Business Archives

Week in Weed – September 14, 2024

Written by Staff on September 14, 2024. Posted in Business, Cannabis News, Government, International, Other.

This week at StratCann, we took an in-depth look at the CCAA process and concerns that some companies are taking advantage of it to avoid creditors.

We also looked at a new cannabis industry organization hoping to establish better standards for testing; the expansion of Community Savings and We Can Capital’s factoring program; and the new cannabis training program from CTC.

Peace Naturals recalled some infused pre-rolls and CBD extract from Ontario, while High Tide announced the launch of Queen of Bud branded products through Canna Cabana. The Northwest Territory Liquor and Cannabis Commission awarded a contract to build a new cannabis distribution warehouse.

In Canadian law enforcement news, four arrests were announced in connection with cannabis store break-ins in Toronto and Durham Region. RCMP in Nova Scotia seized cannabis products and arrested two in Mount Uniacke. Hay River RCMP in NWT seized 40 cannabis plants and arrested a 70-year-old man. The BC government wants to seize $5.6 million worth of properties connected to cannabis operations, law enforcement from QC and NB seized hundreds of kg of cannabis, and RCMP seized 600 kg of cannabis in Manitoba traffic stop.

In other Cannabis news…

Aurora Cannabis Inc. and Vectura Fertin Pharma, Inc. announced the launch of the newly developed Luo CBD lozenge. The CBD lozenge is being manufactured, packaged, and labelled by Cogent, a Vectura Fertin Pharma subsidiary, and distributed by Aurora through its medical cannabis platform. Council in Milton, ON, approved the extension of a bylaw that permits the continued operation of the Trichome Hills Corporation for another three years. Trichome Hill is a cannabis nursery and research licence holder first received its licence to operate in 2021.

The NWT Liquor and Cannabis Commission (NTLCC) has selected Buffalo Parcel Courier Services to build a new cannabis warehouse, reports NNSL Media. The territory’s current staging area for cannabis distribution has been temporary. The new space is expected to cost about $300,000 to build. Cannabis is currently sold in two liquor stores across the Northwest Territories under contract with the NTLCC, four private stores, and one private online store.

Some 40 workers at five ‘The Joint’ locations in Saskatoon voted to join UFCW Canada Local 1400.

Canadian Accountant writes that the prosecution of BF Borgers and its principal by the Chartered Professional Accountants of Ontario closes another chapter in the Canadian cannabis story.

Decibel Cannabis says it is refocusing on its dried flower consumer, along with a reorganization of dried flower processing across its facilities as it says demand is outpacing its current supply. Much of this will be for export to the UK, Israel, Australia, and Germany.

HYTN Innovations Inc. announced the establishment of international manufacturing and pricing agreements with the UK’s 4C LABS. These agreements aim to enable the production of cannabis products in bulk and final packaged forms for distribution in the UK and other global markets.

The Canadian cannabis industry surpasses the US in greenhouse gas emissions, attributed to colder climates that necessitate heating, says a recently published research paper.

Vancouver is Awesome ran a promotional piece on BC’s retail chain Inspired Cannabis.

Cannabis agriculture is experiencing a revolution brought on by genetic research, propelling a new era in the cultivation and production of this globally sought-after crop, reports Earth.com.

International cannabis news

Japan will criminalize cannabis use and legalize medical products using substances derived from the plant under revised relevant laws, both effective on December 12, according to the country’s health ministry. The possession and cultivation of cannabis are already banned in Japan. The new law will also prohibit its use, with a prison sentence of up to seven years.

A new study found that cannabis use in the US has been increasing but not among teenagers.

SFGate reports that a former senior official with California’s Department of Cannabis Control is accusing the agency of retaliating against her after she repeatedly warned her superiors about corruption and toxic products being sold in the legal cannabis market.

Product Earth, the UK’s largest cannabis expo, cancelled the second day of the event, citing issues with the venue. Reports say the issue was related to concerns from venue staff with indoor consumption.

And finally, for the first time, the Israeli Ministry of Health will begin regular sample tests for medical cannabis products in Israel; the move comes against the background of the transfer of responsibility for tests to the companies themselves, the reduction of the permitted ranges of active substances, and previous lawsuits on the subject.

Cannabis farmgate in Canada: From farm to joint

Written by David Brown on September 13, 2024. Posted in British Columbia, Business, Cannabis News, Government, New Brunswick, Ontario, Retail.

While there are several thousand cannabis stores in Canada, consumers can purchase cannabis directly from the grower at just a handful of locations.

Only about a dozen of these cannabis farmgate stores operate in a handful of provinces, allowing consumers to engage more directly with the cannabis grower or processor. Each province has a slightly different approach to this type of licensing, and each business has found its own unique angle to the model.

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 five such locations after the sixth in the province was forced to give up its production licence.

In late 2022, British Columbia began allowing applications under its farm-to-gate Producer Retail Store licensing model. Since the launch of the program, only three companies have applied. The first opened in 2022, while a second was just licensed on September 12 with a grand opening expected in the coming weeks. The third applicant is currently working its way through the licensing process.

Here’s a breakdown of the different approaches to farmgate in each of these provinces, as well as the businesses operating under such licences.

Cannabis farmgate in Ontario

Ontario currently lists five farmgate locations: Thrive Cannabis in Simcoe, Kingston Cannabis in Kingston, Level Up in Toronto, Royal Cannabis Supply Company in Toronto, and Station House Cannabis Co. in St. Thomas.

The cost of licensing associated with a farmgate licence (Retail Operating Licence (ROL) and Retail Store Authorization (RSA)) in Ontario is around $10,000 for the first two years. More information about Ontario’s farmgate licensing process can be found here.

*Station House Cannabis in St. Thomas ON*

Cannabis farmgate in New Brunswick

There are currently five cannabis production licence holders in New Brunswick with a farmgate licence: Eco Canadian Organic in Rexton, Sana’a in Miramichi, Hidden Harvest in Moncton, Stewart Farms in St. Stephen, and Green Herb Farms in St Joseph-de-Kent. Hidden Harvest is the only cannabis nursery in Canada with a farmgate licence, allowing for the sale of plants directly to consumers.

The cost of a cannabis farmgate licence in New Brunswick is about $1,750 a year. More info about farmgate in New Brunswick can be found here.

*Eco Canadian Organic’s farmgate store in Rexton, NB*

Cannabis Farmgate in British Columbia

There are currently two licenced cannabis farmgate stores in BC: ShuCanna in Salmon Arm and the Victoria Cannabis Co. in Victoria, although the latter was only licensed recently and, as of publication, has yet to open.

The cost of a cannabis farmgate licence in BC is $7,500 to apply, and then a $1,500 per year annual fee if approved. There can also be municipal licensing fees, depending on location. Applications are open to all federal licence holders except stand-alone processors.

British Columbia also allows for special licensing agreements with First Nations communities in the province, two of which operate as farmgate stores. One, All Nations cannabis, is in Shxwhá:y Village, near Chilliwack, BC while the other, Sugar Cane Cannabis is operated by Williams Lake First Nation in Williams Lake.

New cannabis industry organization seeks to establish better standards for testing

Written by Staff on September 11, 2024. Posted in Business, Cannabis News.

A new organization that hopes to help establish standards-based information about cannabis products and companies in Canada is hosting its first workshop in Ottawa in September.

The Cannabis Standards Alliance of Canada (CSAC) is a newly launched not-for-profit organization seeking to establish enforceable industry standards and provide consumers and industry with evidence-based information about cannabis products.

In their first workshop on September 20, the new association will focus on the accuracy of THC values on dried cannabis flower products. The goal of the workshop will be to create standards for sampling practices by producers and analytical labs for testing purposes such as sample selection and preparation.

“CSAC provides the cannabis sector with an alternative to lab shopping/THC inflation, creating a level playing field for producers, labs and dispensaries of all sizes,” said Pierre Killeen, the organization’s Executive Director, in a press release. “Going forward, the Cannabis Standards Alliance of Canada will develop additional enforceable standards helping the sector capitalize on the many opportunities of legal cannabis, both here in Canada and internationally.”

Killian has an extensive history in policy and public affairs and was most recently the executive director of the Institute on Cannabis and the VP of legislative and regulatory affairs at the Cannabis Council of Canada. Before that, he was VP of corporate communications and government relations at Hexo, a Quebec-based cannabis producer.

Issues with the accuracy of THC testing have been a hot topic in the cannabis industry in Canada and beyond. The Ontario Cannabis Store even began conducting internal testing on products it carries to ensure THC levels are accurate.

In 2023, Health Canada also announced it was launching a data-gathering program on cannabis markets in Canada that will include sampling and testing of both legal and illegal products currently in the market.

More information about CSAC can be found on their website at https://cannsac.org/

Community Savings and We Can Capital expand factoring program

Written by David Brown on September 10, 2024. Posted in British Columbia, Business, Cannabis News, Producers.

A BC-based credit union that has partnered with a BC financing agency to provide invoice factoring to BC cannabis producers says they have already provided more than $5 million in payments to the industry since launching earlier this year.

They’re ready to expand the program to more BC cannabis growers and processors.

Community Savings and We Can Capital Inc. first launched the pilot project in February aimed at giving BC cannabis producers more direct access to working capital, allowing participants to essentially sell their invoices from the BC or Ontario distribution centres.

Factoring is a financial service where a business can sell its outstanding invoices to a factoring company in exchange for immediate cash.

Under the program, a BC cannabis producer delivers its finished goods and issues an invoice to the provincial board with which they have a sales agreement. Rather than waiting 14, 30, or even 60 days for payment from the province, producers can sell that invoice, receiving a 75-82.5% advance from Community Savings and We Can Capital on the same day.

“Cannabis businesses should have access to the same banking products as every other business in Canada,” says Mike Schilling, President and CEO of Community Savings Credit Union. “We are proud to be a pro-cannabis industry credit union that is fighting against banking discrimination and stepping up to provide affordable access to invoice factoring for licensed producers.”

“The fact that we just launched this program in February and have already achieved $5.3 million in invoice factoring this year, demonstrates the need and demand for this service. We are here to support BC cannabis producers and help grow their businesses.”

As an example of how the program has matured, Community Savings says it has already been able to increase the purchasing limit from $500,000 to $750,000 for Nelson, BC-based cannabis producer Woody Nelson.

