advice on managing financial challenges, diversifying product lines, and preparing for long-term success in this evolving market.

After the Restructure: Challenges and Opportunities Ahead featuring Shawn Dym (York Plains Investment Corp.), Trevor Dayton (Ontario Cannabis Store), Robert McKenzie-Kerr (Canada Revenue Agency), and Gwen Keating (Canada Revenue Agency)

This fireside chat will explore life after a cannabis restructuring, featuring insights from an industry executive who has successfully navigated the process. Discussions will focus on rebuilding trust, managing compliance, and addressing operational pain points. Representatives from the Department of Justice, Canada Revenue Agency and the Ontario Cannabis Store will also share their thoughts so that attendees can gain a comprehensive view of the challenges and opportunities for businesses aiming to rebuild and thrive in the evolving cannabis market.

Featured image via Google Maps.

Micros again the most popular licence type in 2024

January 7, 2025

Creditor protection, bankruptcies, and acquisitions in 2024

December 29, 2024

Navigating the world of bankruptcy, restructuring in the cannabis industry

February 5, 2024

Week in Weed – January 11, 2025

Written by Staff on January 11, 2025. Posted in Business, Cannabis News, Government, International, Producers, Retail.

This week at StratCann, we examined the newest sales and production figures from Health Canada, the SLGA removed some storage requirements for retailers and wholesalers in Saskatchewan, and Tilray Medical won a tender to supply medical cannabis to Luxembourg.

Crystal Cure’s Jonathan Wilson pondered whether a new Conservative government in Canada could address cannabis industry concerns, and in a year-end recap, we noted that micros were once again the most popular licence type in 2024.

In financial news, Tilray shared their Q2 2025 results.

In law enforcement news, an Ontario man received six months house arrest for cannabis trafficking and could face deportation to China, and the RCMP and CBSA arrested passengers attempting to smuggle over $175,000 of cannabis to the UK.

In other cannabis news

MediPharm Labs Corp. announced a commercial agreement with Laboratório Teuto, a pharmaceutical manufacturer and marketer in Brazil, expanding MediPharm’s presence in the country.

Canopy USA, LLC announced that, effective January 6, 2025, Mr. M. Brooks Jorgensen has been appointed as the company’s first-ever President. Luc Mongeau also took his spot as Canopy’s newest CEO, effective January 6, 2025.

Village Farms International, Inc. and Hemp for Victory announced that they jointly filed a Request for Reconsideration of their prior motion to disqualify and remove the US Drug Enforcement Administration (DEA) from its role as a proponent of the proposed role to reschedule cannabis in the US from a Schedule I to a Schedule III drug. The initial motion to disqualify was filed on November 18, 2024 and subsequently denied.

CannabisNB stores were impacted by a technical issue with its point-of-sale system and a potential cyber threat, but remained open on a cash-only basis.

The owners of a building housing a bylaw-breaking personal/designated cannabis facility in Aurora, Ontario have withdrawn an appeal to the Ontario Land Tribunal.

Cannabix Technologies Inc. says that it has made significant updates to its Cannabix Marijuana Breathalyzer technology to meet suggested emerging regulatory requirements in preparation for marketing, with a focus on the US market.

Ben Kaplan, the editor at Kind Magazine, recently released a book on cannabis legalization, To Catch a Fire, and is hosting a book signing at El Mocambo, 464 Spadina Ave, Toronto, on Tuesday, January 14th at 7 PM EST.

Aurora Cannabis Inc. is launching an internship program at Aurora’s leading EU-GMP facility in Leuna, Germany. In partnership with Erfurt University of Applied Sciences, students of the Horticultural Crop Production course will gain hands-on experience on-site and deepen their understanding of medical cannabis cultivation.

HYTN Innovations Inc. announced the receipt of an initial purchase order under manufacturing and pricing agreements with SNDL Inc. Under the executed agreements, HYTN will utilize EU Good Manufacturing Practice (EU GMP) to process both bulk and finished cannabis products for SNDL.

A new study, Perceived Risk of Medical Cannabis and Prescribed Cannabinoids for Chronic Pain: A Cross-Sectional Study Among Quebec Clinicians, was published in the journal Cannabis.

The CBC looked at the recent testing done by RPC of illicit cannabis vapes in New Brunswick.

Health Canada released their 2023 report on cannabis adverse reactions. In 2023, Health Canada received 128 reports of adverse reaction reports (including duplicates, such as multiple reporters of the same adverse reaction) associated with cannabis as a suspected substance. Out of the 128 reports, 56 were unique cases associated with legal cannabis products. There were 44 reports of adverse reactions to cannabis involving the pediatric population (aged under 18 years).

Canadian hemp grain producers continued to dominate the US market for hempseed-based products in 2024, shipping material valued at roughly $55 million over the northern border, according to the US Department of Agriculture (USDA).

The Eastern Door, Kahnawake Community News reported a recent fire at a cannabis store in Mohawk Territory.

The Grass Hut, a cannabis store in Enderby, BC, provided a donation of turkeys for approximately 65 homes over the holidays, Splatsin First Nation said in a post on its website Tuesday, January 7. The Grass Hut operates without a licence from the BC government.

Kelowna City Council will give initial consideration to rezoning a property that would allow Flora Cannabis to potentially open a fourth store in the city.

After operating under a temporary use permit since 2020, a downtown cannabis retailer, Epik Products Inc., wants to have its location rezoned by Prince George City Council starting at its Monday, January 13 meeting.

The BC Bud Corporation announced a proposed non-brokered private placement to raise up to $1,000,000 through the sale of up to 13,333,333 units at a price of $0.075 per Unit.

International cannabis news

Reuters ran a good overview of how the new Trump Presidency could impact the cannabis industry. Or not.

A man in Portland, Oregon filed a $10,000 lawsuit against a cannabis store last week, saying an employee recommended a grossly excessive dose of THC that sent him to a local emergency room with vomiting, loss of motor function and an inability to walk on his own.And finally, Michigan cannabis sales decreased in December, reports New Cannabis Ventures.

Cannabis sales and inventory figures through June 2024

Written by David Brown on January 10, 2025. Posted in Business, Cannabis News, Government.

The Government of Canada recently released newly updated sales and inventory figures for the cannabis industry, highlighting changing trends as the industry continues to mature. The new numbers are up-to-date through June 2024.

Inventory of unpackaged dried cannabis increased in April and May after six months of declines but dropped again slightly in June. Unpackaged dried cannabis still in production has remained relatively steady for some time now, with annual spikes in October due to outdoor cannabis harvests.

Packaged inventory of dried cannabis with cannabis producers has remained relatively level since early 2022, with some seasonal fluctuations.

Edible cannabis packaged inventory increased slightly in recent months, while sales of cannabis edibles have shown month-over-month increases in the first six months of 2024. Packaged inventory of cannabis edibles with provincial distributors and retailers has been slowly increasing since the end of 2022, as have sales.

Packaged inventory of cannabis extracts was lower in April, May, and June 2024 compared to the three previous months, while sales of cannabis extracts have increased month over month since February 2024, following a decline from a spike in sales in December.

Packaged inventory of cannabis topicals has remained relatively steady for several months while sales show similar stability, except for a slight decline in March. Packaged inventory of cannabis topicals with provincial distributors and retailers has been declining since a peak at the end of 2022, except for a small spike around Christmas 2024.

Packaged inventory of cannabis plants with provincial distributors and retailers jumped significantly in April, May, and June 2024, as did sales.

Packages of cannabis seeds saw a significant spike at the end of 2023, while packaged inventory with provincial distributors and retailers has been declining since a high water mark at the end of 2021, with a brief spike at the end of 2023.

Packaged inventory of cannabis seeds with Federal licence holders fluctuated significantly in 2023 and increased in the first few months of 2024.

The total building area for cannabis production has also continued to decline from a peak of 4.8 million square meters in November 2021 to 2.9 million as of June 2024. Federally licensed indoor production space for cannabis has also continued to decline from a peak of 2 million square meters in November 2020 to 1.3 million in June 2024. Licensed cannabis processing space has remained relatively steady for several years, from a peak of 526,726 million square meters as of May 2021 to 341,682 in June 2024.

Total approved outdoor production space reached a peak of 713 hectares in December 2021. There were 601 hectares approved as of June 2024.

Retail sales of cannabis in Canada (non-adjusted) show a summer peak at $475.5 million, up slightly from $469 million in August 2023. Sales in October 2024 were $456.3 million, up from $451.2 million in the previous month.

Saskatchewan removes some storage requirements for retailers, wholesalers

Written by Staff on January 9, 2025. Posted in Business, Cannabis News, Government, Saskatchewan.

The Saskatchewan Liquor and Gaming Authority (SLGA) has sent a notice out to stakeholders regarding policy changes to cannabis secure storage requirements in the province.

As of January 7, 2025, permitted retailers and wholesalers in the province are no longer required to build separate cannabis secure storage areas within their stores and warehouses.

Other aspects of the province’s facility security requirements such as alarms and camera systems remain in place.

In addition, retail and wholesale permittees are no longer required to store cannabis in a separate secure storage area within the store or warehouse outside of operating hours.

Type 2 integrated stores that operate 24 hours a day will need to keep all cannabis products locked up after authorized cannabis retailing hours. Integrated cannabis retail store permits are able to sell cannabis, cannabis accessories, and cannabis ancillary items alongside other goods or services, and a type 2 integrated permit is one that allows minors.

The SLGA says the changes are in response to industry feedback and a review of other provincial policies. Alberta recently made similar rule changes for retailers.

Featured image of Modern Day Cannabis in Saskatoon.

Manitoba and Saskatchewan expand retail footprint with store-in-store licences

June 24, 2020

Saskatchewan bill will give First Nations more control over cannabis rules

December 6, 2022

AGLC announces several rule changes for cannabis producers, retailers

October 13, 2023

Could a new Conservative government in Canada address cannabis industry concerns?

Written by Contributor on January 8, 2025. Posted in Business, Government, Insight, Producers.

Sooner or later, Canada will have an election in 2025. Increasingly, it seems like this could happen sooner rather than later. And if the polls are to be believed, the Conservatives will form government after an election.

Regardless of which party is at the helm, a new government will dictate the future of the cannabis industry here in Canada.

Of course, many in my network are now discussing the Conservatives. Their traditional stance on cannabis and other legalized drugs isn’t typically one that would excite the industry, especially as many producers are currently in financial peril.

Now is the time to demonstrate what this industry has done despite the roadblocks and challenges intentionally placed in front of it. It is time to show that the concerns many had prior to legalization didn’t end up being real.

In the spirit of open-mindedness, I watched the entire 2-hour discussion Pierre Poilievre had with that other fella and I took notes throughout.

Suppose a Conservative party would consider getting rid of legalized cannabis or imposing conditions worse than what we currently have. In that case, they would have to explain what’s going to fill the huge multi-billion dollar hole that could be left in our economy. They’d have to explain why they are giving the power back to the illicit market, and they’d have to justify their leader making quotes like this, which apply to cannabis as much as any other industry:

“We have to stop growing the money supply and start growing the stuff money buys. Produce more energy, grow more food, build more homes.”

“We have to unleash the free enterprise system to produce more stuff of value.”

“Unleash the power of the free market.”

“I will need people to put pressure on the Senate to enact economic reform.”

“I will need people to put pressure on their mayors and local councillors to get out of the way and let us build.”

“I will need businesses to actually do their part. Our corporate Canada is so completely incompetent when it comes to politics.”

“They are going to have to start to fight for the policies that are good for their workers.”

“Fire your incompetent lobbyists and go to their people and actually make the arguments for the reforms that I’m talking about.”

This industry is a powerhouse that demands respect for its contributions to our economy and public health, especially in the face of ignorance and mismanagement. If any government, regardless of colour or stance, is willing to overlook that, then I don’t see them being better than anyone else.

-Jonathan Wilson

Jonathan Wilson is CEO of Crystal Cure Inc., a micro cannabis producer in Shediac Cape, New Brunswick, that recently closed its doors with plans for a future relaunch.

What could an early election mean for the cannabis industry and pending regulatory changes?

December 23, 2024

Trudeau, Poilievre trade barbs in QP over cannabis legalization

November 26, 2024

Cannabis is no longer an election issue

September 26, 2024

Micros again the most popular licence type in 2024

Written by David Brown on January 7, 2025. Posted in Business, Cannabis News, Government, Producers.

The number of new micro cultivators and processors licensed in 2024 outpaced standard licenses by almost a two-to-one ratio.

The numbers indicate an ongoing trend, also seen in the previous year, as micro licenses are generally processed faster and cost much less than a standard licence. Health Canada has also proposed increasing the canopy and processing capacity of micros, although an early election could impact these changes.

Licence updates in 2024

Health Canada issued 101 new licenses in 2024. Of these:

62 were micros
3 were nurseries
36 were standard cultivator, and/or processor, and/or medical sales licenses

By our calculations, there were also notable changes on the other side of the equation:

98 licenses Revoked on Request
11 suspensions (6 of which were subsequently lifted)
15 expirations
8 Revocations by the Minister

This brings the total to 121 licenses either revoked or expired, meaning there was a net loss of 20 licenses in 2024.

Currently, there are 914 federal licenses. According to Health Canada only 322 of 808 cannabis excise licence holders were active and remitting excise duties to the CRA as of September 2023.

Product recalls

In 2024, there were 11 cannabis product recalls in Canada. The majority of these were due to labeling or packaging errors, such as incorrect product information or missing required details.

A smaller number involved quality assurance issues, including higher-than-allowable levels of microbials or missing a microbial test. One recall was issued for the presence of an unlabelled cannabinoid, hexahydrocannabinol (HHC).

It’s worth noting that all of these recalls were voluntary, reflecting proactive compliance by producers.

For comparison, there were 12 cannabis product recalls in 2023, and since legalization in 2018, there have been 80 recalls in total.

Featured image via Habitat Life, a micro producer in BC.

New micros outpaced standard cannabis licences in 2023, while revocations of both increased

December 31, 2023

New federal cannabis licences continue to slow, micros take top spot

July 22, 2024

Expanding micro processing can benefit all micros

July 9, 2024

Tilray Medical wins tender to supply Luxembourg with medical cannabis

Written by David Brown on January 6, 2025. Posted in Business, Cannabis News, Financials, International, Producers.

Tilray Medical, a division of Tilray Brands, Inc., announced on January 6 that its German subsidiary, Tilray Deutschland GmbH, has secured a tender to supply Luxembourg with its cannabis flower.

“We are honored to have been selected again to supply medical cannabis to Luxembourg,” said Denise Faltischek, CSO at Tilray and Head of International at Tilray Brands, in a company press release. “This is a testament to the unwavering dedication of our team in providing patients around the world with high-quality medical cannabis products.”

Luxembourg’s Ministry of Health and Social Security has authorized qualified health professionals to prescribe medical cannabis as a treatment option since February 2019. In a post on its website, the agency says that as of January 1, 2025, THC-rich flowering tops will no longer be available, but patients will still have access to CBD-rich cannabis flower and “balanced” THC and CBD flower, along with cannabis oil.

Access to these products has been increasing since the program was introduced. There were 18 bottles of cannabis oil prescribed in 2022, 2,043 bottles in 2023, and 2,850 since January 2024, which has also contributed to the adjustment of the program. The population of Luxemburg is around 675,000 people.

In October 2024, the city released tenders for cannabis oil (“THC dominant”, “CBD dominant” and “THC/CBD balanced”) and medicinal cannabis in the form of dried flowering tops (“CBD dominant” and “THC/CBD balanced”).

In November 2024, Tilray Medical launched its first commercial-grown medical cannabis flowers from its Aphria RX GmbH facility in Germany.

Tilray received the first cannabis cultivation licence issued under Germany’s new Cannabis Act in July 2024. This licence allows Aphria RX to cultivate and manufacture cannabis for medical purposes in Germany.

The cannabis company, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a cannabis production licence in the country. Canadian cannabis company Aurora and the German company Demecan are also now licensed for production in the country.

In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.

Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence for the cultivation of medical cannabis in Germany from the German Federal Institute for Drugs and Medical Devices (the “BfArM”).

Any company that wishes to cultivate, produce, trade, import, export, dispense, sell, otherwise place on the market, obtain or acquire cannabis for medicinal purposes or cannabis for medical-scientific purposes in Germany requires a permit from the German Federal Institute for Drugs and Medical Devices.

Tilray’s Q2 financial results are expected January 10. Tilray Brands, Inc. brought in $200 million in net revenue and gross profit of $59.7 million in the first quarter of 2025 but still saw a net loss of $34.7 million (all figures in US dollars).

Tilray’s Aphria RX facility launches its first German-grown cannabis

November 15, 2024

Mother Labs to bring branded cannabis to German market

October 2, 2024

New retail cannabis project in Germany could be good news for Canadian cannabis exporters

Week in Weed – January 4, 2025

Written by Staff on January 4, 2025. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we examined Manitoba’s public feedback on the proposed home grow regulations, and the expectation of results from Health Canada’s cannabis testing program later this year.

We also looked at the rise in the popularity (and sophistication) of disposable vapes, and Simply Solventless’ plan to acquire Delta 9 Bio-Tech.

For our year-end, we recapped some of our most popular Canadian cannabis news stories of 2024, as well as creditor protection, bankruptcies, and acquisitions in 2024.

In financial news, we highlighted a timeline of Delta 9 Cannabis Inc. CCAA process, CanadaBis’ Q1 2025 results, and 1CM’s annual report.

Last but not least, our first company profile of 2025 is on New Brunswick’s RPC and its cannabis testing options for Canada.

In other cannabis news

Ontario is amending regulations under the Cannabis Licence Act, 2018, to reduce costs and red tape for authorized cannabis retailers who plan to sell their business and transfer their retail store authorization to another authorized retailer. The changes will streamline current licensing processes by reducing the time it takes for retailers, many of which are small independent businesses, to purchase an existing store.

Also, new tax compliance attestation requirements for cannabis retail operator licences are now in effect in Ontario.

Due to planned upgrades, OCS.ca will be temporarily unavailable on the morning of Wednesday, January 8.

Business in Vancouver featured Hamid Shekarchi, Pure Sunfarms CFO, as part of their 40 under 40 series.

Entourage Health Corp. announced that it entered into a definitive arrangement with 1001007762 Ontario Inc. and 2437653 Ontario Inc., pursuant to which the purchaser will acquire all of the issued and outstanding common shares of Entourage pursuant to a statutory plan of arrangement under the Business Corporations Act (Ontario). Entourage owns and operates a fully licensed 26,000F sq. ft. Aylmer, ON processing facility.

Tilray CEO Irwin Simon was listed as the 30th highest-paid CEO in Canada in 2023 (most recent figures) in the Canadian Centre for Policy Alternatives’ January 2025 report, with a salary of nearly $2.6 million, along with $6.1 million in share-based awards and $1.4 million in non-equity incentive plan compensations.

Shortly before 4 a.m. on December 31, Nottawasaga OPP officers were dispatched to a break-and-enter in progress at the Ultramar gas station and Uplift Cannabis store located at 165 Mill St. Police say the suspects fled the scene before officers arrived.

High Tide recapped its key milestones of 2024, as did Greenway Greenhouse Cannabis Corporation.

The BC CSU has updated its enforcement stats as of December 29. Through 115 enforcement actions, the agency has collected $1.49 million in penalties and seized over $38.62 million in cannabis. It has conducted 367 educational visits, and as a result, 238 unlicensed stores have closed. CSU has investigated 1,647 websites involved in the illegal sale of cannabis and has disrupted 1,054 of those websites.

A hearing date has been set in the Ontario Land Tribunal case regarding a bylaw-breaking medical cannabis licence holder in Aurora. The town initially charged the owner and tenant with illegally operating the business, against the town’s zoning bylaws and official plan, in October 2022. According to a town staff report, the facility had been running for more than four years, with the town first receiving complaints about the operation in July 2020.

International cannabis news

Here’s an interesting story in The Journal about the increase in seizures of BHO in Ireland.

The unofficial “cannabis czar” of the US Congress, Earl Blumenauer, is now leaving Capitol Hill after 14 terms in Congress, fostering uncertainty about who will fill the void on cannabis policy in DC, reports Politico.

And finally, The Economist says America’s marijuana industry is wilting.

The biggest cannabis stories of 2024

Written by Staff on January 2, 2025. Posted in Business, Cannabis News, Government, International.

The past year was another busy one for cannabis news in Canada. Here are a few of our most popular topics and stories of 2024.

Wholesale prices rally

Canada’s wholesale market continues to shift from a buyer’s market to a seller’s market. While the beginning of cannabis legalization in Canada was characterized by a surplus of product, many in the industry say that trend has been shifting to a shortage in recent months.

Regulatory changes

Another of the more significant stories of 2024 was Health Canada’s massive regulatory proposal in June. The proposed changes include regulatory amendments that align with the findings and recommendations from the federal government’s expert panel’s final report on the Legislative Review of the Cannabis Act.

The final draft of these proposed changes is expected sometime in 2025, but an early election could impact them or even cause them to die on the vine.

Israel and international markets

In January 2024, Israel opened an “anti-dumping” investigation into cannabis imports from Canada.

In July, the Israeli Government released its preliminary decision regarding accusations that Canadian cannabis companies are dumping low-cost cannabis products into the Israeli medical cannabis market, with the Canadian cannabis industry and Global Affairs Canada expressing disappointment with Israel’s report.

In November, a new report suggested adding up to 175% tax on Canadian cannabis imports, with the Canadian Cannabis Council and Global Affairs Canada raising several questions and concerns regarding the report, along with Israel’s Ministry of Health, which argued that tariffs on Canadian cannabis would harm patients and benefit the illicit market.

Not to be left out, similar concerns have been raised more recently by some producers in Australia.

Meanwhile, the export market into and through Germany is heating up, while Aurora and Tilray/Aphria operate two of the country’s three production facilities. Mother Labs also announced a plan to bring branded cannabis genetics to the German market.

In addition, a new retail cannabis project in Germany could be good news for Canadian cannabis exporters, and a Danish medical cannabis company is looking to bring its unique cannabis oil to Canada.

Provincial distributors streamlining supply

In July, the OCS announced that it was planning to begin reducing the number of products it carries in its warehouse by several thousand in the coming year-and-a-half as it moves to create a more efficient supply chain amid a glut of product.

The move is expected to begin in September. It comes as several other provincial distributors have made similar efforts to handle a growing number of products in limited storage space at central distribution warehouses. This is due to slowing market growth as demand seems to be reaching a saturation point.

To address this, provincial distributors, like the OCS, LDB, AGLC, and MBLL, have been paring down their offerings and shortening the time they give products to grab consumer interest.

In May, some businesses in Manitoba said they were caught off guard by the province’s recent “pause” on “controlled access” retail cannabis licences. In October, the province announced it was extending that pause for another 18 months.

Fines and other penalties

The Alcohol and Gaming Commission of Ontario (AGCO) fined an Ontario cannabis retailer $100,000 for illegal “data deals.” The decision, posted by the AGCO on November 19, came following an initial issuance of an administrative penalty to Cannabis Xpress in April 2024. The topic struck a nerve among many in the industry who are frustrated by such “data deals.”

Several other types of enforcement actions were popular among StratCann readers.

In October, a BC pot shop was fined for selling cannabis at too low of a price.

In December, the AGCO issued a Notice of Proposal to suspend the Cannabis Retail Store Authorization for Montrose Cannabis in Pickering, Ontario, following inspections that revealed significant breaches of the Cannabis Licence Act, 2018 (CLA) and its regulations.

The Victoria Cannabis Buyers Club, an unlicensed medical cannabis dispensary that has been operating in Victoria since the 1990s, was issued a $3.2 million fine from the province.

A cannabis store in Kelowna, BC received a one-week suspension for failure to ID minor, and another was fined $7,000 for failing to check ID, while there were two enforcement actions against BC Cannabis Stores.

Politics

In federal politics, the industry has continued to fruitlessly wonder if Trudeau even remembers that he legalized cannabis. In April, Trudeau said that concerns (mostly from Conservatives) over cannabis legalization violating international treaties were unfounded.

In June, a Conservative MP said he would vote to recriminalize cannabis if given a chance. In November, Trudeau and Poilievre traded barbs over the latter’s attempt to conflate cannabis legalization with the opioid epidemic.

Many of our readers also enjoyed our satirical takes on this topic for last year’s April Fools Day.

Unfortunately, cannabis appears to no longer be an election issue.

Is the black market making a comeback?

Meanwhile, we looked at the illicit and unregulated cannabis market, which, despite significant declines since legalization, continues to have a foothold, especially online. Retailers in Ontario say they are frustrated by the recent increase in unlicensed stores returning to local neighbourhoods.

In addition, the CBSA has seized thousands of kilograms of cannabis in the first half of 2024-2025.

Cannabis jobs update – January 2025

Written by Staff on January 1, 2025. Posted in Business, Cannabis News.

As we begin 2025, the cannabis industry continues to offer a variety of opportunities for professionals across the sector. January is a time when many businesses are focused on strengthening teams to set the tone for the year ahead.

In our January 2025 roundup, you’ll find openings spanning cultivation, retail, operations, compliance, and more. Whether you’re looking to grow your career or explore a new role, these positions could be a great fit.

Here’s what we’ve found for new job postings in Canada’s cannabis industry.

Cannabis Producers/Brands

British Columbia

DUNN Cannabis in Abbotsford is hiring a Quality/Record keeping specialist.

Aurora Cannabis Inc. is looking for a Maintenance Manager and a Cultivation Technician at their facility in Comox and a Plant Work Technician in Pemberton.

Tilray is looking for a Production Associate in Nanaimo.

Sugar Cane Cannabis is hiring a Cannabis Trimmer in Williams Lake.

White Ash Group is looking to recruit a Head Grower for an indoor facility located in Mission.

Unite Biotechnical Ltd., seeks to hire a Cannabis Processing and Extraction Technician in Central Saanich.

Alberta

ANC Solutions is seeking to hire a Cannabis Production Worker in Edmonton.

Doobie Cannabis in Calgary is looking for an Administrative Services Coordinator.

SNDL Inc. is looking to hire a Project Support and Communication Specialist in Edmonton.

Northside Grow Co. is looking for a Cannabis Packaging Assistant in Calgary.

Weed Me Inc. is hiring for a Key Account Manager in Edmonton.

Hybrid Infusions, the home of Virtue Cannabis, is looking for a Cannabis Cultivation Technician in Edmonton.

Saskatchewan

Decibel Cannabis Company Inc. is looking for a Quality Technician and a Plant Care Labourer in Battleford.

Organigram Inc. wants a Field Sales Representative in Regina.

There’s an opening for a Master Grower at Under the Sun Groweries Inc. in Clavet, SK.

Manitoba

Tilray is hiring a Warehouse Technician at Manitoba Harvest in Winnipeg, Manitoba.

Ontario

Northern Green Canada is hiring a Quality control technician in Brampton.

Aurora Cannabis Inc. is looking for a Team Lead, Cultivation in Townsend.

BZAM Ltd. is looking for an ERP Specialist in Hamilton and an FP&A Analyst in Ontario.

AHLOT & Cannabis Co-Pack are looking for a Packaging Specialist in Brantford.

Organigram is hiring a Senior Manager, Financial Planning & Analysis in Toronto.

Sensi Brands Inc. is hiring a Student Ambassador for Queen’s University in Kingston.

Quebec

Les Entreprises Greentone Inc. is looking for a Warehouse Attendant in Bécancour.

Cannara Biotech Inc. is looking for a Quality Assurance Associate in Farnham.

In Pointe-Claire, QC, MTL Cannabis has an opening for a full-time Technician de Production.

Sumo Cannabis in Trois-Rivières, QC, has an opening for an Électromécanicien(ne) to work under the supervision of the Maintenance Manager.

Justefeu Inc. in Lachute, QC, is seeking a full-time Technicien de culture de cannabis.

New Brunswick

Organigram is looking for a Validation Specialist, a Plant Science Research Assistant, and an Executive Assistance & Office Coordinator in Moncton.

Purplefarm Genetics Inc. wants a Full-Time Technician in Fredericton, as well as a full-time Compliance Specialist (Packaging).

Sana’a is seeking a full-time Cultivation Technician to join the team in Miramichi, NB.