Toby Summers, Director of Woody Nelson Inc., said: “Community Savings’ and We Can Capital’s foresight to create offerings to support BC’s underserved cannabis industry has been transformative for Woody Nelson. The liquidity provided by Community Savings’ factoring line has ensured Woody Nelson has the necessary supply chain inventory to support rapid growth, which has been instrumental in achieving our first quarter of positive EBITDA.”

Joshua Reynolds, Partnership Director of We Can Capital Inc., says the success of a company like Woody Nelson, which he says has been able to increase its output because of the more ready access to capital, proves the factoring program works and proves they are ready to move out of the pilot phase and expand it to more BC producers.

“Partnering with Community Savings to work with Toby and the Woody Nelson team reaffirms my dedication to bolstering the financial stability of this dynamic industry. Witnessing firsthand the transformative impact of instant working capital on a company is truly inspiring. It’s a privilege for We Can Capital to contribute to such a vital sector and support the growth and success of businesses like Woody Nelson.”

Earlier this year, Dayna Lange, the CFO of Tricanna Industries and Community Savings Credit Union cannabis member, told StratCann the program will help cannabis producers like Tricanna build better supply chain relationships.

“Having instant access to our own money has been a game-changer for the way we approach the continued growth and reputation of our business,” says Lange. “With a one-day funding and settlement model, we are able to continue to increase sales and maintain strong relationships with our suppliers. This is long overdue, and we are very encouraged to see mainstream financial services supporting BC cannabis.”

Cannabis Training Canada, AGCO-approved alternative to CannSell

Written by Contributor on September 9, 2024. Posted in Business, Cannabis News, Ontario, Retail.

Until now, cannabis retail staff in Ontario had to complete the CannSell program to be permitted to work in a cannabis retail store. Now, there are two options. Earlier this month, the Alcohol and Gaming Commission of Ontario (AGCO) approved a new training program for cannabis retail staff in Ontario.

The new training provider is Cannabis Training Canada (CTC), and their course, CTC 1: Retail Certification Program, has been approved to meet the mandatory training requirements set out by the AGCO.

Cannabis Training Canada (CTC) was established at the start of cannabis legalization with a clear mission: to partner with both government bodies and private retailers to elevate the standard of cannabis education.

Since then, CTC has successfully collaborated with provincial governments in Nova Scotia (NSLC), British Columbia (BCLDB), the Government of Nunavut, and various private retailers nationwide.

Why choose CTC over CannSell?

Cannabis Training Canada offers a fresh and modern approach to cannabis retail training and delivers on affordability. At just $64.99 per participant, it is a more cost-effective option for retail staff compared to other programs, with many discounts available.

In addition to being more affordable, CTC’s platform is designed with the user in mind. The interface is intuitive and easy to navigate, so employees can focus on learning rather than wrestling with complicated technology and boring lesson structures. This user-friendly approach reduces the time it takes for staff to become certified and allows them to start contributing to their workplace more quickly.

Superior content for a changing industry

The cannabis industry is evolving rapidly, and so is the knowledge required to succeed in it. CTC recognizes this and has developed a curriculum that is not only comprehensive but also reflective of the latest industry trends and regulations. The CTC 1 program provides in-depth training on key topics such as product knowledge, compliance, responsible sales, and customer service. This ensures that retail staff are not just meeting the minimum requirements, but are also fully prepared to excel in their roles.

Moreover, CTC places a strong emphasis on responsible cannabis retailing, equipping employees with the tools they need to educate customers compliantly and promote safe consumption practices. This commitment to responsible retailing benefits customers and helps businesses build a positive reputation in their communities.

What this means for Ontario’s cannabis industry

With CTC now approved by the AGCO, cannabis retailers in Ontario have a new choice for staff training. As CTC continues to expand its presence in Ontario, the goal is to significantly alter the landscape of cannabis retail training, offering a more modern, affordable, and effective alternative to the existing options.

StratCann readers: use promo code CTC10 for 10% off courses until November 30, 2024.

Content sponsored by: Cannabis Training Canada

Week in Weed – September 7, 2024

Written by Staff on September 7, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we shared our monthly cannabis industry jobs update and looked at the BCLDB’s most recent annual report.

Organigram closed its second round of BAT funding, Cronos was found to be trying to engage in “reverse hijacking” of a domain name, and Safari Flower exited creditor protection.

Also, the SQDC released its most recent quarterly report. BC’s Surrey wants cannabis store applications sent in by September 17, and Victoria’s Rifflandia will be hosting a cannabis space along with local retailers Seed & Stone and Songhees Cannabis.

In other cannabis news…

High Tide Inc. re-launched its Canna Cabana website for its flagship retail brand, providing an improved experience for its ELITE and Cabana Club members. The company also opened its 183rd Canna Cabana location, which is in Lucan, Ontario.

In a story our readers will recognize from last week’s Week in Weed, Post Media looked into a recent Alberta court case involving a man who was found to be impaired by cannabis following a Standardized Field Sobriety Test. The court rejected his argument that the evidence did not establish his impairment.

Delta 9 Biotech says the company has decided to wind down the operations of its distribution wing, Delta 9 Logistics, effective September 30, 2024. Notices have been sent to clients.

Shakir Tayabali is departing his role as the CEO of the Independent Retail Cannabis Collective (IRCC). Mandesh Dosanjh, Executive Chair, is stepping into the role of interim CEO while IRCC seeks a more permanent replacement.

Tamara Lovi has been appointed as new Chair of the Cannabis Council Of Canada (C3). Lovi has been a member of the Board for two years and has an extensive background in the pharmaceutical industry.

Deputy Minister Simon Kennedy is stepping down from his role at ISED on September 13. Mr. Kennedy oversaw Health Canada’s implementation of the government’s initiative to legalize and regulate cannabis, including passage of the Cannabis Act, and in his capacity at ISED, served as a valuable voice on the agency’s now-mostly-neglected cannabis file. Kennedy was named Deputy Minister of Innovation, Science and Economic Development, effective September 3, 2019.

The Saskatchewan Liquor and Gaming Authority (SLGA) is seeking a permanent full-time Reporting Analyst within our Regina Head Office, reporting to the Manager, Cannabis Policy and Analysis.

Avail Medical, a clinic that specializes in providing access to cannabis for medical purposes, announced Victoria’s first multidisciplinary clinic focused exclusively on veteran healthcare. The clinic will offer a wide range of exclusive products and services for veterans of the Canadian Armed Forces, including an “exploration into psychedelic-assisted therapy.”

Mark Johnson, a lawyer who ran for the Conservatives in Toronto in the 2021 federal election, penned a piece claiming that Canadian society has basically collapsed since legalization. The highly inaccurate article serves to highlight how many on that side of the aisle continue to look at this file through the lens of reefer madness, not supposed Conservative issues like streamlining regulations or lowering taxes. Earlier this year, Johnson also said legalization itself was “misguided”.

Kind Gardens held their sampling-focused event for budtenders in Edmonton on September 5.

An opinion piece in the Toronto Star looked at the number of cannabis stores closing in Canada’s largest city, calling for measures to help existing stores stay open and what to do with all the empty storefronts.

Humber College held a Become a Cannabis CEO event earlier this year at its Lakeshore Campus, aimed at empowering Black, Indigenous and other racialized communities to enter or advance their careers in the cannabis industry.

A recent study said that THC’s effects were significantly increased by CBD, rather than moderated by the,m as has been previously accepted as fact.

International cannabis news…

Politico took another look at the ongoing and slow evolution of Germany’s approach to cannabis legalization.

California Governor Gavin Newsom proposed emergency regulations aimed at reining in the manufacture and sale of illegal hemp products that contain intoxicating cannabinoids such as THC.

And finally, Donald Trump offered muted support for cannabis legalization in Florida, contradicting the state’s Republic governor Ron DeSantis. Trump also said there would need to be rules in place to “prohibit the use of it in public spaces, so we do not smell marijuana everywhere we go, like we do in many of the Democrat-run cities”—a real champion of legalization, clearly. :/

Rifflandia’s “Splifflandia” to include official cannabis consumption space this year

Written by David Brown on September 6, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

BC Cannabis retailers Seed & Stone and Songhees Cannabis are providing the cannabis space at Victoria’s Rifflandia this year, at the Matullia Lands in Rock Bay from September 13-15, 2024.

The retailer will provide a space for attendees of legal age to order cannabis to be delivered on-site, as well as a dedicated consumption area.

This is the second year the multi-stage outdoor music festival in downtown Victoria has allowed such a space. In 2023, the festival organizers worked with a different retailer to offer a similar space dubbed Splifflandia.

Morgan Sutherland, Head of Partnerships at Rifflandia Entertainment Co. says that building on last year’s inaugural cannabis area, this year’s Splifflandia will also include a dedicated consumption lounge in partnership with cannabis producers.

“Splifflandia at Rifflandia Festival is presented by Seed & Stone and Songhees Cannabis,” explains Sutherland. “Together, they bring a streamlined cannabis delivery system to the festival by using their online order platform and delivery service. In addition to our Splifflandia delivery point, the festival will this year feature a 19+ consumption lounge with activations from licensed producers.”

“Rifflandia is proud to be partnering with Seed & Stone and Songhees Cannabis as part of our commitment to supporting local, Indigenous-owned businesses,” she adds. “Not only does providing these services on-site create a more fulsome experience for festival attendees, but by making safe, regulated products available to folks, we are able to address concerns about safer supply and harm reduction at our event.”

Rifflandia’s location this year is on traditional lands belonging to the Songhees and Esquimalt First Nations. The Songhees First Nation represents the Songhees or Lekwungen people, located around Victoria, British Columbia. The Nation operates Songhees Cannabis in Victoria in partnership with Seed & Stone and a second Victoria location under the Seed & Stone banner.

Vikram Sachdeva, founder and CEO of Seed & Stone, says he and his team are excited to have a chance to provide such a space for festival-goers, along with their longtime partners at the Songhees Nation.

“Our partnership with Songhees Nation holds deep significance for us at Seed & Stone,” says Sachdeva. “This collaboration allows us to honour and showcase Songhees culture and heritage at Rifflandia, bringing a unique and powerful aspect to the festival. It’s not just about the music and the products—it’s about celebrating community, heritage, and the journey of cannabis from stigma to acceptance.”

Rifflandia Festival is one of Vancouver Island’s oldest music festivals. The Matullia Lands overlook Rock Bay and upper Victoria Harbour.

“We are proud to host Rifflandia on the traditional lands of the Lekwungen peoples, including the Songhees and Esquimalt Nations, at Matullia in Rock Bay,” said Songhees Chief Ron Sam in a comment provided to StratCann through Seed & Stone. “This year marks a historic moment with the first-ever cannabis consumption lounge, in partnership with our long-time partners, Seed & Stone, celebrating our culture and the progressive acceptance of cannabis at this event.”

Featured image provided by Rifflandia, taken Laura Harvey.

BC seeking feedback on cannabis consumption spaces for cafes, festivals, spas, and more

April 6, 2022

Cannabis consumption space at Calgary music festival grows into its third year

July 8, 2024

Cannabis consumption space returns to Edmonton Folk Festival

June 14, 2022

Safari Flower successfully exits creditor protection

Written by David Brown on September 6, 2024. Posted in Business, Cannabis News, Ontario.

Although entering into creditor protection can sometimes mean the end of the road for a business, one cannabis company used the process to successfully restructure and grow their business.

Ontario’s Safari Flower Co. entered into CCAA protection on January 12 of this year, saying at the time that the company intended to use the restructuring process to effect a reverse vesting orders (RVO) transaction with one of its secured lenders that can be used as a way to inject cash into a company.

Then, on August 26, Safari successfully exited from creditor protection. The company’s CEO says Safari is now well positioned to continue to cultivate cannabis as GACP accredited, process cannabis flower under EU-GMP law, and export finished medical products directly to emerging markets abroad like Germany. Safari has already exported nearly one metric ton of cannabis.

“We have worked very hard to accelerate our positive earnings strategy post-CCAA and created value for our stakeholders by targeted product manufacturing for the German medical market and by focusing volume on very few customers whose core business and growth trajectory are synergistic to Safari’s,” says CEO Dr. Brigitte Simons in a company press release.

“This mindset has enabled us to use working capital carefully for the step-wise scale and velocity of high quality cannabis product entrants sold under successful brand partnerships, such as Enua Pharma GmbH. Safari Flower Co. also provides services to other Canadian cannabis producers who wish to sell their products to international distribution partners. The company has successfully exported approximately 940 kg of cannabis flower to Europe and Australia since January 2024.”

David Hyde with Hyde Advisory, assisted Safari Flower Co. through the restructuring process, says he and his team are “pleased to have played a part in the renewal of Safari Flower, having now emerged from CCAA with fresh funding and a clear path to business success. This is a far cry from where the business was only a year earlier.”

“Not all CCAA processes are the same, as we’ve learned from managing a number of them in the cannabis sector,” he adds. “If the underlying business is strong, a well-run Sale and Investment Solicitation (“SISP”) process can lead to the discovery of a buyer committed to leading the company out of CCAA and to new levels of success.”

The cannabis industry in Canada has experienced significant financial challenges. At least 72 cannabis companies filed for some form of creditor protection in 2023 according to listings by Insolvency Insider Canada, which focuses on the Canadian insolvency market. Several more have since filed for CCAA in 2024.

One of the most common filings is for the Companies’ Creditors Arrangement Act (CCAA), which allows insolvent companies to restructure their businesses and finances.

With proper planning, a company can take this step to avoid declaring bankruptcy, Dina Kovacevic, Editor at Insolvency Insider, told StratCannn earlier this year.

Typically, she explained, if a cannabis company is in trouble, it can either file for CCAA protection or a notice of intent to make a proposal, an “NOI” under the Banking and Insolvency Act. This is, ideally, a step taken to avoid being put into bankruptcy or receivership by a creditor or a company declaring bankruptcy themselves.

One of the most significant points Kovacevic highlighted was that distressed companies should ensure they take steps in advance if they see themselves running into long-term financial issues.

“If a company is facing financial issues and it wants to restructure, it doesn’t just want to go out of business, and perhaps it fears that its secured lender is going to put it into receivership. I’d say that it has several options. The first option is to try to work with its creditors and suppliers on an out-of-court restructuring plan. The second would be to file for CCAA protection and even in that type of situation, I would say that the company should be getting key creditors on board before the filing. You don’t want to surprise people.”

Organigram closes second round of funding from British American Tobacco

Written by Sarah Clark on September 3, 2024. Posted in Business, Cannabis News, International, Producers.

Organigram Holdings closed the second round of funding from its partner, British American Tobacco (BAT), on August 30.

This is the second of three rounds of funding from BT DE Investments Inc., a wholly-owned subsidiary of BAT. Plans for the partnership between British American Tobacco and Organigram were announced in late 2023, with an investment of nearly $125 million from BAT.

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

The first round of funding closed on January 23, 2024. The third round of funding is expected in early 2025.

“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Paolo De Luca, Chief Strategy Officer of Organigram in a press release on Sept 3, 2024.

“Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market.”

On June 24, Organigram announced a $21 million investment from its Jupiter strategic investment pool, giving it a minority stake in German cannabis company Sanity Group GmbH and, therefore, a foothold in the German market.

In March, Organigram 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.

In its most recent quarterly report in August, the New Brunswick-based cannabis company reported net revenue of $41.1 million for the third quarter of 2024 and net income of $2.8 million, compared to a loss of $213.5 million in the same reporting period in 2023.

Global tobacco giant ups investment in Canadian cannabis producer Organigram

November 6, 2023

Organigram announces new nanoemulsion technology in collaboration with British American Tobacco

August 7, 2024

Organigram receives final ruling from Health Canada: Jolts are an edible

March 22, 2024

Panel finds Cronos Group tried to “reverse hijack” domain name

Written by Staff on September 3, 2024. Posted in Business, Cannabis News.

A panel investigating domain-name disputes has found that Canadian cannabis company Cronos Group tried to reverse hijack the domain name “CronosGroup.com”.

The Uniform Domain-Name Dispute-Resolution Policy (UDRP) decision comes following a complaint filed on behalf of Cronos Group, Inc. in June 2024. Legal counsel representing Cronos Group alleged that Mira Holdings, Inc., a professional domain name investor, had acquired the domain cronosgroup.com with the goal of charging the cannabis company a large amount to secure it.

In a letter in response to Cronos Group’s concerns, Mira Holdings had asked for $18,500 to transfer the domain to the cannabis company. In their complaint to the Canadian International Internet Dispute Resolution Centre (CIIDRC), Cronos Group Inc. sought to have the domain name transferred to their ownership.

Reverse domain name hijacking is when a company that is a rightful trademark owner tries to secure a domain name by making “cybersquatting” claims against a domain name’s owner through aggressive means.

Cronos Group argued that Mira Holdings secured the domain with the specific goal of selling it for an “excessive” amount. In response, Mira Holdings argued that many businesses commonly use the name Cronos and that they acquired it in an open public auction for USD$2,849, arguing that Cronos did not participate in the auction.

Despite Cronos Group’s concerns, the panel reviewing the complaint found that the cannabis company was unable to prove that Mira Holdings had acted in bad faith. Because of this, the panel dismissed the complaint, finding that it had been “brought in bad faith and constituted an abuse of the administrative proceeding.”

Cronos Group was not immediately available for comment.

Cannabis sales increased in BC in 2023-2024

Written by David Brown on September 3, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

The BCLDB sold 135,348 kg (*Equiv) of cannabis in the year ended March 31, 2024, a 27% increase from the previous year.

In fiscal year 2023-2024, the provincial agency that oversees cannabis and alcohol warehousing, distribution, and sale brought in $3.9 billion in revenue, a 1.7% increase from the previous year, with lower liquor revenue somewhat offset by growth in cannabis sales.

The LDB’s cannabis revenue was $574.5 million, an 18.3% increase from the previous year that it attributes to new retail stores and an expanded product selection. Alcohol revenue was $3.4 billion, a 0.7% drop compared to the prior year, for a total of $3.94 billion in revenue and $1.15 billion in net income.

The LDB’s net income and contribution to the Government of BC was $1.1 billion, a 4.2% decrease compared to the previous year.

Dried flowers, pre-rolls, and extracts and concentrates accounted for 91.8% of LDB’s cannabis sales revenue. It sold 54.1 kg of flower, 24.8 kg worth of pre-rolls, 45.5 kg of extracts and concentrates (gram equivalent), and another 10.1 kg in all other categories.

The extracts and concentrates category saw the highest increase of 36.3% compared to 2022-2023, reflecting the growth in vapes and infused pre-rolls.

The BCLDB added 2,600 new products in 2023-2024, a 37% increase in registered cannabis products compared to the previous year.

The BC Cannabis Store also introduced an online cannabis knowledge training program for all employees in the most recent fiscal year. The stores reached $965 in sales per square foot of store.

The cannabis wholesale division says they established a dedicated area for quality control processes, improving order accuracy, and took steps to improve on-time delivery and order accuracy.

In August 2023, the BCCS completed a market research survey of 1,200 BC adult cannabis users to gain customer insights and refine customer service strategies.

Since launching in August 2022, the LDB says its cannabis direct delivery program has grown to include around 100 participating cultivators worth more than $13 million in direct sales in fiscal 2023/24.

The agency admits the program could be much bigger, and says it is “committed” to a review of its central distribution 15% mark-up, as well as of the direct delivery program and who is eligible.

In April 2023, the LDB made several changes for cannabis producers, like eliminating its requirement that producers maintain mandatory insurance coverage for product expenses, reducing the reporting requirement for producers using the direct delivery program from weekly to bi-weekly, and changing payment terms from 30 to 14 days.

[Editor’s note. This article initially reported total sales in grams, not kilograms. This has been corrected]

Cannabis Jobs Update – September 2024

Written by Staff on September 2, 2024. Posted in Business, Cannabis News, International.

The cannabis industry continues to have numerous opportunities available across Canada and internationally. Whether you’re looking for a role in production, management, retail, or finance, there are positions open for a variety of skill sets. Below is a list of some of the current job openings in the cannabis sector.

Adecco is actively hiring several Production Associates for a client in Smiths Falls, Ontario. This role is ideal for those looking to gain hands-on experience in cannabis production.

Canopy Growth has nine positions open across Ontario, Manitoba, and even Germany. These roles span various departments, providing opportunities for professionals with different skill sets.

After some financial restructuring earlier this year, BZAM is again on a hiring spree with 12 positions open in Ontario and BC.

High Tide has dozens of positions open in numerous locations across Canada, as well as for an Operations Manager in Berlin, Germany.