Nova Scotia

Breathing Green is looking for a Quality Assurance Manager in Truro.

TEC Cannabis Services has a full-time Cannabis Trimming and Packaging position, located in Liverpool, NS.

PEI

PEI’s Canada’s Island Garden Inc. is looking for a full-time Brand Coordinator.

Cannabis Retail

There’s a posting for a full-time cashier at Kushi Cannabis located in St. Albert, Alberta.

Tokyo Smoke over in Brandon, Alberta, is looking for a part-time Budtender.

Delta 9 has an opening for a Cannabis Consultant in Winnipeg, Manitoba.

Also in Winnipeg, Manitoba, Post Life Inc. is looking for a full-time Budtender and Chronic Canada is seeking a part-time Budtender for their store on Ness Avenue.

Cannabis NB is looking for a casual Customer Experience Representative in Riverview, NB.

High Tide Inc. is seeking an experienced sales manager to fill its Manager of Provincial Cannabis Sales – Saskatchewan market role.

5 Buds Cannabis in La Ronge, Saskatchewan, is looking for a part-time Budtender.

Farmer Jane Cannabis Co. is looking for a new General Manager to add to their Saskatoon, SK, team.

The Joint Cannabis located in Winnipeg, MB, is looking for a full-time JR Operations Training Lead and a part-time Shift Supervisor.

Located in St. John’s, NL, Mernova Medicinal Inc. is recruiting for a Territory Sales Representative working remotely/on the ground promoting Mernova and the Ritual Green brand in Newfoundland.

The Herbary Cannabis Store in Whitehorse, YK, has an opening for a full-time Herbmaster as well as an Assistant Store Manager.

Other

Marigold PR, a B2B public relations agency specializing in cannabis, technology, construction, and manufacturing, has an opening for a remote, temporary, full-time PR Coordinator.

Located in Atholville, NB, SNDL has a full-time posting for an HVAC Technician.

The Ontario Cannabis Store (OCS) is looking for a Senior Business Transformation Analyst, a Senior Financial Analyst, and a Manager, Corporate Affairs, Policy & Government Relations in Toronto.

The Saskatchewan Liquor and Gaming Authority (SLGA) is seeking a temporary part-time Minor Test Shopper, to join its Cannabis Licensing and Inspections branch.

Tilray/Aphria is hiring a Grower/Agronomist in Portugal, a Head Grower Neumunster, Germany, and a Personal für den Anbau von Medizinal-Cannabis in Neumünster, Germany.

The Saskatchewan Liquor and Gaming Authority is seeking a temporary part-time Minor Test Shopper, Cannabis to join its Cannabis Licensing and Inspections branch.Apollo Applied Research in Elmsdale, NS, is searching for a Veteran Care Coordinator (Cannabis Clinic Administrator).

Creditor protection, bankruptcies, and acquisitions in 2024

Written by Sarah Clark on December 29, 2024. Posted in Business, Cannabis News, Financials, Government.

As the Canadian cannabis industry continued to weather financial headwinds in 2024, numerous companies found themselves entering creditor protection, closing up shop, or selling off assets. Here’s a brief breakdown.

In January 2024, a court-appointed monitor of Trees Corporation, which operates a chain of cannabis stores in BC and Ontario, announced it was conducting a sale and investment solicitation process for the cannabis company.

Safari Flower entered CCAA protection in January 2024 and successfully exited creditor protection in September 2024.

On February 20, Hamilton, Ontario-based cannabis companies Wayne Patrick Consumer Products Ltd. and WPCP Ltd. had their Notice of Intent proceedings continued under the CCAA. The issue remains ongoing.

BZAM was granted CCAA protection in February to restructure its business and financial affairs. The issue is ongoing, with the most recent stay of proceedings until January 13, 2025. Final Bell has been challenging the move in court since April 2024. In December, a court rejected Final Bell’s equity claims against BZAM’s monitor and again extended the stay of proceedings.

In April, Heritage Cannabis Holdings Corp. and its subsidiaries sought and obtained an order for creditor protection from the Ontario Superior Court of Justice pursuant to the Companies Creditors Arrangement Act (CCAA). In August, Heritage announced it had completed the sale of the company to a stalking horse bidder, HAB Cann Holdings Ltd, which is connected to Heritage’s senior secured lender, BJK Holdings Ltd.

In May, the parent companies of cannabis retail chain Four20 Premium Markets filed a notice of intent to make a proposal under the Bankruptcy and Insolvency Act. Following approval by the Court of the SISP on September 19, 2024, the Applicants commenced the SISP and the Claims Process. The issue is ongoing.

In June, Ontario’s Indiva received creditor protection, and in August, SNDL announced its successful bid to purchase Indiva.

Atlas Global Brands, the company behind cannabis brands like D*gg Lbs, GreenSeal, and Electric Lettuce, was granted an initial order under the Companies’ Creditors Arrangement Act (CCAA) in June. In October, a court approved an RVO for Atlas Global Brands against the CRA’s objections. In October, Calgary-based Decibel Cannabis Company Inc. closed on its acquisition of AgMedica Bioscience Ltd., a subsidiary of Atlas Global Brands.

In July, Delta 9 Cannabis received CCAA protection and entered into an agreement with FIKA following what it called an “aggressive” move by Delta 9 secured creditor SNDL Inc. On December 30, Simply Solventless Concentrates Ltd. has entered into a share purchase agreement with Delta 9 Cannabis Inc. for the acquisition of all of the issued and outstanding shares of Delta 9 Bio-Tech Inc.

Galaxie Brands received CCAA protection in August and announced its exit from the process in December.

Freedom Cannabis also received creditor protection in August to pursue the restructuring and sales process.

Tokyo Smoke announced in August that it would close 29 locations as it sought creditor protection. By September, the retail chain began the Stalking Horse sale process. Tokyo Smoke emerged from creditor protection in November with around 57 “go-forward” store locations.

On October 24, 2024, the CannGroup Development Corp. filed a Notice of Intention to Make a Proposal pursuant to subsection 50.4(1) of the Bankruptcy and Insolvency Act.

And finally, in November, Noya Holdings Inc. and Noya Cannabis Inc. applied for creditor protection.

This article has been edited to include SSC’s news on December 30 and CannGroup’s filing from October 24.

Did we miss any?

Is the CCAA process being taken advantage of?

September 9, 2024

CRA has written off nearly $5 million in cannabis excise tax

November 20, 2024

Quebec cannabis business facing excise challenges

November 21, 2024

Week in Weed – December 28, 2024

Written by Staff on December 28, 2024. Posted in Business, Cannabis News, Government, International.

This past Christmas week was a relatively slow one for cannabis news. We looked at what an early election could mean for the cannabis industry and pending regulatory changes, shared The Good Shroom Q1 2025 results, and police in Ontario arrested a man in connection to a cannabis store robbery.

In other cannabis news

The Oz. spoke with Montrose Cannabis’ Nick Baksh about their recent 7-day suspension notice from the AGCO.

Rubicon Organics announced the promotion of Melanie Ramsey from CCO to COO.

The London Free Press ran an in-depth look at the recent $90 million acquisition of Motif by Organigram, speaking with Motif founders Mario Naric and Ian Hasse and Organgiram’s Paola De Luca.

SNDL Inc.’s Chief Strategy Officer Ryan Hellard shared an affidavit related to the $10 million Senior Second Lien Convertible Debenture issued by Delta 9 Cannabis Inc. On December 20, Delta 9’s monitor shared several new motion materials, including a Bench Brief of SNDL Inc. On December 2, 2024, the plan sponsor sought and obtained a Creditors’ Meeting, setting a date of January 10, 2025, for the hearing of the application for an order sanctioning the Plan Order.

City Councillors in Chilliwack, BC, rejected an application for a new cannabis store for being located within 300 metres of a park.

The L’Nuk Lounge, an unlicensed cannabis store in New Brunswick, posted on social media that it has been evicted from its 575 Main St. location in Moncton. The store, which opened in April 2023 and faced several enforcement actions in 2024, will remain open at a second location in nearby Riverview.

A Post Media outlet spoke with the owner of a chain of unlicensed cannabis stores in Ontario called MyLegacy, along with others, who argue that provincial cannabis regulations don’t apply to anyone identifying as Indigenous.

Conservative social commentary media website The Western Standard ran some reefer madness that spun recent Stats Canada consumption figures to make them seem like “young people” are consuming cannabis at a much higher rate than they actually are by including everyone under 24 who had tried it even just once in the past year.

The Dales Report spoke with Beena Goldenberg of Organigram, Michael DeGiglio of Village Farms, and David Klein of Canopy Growth.

A faculty researcher at UBC looked at the role of cannabinoids in neurological diseases and psychiatric disorders.

Someone stole an outdoor heater from the patio at Cannabis Cottage in BC’s interior.

Ben Kaplan shared his thoughts on the changes in the cannabis industry since the booming stock market days.

The CBC looked at the story of a Canadian man stuck in a prison in Dubai for travelling with cannabis products he used to treat symptoms of Addison’s disease.

International Cannabis News

The German Hemp Association recently published a poll showing that 59% of Germans support full legalization of recreational cannabis, including its sale. The upcoming federal election in Germany is scheduled for February 23, 2025. Recent polls show support for the right-wing union between the CDU and CSU, as well as for Alternative For Germany (AFD). Members of the CDU and CSU have said they would repeal Germany’s recent cannabis legalization legislation.

And finally, Fortune looked at German market players like Sanity Group and Bloomwell.

What could an early election mean for the cannabis industry and pending regulatory changes?

Written by David Brown on December 23, 2024. Posted in Business, Cannabis News, Government, Insight.

With an early federal election looking increasingly likely, there are several issues those in the cannabis industry should be keeping an eye on in the coming months.

Given the current and ongoing polling and national mood, this article is written with the assumption that the next government will be a Conservative one led by Pierre Poileivre.

If an election is called, it could mean changes to several ongoing issues the industry is focused on. Here are a few worth watching.

Regulatory changes

Health Canada delivered a large package of proposals and changed the federal cannabis rules and regulations in 2024, lowering fees and regulatory requirements and increasing the amount of cannabis that micros can grow and process. Since they were first proposed, the changes have been expected to come into force in early to mid-2025.

If an election is called at any point, these regulatory proposals will not immediately stop as they would if they were legislation (like a proposed bill), but this would mean that the work would be primarily paused until the end of the election. The new government could then choose to continue that work, pause it indefinitely, or even scrap it entirely.

If the new government is the Liberal Party of Canada, under the leadership of Trudeau or someone else, then such work will likely continue, and the final changes will be solidified and posted on Gazette II.

However, if the new government is, as expected, the Conservative Party of Canada under the leadership of Pierre Poilievre, then it is possible the work will be shelved, possibly indefinitely, or even scrapped entirely. The Conservatives would likely not lose much political capital in doing so and might even gain some capital among specific sectors of their base.

That said, it’s also possible that given the general red-tape-reduction and streamlining nature of the proposed changes, a new conservative government could still implement all or some of these proposed changes. However, it wouldn’t necessarily need to be given the same level of priority in terms of implementation as the Liberals would likely have given.

Excise stamps

The federal government also recently said it’s considering possibly moving from 13 separate cannabis excise stamps to one national one, something the industry has been asking for. The timeline for this consideration was next spring. Similar to the issues relating to the proposed regulatory package, a new government would not necessarily need to keep such a promise, and an election could, at best, slow down the process of investigating the issue.

Trudeau, Poilievre trade barbs in QP over cannabis legalization

November 26, 2024

Conservatives continue to call for an end to medical cannabis “loophole”

November 9, 2020

Cannabis is no longer an election issue

September 26, 2024

Conservatives and cannabis

The above issues relate to ongoing work the current government has done on the cannabis file. But what could a Conservative federal government mean for the cannabis industry and the associated Act and Regulations, in general?

This is a very broad question that deserves its own in-depth analysis, as there are many layers to consider, but here are a few high-level considerations:

The Conservatives have several known talking points related to the cannabis file that could signal the possible direction a new Conservative-led federal government might take.

Medical cannabis: The Conservatives have, in the past, tried to make significant changes to Canada’s medical cannabis access programs. Repeatedly forced to manage the medical cannabis file by the courts, in 2013, the Conservatives first tried to get rid of the ability for medical cannabis users entirely, with approval from a health care provider, to grow their own cannabis or to designate someone to do so on their behalf.

Their messaging since that time has not changed much, with a big focus from many conservative MPs over the years to highlight how this personal and designated producer system is, at times, abused for the purpose of diversion into the illicit market. So it’s not much of a stretch to assume they will continue this focus if they again hold the reigns of power in Ottawa.

Home Grow: Not only do Conservative party members have a track record of trying to get rid of medical home grow, but many in the party have long expressed concerns with people having the right to grow their own cannabis. This was one of the many aspects of cannabis legalization that the Conservative Party outright opposed on principle, with one famous Conservative MP suggesting that young kids would be getting high with their parents’ home grow, utilizing toaster ovens. Another Conservative MP compared homegrown cannabis to being able to make fentanyl at home (seriously).

It was a Conservative Senator, Vern White, who proposed an amendment to Bill C-45, the cannabis legalization bill, that would have removed the allowance to grow up to four plants at home. The amendment was defeated 40-33. Then another Conservative senator, Claude Carignan, proposed an amendment that would have only allowed indoor cultivation. That was also defeated, in a 40-31 vote.

Even after legalization, the Conservative’s Shadow Minister of Health at the time, Marilyn Gladu, told the Globe and Mail in 2019 that the party would seek to ban home grows and further restrict personal and designated medical grow licenses while supporting larger publicly traded licensed producers.

So it’s not a stretch to suggest this could also be within their sights.

A less diverse industry: The coming into force of the federal Cannabis Act and Cannabis Regulations represented a significant shift from the previous medical-only status quo. Not only did this mean more broad access to a regulated cannabis supply chain for adults in Canada, it also meant new production regulations that were much less one-size-fits-all than the previous Conservative government’s medical rules had established.

While legalization itself was built around the basic foundation of federally licensed producers first created by Health Canada under Harper’s watch (MMPR), broader cannabis legalization simplified certain aspects of those regulations and the application process and created new licence categories to allow for smaller and less capital-rich businesses to participate. No longer was there just one large “LP” licence that could cost tens of millions and take years to apply for. Some producers today, especially micros and nurseries, can make it through the licensing process in less than a year and, at times, well under a million dollars (some have even done it for under $100,000).

This process itself, though, isn’t easy. It requires a lot of time and resources to manage the number of licences and licence categories, not only during the application process but also once they are licensed. Staff must answer phone calls, respond to emails, and undertake inspections. Licensing hundreds of small micros is not cost-effective, and a new government seeking to cut red tape and bureaucracy could view such an approach as inefficient.

If you’re working at or invested in a big licensed producer, this could be a win for you. But if you’re a smaller business operating in or looking to operate in the cannabis space, this might mean longer wait times for service. If you think it’s bad now, imagine if there were, for example, 25% fewer employees to respond to your requests.

Now, it’s not necessarily all doom and gloom. There are arguments to be made for red tape reduction and streamlining of some of the more onerous aspects of the federal regulations. But given the Conservatives’ overall resistance to the cannabis file in general (remember, all but one Conservative voted against legalization itself), it’s unlikely to see this as a priority.

Excise tax

Conservatives hate taxes, right? Well, sort of. Yes, the Conservatives, especially Pierre, have spent much time railing about the excess taxes in Canada, especially the carbon tax. “Verb the Noun!” as the slogans go.

But does this translate to excise tax reform for the cannabis industry? It’s possible, but I wouldn’t hold my breath. Any changes to the federal excise rate for cannabis mean less money for the provinces, who bring home almost all of that money. That’s not something many federal leaders would see much benefit in doing, especially on a file that most voters don’t seem to care much about, if at all.

So, what will a Conservative government in Canada mean for the cannabis industry? At best, I would prepare for less federal support, not more, and a delay in any ongoing regulatory changes, such as harmonizing excise stamps or the massive regulatory package proposal shared in 2024.

At worst, the industry should prepare for a shrinking federal regulatory agency that will seek to streamline operations, which would likely mean a redefined focus on a few touchpoints (a handful of big companies, not tons of little ones). This could be good news for the handful of big pubcos on the producer side, but for the little guys, it might be about to get a lot harder.

That said, none of this is a foregone certainty. While much of the above is negative, there’s also the possibility that with the right advice a Poilievre’s government could approach this differently, unshackling cannabis from the over-regulation of the nanny state. Some past statements in regard to edibles potency limits, for example, show some potential openness to this approach.

Coming up with a game plan to take these factors into account would be wise and might be the difference between keeping the lights on in 2025 and beyond, or not. But we’re probably going to find out sooner than later.

Week in Weed – December 21, 2024

Written by Staff on December 21, 2024. Posted in Business, Cannabis News, Government, International.

This week in cannabis news, StratCann looked at the federal government committing to “exploring” a single harmonized cannabis excise stamp and the industry’s reaction, as well as MediPharm’s plans to sell its ABcann facility to Kensana Health, and Greenway Greenhouse’s plan to acquire Choice Growers’ brands.

We also spoke with researchers in BC who are looking at the impact of cannabis use on driving, and covered a 7-day suspension notice for an Ontario retailer for providing a third-party delivery service, selling cannabis outside the province, and selling more than 30 grams at a time.

BC’s third cannabis farmgate store, Weeds, received provincial approval and hopes to open in the new year. Also, Health Canada may begin requesting supporting evidence for some medical cannabis authorizations.

In financial news, Organigram released its 2024 fiscal report, and Aurora announced a distribution partnership between MedReleaf Australia and The Entourage Effect.

In law enforcement news, RCMP in Nova Scotia shut down an unlicensed cannabis storefront.

And we published the ninth instalment of the Good Weed Board.

In other cannabis news

A new update in Gazette II amended the Regulations Amending the Food and Drug Regulations and the Cannabis Regulations to reflect the new food additives framework, including the revised Lists of Permitted Food Additives.

The federal government shared a new update on the planned renewal of its funding for the existing Federal framework for the legalization and regulation of cannabis in Canada.

Craft Kings Cannabis Group announced its acquisition of BC Green Farms Ltd, located in Duncan, British Columbia. The move triples Craft King’s cultivation space.

Delta 9 is well-poised to become Manitoba’s cannabis superstore thanks to its upcoming acquisition by FIKA Company, shares FIKA CEO Mark Vasey with the Winnipeg Free Press. All Delta 9 stores currently operating in Manitoba will continue to operate under the same name, but the number of products they will carry will expand from around 200 to 800.

During the holiday season, the SQDC will offer in-branch and online services, according to a modified schedule, between Tuesday, December 24, 2024 and Thursday, January 2, 2025.

HYTN Innovations Inc. announced its successful export of cannabis to the United Kingdom’s 4C LABS.

Edmonton Police say charges have been laid against a 19-year-old man in connection with a series of robberies that targeted cannabis and convenience stores in Calgary and Edmonton. StratCann covered those robberies here. The suspect is believed to be connected to 17 robberies in Calgary and four in Edmonton, which occurred between Sunday, September 1, 2024, and Monday, December 16, 2024.

Cannara Biotech Inc. announced that it will be relying on CSA Coordinated Blanket Order 51-913 for an exemption from the requirements to send proxy-related materials for its upcoming annual general meeting to be held on January 30, 2025, at 11:00 a.m., due to the current delays and suspension of mail service in Canada as a result of the nationwide strike of the Canadian Union of Postal Workers that commenced on November 15, 2024.

A staff report in Melfort, Saskatchewan, recommends against limiting the number of cannabis shops in the town about two hours northeast of Saskatoon. In October, Into the Weeds Cannabis and Saskabuds Cannabis requested that Council consider limiting the number of cannabis retail stores in Melfort to two. Director of Community Services Rob Lok said Council will decide whether to limit the number of cannabis stores in the city at their next council meeting on January 13.

A new research paper examines the establishment of a mass spectrometric fingerprint of the most common phytocannabinoids in electrospray ionization in positive ion mode.

An unlicensed pot shop in downtown London has reopened three weeks after it was riddled with bullets in an overnight shooting that remains unsolved.

High Tide Inc. announced the openings of its 190th and 191st Canna Cabana branded retail cannabis locations in Canada: the 84th in the province of Alberta and the 76th in the province of Ontario.

MTL Cannabis Corp. announced that it has fully repaid its 13.25% mortgage, which was originally issued by MTL’s predecessor company to a private lender prior to the Company’s business combination with Canada House Cannabis Group.

Tilray Brands, Inc. will release its financial results for the second quarter ending November 30, 2024, before the financial market opens on January 9, 2025. The company also announced the expansion of its holiday-themed Redecan ‘Wrapped & Redee’ Redees Hemp’d line.

A recent CBSA seizure that focused on illegal tobacco shipments in Vancouver also included 4.2 kilograms of cannabis.

A recent study suggests that Canadian cannabis researchers tend to be “morally ambivalent” about cannabis industry sponsorship of research. They are motivated to conduct high-quality research and generate evidence for population health benefit, yet they have concerns over the potential for research agenda bias created by these relationships which could be harmful to population health. This first study of its kind was led by the Centre for Addiction and Mental Health (CAMH).

Trial dates have been scheduled for April 2025 in a case that began with a constitutional challenge over four years ago involving 10 defendants charged with operating unregulated cannabis stores on Wahnapitae, Henvey Inlet, and Garden River First Nations.

The Research Society on Marijuana (RSMJ) published a special issue with 12 research papers on cannabis in Canada post-legalization in the journal Cannabis, an open-access peer-reviewed journal dedicated to the scientific study of marijuana/cannabis from a multidisciplinary perspective.

An investigation by Durham police into an armed man led to the discovery of a cannabis grow operation with a large quantity of plants in excess of their licence. With the assistance of the Drug Enforcement Unit and the OPP-led Provincial Joint Forces Cannabis Enforcement Team, investigators seized dry cannabis and just under 29,000 cannabis plants.

Business in Vancouver looked at trends in wholesale cannabis sales in BC, with some insight into a topic StratCann readers have been aware of for months now.

International cannabis news

The Ministry of Health in France decided to grant an authorization for an additional six months for it’s medical cannabis trial program so that the National Agency for the Safety of Medicines (ANSM) can continue to deliver medicines to the 1,800 patients included in the therapeutic protocol. The program, which began in March 2021 had been scheduled to end On December 31, 2024.

More than 20 workers at the Cannabis 21+ dispensary in San Diego, California, voted to join UFCW Local 135. In addition to Cannabis 21+, UFCW Local 135 represents over 400 cannabis workers in San Diego and Imperial Valley’s cannabis industries.

The future of the US hemp industry remains on the line as lawmakers once again put a five-year farm bill reauthorization package on the back burner and instead agreed to a one-year extension in the final days of the current Congress, reports the Cannabis Business Times.

The government in the Netherlands recently announced that as of April 7, 2025, coffee shops in municipalities participating in the nation’s Closed Coffee Shop Chain Experiment will only be allowed to sell regulated cannabis.

The founders of Weedmaps want to call it quits on the company’s stock and have offered to take the cannabis store-finder service private for about $100 million.

California issued a voluntary recall for multiple Flavorz integrated vaporizer products due to the presence of methylene chloride, and another voluntary recall for multiple Connected pre-roll and flower products due to the presence of Aspergillus spp., and due to inaccurate labeling that reports more cannabinoid content than the products contain.

Greenway Greenhouse acquires Choice Growers’ brands

Written by Staff on December 19, 2024. Posted in Business, Cannabis News, Ontario, Producers.

Ontario-based Greenway Greenhouse Cannabis Corporation has entered into an asset purchase agreement with Choice Growers Cannabis Inc. to acquire the company’s consumer brands.

Under the December 17 purchase agreement, Greenway acquired all of Alberta-based Choice Growers‘ consumer packaged goods brands, SKUs and listings of the brands, trademarks, goodwill, and other associated intellectual property.

The deal includes a write-off for the amount Choice Growers owes Greenway and a royalty payment equal to varying percentages of net revenue over a period of six years.

The acquisition includes all of Choice Growers’ brands, including Grapefruit God Bud (also known as Grape God), The Jeffrey, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream, and Blackberry Cheesecake.

In a press release, Greenway says the acquisition will enable it to expand further into the CPG sector of the Canadian cannabis market and introduce its products to a broader audience nationwide.

Jamie D’Alimonte, CEO of Greenway, said: “Acquiring the brands from Choice Growers will help Greenway grow the number of SKUs we have in Ontario and bring Greenway products into new provinces. The Choice Growers team have built strong brands that have demonstrated real consumer appeal. As with many cannabis brands, future success will depend on delivering great products and ensuring they reach consumers at an affordable price.

“We are excited to combine our high quality, low cost cultivation with the consumer brand recognition of Choice Growers’ products. Our team is looking forward to bringing these brands under the Greenway banner, to enhance profitability and introduce Greenway’s quality cannabis to new consumers across Canada.”

Greenway recently reported net revenue of $1.8 million in Q2 2025, but an operating loss of $770,347 and comprehensive loss of $1 million.

Greenway’s primary business model is to cultivate, bulk package, and wholesale dry flower to other cannabis companies. In addition to wholesale sales, Greenway sells cannabis through its brands EPIC Cannabis Co. and MillRite, with pre-rolls and 7-gram SKUs of flower. MillRite saw a 71% increase in total units sold from the previous quarter (Q1 2025).

The company has a licensed indoor nursery and a separate licensed greenhouse for standard cultivation. The nursery is currently used to store and maintain mother plants and genetics and to propagate clones and vegetative plants for production.

7-day suspension notice for Ontario retailer for third-party delivery service, selling cannabis outside province, more

Written by Staff on December 19, 2024. Posted in Business, Cannabis News, Ontario, Retail.

The Alcohol and Gaming Commission of Ontario (AGCO) has issued a Notice of Proposal to suspend the Cannabis Retail Store Authorization for 12473291 Canada Inc., operating as Montrose Cannabis in Pickering, Ontario.

The seven-day suspension has been proposed following AGCO inspections that revealed significant breaches of the Cannabis Licence Act, 2018 (CLA) and its regulations.

In May, AGCO inspectors attended the retail store located at 1755 Pickering Parkway and determined that the store had been unlawfully using a third-party delivery service – a violation of regulations under the CLA, which require that cannabis be delivered only by the licence-holder or an employee who has successfully completed the required education and training.

During that inspection, evidence was also discovered that the store had been unlawfully selling its product to customers in Alberta, Manitoba, Northwest Territories, Quebec, and Yukon. Under the CLA, licensees are not permitted to sell cannabis outside of Ontario, which may also constitute a violation of the Cannabis Act (Canada).

Finally, Montrose Cannabis was also determined to have been selling cannabis in quantities exceeding the legal maximum of 30 grams of dried cannabis or its equivalent in a single transaction.

The AGCO says it worked with the licensee to educate them on their obligations and to bring them into compliance. Inspectors conducted a follow-up inspection last month, where it was determined that despite a commitment to coming into compliance, the licensee had continued to operate in violation of the CLA.

An establishment served with a Notice of Proposal has the right to appeal to the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

The AGCO says it will continue to take all appropriate actions to ensure compliance and that the safety of Ontarians is not jeopardized.

“Cannabis retail laws and regulations are in place to protect the public and ensure the legal cannabis market operates responsibly,” said Dr. Karin Schnarr, registrar and CEO of AGCO. “When licensees fail to meet their obligations, the AGCO will take decisive action to uphold the integrity of Ontario’s cannabis retail system.”

Nick Baksh, the founder of Montrose Cannabis, tells StratCann that retailers need more delivery options.

“Alberta and British Columbia allow cannabis retailers to offer parcel delivery, but Ontario lags behind in making cannabis accessible—particularly in rural areas. This gap is pushing consumers back to the illicit market. If the Ontario Cannabis Store (OCS) can ship products directly, why can’t licensed retailers?

“I’ve raised this issue with the Minister of Finance, the Attorney General, local policymakers, and even the mayor, but no progress has been made,” he adds. “Allowing licensed retailers to ship directly to customers would not only curb the illicit market but also enhance public health and safety while fostering healthy competition in the industry.”

If a cannabis retail licence is suspended, the store must post a sign about the suspension in a place where people can easily see it from outside the store.

The AGCO also recently issued a $100,000 fine to a retail chain for disallowed “data deals” that amounted to paying for shelf space.