Fika Cannabis is hiring for several Fire and Flower locations in Canada, including one in Whitehorse, Yukon as well as at several Fika Cannabis stores in Canada.

Route 1 Sales Agency is on the lookout for a Sales Representative in Edmonton, while Aurora Cannabis is hiring across multiple categories such as Operations, QA and Supply Chain, Accounting and Finance, and Science and Innovation.

Decibel Cannabis Company is looking for a Financial Analyst in Calgary, AB, and Cronos Group is looking for people to fill several roles in Finance, Legal and Regulatory, Quality Assurance and Quality Control, Sales, R&D and more.

The Ontario Cannabis Store also has several current postings, including a Software Engineer, a Senior Finance Manager, a Financial Systems Manager, a Master Data Specialist, a Senior Manager, Business Architecture, and several other roles.

Auxly Group is hiring for several positions, such as Commercial Planning Analyst, Production Technician, Cultivation Assistant, and more.

One Plant Canna in Kingston, Ontario, is hiring a full-time Keyholder.

The BC LDB is looking for an Assistant Store Manager at its Langley, BC, Cannabis store.

BC is hiring for several cannabis-related positions, from a Wholesale Category Manager to BC Cannabis Store Managers to a Senior Investigator with its Community Safety Unit.

KJ’S Best Cannabis, a cannabis retailer in Mission, BC, is hiring an Inventory Control Supervisor.

AtlantiCann Medical Inc. is looking for a trimmer in Nova Scotia.

Sophia’s Garden (Artisan) Inc., a cannabis producer in Thunder Bay, ON, is hiring a Quality Assurance Manager.

Leaf Infusions is hiring a Production Supervisor at its processing facility in New Westminster, BC.

A cannabis producer in Montreal, Quebec, is looking for a VP of Operations to join their growing team.

Freedom Cannabis is hiring a Priva Technician at its facility in Acheson, AB.

Toke House retail store in Dryden, ON has an opening for a Cannabis Store Key Holder Position.

Les Entreprises C-Médical is hiring a Technicien culture de cannabis and a Journalier at its facility in Mirabel, QC.

Cannabis NB has around ten open positions it its stores.

Circle K is hiring a Part-Time Budtender in Paradise, Newfoundland.

And finally, in our September list, Truro Cannabis is looking for a Regional Sales Manager (Atlantic).

With so many positions available across Canada and internationally, now is a great time to explore new career opportunities within the cannabis industry whether you’re just starting out or looking to make a career change.

Week in Weed – August 31, 2024

Written by Staff on August 31, 2024. Posted in Business, Cannabis News, Government, International.

This week at StratCann, we looked at the future of retail cannabis in Ontario and Quebec, and spoke with New Brunswick’s Crystal Cure on their decision to close up shop in hopes of a future reset.

Retailers and producers in BC are gearing up for Summer Sesh; Quebec opened its 100th SQDC store; Tokyo Smoke will close 29 locations as it seeks creditor protection; SNDL announced their successful bid to purchase Indiva; and Culture Kizos’ Coterie sour apple blunt was recalled from Alberta.

In finances, Entourage, Greenway, Nextleaf, Heritage, and MTL released their most recent financial reports.

In law enforcement news, New Brunswick confirmed follow-up raids at two unlicensed dispensaries, while police in Nova Scotia again raided several unlicensed cannabis shops.

This week’s profile series featured Vancouver’s Cannabis Training Canada e-learning platform and the recent AGCO approval for its Retail Certification Program.

In other Canadian cannabis news

Health Canada published amendments to the Cannabis Fees Order to simplify the annual regulatory fee exemption process if you sell cannabis exclusively for medical purposes.

A Vancouver Island University alum has helped lead research in developing a new, more cost-effective method for measuring cannabinoids in cannabis products.

CBC spoke with lawyer Matt Maurer and longtime cannabis activist Neev Tapiero about the current state of the cannabis industry.

High Tide’s Omar Khan penned a piece for Postmedia News arguing that provinces like Ontario, Alberta, and Manitoba are taking the lead with cannabis policy while Ottawa dithers.

Researchers in St. John’s looked at barriers to licensed private cannabis retailers in Canada based on an analysis of Canadian news media coverage.

The BC Supreme Court dismissed a petition from a prospective cannabis store that had sought a judicial review of a decision made by the Resort Municipality of Whistler not to issue the business a Temporary Use Permit (TUP). The petitioner unsuccessfully argued that the manner in which the TUP was granted was procedurally unfair and that the decision was substantively unreasonable.

An Alberta judge dismissed an application for judicial review of a person who was found to be impaired by cannabis following a Standardized Field Sobriety Test. He had unsuccessfully argued that the evidence did not establish his impairment.

A man in Quebec received a $15,000 fine after pleading guilty to a charge of trafficking in cannabis weighing more than 3 kg. The man was one of 31 people charged as part of a 2014 investigation named Project Nandou. Another 29 defendants in the case will return to court on September 4 for the continuation of the facilitation stage. One defendant has since passed away.

STORZ & BICKEL announced their first “Smokeless September Challenge” to educate consumers on the advantages of vaporization.

BMC Complementary Medicine and Therapies is calling for submissions to their Collection on Advances in cannabis and cannabinoid research.

Radio Canada says cannabis use among seniors is rising, and so are related ER visits, a story StratCann and others have covered in the past. As usual, the article and study it references fail to distinguish between when edibles became legal and when they began to enter the marketplace in any significant way.

Blast from the past: In cannabis news from this week in 2018, the media was already blaming a spike in cannabis overdoses on potent edibles, and poor public education.

International cannabis news

Incidents of cannabis smuggling by air passengers into the UK have been increasing significantly, with an estimated 15 tonnes seized so far this year, and 378 people arrested. This is already three times more cannabis seized than in all of 2023. More than half of those arrested in 2023 (71) had flown in from US airports, with 24 from Thailand, and 24 from Canada. Around half of all arrests (184) so far this year are related to cannabis that originated in Thailand, with 75 arrests related to cannabis originating from Canada, and 47 from the US. Sky News showed a video of one Canadian woman arrested there this past week.

California issued several cannabis product recalls for pesticide and microbial contamination.

The cannabis stock market responded negatively to news that the US DEA had pushed cannabis reclassification hearings to December. “We believe both candidates are likely to let rescheduling advance, though we have more confidence in Kamala Harris than in Donald Trump,” said one analyst.

Krautinvest covered recent comments from a spokesman for the German Federal Ministry of Food and Agriculture, saying that a pilot project to research the sale of cannabis in pharmacies could be coming at a future date.

And finally, people in the industry are hoping that the California governor will approve new proposals to allow people to smoke weed at some restaurants and buy it at cannabis farmers’ markets.

New Brunswick’s Crystal Cure to close up shop in hopes of a future reset

Written by David Brown on August 29, 2024. Posted in Business, Cannabis News, New Brunswick, Producers.

A cannabis producer behind one of a handful of farmgate stores in New Brunswick is closing its doors as it looks to reset its cannabis business from the ground up.

Crystal Cure Inc., a micro cannabis producer in Shediac Cape, New Brunswick, says it will cease its cannabis operations at the end of September, primarily due to delays in securing the financing needed for its planned expansion.

The company’s CEO, Jonathan Wilson, says this is likely not the end of the road for the company but a chance for them to reset their business, building out a new facility that better matches their needs and the realities of market demands.

“Eventually we knew that we were going to have to make a decision,” Wilson tells StratCann.

“We made this decision now before it gets to a point where we can’t meet commitments as we’ve seen happen to others. We are optimistic that this is not goodbye to the legal cannabis industry, but hopefully more of a see-you-soon.”
Jonathan Wilson, Crystal Cure

The company has been operating for several years inside a much larger facility that has remained underutilized. In late 2023, Crystal Cure made the decision to downgrade their licence from a standard to a micro, reflecting that it was already operating with a very small footprint.

The building the company has been operating is 63,000 sq. ft., built at a time when the company was looking at bold early market projections. However, due to this and problems with how the facility was constructed, Crystal Cure wasn’t able to fully utilize the space. Since 2019, the company has also been involved in legal proceedings concerning the construction of its original facility.

“We are still operating out of a tiny, temporary space that was only supposed to be in place for a year,” notes Wilson in a company press release. “However, the construction of our original facility was halted prematurely when the structure was rendered unusable, which now has to be dealt with in a court of law. This has added a lot of costs to a small operation, and also takes away our focus, time, and energy from what matters.”

Wilson adds, “When you combine the added pressure with the current financial ecosystem of the legal cannabis industry, it doesn’t give us enough to be able to survive, let alone generate enough profit from our operations to expand to meet demand. This is one example of the impacts of the short-sighted decisions made by policymakers across the country, impacts that they’ve flat out ignored at both the federal and provincial levels.”

Although the owners had hoped to maintain their current licence while they bring in new investors to build out a new purpose-built facility, Wilson says they had to finally make the tough decision to revoke their licence and shut down operations while they work towards that ultimate goal.

“We love the legal cannabis industry and we believe we will play a part in its future here in Canada,” he explains in a company press release. “However, as ironic as it is, we have to take a step back from it and focus elsewhere in order for us to survive long enough to secure the funding for our expansion. We have found a potential partner that believes in us and understands our vision. We will do whatever is necessary to hang on, even if it means ceasing our current operation and starting again. We are in this for the long-term.”

One thing that had kept the company going over the past year, giving them hope they could hold off this new decision to shut down entirely, was the success of their cannabis farmgate store, Le Backdoor, one of just six in New Brunswick and only a few more in all of Canada.

That’s the part I’m the saddest about,” Wilson tells StratCan. “The supporters of farmgate are the ones who have given us an extra couple of months. This summer has been incredible with new customers and tourists, and the feedback we get has helped let us know we are doing something right. It helped us go a little longer.”

“The part I’m going to miss the most is seeing customers every day.”

In the meantime, Crystal Cure will continue to have a foothold in the cannabis industry through its sister company, Gourmet Chef Packers, which sells living soil, worm castings and other agricultural inputs under the brand Adonis Growing Solutions. Clients include several other licensed cannabis producers.

“We have been working behind the scenes on a project across the parking lot, so to speak, focused on regenerative agriculture and many of the things we hold near and dear.” Wilson adds. “This will allow us to still stay connected to the industry we are so passionate about, while at the same time, being able to work in an exciting environment without the exorbitant excise taxes, fees, and over-regulation that have plagued producers from day one.”