This article has been updated to include comments from Montrose Cannabis.

Featured image via Google Maps.

Two enforcement actions against BC Cannabis Stores

April 23, 2024

Alberta has collected more than $176,000 in cannabis fines since 2018

September 14, 2022

BC pot shop fined for selling cannabis at too low of a price

October 25, 2024

BC’s third cannabis farmgate store plans to open in early 2025

Written by David Brown on December 18, 2024. Posted in British Columbia, Business, Cannabis News, Producers.

BC’s third cannabis farmgate store received provincial approval recently, with plans to welcome customers in the new year.

Weeds International Inc., a micro cultivator in Pitt Meadows, BC, received its producer retail store licence, i.e. cannabis farmgate, from the BC government on Friday, December 13, after a lengthy application approval process.

In addition to their micro cultivation site, Weeds’ owners Don and Devon Briere and Carol Gwilt also operate retail locations in Vancouver and Sechelt. The Weeds brand has been part of BC cannabis culture for more than two decades, with a former chain of retail stores that operated across the province years before legalization.

Weeds’ new farmgate licence is the third such licence issued in the province since it began accepting applications for Producer Retail Stores (PRS) in November 2022. Only three companies have applied for such a licence. The province has also licensed two similar stores, one in Williams Lake and one in Chilliwack, under special arrangements with local First Nations called Section 119 agreements.

The company is now waiting on their final business licence from the city of Pitt Meadows, where they are located.

Gwilt says she and the Brieres were very excited to get the final provincial approval. They are now working on putting the final touches on the store, with the goal of a soft launch in February.

“It’s been a vision for a long time for us,” she tells StratCann. “To be able to grow and sell and share weed with our community is an honour. We love being in Pitt Meadows and we’re happy to have the community come to our farm and experience this with us.”

Don Briere says the Weeds team has several other pieces of the puzzle they hope to bring about later in 2025, including an outdoor consumption space and, more long term, the possibility of a more focussed tourist experience by creating nearby guest houses, where people can visit their farm and buy and sample products over several days.

“It’s been a long time coming; there’s been a lot of slowdown and turns and roadblocks, but we’re here now,” says Briere. We just have to persist and keep on truckin’.”

BC’s first cannabis farmgate location, ShuCanna, located in Salmon Arm, opened in the summer of 2023. The second, the Victoria Cannabis Co (VCC), opened its cannabis farmgate store in October 2024 after a lengthy approval process with the city.

Ontario was the first to launch its farmgate program in 2021, licensing the first two locations on April 20 of that year. As of May 2024, Ontario listed five fully licensed farmgate locations. New Brunswick became the second province to announce a cannabis farmgate program, also in 2021, allowing for “on-site selling of in-house products for local LPs, nurseries, and micros.” The province currently lists seven such locations.

Cannabis farmgate in Canada: From farm to joint

September 13, 2024

Legacy era retailer Weeds celebrates their new Vancouver location

December 4, 2021

Canadian retailer Weeds opening California location

April 28, 2022

Federal government “exploring” single harmonized cannabis excise stamp

Written by David Brown on December 16, 2024. Posted in Business, Cannabis News, Government.

The federal government will explore a single, harmonized federal excise duty stamp as part of a red tape reduction measure outlined in its 2024 Fall Economic Statement.

More info on the proposal is expected as part of Budget 2025.

The move from requiring producers to use 13 different provincial and territorial excise tax stamps to a single, harmonized stamp is something the industry has said would save cannabis producers time and money. In a meeting in October, The Cannabis Council of Canada (C3) called for such changes, saying they would go a long way toward addressing some of the logistical challenges the current tax stamp program creates.

Paul McCarthy, the president of C3, says he’s happy to see the government acknowledging the issue, but is frustrated that this announcement used a lot of vague wording rather than committing to immediate action.

“What they should be doing is implementing this,” says McCarthy. “It will help businesses. There’s no downside for anybody anywhere, but they still want to wring their hands and look at it more. Talk about a government that is not in touch with the needs of the sector.”

McCarthy adds that he was cautiously optimistic that the fall 2024 statement would have included some movement on the tax, but also acknowledges that expectations have been low due to the complexity of such a change. Although the industry has been asking for the excise rate to be lowered, many in the industry say a single stamp would at least relieve some of the financial burdens associated with the current stamp regime.

“To cut red tape for growing businesses and help them to succeed, the 2024 Fall Economic Statement also announces the government’s intent to explore a transition from cannabis excise duty stamps specific to each province and territory to a single, national stamp. This would make it easier for regulated cannabis producers to ignite new business opportunities in other provinces. More details will roll out in Budget 2025.”

In a post on C3’s website, McCarthy added: “The government’s continued neglect of the cannabis sector is alarming. Their unfair taxation policies are creating an unsustainable environment for legal businesses, forcing many to close their doors and driving consumers back to the illicit market.”

Earlier this year, Orville Bovenschen, President of Pure Sunfarms, told StratCann that such a move could save his company around a million dollars a year. However, these savings would not be limited to just larger companies like Pure Sunfarms.

“It’s not just us,” said Bovenschen. “If you look at small producers, medium-sized producers, it’s very complicated for them as well. A change like this can make it easier for us to operate and become more profitable. I think this is much easier to achieve before we get to the bigger issue of the excise tax itself.”

While changing the actual excise rate is complicated, he added, solutions like these could make more sense in the more immediate term.

“I think it could be an achievable win. Nothing is easy but I think it can be a much needed win for everybody. For the government, for us. I don’t think there’s a single person that isn’t aligned with this idea of having one single stamp for the entire industry.”

Janeen Davis, VP of sales at DEALR Cannabis (formerly JVCC), which distributes cannabis, often from micro cultivators and processors, in BC and Ontario, says the change will definitely help the company save time and money, even if it doesn’t go as far as she would like to see in terms of lowering the actual excise rate itself.

“We spend so much time just managing our stamp inventory for the provinces,” explains Davis. “Managing stamp inventory can be a major administrative burden to all processors in Canada, and I think if there were just one excise stamp, it would be something to celebrate.”

Gord Nichol, the owner of North 40 Cannabis, a micro producer in Saskatchewan, says the move doesn’t address “the giant elephant in the room” that is the need for lowering the excise rate itself, especially for smaller producers like his company.

“Excise tax reduction for micro processors is the only issue that might save me”, Nichol tells StratCann.

Such a move would require the support of the provinces, who receive 75% of every dollar the federal government collects from the federal excise tax.

Some in the industry, speaking with StratCann strictly on background, have also suggested that the recent stepping down of Chrystia Freeland from the role of Finance Minister could bode well for efforts at lowering the excise rate itself. In the past, some have suggested that Freeland was one of the main last-minute impediments to such changes in previous federal budgets.

Note: This article initially said the Budget was expected in 2025. That’s is not correct and has been changed. It is expected in early 2025.

$11 billion in cannabis sales has created 151,000 new jobs and added $43.5 billion to Canada’s GDP

February 1, 2022

Streamlining excise stamps could go a long way to relieving regulatory burden, costs

October 10, 2024

The rocky road to excise duty reform

February 28, 2024

Health Canada may request supporting evidence for some medical cannabis authorizations

Written by David Brown on December 16, 2024. Posted in Business, Cannabis News, Government.

Health Canada recently sent a memo to provincial colleges of physicians and surgeons, advising them that it may contact health care practitioners to ask for evidence to support the amount of cannabis they have authorized for their patients.

The memo includes information highlighting the regulator’s ongoing efforts since 2019 to address authorizations of large amounts of cannabis several times over the industry average.

Reads the document, in part: “In an effort to facilitate the application process for patients, we would like to take this opportunity to advise you that the Department may contact health care practitioners to ask for evidence to support the amount of cannabis that they have authorized for their patient. This information may include data, references, or resources to support the authorized daily quantity. This evidence will support the Department in assessing the risk to public health or public safety before making a final decision on the application.”

The College of Physicians and Surgeons of Manitoba (CPSM) recently shared that it was asking its members to review the recent updates from Health Canada.

It’s not the first time Health Canada has sent notices to provincial colleges of physicians informing them of health care practitioners connected to numerous high gram-a-day authorizations. In 2020, the Saskatchewan College of Physicians and Surgeons levied a $15,000 disciplinary action against a Saskatchewan doctor found to be profiting from issuing medical cannabis licences in 2018.

In 2021, a medical cannabis patient who had been authorized 100 grams a day had a court reject an allowance for the patient to possess up to 1,000 grams in public at a time.

In a memo from October 2022, Health Canada said that since it began a new process to address high authorization amounts through the program, the agency had observed a decrease of more than 50% in the number of individuals registering to produce cannabis for medical purposes.

The memo continued that in September 2021, approximately 47,000 individuals registered with Health Canada. By September 30, 2022, the number of registered individuals had dropped to approximately 21,700. As of March 2024, it was 15,726, although numbers began to show an uptick after several years of decline.

The regulator has also refused or revoked over 1,400 registrations, including more than 700 for public health and safety reasons. This represents a 113% increase in refusals and revocations and a 423% increase in the number of refusals and revocations made on the grounds of public health and public safety since March 2022.

While 4,728 healthcare practitioners were associated with registrations made with federally licensed sellers in the previous twelve months, 1,105 were associated with active personal/designated production registrations.

Of those 1,015, there were 233 healthcare practitioners associated with authorizing amounts equal to or above 25 grams per day, and just ten who authorized amounts equal to or above 100 grams per day.

Most (78%) healthcare practitioners who authorized more than 25 grams a day were in BC or Ontario. All who authorized more than 100 grams a day were in BC and Ontario. An authorization of 100 grams a day would equate to a limit of 487 plants at any given time. Such licences can also be combined to up to four per location, meaning a designated grower with several authorizations could be growing hundreds or even thousands of cannabis plants with the potential to produce in the hundreds of kilograms of cannabis a year.

Active medical registrations with LPs continue to decline, while personal and designated increase

Alberta finds doctor guilty of professional misconduct over medical cannabis authorizations

April 14, 2022

Health Canada referral leads to large cannabis seizure at former designated medical cannabis production site

December 12, 2024

Week in Weed – December 14, 2024

Written by Staff on December 14, 2024. Posted in Business, Cannabis News, Government, International.

This past week in weed, StratCann looked at how the Canada Post strike is affecting medical cannabis access, a group in BC is looking at the long-term effects of cannabis remediation, and a credit union in BC is helping producers survive in a challenging landscape.

We also explored how researchers in Saskatchewan are looking at how edibles can impact driving, and we reported on how the Federal government was unable to implement an “ambitious” program to better streamline cannabis pardons.

In financial news, a court rejected Final Bell’s equity claims against BZAM’s monitor and again extended the stay of proceedings, and Galaxie Brands announced that they have successfully exited the CCAA process.

In law enforcement news, a Health Canada referral led to a large cannabis seizure at a former designated medical cannabis production site in Ontario, and the CBSA and RCMP seized 45 kg of cannabis destined for the Netherlands. Police in Ontario also recently recovered stolen cannabis.

In other Canadian cannabis news

The federal government ordered the Canadian Industrial Relations Board to send Canada Post employees back to work if an agreement is not reached soon with their employer.

Tilray Brands, Inc. announced a new Holiday campaign highlighting a series of cannabis-infused beverages from two of its beverage brands, XMG and Mollo, and its JUICED XTREME Resin Infused Pre-rolls.

On Wednesday, December 18, 2024, prior to market opening, Organigram Holdings Inc. will report earnings results for its fourth quarter and fiscal 2024 ended September 30, 2024.

High Tide Inc. announced that its Canna Cabana retail cannabis store, located at 5921 Perth Street, Richmond, Ontario, will open on Saturday, December 14. This opening will mark High Tide’s 189th Canna Cabana-branded retail cannabis location in Canada and the 75th in Ontario.

The OCS shares some of its best sellers in 2024.

The Institute for Work and Health released a report on Cannabis use by workers before and after legalization in Canada.

An Ontario court of appeals judge rejected an appeal by Aphria of a previous summary judgment for the rent owing of $638,171.40 plus interest and for future rent as it came due for commercial office premises in downtown Toronto that it vacated three years into a ten year lease. Aphria is a wholly owned subsidiary of Tilray

Cannara Biotech will host an investor webcast on Thursday, December 19th, 2024.

The Yukon government recently posted the Happy Trails Cannabis’ licence application public notice. Public feedback is open until December 27, 2024. The proposed location is 516 Adela Trail, Watson Lake, Yukon.

CannExpo is coming to Toronto’s Queen Elizabeth Building at Exhibition Place on March 21-22, 2025.

International cannabis news

The BBC went inside the UK’s ‘secret’ £10m medicinal cannabis factory.

In November, Philadelphia CBP officers continued to seize London-bound cannabis after grabbing a combined 179 Pounds. The parcels were being shipped from multiple addresses in California to various addresses in the UK.

And finally, research from Harvard reveals the cannabis market’s evolution has outpaced US regulations.

New retail cannabis project in Germany could be good news for Canadian cannabis exporters

Written by David Brown on December 13, 2024. Posted in Business, Cannabis News, Government, International, Retail.

New changes to cannabis regulations in Germany could be good news for Canadian cannabis exporters, say some in the industry.

A new research project could allow for cannabis to be sold in retail stores in up to 25 different German cities, supplied by authorized cannabis wholesalers in the country.

The program will allow applications for retail, adult-use, and non-medical cannabis sales in partnership with German municipalities and supply partners, with a focus on research.

Because the program is built around scientific research, it will also avoid EU and UN restrictions that would otherwise prevent the import of cannabis from outside of Germany, says Finn Age Hänsel, managing director and founder of Sanity Group GmbH, a cannabis-focused company based in Berlin. Similar to EU and UN rules, Health Canada only allows the export of cannabis for medical or research purposes.

Sanity Group operates as a wholesaler in Germany’s medical cannabis market, as well as partaking in a similar retail pilot project in the Netherlands. As such, Hänsel says he’s already in the process of securing supply deals with different international cannabis brands, from suppliers ranging from their partner Organigram to independent Canadian producers like Cake and Caviar, Lyonleaf, and Miracle Valley, and US brands like Kalifa Mints and Alien Labs.

Sanity Group announced the completion of an investment from Organigram’s Jupiter Fund earlier this year.

Hänsel says there’s a demand in the market for both value-priced and craft products, noting that this is an opportunity for any Canadian craft growers who want to see their products sold through the pilot project.

“To be honest, because I am an enthusiast myself, I would rather work with smaller companies who really have an eye on quality and are craft cannabis producers compared to working with large companies,” says Hänsel.

“I like some of the large companies. We let Organigram invest because we like them. But in general I think we are a company who [prefers] the smaller growers.”

The research side of the project, he explains, will require customers to register with the company and fill out surveys on their consumption habits at six-month intervals. This research will be collected over two years in a five-year project, seeking to better understand the public health impacts of such a model.

The research will be in coordination with local universities and the municipalities in which they are located. Cities will also receive €0.50-€1 per gram of cannabis sold from the stores under their purview. He expects cannabis to be sold for around €10 a gram, which he says is similar to typical black market prices. One Euro is about $1.50 Canadian.

Deepak Anand, a Canadian industry consultant who assists cannabis companies with exports, also sees significant potential for Canadian growers if the pilot project is successful.

“If this is couched as a scientific research project then it would meet the definition of medical or scientific purposes. Why I think this is important for Canadian companies is this would allow them to sell cannabis for both medical and scientific purposes. So I think it opens up and expands the reach of our market.”

Although Hänsel is unsure what types of cannabis products they will be allowed to sell in their stores, if licensed, he hopes to offer dried flower and edibles, with a focus on seeing if survey respondents report moving from mixing cannabis with tobacco to using cannabis only, or even shifting from inhalation to edibles.

The change was announced on December 11, when the German Federal Office for Agriculture and Food (BMEL) was tasked by the German Parliament (the Bundestag) with appointing the responsible body for processing research applications on consumer cannabis and industrial hemp.

The regulation that has now been issued—the Consumer Cannabis Science Responsibility Regulation—requires the Federal Office for Agriculture and Food to examine relevant research applications and monitor the approved projects.

This moves this specific type of work away from the German Federal Institute for Drugs and Medical Devices (BfArM), which remains the responsible authority for research into medical cannabis.

Germany legalized cannabis in March 2024. The law came into effect in two main phases: the first phase, which allowed for personal cannabis cultivation and possession, came into force on April 1, and cultivation clubs were allowed in July.

Phase two was supposed to allow for a medical sales model, but shifting domestic politics appears to have slowed that process down. That delay caused the German Parliament to create this new enactment that will allow the retail cannabis pilot project.

Because the new pilot project was created as an enactment of parliament rather than as legislation, Hänsel says a new government could stop the project, but he does not believe any applications already approved and initiated can be stopped.

His own organization plans to apply very soon, and facing several months of application process and site selection and other logistical issues, he encourages others to do the same.

“If you don’t get the applications in December, it will be very tight to be approved before the new government has formed.”

Featured image sourced from Sanity Group / Grashaus Projects – www.grashausprojects.ch ©

How the Canada Post strike is affecting medical cannabis access

Written by Jonathan Hiltz on December 12, 2024. Posted in Business, Cannabis News, Government.

As the Canada Post strike nears its 4-week mark, it has created a ripple effect across the country, disrupting the delivery of countless essential goods and services at the busiest time of year.

For many Canadians, the strike has been an inconvenience; for others, particularly those who rely on medical cannabis, it has become a critical issue.

Medical cannabis patients, many of whom depend on reliable and timely delivery for symptom management, are now facing significant delays and uncertainties. Canada Post remains the primary shipping method for the majority of licensed cannabis producers, and the strike has exposed vulnerabilities in the supply chain, leaving patients scrambling for alternatives.

“This strike has added another layer of complexity to an already difficult medical cannabis access process”
Dr. Karolina Urban, Avicanna

This disruption has not only delayed access to medication but has also raised questions about the resilience of Canada’s medical cannabis system. With limited options for same-day or in-person delivery in many regions, patients have found themselves stuck in a system unprepared for such logistical challenges.

“It’s another hurdle in an already complicated system,” said Ajay Chahal, Pharmacist and Co-Founder of Apothecare, a company that consults with both patients and doctors on cannabis access and use. “Medical patients who are enrolled with an LP and a doctor who prescribes [are experiencing] delays in getting access to their cannabis.”

Chahal added that various LPs are switching to Purolator and other delivery services, but because of the Canada Post strike, there have been significant delays even with those companies as they are overrun.

A further wrinkle are customers who don’t have a traditional address to deliver to. This has been an issue with providers including Avicanna, a biopharma company based in Toronto.

“This strike has added another layer of complexity to an already difficult medical cannabis access process,” said Dr. Karolina Urban, Avicanna’s executive VP of Medical Affairs. “One of the biggest issues is patients who are in areas where delivery is only available to PO boxes, currently serviced by Canada Post.”

“I see medical patients just leaving altogether, especially if they are more elderly. They need access, and if they are not getting it, if it’s getting delayed, or not coming at all, they will need to get it somewhere. Once they see how it’s easily accessible they might not come back.”
Ajay Chahal, Apothecare

Confusion and the illicit market

One of the challenges that comes along with Canadians not being able to access their cannabis prescriptions is that they are forced to seek out alternatives by using recreational stores. “If the products are not the same, there might be some difficulty in making sure they transition to an equivalent product,” said Chahal.

He added that a further issue lies within the ongoing illicit market retailers. Some patients have trouble determining the difference between legal and illegal stores, both in-person and online, and some access illicit market cannabis unknowingly.

“Black market stores are rampant. A lot of my patients had no idea they were going into a black market store or ordering online from a black market store. We [then] help navigate them to a legal store.”

Confusion over where to get products during this time aside, the strike is also not helping the growth of the medical cannabis sector in Canada at a time when that part of the industry could use some expansion. Active client registrations for medical cannabis with a federal license holder have gone from 345,520 in 2018 to 180,878 in 2024.

“I see medical patients just leaving altogether, especially if they are more elderly. If they’re dealing with pain and a lot of significant conditions, they can’t just stop. They need access, and if they are not getting it, if it’s getting delayed, or not coming at all, they will need to get it somewhere. Once they see how it’s easily accessible they might not come back.”

As for the effect this will have on the cannabis sector and its reliance on Canada Post, Urban believes the landscape will change out of pure necessity for patients to receive their medicine. This however, will come at a cost.

“We believe many companies will move away from primarily relying on Canada Post,” she said. “Unfortunately, the reality is that the cost of shipping with alternative carriers is still higher and this will ultimately impact patients.”

An ounce of prevention

Nothing can stop the current situation regarding the Canada Post strike this time around. But is there a way the government and the industry can put something in place to ensure the medical cannabis sector is not affected if and when this happens again? Chahal believes there is.

“I would like to see the government integrating medical and retail. That would be a fantastic way to solve access issues,” he said. “What that could mean is patients being able to access medical prescriptions at retail stores. There would have to be additional checks and balances [like the] integration of healthcare professionals in the retail stream, but the infrastructure is there.”

Cannabis industry takes steps to manage Canada Post strike

November 18, 2024

How long until Canadians can access medical cannabis in pharmacies?

June 10, 2024

Active medical registrations with LPs continue to decline, while personal and designated increase

BC’s Community Savings provides support for cannabis industry

Written by David Brown on December 9, 2024. Posted in Business, Cannabis News.

BC’s Community Savings Credit Union president and CEO Mike Schilling says his phone has been ringing off the hook with queries from cannabis businesses following a recent announcement that the lending institution had entered into credit agreements for a $10 million loan to BC cannabis producer Rubicon Organics.

The agreements, or credit facilities, will help Rubicon repay a US$8 million bond in full, which was set to mature on December 31, 2024. That bond, a secured debenture, was owed to an investment group, Green Island Investments Ltd.

“To be honest, my phone has been ringing off the hook since Rubicon made this announcement because this is a close-knit industry and we’ve got lots of cannabis businesses across Canada calling us,” Schilling tells StratCann.

He says the deal represents an example of the services the credit union can provide cannabis businesses of all kinds, not only in British Columbia but from across Canada through its partnership with groups like We Can Capital. Rather than seeing this as a unique offering for a cannabis business, he says it’s an example of the industry beginning to normalize, as these types of deals are common in many other industries.

“Cannabis businesses don’t have access to normal banking facilities that other businesses have,” Schilling adds. “And that’s been our mission from day one, to provide some normalcy. We’re not providing anything special, we’re just trying to provide them with banking services that everyone else has access to. And that starts with basic banking services.”

Regarding the deal, Janis Risbin, CFO at Rubicon, said: “We are pleased to announce the establishment of our new Credit Facilities, which underscores our commitment to strengthening our financial position and supporting our strategic growth initiatives. Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders. We believe that this strategic move positions us well to navigate the evolving market landscape and capitalize on future opportunities.”

Community Savings is the largest provider of banking services in BC for cannabis businesses and, as such, treats the industry like any other, adds Schilling.

“One of the commitments that Community Savings makes is not only are we going to provide these sorts of services, but we’re not going to charge a premium because you’re a cannabis business. We like working with cannabis businesses. We understand them, and they’ll pay the same rate as any other business in other industries.”

One of the issues cannabis businesses are often not aware of, he points out, is that they can leverage their assets, be it land, a facility, or equipment, to gain more access to working capital. One example of those services is Community Savings, which provides invoice factoring to cannabis producers. This can help these businesses leverage sales into provincial markets, speeding up payment options that sometimes take weeks or months from the provincial distribution boards.

Week in Weed – December 7, 2024

Written by Staff on December 7, 2024. Posted in Business, Cannabis News, Government, International.

This week at StratCann, the biggest news was probably Organigram acquiring Motif Labs, followed by the release of Health Canada’s 2024 Canadian Cannabis Survey.

We also spoke with the OCS’ Dr. Jenna Valleriana about mindful cannabis use over the holidays and looked into a recent amendment to PEI’s vaping legislation.

On December 1 we dropped our monthly cannabis jobs report, and we spoke with a group seeking to enrol 1,000 Canadian medical cannabis patients for an observational study.

In financial news, Nova Scotia sold $32.6 million worth of cannabis in Q2 2024, High Tide is expanding its Cabana Club to an international market, and a judge rejected Final Bell’s equity claims against BZAM monitor, extending the stay of proceedings once again.

In other cannabis news

Niagara College is studying electrical conductivity and its importance in producing healthy, happy cannabis plants.

The College of Physicians and Surgeons of Manitoba (CPSM) is asking its members to review the recent updates from Health Canada regarding authorized cannabis for medical use. The memo notes that Health Canada may contact CPSM registrants directly to request evidence supporting the amount of cannabis authorized for a particular patient.

Almost five months into its court-appointed receivership, Delta 9 Cannabis Inc. creditors will have a chance to vote on the Manitoba company’s plan of arrangement later this month, reports the Winnipeg Free Press. SNDL Inc., which holds about $40 million in secured debt, will be paid in full. Co-founder John Arbuthnot said a deal should be closed on Delta 9’s 100,000-square-foot cultivation hub (with its 297 production pods) by mid-January. In November, Delta 9 selected a bidder for 17 of those grow pods.

Pure Sunfarms announced a new infused 2.1 gram Canna Czar twax blunt from Soar.

Avicanna Inc. announced the initial delivery of its topical products into Europe as a part of a previously announced exclusive supply agreement with a multinational pharmaceutical company. The company plans to launch products in six European countries during 2025 with expectations of further expansion throughout the European region shortly after. The products use CBD and CBG from Avicanna’s majority-owned subsidiary, Santa Marta Golden Hemp S.A.S., in Santa Marta, Colombia.

Canopy Growth Corporation will complete its acquisition of Acreage Holdings on or around December 9, 2024, subject to the satisfaction or waiver of certain closing conditions.

Canopy also announced the launch of two holiday-inspired cannabis products from Tweed, including a sugar-free Cranberry Ginger Ale and Tweed Snowtorious 91K flower.

Several media outlets ran a story on new products available at the OCS for the holidays.

The New Brunswick Telegraph Journal ran a piece on the testing results of cannabis vape pens (covered by StratCann in October) by RPC in New Brunswick. The article also includes new comments regarding ongoing questions in the province around jurisdictional authority for the province’s retail regulations, with comments from former NB public safety minister Kris Austin, RCMP Cpl. Hans Ouellette, and Health Canada.

Rubicon Organics Inc. announced that it has entered into credit agreements where it has borrowed an aggregate of $10 million from Community Savings Credit Union and another lender.

Decibel Cannabis Company Inc. received final acceptance from the TSX Venture Exchange for its previously announced acquisition of AgMedica Bioscience Inc.

A causality analysis of legal recreational cannabis sales and opioid-related mortality in the five years following cannabis legalization in Canada found no support for that hypothesis while looking at British Columbia, Ontario, or at the national level.

Halifax CBSA officers seized a suitcase containing 20 kilograms of cannabis on a flight to the UK on Monday, December 2, and arrested an Ontario man, Alessandro Pinchera, 21, of Richmond Hill.

International cannabis news

Many people again gathered in Las Vegas during the annual MJBizCon.

The USDEA’s hearings on cannabis rescheduling will begin on January 21, 2025, continuing through March 6, meeting twice a week save for a one-week break in February. Presenters will include Village Farms International, the parent company of Pure Sunfarms in Delta, BC.

Queensland doctors and pharmacists want medicinal cannabis removed from the special access scheme, saying the pathway is being used to bypass TGA assessment. The letter was co-signed by AMA Queensland, the state branches of the Pharmacy Guild of Australia, and RANZCP, reports AusDoc.com.

Uruguay’s Cannabis Regulation and Control Institute (IRCCA) is recruiting a junior lawyer for its legal team.

Politico spoke with Brian Hanna, executive director of Michigan’s Cannabis Regulatory Agency, on the successes and challenges of the state’s legalization efforts, five years in. And finally, Texas Governor Dan Patrick announced he’s launched a legislative initiative to ban all THC being sold in Texas.

Health Canada: Only about 5% of cannabis purchases in Canada come from irregular sources

Written by David Brown on December 6, 2024. Posted in Business, Cannabis News, Government, Research.

The vast majority of cannabis purchases in Canada continue to come from legal sources, according to Health Canada’s annual cannabis survey.

The amount commonly spent per month on cannabis decreased from $73 in 2018 to $63 in 2024 but was unchanged from 2023.