“We managed to survive an additional year longer than we thought, but unfortunately it wasn’t long enough. We made this decision now before it gets to a point where we can’t meet commitments as we’ve seen happen to others. We are optimistic that this is not goodbye to the legal cannabis industry, but hopefully more of a see-you-soon.”

According to Wilson, consumers of Crystal Cures products will have a few more weeks of availability before their limited releases are no longer available.

SQDC opens new store outside Montreal with new product array

Written by David Brown on August 26, 2024. Posted in Business, Cannabis News, Government, Quebec, Retailers.

The Société québécoise du cannabis (SQDC) opened its 100th cannabis store this week, located in a suburb just outside Montreal.

The newest store is in Richelieu, the first cannabis store in the small city of about 5-6,000 people.

“The Richelieu branch is part of our new desire to improve the customer experience,” says Alexander Bove, Director of Real Estate at the SQDC. “With a surface area of 2,600 square feet, the store has adopted a display by product category. The design promotes user-friendliness and several display islands have been added to the sales area to highlight the product offering. We have 100 reasons to be proud and thank you 100 times to our teams who are fully dedicated to developing the SQDC,”

“Displaying by product category is a new way to present cannabis products to our customers, including pre-rolls, oils, edibles and large formats and differs from displaying by species, such as sativa, indica and hybrid.”
Alexander Bove, SQDC

Although the province quickly revealed numerous SQDC stores in the first few years of legalization, they began shifting away from approving many more new stores in 2023, with a new focus on approving new products to attract consumers. The province also announced the closure of a store in Montreal earlier this year.

The SQDC says it plans to open about twenty branches over the next two years, including nine in total during the current fiscal year. The new Richelieu location is the third store of those nine that the SDQC has opened so far this year.

The new store will also take a new approach to displaying products.

“Displaying by product category is a new way to present cannabis products to our customers, including pre-rolls, oils, edibles and large formats and differs from displaying by species, such as sativa, indica and hybrid. In the sales area, certain categories such as concentrates and accessories are found in separate displays,” says SQDC Director of Operations Alban Troja.

The SQDC has stores in all regions of Quebec and says that more than 60% of cannabis purchases in the province come from their stores.

The SQDC contributed $258.8 million to Quebec in 2023. This is an increase from $232.7 in total revenue for Quebec in 2022-2023 with $94.9 million in net income, $77.8 million in the province’s share of excise taxes, and $50 million in QST.

The province says revenue from sales and tax are entirely paid to the Ministry of Finance of Quebec, and intended in particular for prevention and research in cannabis and the fight against misdeeds linked to the use of psychoactive substances. This claim, however, has recently come under scrutiny.

For the fiscal year ending March 30, 2024, the SQDC reports selling 122,478 kg of cannabis, an increase of 15% compared to the previous year (106,626 kg in 2022-2023). The majority of sales were dried flower (97,918 kg), while 24,560 kg were other cannabis products.

Image via SQDC.

OCS launches more detailed sales metrics for producers

Written by David Brown on August 23, 2024. Posted in Business, Cannabis News, Government, Producers, Retail.

Following an announcement in June, the OCS now confirms that starting August 23, it will begin providing more detailed wholesale metrics to cannabis producers.

The Ontario Cannabis Store says the more granular data is intended to assist suppliers’ sales and operations planning and lead to improved inventory availability, fulfilment, and delivery service levels for cannabis stores in the province. The changes will be integrated into the OCS’ existing Supplier Data Program.

In an announcement posted on the OCS’ B2B platform on June 25, the Crown corporation said it would be offering its cannabis producer-partners “greater visibility into the specific authorized stores that are purchasing their products through the OCS,” which includes the types of products each of these stores order from OCS each day at the SKU-level and the number of units ordered from OCS by each retailer, by SKU, each day.

These are changes many Canadian cannabis producers have been asking provincial cannabis agencies like the OCS to provide for some time. Such figures will allow producers to better understand what products are selling better in what parts of the province, providing an opportunity for more targeted sales measures. Alberta and BC have provided similar data programs for producers/suppliers.

The OCS offers two levels to its supplier data program. Level one allows OCS suppliers to access insight into their products’ sales performance across the province. A level two data subscription also provides access to more broad sales figures about other producer/supplier sales. Data for a product portfolio will be available for both Level 1 and 2 subscribers at no additional charge.

Suppliers will only receive detailed and specific SKU and store-level wholesale sales data for their own products, not competitors. This information will only come from the OCS, not from any retailer point-of-sale metrics or retailer inventory data. Suppliers also cannot provide the store-level wholesale sales information from OCS to anyone outside of their organization.

Providing suppliers with this sales data will also build upon the OCS’ Flow Through distribution channel, ensuring suppliers can better forecast sales demands. Flow Through allows retailers to order products the OCS does not typically carry in the world’s largest cannabis distribution warehouse.

“Data scraping” concerns some Ontario cannabis retailers

February 9, 2023

OCS announces first round of Social Impact Fund partnerships

November 28, 2023

OCS continues to grow, with nearly $1.5 billion in wholesale sales in 2022-23

December 14, 2023

Retail cannabis sales continue to cool off in Canada

Written by David Brown on August 23, 2024. Posted in Business, Cannabis News, Government, Retail.

Retail cannabis sales continue to cool off in Canada after nearly five years of growth, with sales in April hitting a year-over-year low, with $518 million in sales compared to $525 million in sales in April 2023.

The newest figures from Statistics Canada show seven of the past ten months with month-over-month declines from a peak of $564 million in August 2023. While sales surged significantly in the first several years of legalization, in the past year, that momentum has begun to wane.

Statistics Canada does periodically update their previous monthly figures as new data comes in. While the data quality for most months is considered excellent, the most recent four months are considered very good or good.

The newest wholesale cannabis sales figures from Stats Canada show a similar trend, with wholesale sales dropping off from a peak of $597 million in February 2024, followed by now four months of declines.

As of August 13, there were 3,722 licensed cannabis retail stores in Canada.

British Columbia: 523 public and private stores listed as “active”
Alberta: 709
Saskatchewan: 190
Manitoba: 209
Ontario: 1,822
Quebec: 99
New Brunswick: 27 public stores, plus nine private stores and six farmgate stores, for a total of 42
Nova Scotia: 50
PEI: 5, up from 4 in January (+1)
Newfoundland and Labrador: 59
Northwest Territories: 6 brick-and-mortar locations, plus 1 private online store
Nunavut: 2, up from 1 in March (+1)
Yukon: 6

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

February 1, 2022

AGLC reports its first cannabis profits

March 6, 2024

Stats Canada releases new report on cannabis cultivation at home

September 15, 2022

Cannabis sales continue to increase in Nova Scotia

Written by David Brown on August 21, 2024. Posted in Business, Cannabis News, Financials, Government, Nova Scotia, Retail.

Nova Scotia brought in $31.2 million in cannabis sales in the three months ended June 30, 2024, a 7.3% increase compared to the previous year and an increase of $1 million from the previous quarter.

The Nova Scotia Liquor Corporation, which handles cannabis distribution and sales in the province, also added a new cannabis store in the most recent quarter, the fiftieth in the province in May in Shelburne. Sales of locally-produced cannabis declined slightly, by 1.4%, to $9.3 million, or a little under one third of all cannabis sales.

While the provincial agency reported a volume decline in beverage alcohol, the volume of cannabis sold increased in its first quarter of 2024.

“Expanding access to safe and legal cannabis continues to be a primary focus for us, and we continue to look for ways to combat the illicit cannabis market,” said Greg Hughes, president and CEO of NSLC. “We were pleased to add another cannabis store to our retail network this quarter.”

The average basket size for a cannabis purchase in the Bluenose province was $37, with retail customer transactions for cannabis increasing by 7.7% in the quarter. The average price per gram for cannabis decreased again in the province as well, by 2% to $5.90.

As a comparison, total spirit sales in the province in the same time period were $48.4 million; wine sales were $39 million, beer was $75.4 million, and ready-to-drink alcoholic beverages were $28.5 million.

The NSLC says all profits go back to the provincial government to help fund “key public services.”

Nova Scotia sold $121 million worth of cannabis in 2023, an 8.9% increase from the previous year. Sales of local Nova Scotia cannabis products accounted for $39.5 million, or 32.7% of all cannabis sales in 2023, a 17.9% increase from the previous year.

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.

Cannabis sales stay strong in New Brunswick

August 20, 2024

Wholesale cannabis sales increase in BC while prices decline

August 19, 2024

Nova Scotia sold $121 million worth of cannabis in 2023

June 26, 2024

Wholesale cannabis sales increase in BC while prices decline

Written by David Brown on August 19, 2024. Posted in British Columbia, Business, Cannabis News, Producers, Retail.

The amount of cannabis sold in BC continues to increase while the price continues to decrease, according to the LDB’s newest quarterly report.

The provincial cannabis wholesaler’s Q1 2024 report shows 36,418,336 grams sold in April, May, and June 2024, and more than $140.5 million in wholesale sales. The former represents an 18.8% year-over-year increase from Q1 2023, while the latter is a 10.6% increase over the same period.

Grams sold and wholesale sales were also up from the previous quarter, a period that saw some of the first declines in the province since legalization.

The average price of a gram of cannabis continues to decline in BC as well, down 6.9% from Q1 2023 to $3.86, while the price of a gram of dried flower dropped 6.3% from Q1 2023 to just $3.19.

The number of retail stores in BC increased year-over-year, from 485 at the end of June 2023 to 505 at the end of June 2024, and up from 501 at the end of March. BC breaks down stores into four regions of the province: the lower mainland, the island, the interior, and the north. Three of these regions saw total store counts increase compared to the same period in 2023, while the interior showed its second quarter of declines, down two stores from Q1 2023 and one store from Q3 2023.

Sales of eighths of dried flower continue to decline in terms of grams sold, down 18.6% year-over-year, while 7-gram SKUs increased 64.2%, 14/15-gram SKUs increased 22.7%, and 28-gram offerings increased 13.8% from the same period in 2023.

Year-over-year variance in terms of units sold increased across all product categories except topicals and ingestible extracts, which declined by 11.6% and 32.4%, respectively. The decline in ingestible extracts was due to Health Canada pushing back on certain products within the category, such as Glitches and Jolts.