The 2024 Canadian Cannabis Survey highlights ongoing trends among cannabis consumers in the country, documenting not only sources of cannabis but also topics such as consumption habits and perceptions of cannabis risks.

Smoking cannabis remains the most common way Canadians consume the product, but the proportion who report smoking cannabis has declined by twenty percentage points since legalization began.

In 2018, 89% of cannabis consumers reported smoking cannabis, a number that has declined to 69% in the last two years of the federal government’s annual Canadian Cannabis Survey.

Eating cannabis products was the second most common mode of consumption (57%, up from 43% in 2018) according to data collected from April 4 to July 2, 2024, while vaporizing (including vaping dried cannabis and/or liquid or solid cannabis extracts) accounted for 37% of reported consumption.

The number of people who reported getting their cannabis from a legal source in the first half of 2024 remained the same as the previous year at about 72%, up from just 37% in 2019.

Only 3% of respondents in the survey reported getting their cannabis from an illegal source, while 15% said they obtained their cannabis from a social source like a friend or family member, and 2% reported getting their cannabis from a storefront located in a First Nations community. Such stores generally operate outside the scope of provincial licensing regimes and have proliferated in recent years.

Those who reported using cannabis at least once in the previous 12 months increased from 22% in 2018 to 26% in 2024, but this number was unchanged from 26% in 2023. Similarly, those who reported using cannabis at least once in the past 30 days increased slightly from 15% in 2018 to 17% in 2024 but was unchanged from 17% in 2023.

Only 6% of the population in Canada reported using cannabis on a daily or almost daily basis, up slightly from 5% in 2018 but unchanged from 6% in 2023. These daily or nearly-daily users represented 24% of all people in Canada who reported consuming cannabis in the past 12 months, relatively unchanged from 25% in 2018 and 23% in 2023.

The number of people who reported using cannabis before driving (18%) increased slightly from the year prior (15% in 2023) but is still lower than the 27% who reported doing so in 2018. This included 16% who reported driving within 2 hours of smoking or vapourizing cannabis and 10% who reported driving within 4 hours of ingesting cannabis.

Of those who reported using cannabis in the past 12 months, 78% said they believe that cannabis use impairs one’s ability to drive, while 13% responded that it depends, and 6% responded that it did not impair one’s ability to drive.

Recent figures from the Canadian Community Health Survey released in October showed that the population of those over 18 in Canada who reported using cannabis in the past 12 months and those who reported that they had used cannabis daily or almost daily in the past 12 months declined in 2023 after four years of annual growth.

Cannabis sales in Canada also appear to reflect these self-reported figures, with sales beginning to level out after five years of year-over-year growth.

The Canadian Cannabis Survey was launched in 2017 and has been conducted annually since 2018 to create a better understanding of cannabis use and consumption habits in Canada in the wake of the legalization of non-medical cannabis in October 2018.

New Canadian Cannabis Surveys shows little has changed in past year

December 23, 2021

Legal market continues to eat into illicit market in Canada while reported cannabis use remains the same

January 12, 2024

Are Canadians consuming less weed?

October 3, 2024

Court rejects Final Bell’s equity claims against BZAM monitor, again extends stay of proceedings

Written by Sarah Clark on December 6, 2024. Posted in Business, Financials, Producers.

A judge has approved a motion to extend the stay of proceedings between Final Bell and BZAM, and has been again postponed, this time to January 13, 2025. The court ruled that Final Bell’s equity claim falls behind the claims of all other creditors.

The court also approved a motion to authorize the bankruptcy filing of cannabis cultivator 9430-6347 Québec Inc. to file an assignment in bankruptcy. The company’s federal cannabis licence was listed as revoked on request earlier this year.

The monitor in the case involving the dispute between BZAM and Final Bell Holdings, Cortland Credit Lending Corporation, had asked the court for a declaration that the claims of Final Bell against BZAM are subordinate to Cortland’s claims against BZAM.

Cortland argued, and the court agreed, that the trial of Final Bell’s claim will likely be moot “as there will be no cash proceeds available to which the constructive trust could attach.”

Final Bell had opposed that motion and argued that it should have been entitled to the opportunity to prove its fraudulent misrepresentation claim. Final Bell says that BZAM made fraudulent misrepresentations to it that Final Bell relied on when the company entered into a share exchange agreement with BZAM. It also alleged that Cortland was aware of those fraudulent misrepresentations.

The judge rejected these claims, siding with the monitor.

The case surrounds BZAM’s announcement in late 2023 that it would be acquiring Final Bell, which was quickly followed by BZAM filing for and receiving CCAA protection a few months later in February 2024. Final Bell argues the CCAA filing contradicts assurances BZAM had given the company before signing the agreement.

That deal saw BZAM acquiring Final Bell Canada by issuing $13.5 million in equity in BZAM and granting Final Bell $8 million in promissory notes. At the time, the deal was said to make BZAM the fifth-largest Canadian LP.

Final Bell reacted to BZAM’s announcement at the time by saying it believes that the company’s initiation of CCAA Proceedings constituted an “improper use of creditor protection legislation to evade its creditors, defraud shareholders, and facilitate a related party going private transaction at an unjustified discounted value in order to circumvent a customary going private transaction requiring shareholder and creditor approval.”

“There is a second principal reason that Final Bell’s claim, even if ultimately successful, cannot rank in priority to the super priority DIP Lender’s Charge of Cortland,” writes the judge. “The claim of Final Bell is an “equity claim” as defined in the CCAA. As such, the claim of Final Bell ranks behind the claims of all creditors, not just creditors with court-ordered priority charges.”

“In asserting its late-breaking claim for a constructive trust, Final Bell is seeking to elevate what is inescapably an equity claim into a claim of not only a creditor, but a first-ranking creditor with priority over the Court-ordered super priority DIP Lender’s Charge. Such is expressly not permitted under the CCAA, within which the definition of “equity claims” should be given an expansive interpretation.”

However, the judge was also careful to note that he was not making any determination about the merits of Final Bell’s fraudulent misrepresentation claim against BZAM, but that if such a claim were successful, there would be no assets left over to address any findings in their favour.

As Cortland’s motion was successful, it is entitled to its costs of $150,000 inclusive of fees, disbursements, and HST, to be paid by Final Bell within 30 days of December 2, 2024.

Nova Scotia sells $32.6 million worth of cannabis in Q2 2024

Written by David Brown on December 3, 2024. Posted in Business, Financials, Government, Retail.

The Nova Scotia Liquor Corporation (NSLC) saw $32.6 million in cannabis sales in the three months ended September 29, 2024 (Q2 2024), a 3.9% increase from one year prior.

Cannabis sales were slightly up from the previous quarter’s $31.2 million, as well.

Cannabis sales were about 13% of the NSLC’s total sales for the quarter. Sales of cannabis from Nova Scotia cannabis companies decreased 10.1% in Q2 2024 to $9.2 million. Local sales decreased by 1.4%, to $9.3 million, or a little under one third of all cannabis sales in the previous quarter, as well. Nova Scotia cannabis accounted for 28.3% of all cannabis sales in the most recent quarter.

“This quarter we saw a slight increase in sales overall,” said Greg Hughes, President and CEO. “Cannabis, along with the ready-to-drink category, continues to perform well and is leading this growth.”

Retail customer transactions for cannabis increased by 3.4% between July 1 and September 29, 2024, and the average dollar value of each transaction was $37.22, an increase of 0.5%.

The average price per gram for cannabis decreased by 2% to $5.88, down slightly from $5.90 in the previous quarter.

Health Canada currently lists 33 active cannabis production licenses in Nova Scotia. Nova Scotia has 50 licensed cannabis stores. In the NSLC’s 2023 annual report released earlier this year, they said that 79% of Nova Scotians lived within 10 kilometres of a licensed cannabis store.

The agency says all its profits go back to the provincial government to help fund “key public services.”

Cannabis sales continue to increase in Nova Scotia

October 24, 2023

Cannabis sales continue to increase in Nova Scotia, with local products now more than 30% of sales

August 25, 2023

Canadians bought more than $16 billion worth of cannabis in the first five years of legalization

January 8, 2024

Cannabis Jobs Update – December 2024

Written by Staff on December 1, 2024. Posted in Business, Cannabis News.

As 2024 draws to a close, the cannabis industry continues to evolve, bringing new opportunities for professionals eager to make their mark.

December is still a busy month for hiring, with businesses preparing to hit the ground running in the new year.

In our December 2024 roundup, we’ve captured openings across the cannabis sector, from cultivation and retail to marketing and compliance. Whether you’re looking to advance your career or take on a new challenge, these opportunities could be your next step.

Let’s dive into the latest job postings in Canada’s cannabis industry!

Cannabis Producers/Brands

British Columbia

Pistol and Paris is looking for an Experienced Grower to join their team in Agassiz.

Leaf Infusions is hiring a Production Supervisor in New Westminster.

Dycar Pharmaceuticals is hiring a Cannabis Trimmer in Cranbrook.

Pure Sunfarms in Delta is hiring an Apprentice Grower.

Alberta

Weed Me is looking for a Key Account Manager in Edmonton.

Eighth House Growers is hiring a Quality Assurance Coordinator in Calgary.

Seeker Cannabis in Alberta is hiring a Sales Representative for Western Canada.

Saskatchewan

DECIBEL Cannabis Company is hiring a Plant Care Labourer in Battleford.

Bold Growth Inc. is hiring a Tissue Culture Specialist in Saskatoon.

Mother Labs is looking for a Media Prep Technician – Level 1 in Saskatoon.

Blue Sky Hemp Ventures is looking for an Extraction Operator in Saskatoon.

Manitoba

Tilray is looking for an Assistant Brand Manager in Winnipeg.

Nuances MJ Inc. is seeking a Sales Representative to visit retailers across Manitoba.

Great North Distributors in Winnipeg, Manitoba, is looking to hire a Cannabis Sales Representative for Manitoba.

Ontario

Blizza Brands in London is hiring a Cannabis Post Harvest Lead.

WILL Cannabis in Brampton is looking for a Cultivation Technician.

Thunder Spirit Ventures, a cannabis producer in Fenwick, is hiring a Post-Harvest Processing Manager.

Mera Cannabis is hiring a Production Supervisor and an Extraction Technician in St. Thomas,

Quebec.

Culture Kizos, located in Trois-Rivières, is looking to hire a Bilingual Office Admin / Bilingue Administrateur d’Office.

Cielo Verde Québec est à la recherche d’un Technicien(ne) en Culture à Lachute.

ROSE LIFESCIENCE is hiring a Processing and Packaging Technician in Huntingdon.

New Brunswick

Sana’a in Miramichi is hiring a Post Harvest Technician.

Purplefarm Genetics Inc. is looking for a Cultivation Technician, an HVAC Technician, and a Packaging Compliance Specialist in Fredericton, along with several other roles.

Nova Scotia

TEC Cannabis Services is hiring a Cannabis Trimmer and Packager in Liverpool.

Tilray Brands is looking for a Medical Outreach Associate in Nova Scotia.

PEI

Canada’s Island Garden, based in Charlottetown, has an opening for a full-time Brand Coordinator to assist with the organization’s suite of brands, an Industrial Electrician, a Tissue Culture Technician, and several other positions.

Auxly Cannabis is looking for a Warehouse Associate in Charlottetown.

Newfoundland and Labrador

Mernova Medicinal Inc. is seeking a Territory Sales Representative in St. John’s.

Cannabis Retail

The Herbary in Whitehorse, Yukon, is hiring an Assistant Store Manager.
UEM Cannabis, located in Langley, BC, is looking to hire a Store Manager.
BC Cannabis Stores is hiring a Cannabis Product Consultant in Langley Willowbrook, and an Operations Supervisor in Richmond, along with several other positions.
Cannabis Way is hiring a Retail Sales Associate and Retail Sales Supervisor in Fort McMurray, Alberta.
Value Buds is looking for a Store Supervisor in Swift Current, Saskatchewan.
Grass Bar Cannabis in Meadow Lake, Saskatchewan, is hiring a Budtender.
The Joint Cannabis is looking for a full-time Team Lead in Winnipeg, Manitoba, as well as several other positions.
JTS Buds is looking for a Cannabis Specialist in Callander, Ontario.
The Ontario Cannabis Store (OCS) is hiring for a handful of positions.
Cannabis Jacks is hiring a Cannabis Specialist in Sault Ste. Marie, Ontario.
The SQDC is hiring for multiple positions across the province of Quebec.
Cannabis NB is hiring a Store Manager in Campbellton, New Brunswick and many other positions across the province.
Atlantic Cannabis in Bay Roberts, NL, is hiring a Store Manager, along with several other positions.
The Circle K in Paradise, NL, is hiring a Part-Time Budtender.
A Value Buds is hiring a Keyholder in Summerside, PEI.

Other

Apollo Applied Research is looking for a Veteran Care Coordinator-Cannabis Clinic Administrator in Elmsdale, Nova Scotia.

Week in Weed – November 30, 2024

Written by Staff on November 30, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we reported on newly tabled documents showing a plan for more than $20 million in cuts to Health Canada’s cannabis program over the next three years, and we looked at some comments between Trudeau and Poilievre in QP that referenced cannabis legalization.

We also heard from the Canadian Cannabis Council and Global Affairs Canada on their questions about Israel’s Canadian cannabis report. At the same time, Israel’s Ministry of Health said the proposed tariffs on Canadian cannabis will harm patients and benefit the illicit market.

Health Canada granted a cannabis testing licence to Brock University, the Australian Senate rejected a cannabis legalization bill at second reading, and we looked at several new THC-infused oral pouches from Canadian cannabis producers.

In financial news, CanadaBis Capital and The Good Shroom shared their year-end reports, while MTL Cannabis shared its Q2 2024 report and Cannara Biotech shared its Q4 2024. Entourage Health released its Q3 2024 and Ayurcann released its Q1 2025.

Tokyo Smoke has emerged from creditor protection with around 57 “go-forward” store locations.

In law enforcement news, Halifax RCMP executed two search warrants at an illegal cannabis storefront, Surrey RCMP dismantled a large illicit cannabis distribution group, seizing 700 pounds of illicit cannabis, guns, and psilocybin, and Renfrew OPP are looking for three suspects in a cannabis store robbery.

A Canadian man is said to be imprisoned in Dubai over CBD oil, and the CBSA continues to seize cannabis making its way to foreign shores.

In other cannabis news

Health Canada’s Cannabis Tracking and Licensing System (CTLS) User Guide is now available online.

Markham, Ontario’s 1CM have been issued their Cannabis Distributor Licence from the Manitoba cannabis regulator the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA). They join Open Fields Distribution, Maqabim Distributors Inc., Lineage Distribution, and 100 LBS in offering distribution services to the Manitoba cannabis retail market on behalf of MBLL.

The owner of a liquor store and cannabis store in Innisfail, Alberta is looking to sell. The owner operates the liquor store and receives rental income from the cannabis store, Revive Cannabis.

Simply Solventless Concentrates Ltd. announced the appointment of Tairance Rutter from ANC to Vice President, Marketing & Product Development with SSC. SSC also provided Q4 2024 guidance, including record projected gross revenue, adjusted EBITDA and normalized net income, and the graduation from TSXV Tier 2 to TSXV Tier 1 status. The company also issued a correction of this press release.

A recent survey conducted by CAA South Central Ontario found that 19% of Ontario drivers admit to consuming cannabis and driving a vehicle, a 5% increase from last year.

Jesse Lavoie from Toba Grown posted an update on Instagram about the Manitoba government’s efforts to finally allow people to grow cannabis at home. Lavoie says there should be more info from the government in the coming weeks, and expects seeds to be available for purchase legally as early as next February.

Truro Police Service patrol officers in Nova Scotia conducted a traffic stop on Robie St. that resulted in a 32-year-old New Brunswick male being arrested for possession of cannabis for the purpose of distribution. A large amount of cannabis and a large sum of cash were seized in this investigation.

A Moncton business owner was fined $20,000 after admitting his business continued to illegally sell cannabis products even after being warned repeatedly not to by the province.

Police in London, Ontario, are investigating an early morning shooting that damaged an unlicensed, “sovereign” Indigenous Dundas Street cannabis shop but saw no one injured.

Police seized $16,000 in cash, illegal drugs, and 265 cannabis plants following a search of two Calgary residences.

Police charged a 17-year-old Lloydminster, Alberta youth after investigations into a break-and-enter at a south side cannabis store where about $15,000 worth of items was stolen. Law enforcement executed a search warrant at a home and took a male youth into custody, as well as recovering items taken during the break-and-enter.

The BC Craft Farmers Co-Op (BCCFC) wants the federal government to reconsider its new GST policy that does not include cannabis among the list of exempt items.

Canopy Growth Corporation has named Luc Mongeau as the next CEO of Canopy Growth, effective January 6, 2025. Mongeau was previously CEO of ESolutions Furniture and President of Weston Foods.

Cannabis represents about 2.8% of total farm cash receipts so far in 2024.

A new research paper looks at Canadian cannabis researchers’ perspectives on the conduct and sponsorship of scientific research by the for-profit cannabis Industry, underscoring the issue of industry-academic relationships as a structural problem.

The monitor for Delta 9’s CCAA process has shared an Application for a Restricted Court Access Order and an Application for a Creditor’s Meeting, as well as the Fifth Report of the Monitor and the Third Affidavit of Mark Townsend.

International cannabis news

A series of cannabis recalls in short succession in Maine has industry members questioning the effectiveness of the state’s cannabis testing protocols, saying the standards for yeast and mould are simultaneously too tight and too broad.

The US Farm Bill 2025, which has previously come under intense scrutiny from the country’s hemp industry, has been released by the Senate Agriculture Committee. The updated draft now redefines hemp to include “total THC” levels, incorporating all variants like delta-8, delta-10, delta-9 and THCA, and keeping to a 0.3% limit.

Denmark’s six-year medical cannabis pilot scheme could soon be expanded into a fully legalized market following a recent surprise announcement from the government, reports Business of Cannabis.

And finally, Australia’s ‘booming’ medicinal cannabis trade is on track this year to quadruple 2022 sales, reports The Guardian.

Cannabis vapes coming to SQDC by fall 2025

Written by David Brown on November 29, 2024. Posted in Business, Cannabis News, Government, Quebec.

The Société québécoise du cannabis (SQDC) is adding vaping products to its product offering, but consumers will have to wait a year or so to buy them.

In an information note to all suppliers posted on November 28, the provincial cannabis wholesaler and retailer says it has decided to finally allow the sale of vape products in order to provide a lower-risk alternative to Québec customers compared to unregulated vape products that are easily purchased across the country.

The SQDC company will hold an online meeting on December 10 to explain to suppliers its requirements for batteries and cartridges. To ensure products comply with regulations and that the new process goes smoothly, the SQDC says it is giving itself approximately one year before beginning to sell these products.

“In a year or so, Québec consumers will have access to quality regulated products, will know exactly what they are inhaling, and will be guided by knowledgeable trained advisors,” reads the bulletin, in part [translated].

The new category will be introduced gradually, with an initial rollout of around 20 products. The SDQC has confirmed with StratCann that all provincial rules for cannabis products will apply to cannabis vapes, including Quebec’s 30% THC limit. In addition, no additional flavours can be added to these products except for cannabis-derived terpenes that are already in the product.

The SQDC will hold two separate product calls, one for batteries and the other for cannabis vape cartridges. The first online meeting on December 10, 2024, will also be the opening date of the battery product call, with an end date of January 31, 2025.

The SQDC will then open up a product call for cannabis vape carts on March 31, 2025, which will end on April 25, 2025.

The planned start of sales will be fall 2025.

A Media Relations Team representative with SQDC told StratCann via email: “We took this decision in response to the rising popularity of this method of use (vaping) and the risks associated with vaping products from the illegal market. These products frequently contain banned chemical substances, THC levels that exceed Quebec standards, appealing flavors and aromas, especially for young people, and make inaccurate claims. ”

Despite a provincial ban, a quarter of cannabis-using Quebecers report using cannabis vapes, according to a survey from the Institut de la statistique du Québec (ISQ) in early 2024. Twenty-five percent of Quebecers who reported consuming cannabis in the past year said they have vaped it.

Quebec banned cannabis vape pens in 2019. Since there is no legal source for cannabis vapes in Quebec, residents told ISQ that they sourced their vapes from family and friends, from legal sources in other provinces, from illicit suppliers, and/or online. Newfoundland and Labrador had also previously banned the sale of cannabis vapes but began allowing them in 2022. Prince Edward Island has also banned cannabis vapes. The provincial online cannabis store did recently list a few cannabis vapes but they are now listed as out of stock.

The survey results come from the 2023 Quebec Cannabis Survey (EQC), collected between February and July 2023 from 13,209 people. The first results from the survey were released in October 2023.

Most Quebecers who consume cannabis do so by smoking it (81%), while 31% reported using edibles and 23% consuming oral cannabis drops such as cannabis oils. These oils have the same active ingredient as in cannabis edibles.

About three-quarters (71%) of Quebecers over the age of 15 who consumed cannabis in the last year reported getting at least some of their cannabis from legal stores in Quebec (SQDC).

Note: This article has been edited to include additional information from SQDC.

A conversation with Suzanne Bergeron, President and CEO, SQDC

October 15, 2024

A tale of two markets: The future of retail cannabis in Ontario and Quebec

August 27, 2024

Quebecers still vaping cannabis, despite provincial ban

April 11, 2024

More than $20 million in cuts to Health Canada’s cannabis program over next three years

Written by David Brown on November 28, 2024. Posted in Business, Cannabis News, Government.

Health Canada’s cannabis program will see about $20.5 million in cuts over the next three years as part of the federal government’s goal of finding some $15.8 billion in savings over five years under its ongoing “Refocusing Government Spending” initiative, reports the Hill Times.

The cuts to Health Canada’s cannabis program constitute the largest made in order to reach the budgetary goal. Health Canada’s pharmaceutical drugs programs and management and oversight services will also see millions in reduced spending.

The document shared in the House of Commons shows Health Canada’s refocussing government spending reductions for its cannabis program by $4.7 million in 2024-2025, $7.5 million in 2025-2026 and $8.3 million 2026-2027 and ongoing.

In Budget 2023, the federal government announced the “Refocusing Government Spending to Deliver for Canadians” measure with a goal of reducing the pace and scale of growth in government spending back to a pre-pandemic path.

The Hill Times’ reporting comes from recently tabled House of Commons documents showing cuts to federal programs from affordable housing to vaccines, the Department of National Defence, and more. The tabled documents are in response to a question from Peter Julian, the NDP MP for New Westminster—Burnaby, BC.

The cuts were first announced as part of Budget 2023, which announced a goal of refocusing $14.1 billion over five years from different government organizations and $1.3 billion over five years from enterprise crown corporations.

The 2023 Fall Economic Statement announced that the government will extend and expand its efforts to refocus government spending in the amount of $345.6 million in 2025-26 and $691 million ongoing.

The Public Safety Portfolio is contributing a total of $141.1 million to refocusing government spending through the 2024-25 Main Estimates. Ongoing savings total $247.3M for the portfolio.

In response to a request by the Standing Committee on Government Operations and Estimates, the Office of the Parliamentary Budget Officer issued a report that provides an overview of the $500 million in announced reductions in spending on consulting, professional services, and travel for 2023-24 proposed in Budget 2023.

The report identified $179,000 in savings from Health Canada’s cannabis file, which it said would have no impact on service levels.

The Public Service Alliance of Canada has expressed concern at the scope of the cuts, which it says will open the door “for departments to slash permanent employees through Workforce Adjustment.”

In Health Canada’s 2023–24 Departmental Plan, a decrease in planned human resources (full-time equivalents) and a decrease in planned spending in 2025-26 are in part from the expiry of budgetary authorities for the renewal of the federal framework for the legalization and regulation of cannabis in Canada.

The full tabled report is available here.

138 cannabis samples tested by Health Canada in 2020, but no labs inspected

March 17, 2021

$600,000 in grants to help develop minor cannabinoids in Canada’s hemp crops

August 15, 2024

$11 billion in cannabis sales has created 151,000 new jobs and added $43.5 billion to Canada’s GDP

February 1, 2022

Canadian cannabis companies bringing THC-infused sublingual pouches to market

Written by Staff on November 27, 2024. Posted in Business, Cannabis News, Producers.

Two Canadian cannabis companies have recently launched the first THC-infused oral pouches, Sensi Brands’ Chillows by Potluck and the Good Shroom Co’s DYP’s.

Both brands’ products are marketed as pouches to be placed in the lip or gum, similar to caffeine and nicotine-infused pouches like Zyn and Zonnic, which have exploded in popularity in 2024.

The Good Shroom’s DYP’s were first announced on October 22, 2024, quickly followed by Sensi Brand’s Chillows on November 25. Both come with ten 10mg THC pouches per container. The Chillows are advertised as having a rapid onset, delivering THC effects within 10 to 15 minutes, and come in four flavours, while the DYP’s come in two flavours.

The DYP products reached shelves in Alberta in early November with plans to launch in Ontario in 2025, while the Chillows are expected to be available in Ontario, Manitoba, Saskatchewan and Alberta retailers starting the week of December 9, and additional provinces in 2025.

“We are thrilled to bring DYP’s to market in Alberta,” said Eric Ronsse, CEO of The Good Shroom Co Inc. in a press release in October. “This product launch represents an important milestone for our company and for the Canadian cannabis market. DYP’s offer consumers a convenient, affordable, and familiar way to consume THC, and we believe the strong feedback from our sales team demonstrates the potential of this new category.”

Sensi Brands CEO Tony Giorgi says the process of developing the product from concept to retail shelves was around two years, with the company taking care to ensure they could control every aspect of development and distribution.

“Innovating and delivering a breakthrough product that redefines how cannabis is consumed was a challenging and extremely rewarding journey that we started over 2 years ago,” said Giorgi.

“The creation of “Chillows by Potluck” required the development of a new domestic supply chain and build-out of our internal manufacturing capability. Sensi Brands proudly manufactures all products internally, providing Sensi with first mover advantage, full control over production IP and quality and the ability to rapidly scale to meet consumer demand,” he added. “We believe our customers appreciate the quality of our locally sourced and manufactured products compared to container sourced.”

Sensi Brands carries an array of products under its Potluck brand, as well as Station House (which is also the third cannabis farmgate store in Ontario), Sensimilia, and Good Greens Medical.

The Good Shroom has launched unique products like its THC-infused ramen noodles and infused crunchy peanuts, as well as edibles, pre-rolls, and capsules.

Editor’s note: Another company, Six One Charlie, also has a similar product available on the medical cannabis platform Mendo Cannabis (h/t to Doug from Winnipeg for the heads up).

Stigma Grow recently launched their own THC pouches as well under the Dab Bods brand.

BC cannabis company is bringing infused poutine to the Quebec market

February 28, 2024

Low-THC products can make brands stand out to niche demand, producers say

March 14, 2024

A better way of measuring THC in cannabis

May 28, 2024

Canadian Cannabis Council, Global Affairs Canada question Israel’s Canadian cannabis report

Written by David Brown on November 26, 2024. Posted in Business, Cannabis News, Government, International, Other, Producers.

The Canadian Cannabis Council (C3) says it continues to be surprised by the allegations of “product dumping” of cannabis from Canada by the Israeli government.

Specifically, C3’s president Paul McCarthy says he still has questions about how investigators for the Israeli government determined the price of Canadian cannabis. Those prices, based on wholesale cannabis prices in Canada, informed the determination that these products were being “Dumped” in the Israeli market at allegedly above market rate.

In a recent report, Israel’s Ministry of Economy proposed levies of up to 175% on Canadian cannabis products being sold in the country’s medical cannabis program.

The tax rates are based on the Israeli government’s investigations into cannabis pricing in the Canadian market, as well as different Canadian cannabis companies’ cooperation with the Israeli government investigation process.

The investigation, which was first announced this past January, was around allegations of “product dumping” of Canadian cannabis into the Israeli market. In July, the government agency released its preliminary report on the topic. The newest report was released in November. A final ruling on the proposed levies is still pending.

The Canadian Cannabis Council questions the methodology of this analysis. In their submission to the Israeli government, the organization stated:

“Our members do not export final consumer-ready packaged goods to Israel, but instead export bulk raw material cannabis flower. It is only once that raw material flower has arrived in Israel that local manufacturers process and package the flower for sale to pharmacies in accordance with the Israel Medical Cannabis Authority’s rules and regulations.”

McCarthy says these questions remain unanswered.

“No one can ascertain how any of the decisions were made,” he told StratCann via email. “This includes individual companies who provided much of the information used for these determinations.

“One major question is whether the analysis was able to maintain a proper ‘apples to apples’ comparison throughout. It is quite possible that retail price, wholesale price, and/or the application of excise tax and HST, or not, have been used in an inconsistent manner throughout the analysis. Should this prove to be the case, it would mean that calculations are wildly off base.”

According to C3’s submission to the Israeli government, based on data from the Canadian Cannabis Exchange (CCS), the average price in 2023 of cannabis flowers sold in bulk in Canada is only CAD$0.96 a gram.

In the most recent report, Israel’s Ministry of Economy responds to C3’s “apples to apples” argument, saying that this per gram rate is based on “low quality” products that are not comparable to the quality or type of cannabis sold into the Israeli market, stating that “the method of wholesale packaging is not a parameter for comparing the quality of the exported products.”

Although a release date for the Israeli government’s final determination is unknown, McCarthy says his understanding is that the final ruling on the matter could come at any time in the next few months. It’s also possible that even if the final report is approved, the country’s Ministry of Finance could choose not to enforce it.

McCarthy also says C3 will support any efforts made by the Canadian government to address what he says is a “clearly a broken process.”

“I know that officials are currently investigating the situation to determine the best path forward.”

One possibility, he says, is a WTO challenge, although he doesn’t see this as a timely remedy.

“Some have wondered whether a WTO challenge would be a potential path,” continues McCarthy. “C3 would certainly support any efforts pursued by the government of Canada, but it’s important to note that a WTO challenge would likely take years to be concluded and wouldn’t undo the harm caused by this today. While this may be an important step to set the record right and to guide future actions, we’d like to concentrate on what we can do right now to rectify this egregious determination.”

Israel’s preliminary report also says that the commission will submit a report on its findings to the World Trade Organization.

The floating price, or tariff, exists, explains a notice by the commissioner (Translated), “when the foreign producer exports the goods at prices lower than their production costs or their price in the country of origin. Such imports are defined by the World Trade Organization as ‘unfair trade’. According to the WTO’s Export Convention, the country may protect its domestic market in such cases by imposing an export levy, which compares the import price to the price that reflects fair competition.”

The World Trade Organization defines such imports as “unfair trade.” According to the WTO’s Export Convention, a country may protect its domestic market in such cases by imposing an export levy, which compares the import price to the price that reflects fair competition.

Jean-Pierre J. Godbout, a spokesperson for Global Affairs Canada, tells StratCann that the agency is reviewing the proposal to see if it is in compliance with WTO rules.

“Canada is disappointed with Israel’s Commissioner of Trade Levies’ conclusion that imports of medical cannabis from Canada were dumped into Israel and caused material injury to the Israeli domestic industry. We are reviewing the Commissioner’s decision to assess its compliance with applicable WTO rules and have significant concerns with the Commissioner’s methodological choices and interpretations of the facts in the case. We will continue to closely monitor the development of this case, including the Advisory Committee review and Ministerial approval processes, and intervene alongside the implicated Canadian industry.”

The head of the economy, regulation and innovation at Israel’s Ministry of Health also has concerns about the proposal, saying it will harm Israel’s cannabis industry, questioning the report’s methodology and saying the Ministry of Health will not support the proposal.

Israel: Report now proposes up to 175% tax on Canadian cannabis imports

November 12, 2024

Israel’s Ministry of Health says tariffs on Canadian cannabis will harm patients, benefit illicit market

November 25, 2024

Israel opens “anti-dumping” investigation into cannabis imports from Canada

January 26, 2024

Health Canada grants cannabis testing licence to Brock University

Written by David Brown on November 25, 2024. Posted in Business, Cannabis News, Government, Ontario, Research.

Brock University in St. Catharines, Ontario, has received an analytical testing license from Health Canada.

The license will allow researchers at Brock to analyze cannabis samples‘ chemical and biological components for effectiveness and safety.

Testing will take place using equipment within the Brock-Niagara Validation, Prototyping and Manufacturing Institute (VPMI).

“The cannabis analysis license truly opens the doors for the types of support that the VPMI can provide for the industry across the Niagara region, Ontario, and Canada,” says VPMI Scientific Director and Associate Professor of Chemistry Paul Zelisko.

“The licence will also permit the VPMI to support stakeholders in typing cannabis strains for more targeted and personalized applications and to help those within the industry to find value added compounds in waste materials to promote a more circular economy,” he adds.

These waste materials can include cannabis leaves, stems, and roots. Zelisko says.

“Discovering valuable compounds in this waste material can help a company mitigate costly disposal fees and/or develop new revenue streams,” he says.

The testing will also help companies look into the addition of particular flavours and scents to their cannabis edible, beverage, and vaping products to ensure products remain within Health Canada’s allowable THC limits.

Brock’s Acting Vice-President of Research, Michelle McGinn, says the new license is “a milestone” for the University and the Niagara region.

“It opens a new frontier for cannabis research that has immense implications for public health and economic growth,” says McGinn. “Consistent with VPMI’s mission, we are applying our specialized knowledge and state-of-the-art equipment to solve real-world challenges and thereby demonstrating how science and business flourish together.”

Health Canada has also renewed a research-related cannabis license granted to Brock University in 2019, one of the country’s first universities to receive a cannabis-related research and development license.

That license allowed Cool Climate Oenology and Viticulture Institute (CCOVI) researchers and local industry partners to identify plant virus infections in cannabis and to develop cannabis-infused drink technology.

An analytical testing licence from Health Canada allows for activities such as testing for chemical contaminants, microbial contaminants, cannabinoid content, dissolution or disintegration, sterility, stability testing, and/or pesticides.

Health Canada currently lists 136 laboratories as being authorized to conduct analytics testing under the federal Cannabis Act. Brock’s new licence was issued on October 24, 2024.

Week in Weed – November 23, 2024

Written by Staff on November 23, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we noted that the Canada Revenue Agency has written off nearly $5 million worth of excise tax on cannabis as uncollectible as of September 21, 2024, while a chain of cannabis stores in Ontario received a $100,000 fine for “data deals”.

We also looked at how the cannabis industry is taking steps to manage the Canada Post strike and new proposed legislation in Ontario that would impose new penalties for advertising and promoting illegal cannabis. From the debate of that legislation, we also learned that the Atikameksheng Anishnawbek First Nation is seeking negotiations with Ontario on retail cannabis.

Monthly retail cannabis sales in Canada continue to hold under the $500 million mark, and the AGLC in Alberta released their 2023-2024 annual report, including $673.5 million in cannabis sales.

Cannabis NB has again launched its Good To Know cannabis awareness campaign.

In finance news, The Hash Co completed an asset transfer and name change, and Simply Solventless released their Q3 2024 report, as did Decibel Cannabis and Herbal Dispatch.

Meanwhile, Quebec cannabis business QcGoldtech, connected to former Montreal police chief Yvan Delorme, owes more than half a million dollars in unpaid taxes, and Noya Holdings is seeking approval of a $3.8 million stalking horse deal and an extension of stay of proceedings.

In law enforcement news, police in Kingston, Ontario, raided an unlicensed cannabis store for the second time in a week, while the OPP shut down an illegal pot shop in Leamington.

Two Chinese nationals in the UK were jailed for importing cannabis from Canada in a “significant criminal enterprise”.

Police in Quebec seized hash, cannabis, kief and equipment; police in Calgary needed help identifying a suspect related to cannabis store robberies in Edmonton and Calgary; and the BC government is seeking forfeiture proceedings for six properties they say are connected to illicit cannabis sales.

In other cannabis news

The Gaspésie-Magdalen Islands video journal spoke with Stéphane Daigle, president of Cultures Seaweed in Carleton-sur-Mer in the Gaspésie region of Quebec, north of New Brunswick. The interview is available here.

One of the cannabis retail applicants in Surrey, BC, for the Cloverdale location, 137 Brands, was replaced with “UEM Cannabis” with a proposed location of #100 5828 176 Street.

InfoTel ran a story on the Cannabis Cottages, the outdoor cannabis consumption space in Penticton, BC.

Québec’s updated Economic and Financial Situation for Fall 2024 includes a projection of $379 million in revenue from the SQDC for 2024-2027.

High Tide Inc. announced that its new Canna Cabana location in Hamilton, Ontario, would open this past week. This opening will mark High Tide’s 187th Canna Cabana branded retail cannabis location in Canada, the 73rd in the province of Ontario, and the third in the city of Hamilton.

Tilray announced the launch of its 2024 Holiday Cannabis Gift Guide.

Pure Sunfarms Corp. launched its Super Toast All-In-One Vape.

Aurora Cannabis Inc. announced several new products from its Greybeard, San Rafael ’71, and Tasty’s brands.

Canopy Growth Corporation announced an exclusive licensing agreement for the launch of infused pre-rolls from the California brand Claybourne in the Canadian market. According to Canopy’s data, the pre-roll joint market in Canada has grown 94% since 2022, with infused pre-rolls now totalling 9.6% of the total recreational market.

The Kahnawake Cannabis Control Board (KCCB) set a loose timeline for retail sales of cannabis to begin in the community while it says it’s planning to issue dispensary licences by the end of the year, according to the KCCB’s interim operations manager.

Four sources in Kanesatake (Quebec) say they heard shots fired outside the Sweet Grass Lodge around 5:30 a.m. on Thursday. Sûreté du Québec and the business owner deny there were any shots fired. Store owner Normand Théoret is one of 17 people on trial for his alleged role in an illegal dumping scheme that contaminated entire sections of the Mohawk territory.

The immediate area has seen an influx of unlicensed cannabis stores over the years, with one local cannabis store owner telling StratCann recently that they were frustrated with outsiders coming to their community to party at some new cannabis stores, two of which were constructed on the allegedly illegally dumped waste brought into the community from off-reserve.

An Ontario court has issued a two-year probation order against the landlords of an Aurora industrial property, which housed an illegal cannabis facility for more than two years.

After losing the recent provincial election, New Brunswick’s Conservative Party has named its shadow cabinet, including Kathy Bockus as shadow minister for economic development and small business, NB Liquor and Cannabis, and the Regional Development Corporation. The Croix MLA helped cut the ribbon at the opening of a cannabis farmgate store in the province in 2023.

A new research article looks at cannabis consumption among adults aged 55–65 in Canada from 2018–2021. Cannabis use among this group increased in the first year following legalization and has remained stable since then.

Young adults at risk of psychosis show reduced brain connectivity, a deficit that cannabis use appears to worsen, a new study from McGill University has found. The breakthrough paves the way for psychosis treatments targeting symptoms that current medications miss.

A former cannabis cultivator from Richmond is alleging a BC investment firm founded by his uncle was a “sham” to serve as a “conduit for undisclosed payments” for chosen shareholders — some of whom are implicated in an alleged US$1-billion stock fraud scheme.

In Espanola, Ontario, 12 kilograms of dried cannabis, 140 packages of cannabis gummies, and 50 vape pens were seized in a traffic stop, along with 10 grams of suspected cocaine.

A Moncton judge issued an arrest warrant on Thursday when a man charged with illegally possessing cannabis to distribute didn’t show up in court.

International cannabis news

This month, the US FDA surprised many by authorizing a clinical trial to assess the safety and efficacy of using cannabis to treat military veterans with post-traumatic stress disorder, reported the New York Times.

The Australian Parliament will vote on the Greens’ bill to legalize cannabis on November 27 this year, says Senator David Shoebridge, the sponsor of the bill, more than a year after it was first tabled. It’s not expected to pass.

Germany’s Federal Institute for Drugs and Medical Devices (BfArM) has published the medical cannabis import figures for Q3, showing that the country’s medical cannabis market is still growing rapidly, reports Business of Cannabis.

US Senate Agriculture Chair Debbie Stabenow’s proposed 2024 farm bill would tighten restrictions on intoxicating hemp products without completely prohibiting THC, reports Politico.

Politico’s Natalie Fertig also reports that some in the US cannabis industry are excited by the possibility of Matt Gaetz becoming the US attorney general, who they say is well-informed on and friendly to the cannabis file. The article includes comments from Boris Jordan, CEO of Curaleaf, former GOP Colorado Sen. Cory Gardner, and David Culver of the US Cannabis Council.

But that was short-lived after Gaetz withdrew from the contest. Former Florida Attorney General Pam Bondi is the new pick. She has a track record of not looking favourably upon cannabis legalization efforts or use.

Only one organization supporting cannabis rescheduling in the US will have full standing for the highly anticipated December 2 hearing: the American National Cannabis Industry Association, reports MJBizDaily. Every party that applied to argue against moving cannabis to Schedule 3 has full standing to participate in an upcoming landmark hearing, though.

Finally, Village Farms International, Inc. (the parent company of Pure Sunfarms) and Hemp for Victory announced that they have filed a joint motion which seeks the immediate disqualification and removal of the US Drug Enforcement Administration from defending the Proposed Role to reschedule marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. The parties also moved to replace the DEA with the US Department of Justice.

Monthly retail cannabis sales in Canada continue to hold under the $500 million mark

Written by David Brown on November 22, 2024. Posted in Business, Cannabis News, Retail.

Retail cannabis sales in Canada continue to hold relatively steady year-over-year, with the summer peak in sales in August reaching $476 million, up slightly from $469 million in August 2023.

Cannabis sales had seen significant year-over-year growth in the first four years of legalization, along with the number of new retail outlets appearing across the country. In the last two years, though, the increase in sales began to slow down, coinciding with a slowdown in new retail stores, likely representing market saturation.

Statistics Canada reported in April 2024 that about 71% of cannabis consumers in the previous year had bought cannabis exclusively from legal sources, such as the more than 3,000 legal cannabis stores in Canada. It’s important to note that Statistics Canada’s monthly cannabis sales figures are at times adjusted as the quality of collected data improves.

The figures below show both seasonally adjusted sales figures as well as unadjusted.

Atikameksheng Anishnawbek seeks negotiations with Ontario on retail cannabis

Written by David Brown on November 20, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

The Ontario NDP’s Opposition Spokesperson on Health is asking the provincial government to respond to a First Nations government request to enter into negotiations with the provincial government regarding the operation of a retail cannabis store.

The comments came during the debate of Bill 223, the Safer Streets, Stronger Communities Act, 2024, which includes a potential ban on the advertisement and promotion of cannabis that is sold unlawfully. France Gélinas, the NDP MPP for the riding of Nickel Belt, read the letter from the government of Atikameksheng Anishnawbek, formerly known as the Whitefish Lake First Nation, an Ojibway First Nation in northern Ontario. Gélinas is also the Vice Chair of the Standing Committee on Social Policy and a member of the Standing Committee on Public Accounts.

The MPP says Atikameksheng Anishnawbek is waiting on a response to a letter signed by the chief and sent to Ontario’s Ministry of the Attorney General. The MPP’s comments also state that she suspects that the proposed legislation that amends the provincial Cannabis Control Act to ban the advertisement and promotion of cannabis that is sold unlawfully is intended to target First Nations.

“When a First Nation takes the time—and this is signed by the chief, and copied to me and to everybody else—please make sure that you treat them with respect and that you answer their letter, so that they can be partners with the provincial government and not have the Cannabis Control Act and schedule 1 go after First Nations communities.”

However, Ontario Attorney General Doug Downey responded to Gélinas’ comments, assuring her that the section of the bill that references the advertising and promotion of illicit cannabis is not intended to target First Nations.

“We are providing another tool for police to go after those who are online, marketing and advertising illegal cannabis,” said Downy, directing his comments to the Speaker of the House.

“I did listen to my colleague from Nickel Belt and concerns around First Nations. This is not a tool focused on First Nations. This is a tool focused on the bad actors in the online space, because it is a little bit of Whac-A-Mole, where they sometimes put up a site and then switch over to another site, and the public is not protected in that unregulated market. So this is a tool for the police to go after them with provincial measures, in addition to the existing tools that are there federally, the Criminal Code and otherwise. We want to go after the advertising and promotion of the sale of illegal cannabis as part of our plan to go after the black market, protecting our communities and looking after our children.

“I don’t think anybody thinks that we should be ignoring the illegal cannabis market and the bad actors behind it, and I would look forward to my colleagues across the way supporting us on this piece and others.”

The comments were made during the second reading debate of Bill 223 on November 19. The letter from Atikameksheng Anishnawbek, as shared by MPP Gélinas, reads:

“Please accept this letter as our formal request to enter into negotiations regarding the operation of a retail cannabis store in Atikameksheng Anishnawbek.

“As a First Nation, it is important to us that we regulate and control businesses that operate on Atikameksheng lands. To that end, we would always reserve the right to control and administratively run those businesses to protect the interests of members of our community.

“It is necessary to point out that we reserve the right to license, as a governing body, those who wish to conduct all businesses, including distribution of cannabis.

“As such, formal approval from the provincial government is not a requirement for us to proceed with this process. Having said that, it is in everyone’s interest that we strive to harmonize rules and regulations between Atikameksheng, its citizens, and the policies and procedures set out by the provincial government.

“It would only be in matters where our interests may diverge that Atikameksheng would seek an independent path. At this stage, we do not foresee such a divergence.

“It is important for us to move forward expeditiously as we wish to ensure that the sale and distribution of cannabis within Atikameksheng lands is properly regulated so as to prevent third-party black market enterprises from establishment (sic) in our community.

“As we move forward, we are open to discussions with you to harmonize our processes and policies with those of the provincial government.

“We welcome your suggestions as to how we might best achieve the intended harmonization.”

The Atikameksheng Anishnawbek Cannabis Vending Bylaw 2018 banned the sale of cannabis in the community. In 2023, the community voted in favour of its proposed 2023 Cannabis Control Law. The law authorized and directed the Gimaa (Chief) & Council of the First Nation to make any changes as necessary to the Atikameksheng Anishnawbek Cannabis Control Law.

In 2021, members of the Anishinabek Police Service carried out a raid on an unauthorized cannabis store, with two charged with possession for the purposes of distributing and selling cannabis and the store’s cannabis seized by police. According to a media report, the store quickly reopened.

Representatives from Atikameksheng Anishnawbek were not immediately available for comment.

The 2023-2024 Atikameksheng Anishnawbek Annual Report refers to the completion and implementation of the community’s Cannabis Control Commission.

Featured image via atikamekshenganishnawbek.ca

BC court rejects retailers’ lawsuit calling for enforcement against cannabis stores on First Nations land

September 19, 2023

First Nations cannabis retailer says her community flooded with outsiders taking advantage of lax enforcement

January 25, 2022

First Nations make tough choices in cannabis market

November 16, 2020

CRA has written off nearly $5 million in cannabis excise tax

Written by David Brown on November 20, 2024. Posted in Business, Cannabis News, Government.

The Canada Revenue Agency has written off nearly $5 million worth of excise tax on cannabis as uncollectible, as of September 21, 2024.

According to newly tabled documents in the House of Commons, a total of $4,718,514 has been written off as uncollectible. The tabled documents are in response to a question from Tako Van Popta, Conservative MP for Langley-Aldergrove, BC.

All of the companies with excise tax written off as uncollectible by the CRA are located in Ontario.

The tabled document lists 12 such companies. Eleven of these show a balance of debt that remains after compromise settlement pursuant to an applicable authority. One of the listed companies shows a debtor in an undischarged bankrupt corporation, with the trustee confirming in writing that he does not foresee any further payments.

Uncollected excise tax

The largest amount for a single company’s uncollected excise tax debt is $1,922,621 from April 2024, while the smallest is $136,095 from September 2024. Of the 11 companies listed, seven show a debt incurred in 2024, three from 2023, and one from 2022. All were located in Ontario.

Mr. Van Popta’s question, in full, asked:

“With regard to entities that owe tax to the CRA for unpaid excise tax on cannabis:

how many have filed for creditor protection or bankruptcy, broken down by year since the legalization of cannabis;
how much excise tax has been written off, in total, and broken down by the province or territory of the entity owing tax; and
for each entity which owed unpaid excise tax on cannabis and had their amount owing written off by the CRA, what are the details, including the (i) name of the entity, (ii) location, (iii) amount written off, (iv) date of the write-off, (v) reason for the write-off?

Insolvency in the industry

According to Insolvency Insider, 47 cannabis-related businesses in Canada have filed for creditor protection (CCAA) since 2019. Another ten have filed for bankruptcy, 13 have filed for receivership, and 21 have filed for a Notice of Intention (NOI) to make a Proposal under the Bankruptcy and Insolvency Act, which allows financially troubled corporations the opportunity to restructure their affairs.

Not all of these businesses are operating in Canada. A few operated in the US but were listed as Canadian businesses, and a few are ancillary services for cannabis producers or retailers.

As of January 31, 2024, the federal government says it has collected $3.4 billion ($3,418,794,702) in federal cannabis excise, with nearly $2.7 billion going back to the provinces and territories ($2,659,784,658).

These amounts reflect the CRA’s administration of Cannabis Duty and Information Returns provided by the licensed cultivators, producers, and packagers of cannabis and/or cannabis products on behalf of the federal, provincial, and territorial governments.

Canada’s federal excise tax for dried cannabis flower is effectively $1 per gram, with 75% of this going back to the provinces, as well as an ad valorem rate of 2.5% of the dutiable amount for the cannabis product. (Other cannabis products are taxed at a flat rate of $0.0025/milligram of total THC).

CCAA filings for cannabis companies have shown significant amounts of unpaid cannabis taxes owed to the Canada Revenue Agency. One recent CCAA listing showed $345,622.38 owed to the CRA. In a recent creditor protection filing, another company showed nearly $5.4 million owed to the CRA for source deductions and excise tax.

Breakdown of taxes

Over $200 million owed in cannabis excise duty

February 8, 2024

How much does a legal weed grower in Canada actually get from that ounce you bought?

October 16, 2024

Streamlining excise stamps could go a long way to relieving regulatory burden, costs

October 10, 2024

Ontario introduces legislation that would impose new penalties for advertising and promoting illegal cannabis

Written by David Brown on November 18, 2024. Posted in Business, Cannabis News, Government, Retail.

The Ontario government has introduced legislation that they say, if passed, will help tackle illegal cannabis sales by prohibiting advertising and promoting the sale of illegal cannabis through the province’s cannabis legislation.

The possible changes are part of a larger package of changes as part of new legislation, the Safer Streets, Stronger Communities Act, which includes targeted measures to help support public safety near supervised consumption sites, crack down on auto theft and careless driving, enhance the tools police can use to manage sex offenders, tackle illegal cannabis sales, and support access to justice.

“Our government is keeping our communities safe and holding criminals accountable,” said Solicitor General Michael Kerzner. “Today, we’re proposing impactful changes to strengthen tools for police officers, improve access to justice and eliminate dangerous activity that puts hard-working people at risk. In Ontario, crime doesn’t pay.”

Targeting advertising with new legislation

The proposed change would amend the Cannabis Control Act, 2017 to add a new prohibition “respecting the advertisement or promotion of cannabis that is sold unlawfully, along with a related penalty if a person is convicted of contravening the prohibition.”

Current penalties for violating various aspects of Ontario’s Cannabis Control Act, 2017 can range from up to $100,000 for an individual and up to $250,000 for a corporation.

Many cannabis retailers in Ontario have expressed frustration at what they say is under-enforcement by police against unlicensed cannabis stores. This new legislation, if passed, could give bylaw officers more ability to penalize illicit operators without relying entirely on Toronto or Ontario police services.

StratCann reached out to representatives at the City of Toronto regarding a recent article about illicit stores in the province, and their response revealed a need for the province to review the Cannabis Control Act, which has not been updated since before legalization.

Charging property owners in contravention

He added that the province is responsible for licensing and regulating private cannabis retail stores through the AGCO, which enforces the regulations. Further, Gerard said that the city does, in fact, go after property owners.

“The city can, and does, file charges against property owners who are in contravention of the Cannabis Control Act. Individuals charged can face fines of up to $250,000 and face imprisonment of two years (minus one day).”

The city also pointed out that the current Cannabis Control Act provides limited authority to municipal by-law officers.

Bill 223, Safer Streets, Stronger Communities Act, 2024 was introduced and read for the first time on November 18, 2024.

Week in Weed – November 16, 2024

Written by Staff on November 16, 2024. Posted in Business, Cannabis News, Government, International, Other.

This week at StratCann, we covered the most recent report from Israel regarding allegations of “product dumping” from Canadian cannabis producers (more on this next week).

We also looked into the recent micro licence issued by the Kahnawà:ke Cannabis Control Board, the second cannabis production licence the KCCB has issued in coordination with Health Canada.

A clinical psychologist says he has concerns with a recent cannabis marketing campaign from the NSLC, and Tilray’s Aphria RX facility launched its first German-grown cannabis.

The BC Government is looking to seize two properties they say are connected to cannabis trafficking, and a law firm alleges that the SQDC broke provincial rules with its “rotating” SKU pricing.

In our profile series, we featured Todd Veri from Cedar Bug Farms in BC and his life mission to grow the most affordable cannabis in Canada.

It was another busy week in Canadian cannabis finance news, with Cronos, Rubicon Organics, Medipharm Labs, and Avicanna releasing their Q3 2024 reports and the SQDC releasing their Q2 2024 report. Also, Delta 9 has selected a bid from its SISP process, still to be approved by the court on November 15 (results pending).

In law enforcement news, police in Ajax, ON, are searching for three suspects in a cannabis store arson, while an assault with a knife led to two arrests and a raid at an unlicensed cannabis store in Nova Scotia.

Police in Calgary arrested a man who was wanted in connection with several cannabis store robberies earlier this year, while police in Kingston, Ontario raided an unlicensed store, and CBSA authorities seized 40 kg of cannabis on its way to the UK. Police in Quebec made arrests in connection to illicit cannabis.

In other cannabis news

Willow Biosciences Inc. announced that it has advanced work on its proprietary yeast strain for production of THC and plans to commercially launch in the Canadian market.

Radio Canada is reminding people to be wary of cannabis poisoning incidents with their pets, especially dags. D’ya like dags?

City News says more Canadians are aware cannabis can impair driving abilities but notes many still do it.

Dave Berry, the Executive VP at AGLC, spoke with local media about the agency’s new Forget Bad Bud campaign.

The University of Prince Edward Island profiled entrepreneur Sarra Jayasinghe, who owns Ricci Cannabis, which produces cannabis-infused and non-alcoholic wine beverages.

The Journal at Queen’s University says cannabis consumers feel like second-class citizens in a culture awash in overconsumption of booze.

Organigram CEO Beena Goldenberg has once again penned an article on the challenges the company faces with regulations and taxes.

The Honourable Lorne Kusugak is now the Minister responsible for the Nunavut Liquor and Cannabis Commission and the Minister responsible for the Nunavut Liquor and Cannabis Board.

The Kahnawá:ke Cannabis Control Board (KCCB) will be conducting in-person consultations with residents living in close proximity to recently proposed cannabis store locations.

International cannabis news

Conservatives in Germany say they would reverse legalization. “We don’t want to smoke pot, we want safety and order,” said Tino Sorge, a health policy spokesman for the German center-right CDU/CSU group, whose party has pledged to overturn the legalization of cannabis if they win power in February’s election.

Italy’s flourishing “cannabis light” (hemp) industry risks being uprooted this year when Prime Minister Giorgia Meloni intends to push a bill through parliament to ban any product deriving from the hemp flower. While cannabis production is illegal in Italy, parliament eight years ago authorized trade in hemp.

Within days of seizing 170 pounds of cannabis destined for the United Kingdom, US Customs and Border Protection officers seized 343 more pounds of UK-bound cannabis at an international shipping service facility in Delaware County, PA.

And finally, The American Journal of Public Health published a report on US state recreational and medical cannabis delivery laws.

Israel: Report now proposes up to 175% tax on Canadian cannabis imports

Written by David Brown on November 12, 2024. Posted in Business, Cannabis News, Government, International.

Israel’s Ministry of Economy has proposed levies of up to 175% on Canadian cannabis products being sold in the country’s medical cannabis program.