Within those categories, sales in units of capsules and pills increased 7.9% but were dragged down by a 20% decline in sales of oils and tinctures and a 72.5% decrease in ingestible extracts. Capsules and pills represented 50.1% of total units sold in this category, while oils and tinctures represented 33.5% and other ingestible extracts were 16.4%

In the topicals category, balms saw a 39.6% year-over-year increase, face masks, topical oils, and sprays saw a 299.3% increase, but all other categories saw double-digit declines.

The most significant growth in the vapes category continues to be disposables, with units sold increasing 69.4% year-over-year ($3.4 million in wholesale sales). Infused pre-rolls increased by 24.7% in terms of units sold compared to the same period in 2023, for a total of $18.6 million in wholesale sales. Infused pre-rolls were again the top-selling ingestible extract in Q1 2024 at 46.7% of all units sold, compared to cartridges at 37.7%.

Resin and rosin sales increased year-over-year by 50.9% in terms of units sold, while diamonds, wax, and crumble declined by 12.2%.

Direct delivery

Sales in BC’s direct delivery system, however—which allows some BC cannabis producers to ship products directly to retailers, bypassing the BC LDB’s central distribution warehouse—show an opposite trend, with prices increasing and sales declining.

The total grams sold through the program (617,359) declined 20.8% in Q1 2024 compared to Q1 2023, while wholesale sales ($3 million) fell 18.9%. Meanwhile, the price of all cannabis sold through the program increased by 2.4% to $4.81 a gram, while the price of flower increased by 3.3% to $4.15.

Despite these year-over-year declines, the total grams sold in the program did increase slightly from the previous quarter by 14,834 grams. At the same time, wholesale sales remained relatively steady at about $3 million. The price of cannabis also declined slightly from the previous quarter, at $4.94 a gram for all cannabis and $4.42 a gram for dried flower.

The amount of beverages, pre-rolls, and topicals sold in the program continues to increase year-over-year compared to the previous quarter. Flower showed a slight increase in sales compared to the previous quarter but was down 8.5% year-over-year. The amount of cannabis plants sold through the program continues to increase, while seed sales show a slight year-over-year decrease but a quarterly increase. Plant sales are higher than seed sales by a significant margin.

Pre-rolls are the most commonly sold product in this category, followed by flower and inhalable extracts.

BC LDB warehouse making changes to improve product freshness

May 17, 2024

BC announces cannabis policy changes aimed at helping industry

April 12, 2023

BC provides updates to cannabis sampling rules

July 16, 2024

Week in Weed – August 17, 2024

Written by Staff on August 17, 2024. Posted in Business, Cannabis News, Government, International.

This week at StratCann, we spoke with the founders of Emprise about the recently expanded recall involving their products and unlabelled HHC, and we looked at the growing number of unlicensed cannabis stores in Ontario.

Meanwhile, a hemp producer in Ontario received more than $600,000 in grants to help develop minor cannabinoids in Canada’s hemp crops, and Florida Governor Sad Ron DeSantis tried to blame a legalization bill in the state on Canada.

In financial news, Galaxie Brands and Freedom Cannabis received CCAA protection. At the same time, Organigram reported net profits, SNDL acquired the rest of Nova Cannabis, and MediPharm announced their Q2 2024 report, as did Decibel, Simply Solventless, Rubicon, and Auxly.

Also, inspectors and law enforcement in New Brunswick have been busy raiding unlicensed stores, hitting several locations this past week.

In other cannabis news…

Truck News provided a reasonably in-depth report on impaired driving rates in Canada, noting that while Canadian truck drivers who cross the US border have maintained a low rate of positivity of cannabinoid detection (1%) pre-and post-legalization, the rate of those who are not crossing the US border has increased slightly, from 5.31% to 7.68%. The article also, refreshingly, notes that a positive test does not necessarily indicate impairment at the time of testing.

Canopy Growth Corporation announced that CEO David Klein will be retiring at the conclusion of the company’s current fiscal year ending March 31, 2025, or when the board names a successor. Some say the role will go to a person who can remove an ancient sword from a stone, while others say it will come down to a majority vote of the board.

Martin Cash at the Winnipeg Free Press spoke with Delta 9 founder John Arbuthnot about the company’s current financial challenges. “What we did not anticipate,” says Arbuthnot, “Was escalation of hostilities from our senior lenders at Sundial.”

The Toronto Star picked up the story about a new board chair for the OCRC/OCS. StratCann readers may remember our coverage of this two weeks ago.

Pure Sunfarms Corp. announced it has completed the first phase of its wildlife enhancement project through the Beneficial Management Practices program. Funding for this project has been provided by the Governments of Canada and British Columbia through the Sustainable Canadian Agricultural Partnership, a federal-provincial-territorial initiative under the Beneficial Management Practices Program. The program is delivered by the Investment Agriculture Foundation of BC.

Police in Morden, MB, issued a ticket for smoking cannabis at an outdoor public place, which carries a fine of $672.

Following their Q3 2024 report last month, Cannara Biotech has now announced what they say was a strong July, which they will be discussing during a live investor webcast on Tuesday, August 20, 2024.

The Mental Health Commission of Canada has released a report on its pan-Canadian research program to assess the impact of cannabis legalization and use on the mental health of diverse populations.

A new research study out of Australia says cannabinoids are an effective treatment alongside other treatments for chemotherapy-induced nausea and vomiting despite standard antiemetic prophylaxis, but were associated with additional adverse events.

Lifeist Wellness Inc. and its subsidiary CannMart Inc. have entered into a services agreement and a share purchase agreement with Simply Solventless Concentrates Ltd (SCC) to provide operational support services to CannMart, pending SSC’s acquisition. Lifeist will pay SSC a monthly service fee.

On August 14, 2024, members of the Waterloo Regional Police Direct Action Response Team completed two Cannabis Act search warrants at illegal cannabis stores on King Street East and on Walnut Street. A large quantity of various cannabis products, currency, and a quantity of illicit prescription pills were seized. Two were arrested.

Pelham Council in Ontario is once again looking into the issue of the smell of cannabis coming from a local cannabis producer, Redecan. The city has spent more than $400,000 on the issue so far.

International cannabis news…

Officials in California seized more than 2.2 million illegal cannabis packages marked with the universal symbol of legal California cannabis. Much of the packaging resembled popular food and candy brands that could appeal to children, including items resembling Twinkies and Sweet Tarts.

Officials in Nigeria say they found 265.25 kg of cannabis (in Sherwood hockey bags, naturally) imported from Montreal at the Tincan seaport in Lagos on August 7, and another 37.5kg in a container from Canada on August 8.

State regulators in Missouri issued two cannabis recall notices last week involving 135,000 cannabis products—more than double its first massive cannabis product recall precisely one year ago.

Finally, Business of Cannabis reports that the Netherlands has again delayed the official start of its ‘controlled cannabis supply chain experiment’ amid ongoing challenges in establishing domestic supply. The country’s approach officially began with a preparatory phase in December 2023, where a few coffee shops were selected to receive relatively small amounts of legally grown cannabis. The second phase, the “experimental” phase, would mean expanding the program across the country, something politicians connected to the program now say they are not quite ready for.

$600,000 in grants to help develop minor cannabinoids in Canada’s hemp crops

Written by Staff on August 15, 2024. Posted in Business, Cannabis News, Government, Research.

A Canadian industrial hemp plant breeding company with an emphasis on minor cannabinoids has received more than half a million dollars in funding from the AgriScience Program by the Minister of Agriculture and Agri-Food and the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

Cannabis Orchards Inc., located in Kemptville, Ontario, recently announced two awards that it says will support its research into the genetic improvement of industrial hemp and the advancement of minor cannabinoid research.

The first grant, for $404,305 from the AgriScience Program, supports Orchards’ project that aims to develop seedless triploid hemp lines for the production of cannabidiol (CBD) and minor cannabinoids such as cannabigerol (CBG) and cannabichromene (CBC).

By developing novel triploid hemp lines, Cannabis Orchards hopes to open new markets and maximize yields and profits for hemp farmers by providing them with hemp varieties capable of delivering minor cannabinoid profiles.

Dr. Jamie Ghossein, CEO of Cannabis Orchards, commented in a company press release, “The potential of minor cannabinoids in therapeutic applications is vast, yet they remain underutilized due to their scarcity. Our research and development efforts are dedicated to unlocking this potential, ultimately providing more effective treatment options for a variety of conditions and opening new commercialization opportunities for farmers and the Canadian cannabinoid industry.”

The second grant is for $196,000 from NRC IRAP, which supports a project focused on developing triploid hemp varieties through polyploidization that will increase biomass yield and cannabinoid content, while reducing the risk of unwanted cross-pollination by rendering plants infertile.

Dr. Ghossein added, “This grant from NRC IRAP is a significant endorsement of our cutting-edge research in polyploidy and hemp trait development. Our project will enable the development of seedless triploid hemp varieties, ensuring higher yields and more consistent quality for farmers and cannabinoid processors. By preventing unwanted pollination and enhancing desirable traits, we are paving the way for the next generation of industrial hemp genetics by maximizing yields for farmers and providing high-quality cannabinoid inputs to processors.”

Both projects began in early 2024 and are expected to conclude by 2026.

The company also recently announced that its hemp cultivar Vendetta has been officially added to the Health Canada List of Approved Cultivars (LOAC) as of August 12, 2024. Orchards says the cultivar is the first hemp variety with a near 1:1 ratio of CBD to CBDV (cannabidivarin), a minor cannabinoid.

The company says Vendetta will be available to licensed hemp growers in Canada as feminized seed starting in Spring 2025, and biomass will be made available to commercial processors in Fall 2025 exclusively through Cannabis Orchards. Cannabis Orchards holds a Good agricultural and collecting practice certification for biomass cultivation.

The company offers an array of hemp biomass on its website, including high CBD, high CBG, high CBDV, and feminized hemp seed.

Behind the recent “intoxicating cannabinoid” product recall

Written by David Brown on August 14, 2024. Posted in Alberta, Business, Cannabis News, Producers, Products.

The company behind a recent recall of cannabis oils due to the “presumed presence” of what Health Canada considers a cannabinoid called HHC says they had no knowledge about or intention of the ingredient being included in their products.

In addition, the owners of Emprise Canada in Alberta say Health Canada has provided them with little information about how they discovered the “semi-synthetic” cannabinoid derived from CBD called hexahydrocannabinol (HHC).