In a report published on November 10, Israel’s Director of Import Administration and Commissioner of Anti-dumping measures at the Ministry of Economy shared the agency’s final report.

The report determined acceptable prices for specific Canadian cannabis companies based on their cooperation with the report and sale prices in the Canadian market. A final ruling on the proposed levies is still pending.

The investigation, which was first announced this past January, was around allegations of “product dumping” of Canadian cannabis into the Israeli market. In July, the government agency released its preliminary report on the topic, proposing tariffs from 63% to 369%, depending on the cooperation of the companies involved.

Initially, the commissioner recommended a floating levy or tariff of 63% for Decibel, 74% for Pure Sunfarms, 112% for Organigram, and 369% for all other producers.

The new, sprawling 126-page final report proposes fees starting as low as 2% for Decibel cannabis, 33% for Village Farms (Pure Sunfarms), 39% for Organigram, and 77% for Tilray. All other companies would face a levy of up to 175%.

The new recommendations are still subject to a final ruling from an advisory committee before potentially coming into force. The preliminary report states that the commission will also submit a report on its findings to the World Trade Organization.

During the investigation, Israeli cannabis companies said they were forced to sell products at or below cost due to competition with lower-priced Canadian cannabis. Producers also said they were forced to destroy large amounts of cannabis they could not sell, in part due to these imports.

Israel imported 78,394 kilograms of cannabis from 2020-2023, with 62,345 kilograms coming from Canada, or approximately 80%. Other countries of origin were Portugal, Uruguay, and Uganda. However, since 2020, the ratio of Israeli products compared to imported cannabis products has increased with domestic cannabis eclipsing imports in 2021, 2022, and 2023.

According to the data from the Israeli Ministry of Health, in 2020, the country imported 14,778 kilograms of cannabis and produced 13,922. By 2023, that figure had shifted to 15,950 kilograms imported (of which 14,408 kg was from Canada) and 51,750 produced domestically.

Israel is not the only country that has seen concerns raised about the impact of Canadian imports. Some cannabis producers in Australia have shared similar concerns.

Many Canadian companies have touted their export sales to countries like Israel as a way to command a better price than in the domestic market and deal with the large volume of product in their vaults.

Despite the increased costs associated with exports, including special approvals and certifications, producers often find better payment terms in the export market than selling into provincial markets, where payments can take weeks or even months.

The new Israeli report includes feedback from Canadian and Israeli cannabis producers and stakeholders. The report argues that Canadian producers sell cannabis into the Israeli market at a lower price than can be sold in the Canadian market, a claim disputed by Canadian stakeholders like the Cannabis Council of Canada and the cannabis companies they interviewed.

Canada’s legalization framework serves as roadmap for Israel and other nations

April 3, 2021

Cannabis industry, Global Affairs Canada disappointed with Israel’s preliminary report

July 23, 2024

Some Australian cannabis companies growing weary of Canadian imports

October 29, 2024

Week in Weed – November 9, 2024

Written by Staff on November 9, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we looked at the life and legacy of cannabis cultivars, we spoke to some legal cannabis retailers who say their sales increased following recent raids of nearby unlicensed stores, and BC’s cannabis industry responded to some eyebrow-raising comments from a BC MLA who blames legalization for a recent raid.

In Alberta, AGLC launched its Forget Bad Bud campaign.

A new report from city staff in Winnipeg says there have been no public complaints or licence applications following the designated medical cannabis production zoning amendments adopted in 2022. In related news, the province’s new cannabis home grow law is expected to come into force sometime next year.

In our profile section, this past week, we featured one Toronto cannabis retailer’s success with delivery.

In financial news, Noya Cannabis has applied for creditor protection, Auxly reported its Q3 results, Canopy Growth released its Q2 2025 results (not actually from the future), Village Farms released its Q3 2024 report, Aurora Cannabis released its Q3 2025, and SNDL released its Q3 2024.

In law enforcement news, the OPP’s provincial enforcement team again raided an unlicensed cannabis store in London. Edmonton police are seeking the public’s help identifying suspects in a cannabis shop robbery, and police shut down an illegal hash processing lab in Quebec.

In other cannabis news

Shares in Canada’s major cannabis companies fell (a little) in early trading after the U.S. election, reports the Canadian Press.

Surrey, BC, ran into a few errors in their new cannabis licensing efforts. An application by “137 Brands” was first greenlit to go before council but was replaced at the last minute as it would have been located too close to a school. Now, a second application, UEM, may be too close to a preschool program.

Enforcement staff at the Ontario Securities Commission failed to prove allegations of an “illegal and abusive” short-selling scheme by three market participants from an anticipated spike in demand for Canopy Growth Corp. shares. The case was launched in 2022 and revolved around a complex series of transactions in 2017, including a private placement, a securities lending agreement, and short sales.

The BCGEU ran a profile on an assistant manager at a BC Cannabis Store location.

A man in Ontario is frustrated by the theft of some of his cannabis plants.

CannaPharmaRx says it has completed two shipments of its products to purchasers in Israel. A third shipment of approximately 300 kg is currently in the final stages of preparation and is expected to be dispatched soon. The average price for the third shipment is projected at CAD 2.10 per gram, with final pricing based on batch quality and THC results.

Greenstate ran a piece on Toronto-based Club Lit, which opened next to Body and Mind Cannabis and Lit Research in October.

Tether announced the release of its print edition Holiday Gift Guide with gift-giving inspiration for the holidays.

The Hash Corporation (CSE: REZN) announced its intention to change its name to “Street Capital Inc.” and its ticker symbol to “STRC.”

As part of a larger drug trafficking investigation called Project Bourbon, RCMP seized 111 pounds of cannabis, 8 kilograms of hashish, and 3,500 vials of cannabis oil in Newfoundland.

Mohawk Council of Kahnawake (MCK) chiefs voted against having a community-wide referendum on the community’s current cannabis policies after the topic was s raised at a Council meeting last week. The Kahnawake Cannabis Control Board (KCCB) recently informed the community of the updated list of seven applicants who have submitted applications for a Dispensary Licence with the KCCB.

The Ottawa Citizen ran a sponsored post for an Indigenous-owned cannabis retailer, Red Roots Trading Company. With one location in Vanier, two in Ottawa, and another Ottawa location expected later this month, the business eschews provincial licensing.

Freedom Cannabis has been granted an extension of its stay period until December 19, 2024. The company sought creditor protection in August.

Leafly reports $8.4 million in revenue (compared to $10.6 million in Q3 2023), but a net loss of $1.1 million for Q3 2024.

Village Farms International, Inc., the parent company of Pure Sunfarms, announced it was one of 25 participants selected for the US Drug Enforcement Administration’s upcoming Administrative Law Judge hearing regarding the proposed rescheduling of marijuana in the United States from a Schedule I to a Schedule III drug under the Controlled Substances Act. Village Farms was the only cannabis industry operator selected to participate in the Rescheduling Hearing, which is expected to occur sometime in January or February 2025.

International cannabis news

A ballot question that would have legalized the recreational use of cannabis in Florida failed to clear the 60% threshold necessary to pass. It received about 56% of the vote.

Finally, a medical cannabis initiative was passed in Nebraska, but it is facing legal challenges regarding the validity of many of the votes. A decision is not expected for a few weeks.

Noya Holdings Inc. and Noya Cannabis Inc. apply for creditor protection

Written by Sarah Clark on November 8, 2024. Posted in Business, Cannabis News, Financials.

Noya Holdings Inc. and Noya Cannabis Inc. have applied for creditor protection in an initial order posted on November 6, 2024. Noya’s monitor in the case is BDO Canada Limited.

As part of the cannabis company’s CCAA filing, the court has ordered that all relevant Health Canada and cannabis excise licences held by Noya Cannabis Inc. (NCI) and related companies shall be preserved and maintained during the pendency of the stay period. This included NCI’s ability to sell cannabis inventory, as well as any applicable licence renewals.

The balance of the relief sought by the applicants will be heard in a comeback hearing by the court on November 15, 2024. According to documents online, the applicants’ are insolvent and cannot meet their liabilities as they become due. They have determined that a CCAA proceeding is required to complete a sale process and otherwise address their current challenges by restructuring their operations.

Noya’s known list of creditors shows nearly $10.3 million owed in secured credit and $2.7 million owed to unsecured creditors. Secured creditors are Lending Stream Inc., Terrascend Corp (Gage Growth Corp), and 1955185 Ontario Inc. Unsecured creditors include the Canada Revenue Agency, Health Canada, Pure Sun Farms, High Tide, Kiaro Brands, Ignite International Brands (Canada) Ltd., HiFyre, and many others.

Noya Holdings Inc. (NHI) is the parent company of NCI and 2675383 Ontario Limited (267). First licensed in 2017, NCI holds a cannabis cultivation and processing licence, and 267 holds a micro-cultivation cannabis licence. Both are located in Ontario. The applicants currently employ 18 employees.

Lending Stream Inc. is the applicants’ senior secured creditor. As of August 31, 2024, NHI was indebted to Lending Stream pursuant to a convertible debenture in the approximate amount of nearly $1.9 million. According to records, the owner of Lending Stream is the brother of the applicant’s owner. 1955185 Ontario Inc. is another secured creditor that provided loans to NHI. As of September 30, 2024, 195 had loaned approximately $3.8 million to NHI. The numbered company is owned or controlled by the parents or relatives of the owner of the applicants.

The applicants are also facing various contingent claims in excess of $5 million, including from Pure Sunfarms Corp., Ignite International Brands (Canada) LTD, and 10805696 Canada Inc. o/a Mauve & Herbes. These claims, say documents filed online, are mostly related to contractual disputes and are unsecured.

Noya and its related companies (the applicants) are up-to-date with payments to the Canada Revenue Agency with respect to employment insurance and Canada Pension Plan deductions but owe excise tax remittances and HST remittances.

Winnipeg staff report recommends keeping designated production licensing in place

Written by David Brown on November 5, 2024. Posted in Business, Cannabis News, Government, Manitoba.

A new report from city staff in Winnipeg says there have been no public complaints or licence applications following the designated medical cannabis production zoning amendments adopted in 2022.

The city adopted their new bylaw to regulate designated medical cannabis production sites in April 2022 following community concerns at such operations occurring in residential areas within the city. Health Canada allows the licensing of designated individuals to grow cannabis for others who are authorized to access cannabis for medical purposes.

Such licences have been under increased scrutiny in the past few years from several municipalities and many Conservative MPs, especially in Ontario, where the OPP says criminal enterprises are exploiting the Health Canada medical, personal and designated cannabis production regime.

A southern Ontario county says they are the first in Canada to take steps to manage personal and designated medical grow licences through local zoning bylaws. Not limited to Ontario, though, in 2022, municipalities in Alberta called for limits on medical cannabis grows in residential areas.

As part of Winnipeg’s 2022 bylaw, city staff were also required to put together a report two years later on the effectiveness of the new licensing program. Staff were given an extra six months in April 2024 to complete the report, which is scheduled to be reviewed by the city’s Standing Policy Committee on Property and Development on November 8.

The report notes that since the program’s implementation, there have been no licence applications for designated cannabis production facilities. It also points out that the city has not received any calls from residents about such licences during this time.

City staff also note that while Health Canada’s public portal said at one point there were around 2,000 designated and personal medical growers operating in Manitoba, as of October 2022, these numbers now show fewer than 20 designated growers in the province.

While personal and designated production licences had seen several years of steady declines, a recent report from Health Canada notes an uptick in licence issuances in 2024, including in Manitoba.

The number of personal and designated medical grow inspections conducted by Health Canada has been increasing in the last few years. There have been more than 300 such inspections in the previous two years.

All such designated growers of cannabis for medical purposes in the City of Winnipeg are required to be licensed under, and comply with, the bylaw. The licensing program allows city officials to conduct inspections, suspend or revoke a licence, or issue a fine if there are health and/or safety concerns.

Manitoba also recently passed a law that will allow people in Manitoba to grow up to four cannabis plants at home, although the law is still not in force. The staff report says that public consultation will be launched through Manitoba’s online consultation platform, EngageMB in the fall of 2024, with proclamation expected to be in early 2025.

City staff does not recommend any changes to the city’s bylaw.

Winnipeg moves one step closer to regulating designated medical cannabis grows

April 5, 2022

Alberta Municipalities calls for limits on medical cannabis grows in residential areas

October 23, 2022

County in Ontario first in Canada to take steps to manage personal and designated medical grows

September 23, 2020

Legal pot shops in Vernon see surge in customers following recent raids

Written by David Brown on November 4, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

Cannabis retailers in Vernon, BC, say they have seen an increase in new customers in the days following recent raids of several unlicensed stores operating just outside city limits.

Provincial inspectors recently closed down a handful of unlicensed cannabis stores operating on Okanagan Indian Band Land near Vernon over a few days at the end of October. Although those stores have reportedly now reopened, some owners and managers at licensed retail shops in the Vernon area say they saw an increase in new customers following those temporary closures.

“Yes we have seen an increase in customers, especially new customers,” says Sarah Ballantyne, the owner of Spiritleaf Vernon. Ballantyne says her store even had to place a larger weekly order to respond to this increased demand.

She says she has seen similar cycles of new customers following other enforcement actions in the past, which can ebb and flow depending on how fast the raided stores restock and re-open.

“We go through this every once in a while when it happens. It can be a bit of a rollercoaster, but we get restocked every Thursday.” Lower-priced ounces, she notes, have been in particular demand.

Lance Ashlin-Mayo, the manager at Lucid Cannabis in Vernon, says he’s seen a similar increase, if only briefly.

“I have noticed an uptick in sales,” Ashlin-Mayo tells StratCann.

Still, not all of the new customers passing through his doors stick around, he says, as some still balk at the prices in the legal market, as well as the restrictions on edibles that don’t exist in the unregulated or illegal market.

“There’s some things with a legal store, we just cannot compete with them, and that’s flower and concentrates.” he continues. “They can sell flower for like $60 an ounce. I can’t even buy it from the government for $60 an ounce, and that’s before I mark it up. And the government ties my hands on the edibles, while they’re selling gummies with 100 milligrams [THC].”

“I’ve got people coming in and looking at my prices and yelling at me. And then I have people coming in and seeing the 10 mg edibles and turning around.”

“The people that were going to the Green Mile are on the low end of the pay scale. They like their weed, but they only have so much money. A lot of people on disability would go to the Green Mile to get as much as they could for the lowest price. People who have money, go to the legal stores.”

Some of these new people he’s seeing through his front doors stick around; others return to the illegal market as soon as they can.

“I’m a pretty good salesman, but people only have so much money.”

*Ounces for sale at an unlicensed cannabis store near Vernon, BC*

Details emerging in CSU raids on OKIB land near Vernon, BC

October 30, 2024

BC court rejects retailers’ lawsuit calling for enforcement against cannabis stores on First Nations land

September 19, 2023

Indigenous man sues BC over CSU raids of his cannabis store

May 5, 2023

Week in Weed – November 2, 2024

Written by Staff on November 2, 2024. Posted in Business, Cannabis News, Government, International.

This past week, StratCann looked at claims of product dumping and two-tiered testing from Australian cannabis producers regarding Canadian cannabis imports.

Ontario re-affirmed a $31 million commitment to take on the illicit cannabis market, while a new annual report says New Brunswickers, like much of Canada, prefer convenient cannabis products.

Surrey City Council will consider 12 cannabis store locations, the first in the city, and we looked into some of the details emerging in CSU raids on OKIB land near Vernon, BC. Meanwhile, Decibel Cannabis is set to acquire AgMedica Bioscience.

In Financial news, we looked at the BC LDB’s and Cannabis NB’s most recent quarterly report, annual reports from Manitoba, Newfoundland and Labrador, and PEI, as well as Ayurcann’s most recent quarterly report, while a court weighed in on a dispute over Simply Solventless’s stock valuation.

RCMP raided two unlicensed cannabis stores on Vancouver Island, seizing 120,000 “copycat” cannabis edibles, while RCMP in Nova Scotia seized cannabis and psilocybin from an unlicensed store, charging three. Police in Woodstock, NB, arrested two in a raid on October 22.

In other cannabis news

Decibel Cannabis Company Inc. announced that, further to its news release dated October 28, 2024, it intends to complete a non-brokered private placement of up to 58,333,333 common shares in capital for gross proceeds of up to $3,500,000 at $0.06 per Common Share.

Vencanna Ventures Inc., an Alberta-based go-to capital provider for early-stage cannabis initiatives, announced that the Alberta Securities Commission issued a cease trade order against the company on October 25, 2024.

Newly-elected Luke Randall is now Minister responsible for Opportunities NB, Minister responsible for Economic Development and Small Business, and Minister responsible for NB Liquor and Cannabis NB.

RCMP in Halifax says investigators learned that two youths each returned home to find a dozen pre-rolled joints among their Halloween treats.

Following a previously-announced breach of certain financial covenants and other obligations by Entourage Health Corp. under each of its Senior Credit Agreement and Subordinated Credit agreements with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF), Entourage is working collaboratively with LPF to agree on amended debt terms.

Simply Solventless Concentrates Ltd. announced that further to its press releases dated September 26, 2024, and October 18, 2024, it expects approximately 98% of the August 2026 $0.20 warrants to be exercised for proceeds of approximately $2,950,000. SSC also announces that for administrative purposes and varying financial institution purposes, it has extended the expiry of the August 2026 warrants to November 29, 2024.

ABLE BC reminds industry that on Friday, November 15, 2024, starting at 6:00 a.m., the BC Cannabis Wholesale website will be temporarily out-of-service to accommodate an update to the e-commerce platform hosted by Shopify. The outage is expected to last between four and 12 hours. There will be no change to the website user/customer experience with this update.

The Telegraph Journal ran a feature on Organigram.

Delta 9 is now seeking an extension of its stay period up to and including January 31, 2025.

Yukon Liquor Corporation released its annual report for cannabis from April 1, 2023, to March 31, 2024. The territory sold $9.2 million worth of cannabis in the most recent year, up from $7.7 million in the year prior.

The Tokyo Smoke store at 333 Yonge Street in downtown Toronto is now going to be a One Plant Cannabis store.

The “Industrial Hemp Market Report Forecast by Type, Sources, Application, Region Companies Analysis 2024-2032″ has been added to ResearchAndMarkets.com’s offering.

A recent study says frequent cannabis use may improve sleep for young adults with depression and/or anxiety who have pre-existing sleep problems, but worsen sleep for young adults without depression and/or anxiety.

Another study found that participants who used cannabis in the 30 days before the survey reported significantly higher loneliness scores than those who never used cannabis, after adjusting social-demographic, social interaction, and pandemic-related factors.

Cannabis use during pregnancy can impact thinking and learning skills and increase aggression among children, according to this new study.

In a city council meeting on October 21, the Burnaby BC council approved a measure to allow private cannabis stores to apply in certain sub-districts in the city. Before this, only government-run BC Cannabis stores were allowed.

International cannabis news

Prosecutors recently indicted a Canadian dental assistant after she was caught in August trying to smuggle 32 kilograms of cannabis into Taiwan. The 30-year-old female suspect was arrested on August 4 after arriving on a flight to Taoyuan International Airport.

A Canadian woman arrested earlier this year for importing cannabis into the UK was sentenced to 15 months imprisonment on October 24.

Two major programs to combat illegal cannabis in California sent out news releases lauding their collective seizures of some $544 million worth of illicit weed. But when it comes to reigning in California’s sprawling black market, experts say it’s just a drop in the bucket, reports the LA Times.

Freakonomics Radio continued its four-part series on the cannabis industry in the US. The parallels with the issues facing the Canadian industry and market are unmistakable.

Arizona residents are now able to get recreational cannabis delivered to their homes as of Friday, marking a new milestone for a state program that until now had allowed the service only for medical cannabis patients. Recreational cannabis sales began in Arizona in 2021 under a voter-approved ballot initiative.

A law that New York City has relied on to padlock scores of suspected unlicensed cannabis shops is unconstitutional because it violates the rights of store owners, a judge ruled Tuesday.

The German cities of Frankfurt and Hannover are model projects aimed at testing controlled retail sales in specialized stores, scheduled to launch in early 2025. Hannover’s project will involve up to three official sales locations at pharmacies, with a five-year timeline. In Frankfurt, the model project follows a similar structure but will operate within dedicated cannabis stores

.A Berlin-based cannabis company acquired and analyzed 300 samples of illicit cannabis from across Germany and several international cities. They found 32% of the illegal cannabis samples contained hairspray, 47% cocaine, and 65% had feces. Even more common are bacteria and viruses (74%) and dangerous pesticides (71%).

Surrey City Council to consider 12 cannabis stores, the first in the city

Written by David Brown on November 1, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

City Staff are recommending that Surrey City Council initiate rezoning applications on behalf of the eight successful applicants at twelve locations to permit Cannabis Retail on the proposed sites.

The recommendation will be presented at a council meeting on Monday, November 4. The staff report intends to inform the council of the successful applicants to the Request for Expressions of Interest for Cannabis Retail.

Surrey City Council released a proposal for up to 12 cannabis stores in BC’s second-largest city in early 2024, approving the plan in April. The city has said it would consider up to two locations for each of its six distinct communities: Whalley/City Centre, Newton, South Surrey, Guildford, Cloverdale, and Fleetwood.

If the council approves the recommendations in the report, staff will then begin a site-specific rezoning application for council consideration on behalf of each of the selected applicants to permit cannabis retail use at their proposed locations.

If the rezoning of a property to permit cannabis retail use is approved, prospective retailers would then need to get a business license from Surrey.

City staff screened out six applications on the basis of an incomplete submission submitted within the RFEOI period. The remaining applications were then deemed eligible for the second stage evaluation.

The results of this secondary selection process identified that the successful applications in each of the communities are:

Whalley/City Centre
- “Dutch Love Cannabis” #201-13650 102 Avenue
- “Local Cannabis” 10449 King George Boulevard
Newton
- “Imagine Cannabis” #502-7380 King George Boulevard
- “Surrey Cannabis Connection”
South Surrey
- Burb Cannabis” #108-15775 Croydon Drive
- “Dutch Love Cannabis” #125-16030 24 Avenue
Fleetwood
- “Inspired Cannabis” #103-9014 152 Street
- “Surrey Cannabis Connection” 15148 Fraser Highway
Cloverdale
- “137 Brands” 17608 56 Avenue
- “Queensborough Cannabis” 19581 Fraser Highway
Guildford
- “Inspired Cannabis” 10383 150 Street
- “Imagine Cannabis” #5-10330 152 Street

Ontario affirms $31 million commitment to take on illicit cannabis market

Written by David Brown on October 30, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

The Ontario government has affirmed their plan to invest $31 million over the next three years to take on illegal cannabis stores.

As part of Ontario’s 2024 economic and fiscal outlook in brief, the provincial government is committing to investing $31 million over the next three years to support the Provincial Joint Forces Cannabis Enforcement Teams (PJFCET). This OPP-led centralized enforcement unit focuses on the cannabis file.

The new economic and fiscal outlook in brief is an affirmation of the province’s previous 2024 budget, which had referenced the $31 million commitment.

Earlier this year, Toronto City Council passed a motion asking the province to undertake a comprehensive review of the Provincial Cannabis Control Act, 2017. The motion says a review is “imperative to ensure the effective regulations and enforcement of cannabis-related matters” in Ontario.

*An unlicensed cannabis store in downtown Ottawa operating as an “Indigenous trading post” according to a sign on the window.* Image from StratCann.

The illicit market in Ontario has been growing considerably in the past year, and many retailers and other cannabis industry participants have been calling on the province to do more. By some estimates, several hundred new, unlicensed retailers have begun operating in different parts of Ontario in the past year, with close to 100 in Toronto alone. While some have faced enforcement, many have not, causing frustration for licensed retailers who incur numerous fees in order to operate with the province’s approval.

Toronto cannabis store owner Paul McGovern, a former police officer with Toronto Police Services who stepped down in 2018 to open Vertie Cannabis, told StratCann earlier this year that he believes Ontario needs more of a province-wide approach to enforcement, similar to the approaches provinces like British Columbia and New Brunswick have taken.

McGovern also argues that public awareness is an issue. While store owners might follow this closely, the general public, municipal and provincial lawmakers, and the legal system in general might not. While some in the justice system might still think the landscape is similar to the wave of stores opening in the years before legalization, he says the arguments that might have held up in court then will not now.

“I get the impression that maybe not everybody in the justice system is aware of what’s going on. We’re hyper focused on this in our industry but I don’t think the same is true for the general public or for police agencies. So part of the challenge is helping them understand how different things are today than in, say, 2016.”

Raj Grover, CEO of High Tide, which operates more than 70 of its Canna Cabana retail cannabis locations in the province, welcomed the new announcement in the budget.

“As Canada’s largest cannabis retail chain with 72 stores + over 700 employees in Ontario, we at [High Tide] welcome the Ontario gov FES commitment to help law enforcement crack down on illegal cannabis promotion/advertising,” wrote Grover in a Tweet. “We look forward to seeing more details as they are released.”

Ontario’s portion of the federal cannabis excise duty, which is 75% of every dollar collected, is expected to be around $379 million in 2024-2025. The province brought in $215 million in 2021-2022, $310 million in 2022-2023, and $344 million in 2023-2024 (interim figure).

The Ontario Cannabis Store brought in $186 million in 2021-2022, $234 million in 2022-2023, $242 million in 2023-2024, and is projected to bring in $225 million in 2024-2025.

Ontario to add $31 million to budget to deal with increasing number of illegal cannabis stores

March 26, 2024

OPP shut down six “Indige Smoke” locations, building subject to closure orders

June 14, 2024

Toronto police asking for $1.5 million to deal with legal cannabis

April 12, 2021

In 2018, Ontario set aside $40 million over two years to help cities manage the implementation and oversight of cannabis legalization. The first $30 million was distributed in 2019, with $10 million set aside for unforeseen costs. Ontario also invested $3.26 million to support municipalities through enhanced enforcement against illegal cannabis operations.

This plan, called the Ontario Cannabis Legislation Implementation Fund (O.C.L.I.F.), was to be used for increased enforcement (e.g. police, public health and by-law enforcement, court administration, litigation), increased response to public inquiries (e.g. 311 calls, correspondence), increased paramedic services, increased fire services, and by-law/policy development (e.g. police, public health, workplace safety policy).

Ontario has distributed four payments from this fund, with cities receiving at least $5,000 each payment. Toronto received just over $3 million for its first payment, $3.7 million for its second, and $1.5 million for its third, and just last month received the fourth and final payment of $747,954 for a total of just under $9 million.

The cost of policing and enforcement has been a major part of municipal budgets all across Canada, with a significant portion of cannabis tax revenue and other related funding going to police, enforcement, fire and emergency services as it relates to cannabis legalization. This is in addition to costs associated with developing and maintaining municipal zoning rules and bylaws.

Toronto police asked for an additional $1.5 million from the city in 2021 to address the cost of cannabis-related enforcement in the department.

Toronto Police Services’ (TPS) 2022 operating budget noted that the department had a balance of $3 million in reserve, with an expected $500 million in funds withdrawn that year. It was projected to have just over $1 million in reserve for these funds in 2023 and just over $500,000 in the beginning of 2024.

Those numbers were updated in the 2023 budget to an expected $136,000 after withdrawing nearly $2 million.

When negotiating for a 75% share of all federal cannabis excise taxes collected, provinces argued that the costs of addressing the new cannabis laws in Canada would largely be borne by themselves, cities, and law enforcement.

According to the Federation of Canadian Municipalities (FCM), municipal administration and local policing costs linked to the legalization of cannabis will total $3-4.75 million per 500,000 residents.

Ontario cannabis retailers frustrated by increasing number of unlicensed stores

October 22, 2024

Ontario needs coordinated approach to deal with growing number of unlicensed cannabis stores

August 12, 2024

Brighton, Ontario looks to manage personal/designated medical grows through proposed bylaw

October 5, 2020

Some Australian cannabis companies growing weary of Canadian imports

Written by David Brown on October 29, 2024. Posted in Business, Cannabis News, Government, Producers.

As Australia’s domestic medical cannabis market evolves, some companies are becoming frustrated with the country’s ongoing reliance on cannabis imports from Canada.

Still, others say demand is being driven by consumer preference.

Australia legalized medical cannabis in 2016, and by 2017, Canadian cannabis companies were announcing exports of cannabis oil and flower to the country. Although many of these initial shipments were relatively small (just the equivalent of 200 grams in 2017), by 2021, Canadian companies exported nearly 5,800 kg of cannabis; by 2023, that figure was over 34,000 kg.

The early reliance on imports came at a time when Australia’s domestic industry was in its infancy. But in late 2024, some of these companies recently told the country’s Sydney Morning Herald that they are struggling to compete with what some characterize as product “dumping”.

These accusations mirror similar ones levied by the Israeli government earlier this year to the dismay of Global Affairs Canada.

Some cannabis companies in Australia say that much of the cannabis being imported from Canada is of lower quality and that the products have fewer checks on quality than what is produced by Australian companies.

“I have no issue with imports coming here; the issue is that because they have surplus product, they’re dumping it here, which makes things difficult for local cultivators,” Nan-Maree Schoerie, managing director of ECS Botanics, tells the Herald. ECS is an Australian cultivator and manufacturer of medicinal cannabis.

StratCann also spoke with Schoerie about the issue. She explained that while some of the Canadian cannabis products coming into Australia are good quality, she thinks some companies are unloading lower-quality products from their vaults due to an oversupply in Canada.

“We have a product that comes into Australia from Canada that is extraordinarily good quality, probably for the extra years of experience,” she tells StratCann. “But there’s also an enormous amount of product that we believe is coming from stockpiling in Canada.

“That product is flooding into Australia. It’s not necessarily fresh, it’s not necessarily great, but they can sell it at a very low price.”

The export market is a good opportunity for Canadian companies to offload lower-quality product, but she notes this pushes the price down in Australia just as it has in Canada. While growers in Australia could get around AU$6 a gram, wholesale, in 2023, Schoerie says in 2024 that has dropped to around $4-4.50.

“That is a direct consequence of the amount of product that has come in, primarily from Canada.”

Schoerie notes that her own company exports products, as well, and doesn’t blame Canadian companies, or any others for finding markets for their products where they can.

Ultimately, she says the issue is one created by the Australian government, specifically the agency that oversees Australia’s cannabis for medical purposes program, the Therapeutic Goods Administration (TGA).

She explains this because the TGA, which requires Australian companies to have GMP compliance, allows companies importing their products into Australia to use a “loophole” to have them packaged in a GMP-compliant facility. She also says the TGA doesn’t have the resources to ensure the facilities that package goods in Canada adhere to Australian requirements.

Andrew Dowling, the director at an Australian cannabis wholesaler called Phytoca that focuses primarily on imports, pushes back against this argument, saying that being processed in a GMP facility in Canada or Australia is still the same standard.

“The actual growing of cannabis is not covered under GMP, anywhere in the world, because it’s not a manufacturing activity,” argues Dowlin. “It’s cultivation.”

The issue of product “dumping”, he says, is one being pushed by companies who simply aren’t meeting the international market’s demands, both in terms of price, but also in terms of quality.

“If these governments really had a problem with Canadian imports, there are levers at their disposal that they could be pulling on to turn it off.”

“It’s wrong to claim it’s being dumped. That product is being ordered because there’s a commercial opportunity and the demand is driven by the price point that is unmatched by Australian companies. If Australian companies could find a solution to that, they’d be doing it.”

Deepak Anand, an industry consultant in Canada who assists cannabis companies with exports into countries like Australia, echoes these sentiments.

“Whether it be Germany, Australia, or Israel, Canadian products are of a better quality than domestic supply. This is a reflection of what the market wants rather than this alleged dumping, which hasn’t been proven anywhere.

“I think this notion of dumping, which was started by the Israelis—it’s catchy and sounds like something nefarious is going on—but the fact of the matter is Canadian products are just of a higher quality so that’s why there’s a demand for it.”

Canadian cannabis companies have indeed been dealing with domestic price compression from an excess of supply that has led many companies to lean into the export market. Exports are seen as an easier and, at times, more lucrative path to market than selling domestically, since exports are often bulk sales and are not subject to Canada’s federal excise tax of $1 per gram.

The oversupply of cannabis in Canada that has pushed many companies to the export market has, in the past year or so, also had the effect of relieving some of that downward pressure on domestic prices. While exports don’t appear to be slowing down, it’s possible that the international market will begin to find some balance.

Week in Weed – October 26, 2024

Written by Staff on October 26, 2024. Posted in Business, Cannabis News, Government, International, Producers, Retail.

This past week at StratCann, we looked at a new report about cannabis in the Yukon that highlighted, among other things, the need for cannabis consumption spaces for tourists. At the same time, Manitoba extended its pause of “controlled access” licensing for another 18 months.

The AGLC released a memo last week on cannabis sampling that they quickly walked back this week.

A new study out of New Brunswick shows high levels of pesticides found in illegal cannabis vapes.

Weed Me recalled one lot of its Ripped cannabis pre-rolls from Alberta, a BC pot shop was fined for selling cannabis at too low of a price, Radicle Femmes celebrates Canadian women in weed this November, and Trichome Consulting Services was excited to be named 2024 Cannabis Consulting Compliance Company.

Our most recent in-depth Insight piece from Jon Hiltz looks at how Ontario cannabis retailers are frustrated by the increasing number of unlicensed stores.

In other Cannabis news

Retail cannabis sales were up month-over-month in every province in August except BC, which saw a slight decline from July. (“c” data quality: good)

Winnipeg cannabis retailers are increasingly suffering from smash-and-grab style break-ins, writes the Winnipeg Free Press. Author Tyler Searle speaks with Dawn Le Sage, inventory manager at Star Buds Cannabis Co., who says the store has been hit seven times in the last 18 months.

The Regional Municipality of Grand Falls, New Brunswick is calling for more measures to be taken to prevent the establishment of illegal cannabis stores on its territory and elsewhere in New Brunswick, reports the Acadie Nouvelle.

CTV News in Edmonton spoke with local retailer Doug Zimmerman, owner of the Cannabis Cellar, as well as others about the state of cannabis in Edmonton 6 years after legalization.

An unlicensed cannabis shop in London, Ontario, Spirit River Cannabis, which was raided by police this summer, has reopened in a new trailer just metres away from one that previously housed the business, reports the London Free Press’ Dale Carruthers.

About a 90-minute drive north, Ontario cannabis retailer The Cannabis Guys shared a press release about its store in Goderich, Ontario.

A cannabis store rezoning application in Chilliwack, BC, was referred back to staff after some councillors felt local veterans needed to be consulted beforehand. One councillor said they had no problem with the location, noting that the building used to be a beer-and-wine store.

Campaign Canada looked at the OCS’ Buzz Kill pop-up store in Toronto that included video footage from the store. LBB Online carried a similar write-up on the public education initiative.

The OCS ran a feature on Waterloo’s Uptown Herb.

An Ontario Superior Court Justice approved another stay extension relating to the BZAM/Final Bell case through to and including December 2, 2024, and approved the Share Purchase Agreement dated August 23, 2024, among BZAM Holdings Inc. as vendor, BZAM Management Inc. as target, 1000912353 Ontario Inc. as Purchaser and Wyld Canada Inc. as an interested third-party.

SNDL Inc. and Nova Cannabis Inc. announced the successful completion of the privatization of Nova. The arrangement was approved by at least two-thirds of the holders of Nova shares.

High Tide Inc. announced a new Canna Cabana in Kingston, Ontario, as of 4:20 PM on October 31^st, 2024. This opening will mark High Tide’s 186th Canna Cabana branded retail cannabis location in Canada, the 72nd in the province of Ontario, and the first in Kingston.

Quebec cannabis company The Good Shroom Co Inc. announced the launch of DYP’s, a THC-infused pouch product, into the Alberta market. Resembling nicotine pouches like Zyn and Zonnic, the DYP pouches contain 10 mg THC and come 10 to a pack.

Herbal Dispatch Inc. announced the expansion of its direct delivery service to Saskatchewan.

A new poll from Research Co. says that most Canadians still regard cannabis legalization in a favourable light, and just over half of cannabis users they surveyed (51%) are acquiring “all” of their product at licensed retailers.

UCalgary will host a “Cannabis Cafe” on November 4 and 7. The Cannabis Cafe is a space for people to learn more about recreational and medicinal use in an informed way. The event will include trivia and discussion about cannabis, harm reduction, and challenging cannabis-related stigma.

A new video from the National Institute of Public Health of Quebec (INSPQ) presents the details of the Quebec cannabis control regime and its impacts compared to the rest of Canada.

The McGill Research Centre for Cannabis and the QAQCC will host the 4th Cannabis Scientific Symposium: From Plants to People from May 5-6, 2025, at the RI-MUHC in Montreal, QC. More info available here soon.

And, as always, don’t give out your expensive cannabis edibles to kids on Halloween, and make sure to check your kids’ candy for some sweet scores.

A suspended Saskatoon pharmacist accused in the trafficking of Oxycodone, cannabis, and meth was committed to stand trial on seven drug and weapon-related charges. The investigation began in January 2023 after pills seized at three locations were traced back to Ternan and the pharmacy. Officers found 20,285 grams of methamphetamine, 8,040 grams of cannabis, and hundreds of Oxycodone pills. Three men were charged.

International news

Uruguay’s cannabis regulator, the IRCCA, is calling for construction companies interested in building a plant nursery on the property owned by IRCCA in Libertad, San José. The opening of bids will take place on Friday, November 15, 2024.

Some cannabis companies in Australia are airing grievances about the amount of Canadian cannabis making it into Australia’s medical market. The author speaks with Nan-Maree Schoerie of ECS Botanics and Peter Koetsier, chair of Medicinal Cannabis Industry Australia—more on this from StratCann next week.

The New York Attorney General secured a US$9.5 million judgment against an unlicensed cannabis store owner: a combination of $1 million from the profit of sales and more than $8.4 million in administrative fines and penalties. The owner had been previously warned.

A proposal has been tabled in France aimed at further extending the country’s long-running medical cannabis ‘experiment’ to ensure patients can keep receiving their medication amid government inaction, reports Ben Stevens at Business of Cannabis.

A sixty-year-old woman from Lozère, in the southwest of France, is in trouble after filing a complaint for the repeated theft of her cannabis plants.

The Federal High Court in Lagos on Wednesday convicted and sentenced a 41-year-old Canadian woman, Adrienne Munju, to 11 years imprisonment for importing 35.20 kilogrammes of “Canadian Loud” (Cannabis) into Nigeria. Referencing several recent seizures of cannabis from Canada totalling 341.025 kg, the country’s Deputy Narcotics Commander, Tin Can NDLEA, Adanu Edoh, said, “What you are seeing now, they are all coming from Canada, which we never expected that drugs will come from there.”

BC pot shop fined for selling cannabis at too low of a price

Written by David Brown on October 25, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

A cannabis store in BC has been ordered to pay a $1,000 fine for selling cannabis at too low of a price.

Cost Cannabis in Revelstoke, BC was ordered to pay a $1,000 fine after it was ruled in a hearing in October that it had violated provincial rules that prevent a retailer from selling cannabis at a price below the price that the licensee paid to the government for the cannabis, and below the wholesale price of the cannabis on the day the licensee sells it to the patron.

A Notice of Enforcement Action (NOEA) issued to the business alleged that on April 22, 2024, BC’s Liquor and Cannabis Regulation Branch (LCRB) received a complaint that the retailer was advertising all products and accessories in the store were for sale at 50% off.

Following that report, an LCRB inspector conducted an inspection of the store on April 25. In the report, the inspector noted that they had asked about four specific products, and the staff member they spoke with confirmed that their sale prices were lower than their list prices.

A few days later, on April 29, the same inspector then sent a request to the store licensee asking for a list of cannabis products inventory, a list of cannabis sales records, monthly Health Canada reports, and cannabis purchase records for January through April. The licensee provided responses to these requests in May, except for the monthly Health Canada compliance reports.

Through this process, the inspector determined that the retailer had sold products below the price they paid the provincial wholesale distributor (LDB) for them.

From the options of a one to three-day licence suspension and/or a $1,000-$3,000 monetary penalty, the licence holder received a $1,000 fine. This was because it was the retailer’s first violation of this type within a one-year period.

The retail licence holder admitted that the province’s minimum pricing rules had been broken, accepting a financial penalty, but also argued that the rule for minimum pricing is not effective in the government’s stated goal of preventing over-service and/or over-consumption.

Instead, they argue the rule should be changed.

“The Licensee says the historical illegal market in cannabis sales continues to be significant,” reads the document. “These ‘grey sale’ cannabis products can and are being sold cheaper than the government-supplied cannabis products, and this disparity is pushing the industry to remain underground. This (the underground market) is much more likely to be a source of over-service and over-consumption than sales by Licensees for less than the minimum pricing. This is especially concerning as the grey market products may be tainted and are not as safe as the government-supplied products.”

The licensee will be required to pay the $1,000 penalty to the general manager of the Liquor and Cannabis Regulation Branch, on or before November 23, 2024. Signs will also need to be posted within the store showing that a monetary penalty has been imposed, and be placed in a prominent location by a Liquor and Cannabis Regulation Branch inspector or a police officer.

Featured image of a Cost Cannabis location in Ontario

Trichome Consulting Services named 2024 Cannabis Consulting Compliance Company

Written by Contributor on October 25, 2024. Posted in Business, Cannabis News.

In a recent press release, Trichome Consulting Services (TCSI) announced that it has been awarded the prestigious title of Cannabis Consulting Compliance of the Year in Canada 2024. This award reflects the company’s exceptional reputation and the trust it has earned among its clients and industry peers.

TCSI emerged as the winner after an exhaustive evaluation process conducted by a distinguished panel of C-level executives, industry thought leaders, and an editorial board. The numerous nominations submitted by satisfied subscribers of TCSI underscored the company’s continued commitment to delivering top-tier consulting and compliance solutions in the cannabis sector.

“This recognition reaffirms our dedication to providing exceptional cannabis consulting and compliance services,” said John Karroll, Founder of Trichome Consulting Services. “We are honored by the trust our clients have placed in us, and we look forward to continuing to support businesses in the cannabis industry with the highest level of service and expertise.”

With a proven track record in helping cannabis businesses navigate complex regulatory environments, TCSI has become a trusted partner for companies across Canada, offering tailored compliance solutions and expert guidance. TCSI invites cannabis businesses looking for compliance support to reach out for a no-obligation video consultation to explore how the company can help them navigate the ever-changing regulatory landscape.

About Trichome Consulting Services

Trichome Consulting Services (TCSI) is a leading cannabis compliance and consulting firm dedicated to helping cannabis businesses across Canada meet their regulatory requirements. With a focus on providing practical and strategic solutions, TCSI is committed to ensuring its clients remain compliant and competitive in the fast-evolving cannabis industry.

TCSI experts crafting solutions built for global markets

TCSI delivers exceptional results through a distinguished team renowned in the cannabis industry. A team of specialists with deep expertise in compliance, site design, and other critical areas ensures clients have the tools and knowledge to excel while facilities meet stringent regulatory standards. Driven by a culture of excellence and global readiness, the team helps clients remain compliant while crafting world-class operational designs. This expertise empowers clients to confidently expand into global markets, backed by a team that understands local and international demands. Aiming for long-term success beyond immediate compliance requirements, TCSI guides clients through all the intricacies and operational demands, establishing itself as a prominent force in the global cannabis industry.

As the industry moves toward international trade, businesses face the added challenge of steering through the global cannabis market. This involves securing licenses in Canada and partnering with companies worldwide to expand into new markets.

TCSI has strong partnerships worldwide, including in Europe, Central America, and Australia, and ongoing discussions with governments in Mexico and Belize. Leveraging these relationships assists clients who want to export their products to varied countries, even those with stringent regulations.

For inquiries, please contact:

John Karroll (CEO), Trichome Consulting Services Inc.
[email protected], Direct Ph: 250-575-4725

Sponsored Content by: Trichome Consulting Services Inc.

AGLC quickly corrects course on sampling rule change

Written by David Brown on October 23, 2024. Posted in Alberta, Business, Cannabis News, Government.

Alberta’s cannabis regulator is walking back a recent rule change for cannabis sampling, saying some of the messaging in an industry memo was incorrect.

In a memo that was sent out to cannabis companies on Friday, October 18, Alberta Gaming, Liquor and Cannabis (AGLC) said cannabis sampling could only take place in retail cannabis stores. The agency now says that parts of that memo were not accurate and sampling activities can still be conducted in age gated settings like industry events, not only retail stores.

The previous memo, the provincial agency now says, was only intended to serve as a reminder of existing policy.

“There was an error in the memo that went out on October 18,” a media representative for AGLC said in an email to StratCann. “AGLC apologizes for the confusion and any frustration this may have caused. An updated letter was sent today to clarify that policy has not changed and update the information that was shared with cannabis licensees.”

“The previous letter incorrectly stated that samples may only be provided in retail cannabis stores. The updated letter clarifies that policy does allow cannabis representatives and retail cannabis store licensees to promote cannabis products and accessories in places where persons under the age of 18 are prohibited. This provision allows for cannabis representatives to provide cannabis licensees samples at locations where minors are prohibited such as an industry event. The intent of the letter was to remind cannabis licensees that samples cannot be provided or sold to the public.”

Responding to concerns expressed in a StratCann article earlier this week, a new memo to industry from AGLC also notes that a “cannabis licensee” who is authorized to receive a cannabis sample can include those representing and acting on behalf of a licensee, such as a store manager.

This is not the first time such messaging had to be walked back by the agency. In September 2023, the AGLC reversed course after a policy change to delist products containing CBN was said to be based on a misinterpretation of federal messaging.

AGLC reduces SKU listing fee listing for cannabis producers

October 1, 2023

AGLC reverses decision on including CBN, THCV in THC total

September 18, 2023

AGLC delisting more than 500 cannabis SKUs

May 24, 2024

Manitoba extending pause of “controlled access” licensing another 18 months

Written by David Brown on October 23, 2024. Posted in Business, Cannabis News, Government, Manitoba, Retail.

Manitoba is extending its review of licences that allow some convenience stores to sell cannabis.

Earlier this year, Manitoba announced that it was pausing its “controlled access” licensing, which allowed cannabis sales in convenience stores, until October. In an announcement reported by the Canadian Press, the province is extending that moratorium for another 18 months, to December 31, 2025.

Such controlled access licences allow for cannabis to be sold in convenience stores and gas stations that carry other non-cannabis products. According to provincial rules, businesses holding a controlled-access licence may allow young persons to enter the store, but cannabis must not be visible or accessible.

“This is a very important issue, and the province wants to make sure we get this right,” said Glen Simard, the minister responsible for the Manitoba Liquor and Lotteries Corporation, in a written statement, as reported by the Canadian Press.

“That’s why we are extending the pause to continue our consultations.”

Some cannabis retailers in the province have, in the past, expressed concern about such licences. Melanie Bekevich, the owner of Mistik Cannabis in Winnipeg and a member of the Retail Cannabis Council of Manitoba (RCCMB), told StratCann in April that the organization had met with the Manitoba government to express their concerns with how these licences are being issued.

When the moratorium was first announced, Edwardo Famakin, a spokesperson for Manitoba cannabis producer WOWKPOW, told StratCann that he and his partners were “blindsided” by the announcement as they were in the final stages of receiving approval for an agreement with Manitoba retail/gas station Domo to supply the chain with their locally-produced cannabis products.

At the same time, Raj Grover, the CEO of High Tide Cannabis, which operates several Canna Cabana cannabis stores in the province, said he had concerns that the licences were being granted in ways that may not have fit with the intention of the rule.

“We applaud Manitoba’s new NDP government for confirming today that it will place a six-month moratorium on new controlled access cannabis retail licences,” said Grover in April. “These licences were intended to provide access to legal cannabis in rural communities without an established legal retail cannabis store; however, many of the controlled access licences were granted to convenience and grocery stores within downtown Winnipeg. We hope that the six-month review will help establish important guardrails to ensure that these licences are limited to underserviced communities only, as was originally intended.”

Manitoba businesses caught off guard by province’s recent “pause” on “controlled access” retail cannabis licences

May 3, 2024

First of Manitoba’s new “phase three” cannabis retailers to open soon

July 31, 2020

Five private cannabis distributors now fully licensed by Manitoba’s LGCA

July 4, 2024

AGLC says sampling restricted to retail store owners in Alberta (This decision has now been reversed)

Written by David Brown on October 21, 2024. Posted in Alberta, Business, Cannabis News, Government, Producers.

The AGLC is reminding the Canadian cannabis industry that cannabis product samples may only be provided by provincially-registered cannabis representatives within retail stores.

Note: AGLC has now said this memo was incorrect. You can read about this correction here.

The provincial cannabis regulator (Alberta Gaming, Liquor and Cannabis) sent out a memo on October 18 to all cannabis licensees, representatives, and suppliers, reminding them of the province’s rules around cannabis sampling.

While AGLC allowed cannabis sampling in 2023, cannabis suppliers must be registered with AGLC as “cannabis representatives,” and samples can only be provided by those representatives directly to retail cannabis store licensees in retail cannabis stores.

These product samples, reminds AGLC, are for licensee use only and may not be provided directly to a licensee’s staff or the general public.

The memo also notes that “AGLC inspectors attended recent cannabis industry events and observed Cannabis Representatives and Cannabis Suppliers providing cannabis product samples to event attendees.”

From the memo:

“Cannabis product samples may only be provided by Cannabis Representatives directly to Retail Cannabis Store Licensees in retail cannabis stores. Cannabis product samples are for licensee use only and may not be provided to a licensee’s staff or the general public. They must meet all Health Canada requirements including packaging, labeling and federal compliance reporting. Records of all cannabis product sampling activities must be retained for 6 years. Cannabis Suppliers are not permitted to represent or promote cannabis products in Alberta including engaging in cannabis product sampling activities unless they are a registered Cannabis Representative with AGLC. Cannabis Representatives and Cannabis Suppliers may not sell or give away cannabis products in Alberta.”

Trina Fraser, who works with many clients in the cannabis industry as a partner at Brazeau Seller Law in Ottawa, says she has some initial questions about the new guidance provided in the memo.

“The clarification that samples can only be provided within retail cannabis stores (thereby prohibiting the provision of samples at industry events taking place outside of a retail store) is new,” Fraser tells StratCann via email. “That said, it has always been clear that the quantity limit is on a ‘per licensee’ basis (as opposed to a ‘per budtender’ basis), making compliant distribution at events challenging.

“It is interesting, though, that they say samples are ‘for licensee use only and may not be provided to a licensee’s staff’,” she adds. “Most licensees are corporations. How does a corporation “use” cannabis? Who exactly are you providing the sample to, if not to a staff member?”

Randy Rowe, CEO and President of the Grow Up Conference and Expo, which held its two-day industry conference and trade show in Edmonton in September, said he’s surprised by the memo and is prepared to take all steps necessary to ensure his event and its attendees remain compliant.

“I agree that there needs to be strict processes for handing out samples,” says Rowe, who has worked with other provinces to ensure that all his events carefully track any sampling activities that may occur at his trade shows—information he’s happy to provide to regulators as well as brands.

“It’s not affordable for smaller craft growers to compete with larger producers that can go store to store providing samples,” adds Rowe. “Holding events that allow compliant sampling is essential for brands to get their product to as many retail cannabis store licensees as possible. By allowing compliant sampling, brands can hit hundreds of retail stores in one day, saving thousands of dollars.”

Jen Meyers, CEO & Founder of Alberta-based micro processor Zelca Ltd., tells StratCann that she would prefer to see the province find a way to regulate sampling at events because it’s more cost-effective for smaller companies like hers rather than needing to hire a marketing agency to visit hundreds of stores across the province.

“Do you know how hard it is to get to all the stores? It’s very nice to be able to go to an event and talk to 30 retailers in an hour. They can’t just kill that altogether. How can I, as a small producer, get out to all those stores if I do want to give them samples?”

The AGLC lists more than 700 licensed cannabis retailers in the province.

Kendra Richter, an assistant manager at Calgary Co-op Cannabis, says she’s open to guidance, but is left with more questions than answers with the way the memo is worded.

“I agree that there needs to be strict processes for handing out samples. The surprise here is this feels over and above the initial cannabis sampling policy. It’s interesting that they put this policy in place and let it run for over a year and are now adding to it in this way.”

Two key pieces she’s reaching out to the AGLC to get more clarity on are the requirement that samples be provided to the licensee rather than a store owner, manager, or buyer and if the part about samples not going to employees applies to store managers like herself, as well.

“The way this has been presented is as if it’s just making sure we’re aware [of existing policy], but I think more questions need to be asked so we can know what this really means.”

Alberta’s rules for cannabis sampling allow for a maximum size of 3.5 grams of flower or its equivalent in other product types. For products that are not available in that small of SKU size, the smallest available product may be used instead. Records of all samples provided must be retained for six years and are subject to AGLC review upon request. Each product may be sampled no more than twice in a calendar year.

*The Kind cannabis sampling event took place in Edmonton recently.*

Health Canada confirms cannabis samples are allowed

February 12, 2024

Alberta makes changes to cannabis sampling rules, event sales, and more

January 31, 2024

BC gov reviewing cannabis sampling rules for producers, retailers

August 3, 2023

Yukon cannabis report highlights need for cannabis consumption spaces for tourists

Written by David Brown on October 21, 2024. Posted in Business, Cannabis News, Government, Retail, Yukon.

Municipalities in the Yukon say there is a need for public consumption spaces in the Territory to provide a legal space for tourists to smoke cannabis when visiting.

Currently, cannabis consumption is only allowed in a private residence in the Yukon, and adjoining property, although the Territory’s regulations do allow for other possibilities for other types of locations in the future.

Despite this ban, in a recent survey, municipalities told the territory about what they say are high rates of cannabis smoking and vaping in outdoor public spaces. The territory sees hundreds of thousands of tourists annually, a significant part of the economy.

This call for public cannabis spaces was just one of many pieces of feedback provided to the Yukon government as part of its recently released five-year review of its cannabis legislation and regulations, as well as the overall impact of federal legalization.

In a new What We Heard report, which helped to inform its Five Year Review report, an array of issues are highlighted from the 307 responses received, as well as engagement with First Nations, municipalities and local advisory councils, RCMP, MADD, and many other organizations and government officials.

Among the feedback and recommendations:

Concern with “normalization” and public consumption, overall health risks, youth use rates, and impaired driving, including consumption while driving.
Concern about illicit online stores and what RCMP say are challenges with enforcement.
Call for more education of the general public about the harms and effects of cannabis.
Better insight is into how the government uses cannabis tax revenues.
Municipalities expressed concern with excess packaging leading to litter.
Retailers want to be able to sell products other than cannabis, like t-shirts, water bottles or snacks, and offer loyalty programs. Some would like to buy cannabis directly from producers.
More clarity around what constitutes a “THC unit” for proper dosing.

Yukon cannabis industry

The five-year review also notes some statistics about the overall result of the industry in the territory in the first five years of legalization.

The legal cannabis market in the most western of the three territories has grown from just over $2 million in 2018/19 to $13 million in 2023/24. More than 80% of Yukoners acquired their cannabis from legal sources within the territory.

Yukon has six cannabis retailers which employ around 40 people. Cannabis distribution is overseen by the Yukon Liquor Corporation (YLC). Wholesale-to-retailer sales went from $3.5 million in 2019-2020 to $9.2 million in 2023-2024.

The territory sold 495,850 units of pre-rolls from 2018-2023 and 448,993 units of dried flower (all SKU sizes). Edibles sold more often than vapes (272,775 vs 136,233).

During the 2023/24 fiscal year, the Yukon Liquor Corporation remitted $369,000 to the Government of Yukon’s general revenues in relation to cannabis. The Yukon government received $952,639 from its share of the federal cannabis excise tax. The report says the Yukon government uses all cannabis-related profits for general government services and programming.

Cannabis laws

There were 73 total violations from cannabis-related charges from 2019-2023, the majority (40) for unauthorized possession/care and control in a vehicle. There was one reported charge for public consumption in this time period.

Public Health

Cannabis-related emergency department visits increased from 40 in 2016 to 104 in 2021 (with a drop in 2020) before declining significantly to 50 in 2023. There were 275 emergency room visits related to cannabis use in the five years before legalization and 471 in the five years after. The paper notes this could be due to an increase in consumption or because people felt more comfortable presenting at an emergency room with a cannabis-related issue after its use became legal.