Anil Jain and Mukhdeep Mangat, the founders of Emprise, which offers an array of cannabis oils and capsules, spoke with StratCann this week to clarify some questions cannabis consumers may have about HHC, the recent product recall, and their plans for future products.

Hexahydrocannabinol (HHC) is a natural derivative of THC and can also be produced synthetically from CDB. It has become somewhat popular in the US market in the last few years, drawing concern from some regulators there, in Canada and elsewhere. In 2023, Health Canada even released a guidance document for the industry on what they considered intoxicating cannabinoids, which includes HHC along with delta-8-THC and delta-10-THC.

The two Emprise founders tell StratCann that the recall was based on a handful of reports Health Canada received earlier this year, in which consumers said the low THC products were more intoxicating than they expected. This appears to have led Health Canada to conduct its own testing of the product, in which they say they found evidence of the “presumed presence” of HHC.

Emprise maintains that its own testing, from two independent labs, did not detect any HHC. They have asked Health Canada for more information about how the product was detected, which they say the federal regulator was not able to provide.

They don’t deny the presence of HHC, though. Instead, based on their own internal investigation, they say they believe it was present in a CBN-rich distillate they purchased as an ingredient in some of their products. Since the recall was based partly on a labelling and packaging issue, they say they are planning to soon re-issue the same products with HHC on the label.

Below is our conversation with Emprise:

You mentioned that you believe the HHC is present in the CBN distillate you purchased from a third party. Was Emprise aware of this when you sourced the product originally?

“Emprise had no knowledge that the CBN distillate contained or may contain HHC. Third-party lab analysis provided by the supplier had no indication of HHC, and was compliant with regulations in all other aspects.

“The same applies to final product testing. Prior to products being released for sale, all products were tested by a third party lab. There was no indication of the presence of HHC.”

When did Health Canada inform you they had detected HHC in these products?

“In early June, Health Canada advised us that their Cannabis Lab had detected the presence of HHC. Health Canada had taken samples of only three products. Other products in the recall were included because they also used the same or similar lot of CBN distillate.”

Can you provide a comment on your thoughts about why you think Health Canada would have even been looking for HHC?

“Our understanding is that Health Canada received couple of complaints of adverse health effects (one complaint in about 100,000 doses used). People experienced more significant “high” than they were expecting and had upset stomach and/or nausea. This led Health Canada to investigate the products in question.”

How much has this recall cost Emprise so far?

“The financial impact of the recall is significant. However, we are a strong company with positive cash flow. We are continuing to invest in growing our business, particularly in the area of minor cannabinoids, where we are leading the industry. From many positive calls we have received from retailers and cannabis consumers, our view of the value of minor cannabinoids is reinforced.

“Recently we quadrupled our production space and expanded the portfolio of 70+ innovative manufactured products.”

Some consumers have speculated in comments online, such as Reddit, that HHC was added to the products to get around the 10mg limit. Can you speak to this concern?

“CBN+CBD softgels products are low or no THC products. The maximum THC limit comment does not even apply.”

Given your perspective that this recall was not warranted, does Emprise plan to push back?

“Our perspective, which we have shared with Health Canada, is that currently there are no regulations on unintentional HHC in a cannabis product, or inclusion of the amount of HHC on the label. Furthermore, Health Canada approved labs don’t even have methods for detecting and quantifying HHC. We have encouraged Health Canada to clarify and recommend new regulations for the benefit of cannabis users and other LPs.”

Health Canada issues recall for cannabis products containing undeclared intoxicating cannabinoid

June 4, 2024

Expanded recall notice for products with unlabelled cannabinoids

August 9, 2024

Health Canada releases guidance document on intoxicating cannabinoids, including CBN

December 5, 2023

Galaxie Brands receives CCAA protection

Written by Sarah Clark on August 12, 2024. Posted in Business, Cannabis News, Government, Producers.

The parent company of cannabis packager Galaxie Brands was issued an order pursuant to the Companies’ Creditors Arrangement Act (CCAA) on August 6, on application by The Vancor Group Inc.

The Vancor Group is the largest creditor of Equipment Co., Galaxie Brands’ parent company, which owns the equipment Galaxie uses to conduct business. Galaxie Brands is a licensed producer of cannabis under the Cannabis Act and operates as a producer and co-packer of cannabis and cannabis products.

Galaxie Brands processes cannabis into various products for sale to its customers and provides packaging services at its facility in Puslinch, Ontario. However, neither Galaxie nor Equipment Co. cultivates, manufactures, or grows cannabis flower.

Galaxie’s primary customers include other cannabis producers and provincial partners across Canada, including those in Ontario, British Columbia, Nova Scotia, Yukon, and New Brunswick.

Vancor has invested over $2.7 million in Equipment Co and Galaxie Brands on an unsecured basis. That debt has now matured as of May 31, 2024, and more than $2.1 million in outstanding debt is owed to Vancor. KPMG Inc. has been appointed as monitor of the CCAA process for Vancor.

Vancor is owned by Corry Van Iersel, who also owns True North Cannabis, a chain of cannabis stores in Ontario.

While Galaxie’s production licence is not set to expire until February 2028, the company’s excise licence, set to expire on October 16, 2024, must be submitted by September 16, 2024.

Beginning around September 2023, Galaxie Brands also entered into a payment plan with Health Canada to pay licensing fee arrears.

The plan considers a monthly payment of approximately $15,000 to Health Canada for these arrears. As of August 2024, Galaxie owes about $30,481.05 to Health Canada on account of annual licensing fees for 2023.

As of August 2024, Galaxie is also said to have owed the Canada Revenue Agency (CRA) around $4.1 million in unremitted excise tax. In May, the CRA requested that Galaxie prove it has enough money to continue operating and work on a payment plan.

KPMG, the Proposed Monitor, reports that the CRA is the beneficiary of a $535,000 surety bond issued by Trisura Guarantee Insurance Company as security for Galaxie Brands’ excise tax obligations.

Galaxie Brands also has around $569,000 in arrears related to Harmonized Sales Tax (HST) remittances to the CRA.

Equipment Co and Galaxie also owe some $2 million in accounts payable, primarily to suppliers, shipping and logistics services companies, and other cannabis licensed producers.

The main goal of the CCAA Proceedings is to stabilize Equipment Co and Galaxie’s businesses and to allow them to be sold to address these debts through a court-ordered process.

Galaxie’s sales for the period of August 3 to November 1, 2024, are just over $4 million, with a closing cash balance of -$1.4 million.

In 2023, BZAM completed its disposal of Galaxie Brands Corporation via a share purchase agreement, which it had acquired when it took over the Green Organic Dutchman who had taken over Galaxie Brands in 2021.

Galaxie’s brands include WAGNERS, Highland, ZIP, Stunnerz, Glob Headz, Lite Label, Munchie Box, and Cannabis Cartel.

BZAM granted CCAA protection due to ongoing financial challenges

February 29, 2024

Navigating the world of bankruptcy, restructuring in the cannabis industry

February 5, 2024

Delta 9’s monitor files sale and investment process notice

August 3, 2024

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

Written by David Brown on August 12, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Cannabis retailers in Ontario want to know what the city is going to do about a growing number of unlicensed cannabis stores.

An estimate earlier this year from Toronto said that more than 50 unlicensed cannabis stores were operating in Toronto alone, and some retailers say they believe the number now is even higher.

Cannabis store owner Paul McGovern, a former police officer with Toronto Police Services who stepped down in 2018 to open Vertie Cannabis, says he understands that enforcement priorities are complicated. With a limited budget and many competing issues, targeting unlicensed cannabis stores is likely not seen as being as important as going after car thieves or fentanyl dealers.

He argues that another issue that impedes enforcement in Toronto is that it is the only city in Ontario that doesn’t treat this like a law enforcement issue, instead handing it over to bylaw officers who otherwise inspect bars and restaurants.

McGovern also argues that public awareness is an issue. While store owners might be following 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.”

“The very fabric of legalization is brought into question because of these stores and their proliferation. It’s a big deal on a lot of levels. I hope Canada can find a way to get it right. I don’t think we can look the other way anymore. This is too big and too meaningful.”
Paul McGovern, Vertie Cannabis

While he thinks there is a lack of funding to address the issue, McGovern says he’d also like to see a more coordinated province-wide approach similar to what British Columbia and, more recently, New Brunswick have done by giving inspectors broader law enforcement powers so they can work hand-in-hand with police to move unlicensed stores towards compliance and seize products.

“So far it’s been a very sort of ad hoc response in Ontario. Every police agency and jurisdiction is responsible for enforcing the law within their borders, and seemingly everybody is doing it a little bit differently.”

But the lack of coordinated enforcement means that retailers like himself are likely losing sales, and local communities and provinces are missing out on tax revenue. Not to mention what he says are likely connections to organized crime behind many of these stores.

“What’s all this costing? In terms of lost sales and the risks this creates for legal businesses, what’s the cost of lost excise, lost sales tax, lost jobs, all of those things? It’s really remarkable when you think about it. How much are taxpayers in Ontario missing out on?

“We really hope something different can happen sooner than later, because how can anyone compete with no tax. With those kinds of margins?”

Ontario recently announced it is planning to add $31 million to its budget to address illegal cannabis stores and websites operating in the province. As part of Ontario’s Budget 2024, it says it plans to provide the funds over three years to the Provincial Joint Forces Cannabis Enforcement Team (PJFCET).

The head of Toronto’s licensing and standards department says the city needs more money to enforce the law against a growing number of illegal cannabis stores operating there.

In July, Cambridge Today spoke with Corry Van Iersel, owner of True North Cannabis in Cambridge, who shared similar sentiments.

“We are a legally operating business here and our sales are down 25% because of places like this,” Van Iersel told Cambridge Today. “How can we compete when their products are stronger and cheaper than ours?”

Highlighting another layer of complexity in enforcement is that one of Van Iersel’s two locations is near a store that argues it operates outside of provincial and federal cannabis regulations. While some police agencies in Ontario have targeted such businesses, seizing products and/or making arrests, other jurisdictions take a more cautious approach.

New Brunswick, for example, has said they cannot enforce their own cannabis regulations against stores operating on First Nations’ reserve lands, while officials in British Columbia have said they can but still often do not.