While the rate of cannabis use among young people remains a concern, the age at which Yukoners say they first tried or started using cannabis has increased with legalization, from 18.9 in 2018 to 20.8 in 2023.

Those who report consuming cannabis actually declined from 2022-2023 for those 16-35 and over 56, while it stayed the same for those 36-55.

With website closure, Yukon completes handover of cannabis retail sales to private sector

October 17, 2022

Yukon introduces new special order program for low-demand cannabis products

October 25, 2022

Yukon sold more than $6 million worth of cannabis last year

October 19, 2021

Week in Weed – October 19, 2024

Written by Staff on October 19, 2024. Posted in Business, Cannabis News, Government, International, Producers.

In this past week in weed, StratCann looked at the more than a billion dollars worth of cannabis sold in Ontario in the first half of 2024, while an industry group in BC is highlighting just how little cannabis growers get for the weed consumers buy.

A new cannabis lounge in Toronto, connected to Lit Research, is launching a study looking at how weed and music interact. A BC cannabis nursery and university are collaborating on a cannabis barcoding project, and the BC Budtenders Union secured a contract win for a Vancouver cannabis store.

The Cannabis Retailer Summit on Tuesday, November 12, 2024, aims to bring Ontario’s leading retailers together.

In our Insight series, we talked about how Canada’s illicit cannabis market is making a comeback, we interviewed Suzanne Bergeron, President and CEO of the SQDC, and we ran the most recent installation of the Good Weed Board.

In finance news, Avant Brands released their Q3 2024 results, and a US court gave preliminary approval of a US$8 million settlement in an investor lawsuit against Aurora Cannabis.

In other cannabis news, Thursday was the six year anniversary of cannabis legalization in Canada…

Trudeau remembered he legalized weed, which is nice.

As StratCann reported last week, the OCS launched a fake illegal weed shop to draw attention to issues with the reemerging black market in Ontario.

Global News in Manitoba spoke with the owners of retailer WowKPow and others about the cannabis industry on the six year anniversary of legalization.

A team of researchers affiliated with York University in Toronto found Cannabis-related emergency department visits declined among schizophrenia patients following “phase 1” of cannabis legalization in Canada (dried flower/oil). Phase 2 (edibles, extracts, and topicals) was not associated with any significant changes.

New Brunswick’s Crystal Cure has been documenting the process leading up to their recent licence revocation which went through this past week. Check them out on Instagram to follow along with this informative look at the layers of bureaucracy. We spoke with Jonathan Wilson at Crystal Cure recently about the decision to revoke their licence, which can be read here.

Cannabis wholesale trade and inventories dropped to a year-over-year low of $251 million in August 2024, according to Statistics Canada.

Health Canada is hosting the next session of its Virtual Learning Series on October 29, 2024. The session’s topic will be “Demystifying Regulatory Requirements – What to Expect During a Cannabis Inspection.”

The owners of Flora Cannabis in BC are looking to expand their business to a fourth Kelowna location. Flora currently operates three stores in Kelowna, one in West Kelowna, one in Prince George, and another in Vernon.

CBC ran a piece on Indigenous cannabis businesses in Canada, speaking with Chief Robert Gladstone at All Nations in BC and Tonya Perron in Kahnawà:ke, just south of Montreal. StratCann interviewed Perron in 2021 about the community’s efforts to regulate cannabis in their community.

Nova Cannabis shareholders approved a proposed plan of arrangement with SNDL. The Arrangement is expected to close on or around October 18, 2024.

MediPharm Labs Corp. announced that President and Co-Founder Keith Strachan will be stepping down from his management position effective December 31, 2024. He will continue to provide strategic support and guidance to the Company by joining the Board of Directors effective January 1, 2025.

Canopy Growth Corporation announced that it made an early prepayment under its senior secured term loan in an aggregate principal amount equal to US$100 million at a discounted price of US$97.5 million. This prepayment was agreed to between the company and its senior lenders as part of a series of amendments to a term loan.

Aurora Cannabis and their subsidiary MedReleaf Australia announced an enhanced product range of medical cannabis oil in Australia, including Aurora THC 25 (Sativa) in a 30mL bottle, Aurora THC 25 (Indica) in a 30mL bottle, Aurora 12.5:12.5 oil in a 30mL bottle, Aurora 50:50 oil in a 30mL bottle, and Aurora 10:100 oil in a 30mL bottle.

Simply Solventless Concentrates Ltd. announced that it has closed the previously announced acquisition of all the outstanding shares of ANC Inc.

Get Sensible, a project by Canadian Students for Sensible Drug Policy (CSSDP), launched a 4-part video series of Cannabis Public Service Announcements, parodying PSAs of the past to reach young people with evidence-based strategies to reduce the potential negative outcomes of cannabis use.

The BC Securities Commission (BCSC) alleges illegal distribution and unregistered trading connected to a BC-based cannabis company, RoccaVerde Wellness Corporation (formerly known as World Farms Corp.).

Nextleaf Solutions Ltd. launched a virtual tour of their Coquitlam BC cannabis processing facility. The on-demand, self-guided, 4-part tour was made possible by a grant from the Canadian Digital Adoption Program (CDAP).

City View Green Holdings Inc. announced that it intends to raise gross proceeds of up to $1 million through a non-brokered private placement of up to 100,000,000 units of the company at a price of $0.01 per unit.

The Government of Yukon completed its five-year review of the Cannabis Control and Regulation Act. Cannabis wholesale-to-retail sales in the Yukon have risen from $2.03 million in 2018–19 to $9.2 million in 2023–24, but the Territory has concerns with high rates of consumption.

LeDevoir notes that Quebec, along with the Yukon, is the most permissive in Canada when it comes to alcohol consumption, but it is the strictest when it comes to the age of cannabis consumption.

Public Health Quebec released a report on the use of cannabis and other psychoactive substances among young people aged 18 to 24 attending adult education centres.

Irish media outlet The Journal toured Coast Mountain Cannabis (CMC) in Pemberton, British Columbia.

New analyses of maternal cannabis use during early pregnancy find no evidence of increased risk of early developmental delays up to age five or of autism spectrum disorder.

A study published in Nature says cannabis use can leave an impact on your DNA.

A Denman Island cannabis facility and home on 5+ acres in BC is for sale for $2.5 million.

International cannabis news

A new study in the US that looks at incidences of fentanyl co-occurrence with other drugs says that co-occurrence with cannabinoids was below 0.3%. There are regional differences to these national figures, though, with the study noting that recently, there have been more incidences of this in some northeastern and Appalachian states like Kentucky.

US VP and Presidential candidate Kamala Harris once again reiterated her support for cannabis legalization in a podcast interview this past week. Shockingly, USA Today has an excellent, in-depth write-up on the issue with some historical context. Legalization in the US would still require Congressional approval before making its way to the President’s desk, so don’t hold your breath.

The US Supreme Court tackled a case involving a New York state man who was fired from his job as a commercial truck driver for failing a drug test after taking cannabidiol, or CBD, that he said was falsely sold as lacking the psychoactive ingredient present in cannabis. The justices are expected to rule on the case by mid-2025.

California’s emergency ban on certain hemp products cleared a recent legal challenge brought by cannabis businesses that sought to block the new rules. The ruling keeps in place emergency regulations taken into effect in September intended to prevent the use of THC products masquerading as hemp products.

The Freakonomics Radio podcast asks Is America switching from booze to weed?

Finally, beginning October 17, the majority of doctors in Germany will be able to prescribe medical cannabis for reimbursement without securing prior approval from health insurance companies.

BC Budtenders Union secures contract wins for Vancouver cannabis store employees

Written by Staff on October 18, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

A union representing cannabis retail workers in British Columbia says it has secured key contract wins for workers at a Vancouver cannabis store.

The BC Budtenders Union, which represents workers at several cannabis stores in BC, first served strike notice at a Canna Cabana in Vancouver on October 8 following a vote in favour of a strike by employees in May.

The Union, UFCW 1518, now says they have received concessions from Canna Cabana addressing employee concerns. Those concessions include ensuring a minimum of two members on duty, with an additional staff member available on weekends, allowing workers to receive tips, creating full-time positions, paid breaks, and paid education and bereavement leave, with eligible employees receiving access to group health and medical plans.

“These workers stood together and were united in their fight for a fair contract by delivering a 100% strike vote,” said UFCW 1518 President Patrick Johnson. “United, the committee returned to the bargaining table with a strong mandate and won significant improvements, including new full-time positions, adequate staffing levels, paid breaks, and benefits.”

Canna Cabana is part of a chain of cannabis retailers across Canada that is owned by parent company High Tide, which operates more than 180 stores, including eight in BC. BC doesn’t allow a company to operate more than eight cannabis stores in the province. Four are located in Vancouver, and the other four are spread out across the province, including Fort St John, Prince George, Kamloops, and Cranbrook.

In March of this year, the union announced that employees at the Davie Street Canna Cabana had joined the BC Budtenders Union. At the time, the union said staff were pushing back against low wages, minimal protections, and limited job security.

The BC Budtenders Union has slowly been gathering members since it became the first union to represent budtenders in Canada in 2020. There has been an increase in cannabis store employees joining unions in the past year, especially in BC and Ontario.

As of April 2024, the BC Budtenders Union said it represents workers at nine cannabis businesses and 16 locations.

Budtenders Association launches new travelling cannabis event

September 18, 2022

BC Budtenders’ Union gives strike notice to Vancouver Canna Cabana

October 9, 2024

More than 100 budtenders in Manitoba accept their first collective agreement

June 15, 2023

Cannabis research lounge in Toronto exploring cannabis and music

Written by Staff on October 18, 2024. Posted in Business, Cannabis News, Ontario, Research.

A new cannabis consumption lounge is now open in downtown Toronto, and it’s looking to explore the relationship between cannabis consumption and music.

Operating alongside cannabis retailer Body and Spirit Cannabis and Lit Research, Club Lit is a new, legally operating cannabis consumption lounge at 361 Yonge Street.

Like its neighbour at Lit Research, the Club Lit lounge operates for research purposes only. An example of that research is a new observational study, in collaboration with Toronto Metropolitan University (TMU), to better understand how cannabis influences auditory experiences and musical enjoyment.

The new program is launching with a grant from the Science of Music, Auditory Research, and Technology (SMART) Lab at TMU, located just steps away from Club Lit.

Made possible by an Accelerate Grant from Canadian nonprofit Mitacs, the SMART Lab will utilize the new cannabis consumption space to explore how the level of high may affect how a listener engages with music.

“The research we conduct in this space will break new ground,” says Frank Russo, Director of the SMART Lab. “I am particularly interested in the concept of absorption in music and to see how it might be altered while under the influence. Looking ahead, I can see how this might even open new avenues of research on music-based treatments for mental health.”

Club Lit is located on the same block as TMU’s Student Learning Centre, providing the centre with more immediate access to a real-world laboratory for cannabis research and education.

Al Shefsky, President of Cannadigm, which operates Lit Research, said: “We are excited to collaborate with TMU on this groundbreaking research initiative at Club Lit. Cannadigm is leveraging our team’s extensive cannabis knowledge and expertise to enhance consumer experiences, supporting academic research that has the potential to improve people’s enjoyment and quality of life.”

Shefsky also owns and operates the neighbouring cannabis store Body and Spirit Cannabis and is the founder of Lit Research. Launched in 2022, the latter has been hosting regular sessions that seek to help cannabis producers and brands provide a unique, value-added educational experience to anyone looking to learn more about their products.

The Health Canada-licensed research facility says it has administered and collected data from over 12,000 individual product testing sessions to date. Cannadigm’s new consumption space, Club Lit, is located adjacent to but separate from Lit Research and bills itself as a real-world observational laboratory where participants may consume cannabis while enjoying music and authentic cannabis culture, all in support of academic research and education.

Club Lit is located at 361 Yonge Street, Unit C, in the heart of Downtown Toronto. More info on Club Lit can be found here.

BC seeking feedback on cannabis consumption spaces for cafes, festivals, spas, and more

Manitoba explores cannabis consumption lounges

September 18, 2020

Cannabis consumption space provides examples for BC government

September 18, 2023

Ontario sold more than a billion dollars worth of weed in the first half of 2024

Written by Staff on October 17, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Authorized cannabis stores in Ontario sold more than one billion dollars worth of cannabis in the first half of 2024.

This was 21% more cannabis by volume and 11.8% in dollars sold in the first six months of 2024 compared to the same period in 2023, according to new figures shared by the Ontario Cannabis Store (OCS).

Total cannabis sales at legal, licensed stores in Canada’s most populated province totalled $1,029,614,280, from an array of 4,746 different SKUs. The average wholesale (not retail) price of cannabis sold in this time frame was $3.84 a gram, not including HST. This figure includes both dried flower and pre-rolls.

Ontario had 1,721 authorized retailers as of June 20, 2024, a 3% year-over-year increase. The number of stores increased in every part of Ontario except for Toronto, which lost 11 stores compared to the same period in 2023, a 3% year-over-year loss.

New store authorizations have slowed down considerably. There were 123 new stores “onboarded”* from January 1 to June 30, 2024, a 20% decrease from the first six months of 2023. There were also 80 stores offboarded from January 1 to June 30, 2024, a 13% decline from the number of stores that closed in the first six months of 2023.

*Onboarding is the process an authorized retailer and authorized cannabis store goes through to be able to access the OCS online B2B portal for wholesale orders.

The OCS distribution centre shipped 204,314,110 grams of cannabis (and its equivalent) to authorized stores over this period, an increase of 18.5% year-over-year.

The number of units of cannabis pre-rolls delivered to stores surpassed dried flower in early 2023, with that trend increasing in the first half of 2024. The OCS delivered 34,063 total deliveries in this time period, a 5% year-over-year increase, and delivered more than 50 million units.

Cannabis vapes remain the most common source of product complaints, with 71% of the 14,161 complaints relating to vapes, just 16% relating to dried flower products and 9% related to extracts.

The number of SKUs available through the OCS’s flow through program increased considerably in the first half of 2024, while the number of active SKUs stocked at the OCS distribution warehouse remained relatively consistent.

Total grams of cannabis sold in the first six months of 2024 were 190,527,442, a 21% increase from the 157,495,201 grams sold in the first six months of 2023. And while cannabis sales have appeared to cool off nationally in the past year, the OCS says the total value of legal cannabis sales in the first six months of 2024 was $1,029,614,280, an 11.8% increase compared to the $921,021,041 sold over the same period in 2023.

Dried flower still dominated retail sales, followed by pre-rolls, infused pre-rolls, and vapes. A new report available to OCS vendors says that 58% of consumers are looking for lower-potency cannabis products so they can have more control over their dose.

The average wholesale price per gram of pre-rolls in the first half of 2024 was $4.63, while a 3.5 gram SKU was $5.24 per gram. A 7 gram SKU was $3.56, a 14 gram was $3.66, and a 28 gram was $2.82.

While the OCS sets wholesale prices for cannabis in Ontario, retailers choose their own retail price. According to Headset, a cannabis data tracking company, the average price of cannabis at retail stores as of September 2024 was $9.39 in Ontario. This is slightly higher than BC, but lower than Alberta, says Headset. The average sale price for cannabis in Quebec in the three months ending June 22 was $5.84.

OCS launches more detailed sales metrics for producers

August 23, 2024

A tale of two markets: The future of retail cannabis in Ontario and Quebec

August 27, 2024

Cannabis-related complaints to Ontario’s Ombudsman lowest since legalization

June 28, 2024

How much does a legal weed grower in Canada actually get from that ounce you bought?

Written by Staff on October 16, 2024. Posted in British Columbia, Business, Cannabis News, Government, Producers, Retail.

Ever wonder just how much of your hard-earned dollars make it back to the grower when you pick up some weed at the store?

A group of BC-based cannabis businesses recently launched a campaign to draw attention to just how little cannabis growers receive for their cannabis amidst a complex supply chain.

While the general public may think the cannabis industry is awash in cash, the reality is much more dire, especially for small, craft growers who are not propped up by investor dollars.

The BC Cannabis Alliance—comprising around two dozen cannabis cultivators and processors in BC—says they are seeking to draw attention to how issues like provincial and federal taxes and fees impact growers, especially BC’s small craft cannabis growers.

As part of the campaign, the Alliance is sharing information with retailers and consumers on where the money consumers pay for cannabis actually ends up. Using a series of infographics that feature popular dried flower SKUs in the BC market, the organization breaks down how various levels of government receive a little over half of every dollar spent. In contrast, cannabis producers receive less than 20%.

Using one example produced by the Alliance, a popular 28-gram package of cannabis sold in BC for about $82:

nearly $9 goes to sales tax
another $28 goes to the excise tax (75% of which goes to BC)
The BC LDB receives another six dollars as the distributor

This leaves about $15 for the producer out of the $82 the consumer spends, with that $15 often further divided between processor and grower.

Various cards highlighting different popular flower SKUs in BC will be shared with retailers in the coming weeks.

In addition, the Alliance is highlighting an additional fee charged by the BC government to use their Direct Delivery program, which allows some small BC growers to ship directly to retailers. This program was touted as a way to help small, craft growers and producers in BC, but the BC LDB has kept the 15% “proprietary fee” they charge to warehouse and distribute cannabis attached to these direct sales. This is despite the provincial cannabis distributor not actually handling or processing these direct sales in any way.

“The addition of this 15% markup to be paid to the government, despite them not ever handling the product at any point in the supply chain, is an example of the government saying one thing ‘to support small farms’ and doing the opposite,” says Alannah Davis, CEO of Dabble Farms, who is a part of the Alliance.

The organization has also created a petition to draw attention to this BC-specific issue, which calls for the BC LDB to drop its “Proprietary Fee” for Direct Delivery from 15% to 3.5% to help improve economic viability for all BC’s craft producers.

“BC is now home to some of Canada’s favourite cannabis brands, but excessive taxation means our best growers, processors, and retailers are struggling to get by,” says the organization’s website. “Between taxes, fees, and mark-ups, the government often takes the most while contributing the least. For BC’s most popular products, that take can be more than half.

“We’re here to rally support for simple changes while helping policymakers create a more sustainable cannabis industry.”

More information can be found at BCCannabisAlliance.c om.

Alberta and BC reach agreement over wine sales. Cool, now do cannabis

July 18, 2024

BC’s cannabis Direct Delivery program is growing, but fees still too high

May 29, 2023

The rocky road to excise duty reform

February 28, 2024

Week in Weed – October 12, 2024

Written by David Brown on October 12, 2024. Posted in Business, Cannabis News, Government, International.

There’s been quite a bit of cannabis news this week. Here at StratCann, we spoke with cannabis producers about their frustration with excise stamps amid the call for a single, unified federal stamp. We also spoke with the CEO of an Edmonton cannabis beverages company, who says testing he’s done shows most beverages are inaccurately labelled in Canada. At the same time, freelancer Jon Hiltz looked into the complex issue of why it’s so hard to shut down illicit online cannabis stores.

A new study looks at the impacts of cannabis legalization on organized crime in Canada, and the BC Budtenders’ Union gave a strike notice to a Vancouver Canna Cabana.

The OCS has a cheeky new campaign that includes a faux illegal pop-up cannabis shop in Toronto. Quebec’s Santé Cannabis launched a 3-year real-world evidence study and, as subscribers of our Monday newsletter will know, Bedrocan is returning to Canada after receiving a cultivation licence on September 27.

In financial cannabis news, Freedom Cannabis seeks more time to resolve a lease dispute, a Court approved an RVO for Atlas Global Brands against CRA’s “emphatic” objections, and Tilray’s newest quarterly reports show the company’s adult-use cannabis and international revenue down year-over-year.

In law enforcement news, 500 kg of cannabis from Canada was seized in Hong Kong, the OPP seized thousands of cannabis plants from a Ramara property operating outside the scope of a personal or designated production licence, and three men were jailed in the UK for trying to import cannabis from Canada.

In other cannabis news…

iPolitics’ QP Briefing ran an opinion piece looking at some of the known challenges with accurate THC testing in Ontario’s cannabis industry from David Albert, a principal with Wellington Dupont, a public affairs and government relations firm.

Brantford Micro Grow in Ontario says the province’s energy rebate program left them high and dry after he was unable to receive compensation for new LEDs.

Outdoor micro cultivator Wildwood Flowr is now New Brunswick’s seventh cannabis farmgate store.

High Tide opened two new Canna Cabanas in Toronto, bringing the total number of Canna Cabana branded retail cannabis locations to 185 in Canada. There are now 71 stores in the province of Ontario, including eleven in Toronto.

Tilray announced the launch of the new Charlotte’s Web gummies in Canada. They come in a 30-pack bottle with two flavours. Each gummy contains 25mg of CBD, ensuring a consistent and enjoyable experience.

Rubicon Organics Inc. announced the publication of its fourth annual Environmental, Social and Governance Report (“ESG Report”) for the year ended December 31, 2023. The organic cannabis grower says they cut their carbon footprint by 48%, increased landfill waste diversion through recycling, repurposing waste as biofuel and a focus on composting, and reduced voluntary turnover by 14% year-over-year.

A woman trying to express her concerns about abortion in front of a cannabis store in Beamsville, Ontario, was joined by several people holding up signs for cannabis.

BC Cannabis retail association ABLE BC announced they had reached 100 cannabis retail members after holding their first in-person meeting in Vancouver and welcoming new members to their recently formed Cannabis Advisory group.

Canopy Growth Corporation confirmed it has completed Canopy USA’s acquisition of Wana, including Wana Wellness, LLC, The CIMA Group, LLC, and Mountain High Products, LLC. Canopy USA now owns 100% of the outstanding equity interests in Wana.

HYTN Innovations Inc. announced that it received an additional Good Manufacturing Practices (GMP) certification for its Kelowna manufacturing facility. This certification now includes distribution as a licenced activity under HYTN’s Drug Establishment Licence (DEL) issued by Health Canada. HYTN is a pharmaceutical company that specializes in the formulation, manufacturing, marketing, and sale of products containing psychoactive and psychotropic compounds, including cannabis-derived cannabinoids and psilocybe-derived tryptamines.

A post on Psychology Today debunks the “lazy stoner” stereotype.

An appeal commission finds that a worker in Alberta is entitled to coverage for an additional 0.5 grams of cannabis a day beyond his 3-gram-a-day coverage.

The Dales Report visited Pure Sunfarms in BC and shared a video of the experience.

Cronos Group Inc. says its Spinach brand has risen to the best-selling cannabis brand in the Canadian market in August, according to HiFyre Retail Analytics’ National Retail Dollar Sales by Brand in Canada. HiFyre’s parent organization is Fire & Flower.

The Mohawk Council of Kahnawá:ke has extended the application deadline to the Kahnawá:ke Cannabis Control Board (KCCB) to October 18. Earlier this year, the board announced the enactment of two regulations for the Kahnawá:ke Cannabis Control Law, one concerning alternate board members and one concerning registered suppliers under the Kahnawá:ke regulations.

A Quebec court granted an injunction to stop illegal dumping from off-reserve in Kanesatake, a Mohawk settlement on the shore of the Lake of Two Mountains in southwestern Quebec. The claims include names of two cannabis dispensaries that have been built along the filled-in shoreline, High Times Oka and Golden Star Oka. Timelapse on Google Earth shows the development of these sites in the last few years. Google Maps shows at least 13 cannabis stores within a 3 km stretch in the community.

The Kahnawake Peacekeepers are warning parents to be vigilant after minors in the community were caught using Snapchat to buy cannabis products. A 22-year-old man from Kahnawake was arrested last month following the incident.

A Cannabis NB employee will stand trial late next year on allegations she robbed the store where she worked after allegedly stealing thousands of dollars worth of cash and product a month earlier. Ten days are scheduled for the trial, beginning November 17, 2025.

A new study found a “significant correlation” between THC dose and short-term pain relief for lower back pain, suggesting that higher THC doses were associated with greater pain reduction.

North Bay (ON) Toronto, and Vancouver were the top three cities in Canada with the most late-night cannabis orders through Uber. Uber’s cannabis listing service for delivery is currently only available in BC, Ontario, and Alberta.

Wastewater tested in Halifax in 2023 contained almost twice the amount of cannabis metabolites compared with samples taken from other big cities in Canada, like Toronto or Montreal.

A college video project posted on YouTube from 1980 talks with young people of Halifax on perspectives toward cannabis use and legalization in Nova Scotia.

A man found guilty of conspiracy to export several hundred pounds of cannabis from Canada and conspiracy to import cocaine after he was caught up in a 2021 OPP operation called Project Southam has received a nine-year sentence.

A judge gave him sentences of four years and nine years in relation to two charges connected to conspiracy to traffic cocaine and two years less a day for the charges related to exporting cannabis from Canada. The time is to be served concurrently.

International cannabis news…

Politico ran an in-depth piece on California’s complicated struggles in dealing with the deeply embedded and under-enforced illicit market. Many of the issues are quite similar to Canada.

A 56-year-old woman who was caught with a quarter of a million euros worth of cannabis (no weight reported) at Dublin Airport following her arrival from Toronto, Canada, on March 27 this year has been jailed for two and a half years. She said she answered a job posting online and was promised $10,000.

Hong Kong customs officers arrested three suspects and confiscated 500 kg of cannabis in a sea shipment of soybeans from Canada, bringing the total amount of the plant seized this year to 2.6 tonnes.

Some 48% of employers in the US don’t test for cannabis in the pre-hire process and many say this is to ensure they meet their acquisition and retention goals. And 44% of organizations that do test for weed report facing challenges recruiting qualified candidates.

The New York Times reports that cannabis and opium poppy production became national security issues in the US after supply chain disruptions that made critical medicines scarce.

Medicinal cannabis doctors in Australia are being investigated by authorities after suicide and hospitalization of patients. The pharmacist who founded a medicinal cannabis company has been banned from supplying cannabis, and two doctors have been suspended after two men with mental health conditions were prescribed medical cannabis by the business. One was hospitalized with psychosis; the other took his own life.

A New York court upheld Cayuga Nation Council’s move to shut down an unlicensed cannabis store against objections from the owner who rejected council authority.

The Maine Office of Cannabis Policy (OCP) issued a health and safety recall for specific pre-ground adult-use cannabis flower, pre-rolls, and blunts due to bacteria and mould concerns.

Bedrocan is returning to Canada

Written by David Brown on October 10, 2024. Posted in Business, Cannabis News.

Bedrocan International recently received a licence to again produce cannabis in Canada.

The Netherlands-based producer of pharmaceutical-grade cannabis for medical purposes received their licence to cultivate from Health Canada on September 27.

In a press release, the company says it recently purchased its old Bedrocan facility in Scarborough, Ontario.

The company says this fulfils its “long-held promise of returning to Canada” to grow standardized medicinal cannabis for Canadian patients. Now licensed for cultivation, the company plans to begin production of cannabis in early 2025.

Bedrocan’s CEO Jaap Erkelens on Bedrocan’s attention to patients: “We have had a strictly pharmaceutical approach since our foundation in 2003. We use the knowledge we have acquired in more than twenty years of business to produce cannabis products that benefit patients exclusively. In the same vein as prescribing physicians, patients want a reliable, standardised product with the same therapeutic effect time after time.”

Bedrocan’s approach to cannabis has long been to produce a limited number of cultivars with consistent THC and/or CBD levels, something the company plans to bring with them in their return to Canada.

Bedrocan says they plan to bring several of these standardized cannabis products to the Canadian market, especially their flagship brand Bedrocan®.

The company plans to eventually distribute its products through a third party’s medical sales channel to registered patients in Canada.

Bedrocan was one of the first licenced cannabis producers in Canada, but eventually ceased its activities after selling all its shares to Canopy Growth in 2016.

“We are thrilled to be coming back to Canada,” said Erkelens. “We look forward to serving patients in Canada and positively impacting the Canadian healthcare landscape.”

A previous legal settlement between Bedrocan and Canopy Growth prevented the former from doing business in Canada until Jan. 1, 2020. The company says they have always had plans to return to the Canadian market following the lifting of that agreement early in 2019.

In a post earlier this year, the company said medical cannabis patients in Canada have continued to face challenges with access. The company also recently announced a new high-CBD variety, Bedrolina, produced primarily at its new facility in Denmark.

Active medical registrations with LPs continue to decline, while personal and designated increase