However, these types of stores are not the bulk of the more than 60 operating in Toronto, McGovern points out, nor are they the kind of “activist crusaders” that helped lead the charge prior to legalization. Instead he argues these are businesses just looking to make an easy buck by taking advantage of low enforcement priorities.

“We’ll never achieve the goals of the Cannabis Act unless there is some meaningful enforcement,” he tells StratCann. “I don’t think anyone expects it to go away with just enforcement, but with that said, if we don’t have some enforcement of the rules, why bother having the rules to begin with?

“The very fabric of legalization is brought into question because of these stores and their proliferation. It’s a big deal on a lot of levels. I hope Canada can find a way to get it right. I don’t think we can look the other way anymore. This is too big and too meaningful.”

Featured image from Google Street View of an unlicensed store in Scarborough, Ontario that was raided by OPP earlier this year.

This article has been corrected to note that the featured image is in Scarborough, not Kingston.

OPP raid 7 illegal dispensaries, seize 63 kg of flower, 500 vape pens, 7 arrested

February 9, 2024

Ontario Provincial Joint Force Cannabis Enforcement Team raids online retailer

June 5, 2020

Toronto wants more money from the province to deal with a growing number of illegal cannabis stores

March 27, 2024

Week in Weed – August 10, 2024

Written by Staff on August 10, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, a few of our more popular stories were about the Victoria Cannabis Buyers Club receiving a $3.2 million fine from the BC government and an announcement from Organigram about new nanoemulsion technology.

Delta 9’s monitor posted a Notice of Sales and Investment Solicitation Process for Delta 9 Bio-Tech Inc., and Health Canada is seeking feedback on the PMRA’s new proposed approach for pesticide use for cannabis and hemp.

Meanwhile, cannabis sales rebounded in April/May following post-holiday declines.

In financial news, SNDL released its Q2 2024 results, Christina Lake Cannabis shared its Q1, Q2 2024, Aurora Cannabis shared its Q1 2025, Cronos shared its Q2 2024, Village Farms shared its Q2 2024, and Canopy shared its Q1 2025.

In law enforcement news, the CBSA seized 32 kg of cannabis at Toronto Pearson International Airport, while inspectors in New Brunswick seized more cannabis under new inspection powers.

In other cannabis news in Canada…

The Alcohol and Gaming Commission of Ontario (AGCO) Board of Directors has approved a new retail training program in Ontario from Cannabis Training Canada Inc., providing an alternative to CannSell.

Health Canada shared some updates to the Cannabis licensing application web pages, including the reduction in the submission requirements for physical security measures, examples of scenarios where an applicant might choose to self-identify as Indigenous affiliated, new content to support descriptions of virtual witnessing of the destruction of cannabis in submission packages, and new content to clarify submission requirements when a Quality Assurance Person works remotely.

High Tide announced that its Cabana Club loyalty program has surpassed 1.5 million members across Canada. The company also announced the closing of $15 million in subordinated debt facility. The debentures will mature on July 31, 2029, and bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly.

The transition from the illicit cannabis market to the legal market has occurred more quickly than initially expected in Quebec, says Marie-Claude Lacasse, communications director for Québec’s Ministry of Health and Social Services.

Indigenous supporters of My Legacy cannabis dispensary recently engaged city officials at the launch of Market at 70 King in downtown Oshawa and secured a meeting with Oshawa Mayor Dan Carter.

Owen Sound Police Service responded to a break-in call at a cannabis store on August 2 at 3:20 a.m. Police arrested two youths nearby.

Patrick Lee Warnecke, the owner of an unlicensed cannabis store who had charges against him stayed earlier this year, says he plans to re-open his Best Buds Society store in some capacity.

A Calgary father and son are facing charges after police seized more than $100,000 in illegal drugs during a search in the city’s southwest last month, including more than 4 kg of cannabis.

International cannabis…

Using cannabis daily for years may raise the overall risk of head and neck cancers by 3.5% to 5%, according to a new study from the US that analyzed millions of medical records.

National Geographic takes on the Indica/Sativa myth, which includes comments from Sean Myles, an associate professor of agriculture at Nova Scotia’s Dalhousie University.

The first human clinical trial to test how cannabigerol (CBG) impacts anxiety and stress has turned up encouraging results among 34 healthy users.

Demecan Group, one of Germany’s largest cannabis producers, recently completed its latest round of funding, bringing its valuation close to 100 million euros. The funding round was led by Florida-based Trog Hawley Capital, marking the first institutional investment by a U.S.-based investor in Demecan, reports Reuters.

There have been more than 20 applications now submitted for cannabis cultivation for personal use associations in Lower Saxony, a state in northwest Germany. Eight have already been approved, and eight have been rejected.

Disgruntled investors have filed a $5 million class action lawsuit against High Times.

Revenue officers in Ireland reported discovering 39 kg of cannabis resin and 11.8 kg of cannabis flower in several shipments originating from the USA, the United Kingdom, India, Canada, Spain, Thailand, Sweden, and New Zealand.

And finally, a Canadian man was indicted on Aug. 1 for smuggling about 20 kg of cannabis into Taiwan for a drug cartel. The man flew from Vancouver with two checked suitcases of cannabis supplied by another man who, court records show, booked the flight and accommodation.

Cannabis sales rebound in April/May following post-holiday declines

Written by David Brown on August 9, 2024. Posted in Business, Cannabis News, Retail.

Retail cannabis sales continued to rebound in May following declines from a peak last summer.

Retail cannabis sales in Canada were $434.5 million (seasonally adjusted), up from $410.5 million in April and $406.8 million in March. Sales dropped to $402 million in January and $386.8 million in February, following a spike in sales at $448.7 million in December.

Cannabis sales continue to increase year over year, with spikes in sales in the summer and the winter holiday season, but the pace of those annual increases has been slowing in the last few years as the market appears to be reaching a possible saturation point.

The current high mark for sales was August 2023, when retail cannabis sales reached $469 million. The previous high water mark was December 2022 at $425.9 million.

Notice of Sales and Investment Solicitation Process re: Delta 9 Bio-Tech Inc.

Written by Contributor on August 8, 2024. Posted in Business, Cannabis News, Producers.

On July 15, 2024, Delta 9 Bio-Tech Inc. (“Bio-Tech”) and four related entities were granted an initial order by the Court of King’s Bench of Alberta (the “Court”) under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”). Alvarez & Marsal Canada Inc. was appointed pursuant to the CCAA as monitor (the “Monitor”).

On July 24, 2024, the Court approved a sales and investment solicitation process (the “SISP”) to solicit interest in, and opportunities for, a sale of, or investment in, all or part of Bio-Tech’s assets and business operations (the “Opportunity“). The Opportunity may include one or more of a restructuring, recapitalization, or other form or reorganization of the business and affairs of Bio-Tech as a going concern, or a sale of all, substantially all, or one or more components of Bio-Tech’s assets (the “Property“) and business operations (the “Business“) as a going concern or otherwise.

The Property includes a 95,000 sq ft. Health Canada approved cannabis production facility located at 760 Pandora Avenue East, Winnipeg, MB. The Business has been able to cultivate premium quality cannabis at a cash cost of $0.60 to $0.70/gram with an industry-competitive cost structure (favourable labour, land-leasing, and power cost). Further, an opportunity exists for modest capital investment to expand production and further reduce costs.

Interested parties wishing to pursue the Opportunity are to submit a formal binding offer to the Monitor in accordance with the SISP, by the following deadline:

Bid Deadline: 5:00 p.m. Mountain Time on October 28, 2024

Copies of the SISP Procedure Document and other court-filed materials are available at: https://www.alvarezandmarsal.com/delta9. Interested parties who wish to obtain additional information and participate in the SISP may contact the Monitor at: [email protected].

Sponsored content by: Alvarez and Marsal

Organigram announces new nanoemulsion technology in collaboration with British American Tobacco

Written by Sarah Clark on August 7, 2024. Posted in Business, Cannabis News, Producers, Research.

Organigram announced the preliminary results of a new clinical study on nanoemulsion technology this week in collaboration with its partner, British American Tobacco (BAT).

The clinical pharmacokinetic study looks at the effectiveness of Organigram’s new nanoemulsion technology in providing a more rapid onset for ingestible cannabis products by improving the bioavailability of various cannabinoids.

The full results of the study, concluded this past January, will be published in October 2024. According to the New Brunswick cannabis producer, the preliminary results show faster onset compared to traditional ingestible products, up to double the cannabinoid delivery at peak compared to the control group, and early indicators of a more predictable duration of the effects of cannabis.

The Product Development Collaboration (PDC) is a joint collaboration between BAT and Organigram and was established to focus on developing next-generation cannabis products.

Since 2021, BAT, the British multinational that manufactures and sells cigarettes, tobacco, and other nicotine products, has made several minority investments in the cannabis space, including its 19.9% equity in Organigram in their “Beyond Nicotine” campaign.

In 2023, BAT announced plans to invest another nearly $125 million into Organigram, more than doubling its equity position in the cannabis company from about 20% to 45%.

The PDC was created as part of BAT’s first round of investment with Organigram. The goal is to create a Center of Excellence at Organigram’s Moncton campus, focussed on developing the next generation of cannabis products, IP, and technologies.

The PDC is also in late-stage development of an array of emulsions, novel vapour formulations, flavour innovations, and packaging solutions that will be applied across some products in Organigram’s portfolio in calendar year 2024, according to the cannabis producer’s most recent investor presentation.

“We are thrilled with the study findings,” said Borna Zlamalik, SVP of Innovation and R&D, in a press release. “The patent-pending nanoemulsion technology, FAST™, promises to unlock the power of the ingested cannabinoids and allow consumers to navigate and control their dosage experience more accurately – a key consumer pain point in the ingestible product space. These technological advances underscore Organigram’s commitment to consumers and to developing science-driven innovations.”

“As a responsible licensed producer, our aim is to thoroughly educate consumers about the effects of this technology, empowering them to enjoy a controlled and predictable ingestible experience,” added Mr. Zlamalik.

Such research can also allow a federally licensed cannabis producer like Organigram to better market its products while ensuring any product claims adhere to Health Canada regulations.

Organigram and BAT say they believe the 19-day in-clinic, eight-arm study is one of the largest pharmacokinetic studies targeted at adult-use recreational cannabis products.

The research was undertaken by a third-party clinical research organization that evaluated cannabinoid absorption across three product formats to determine the effectiveness of the innovative delivery system.

Organigram hopes to commercialize FAST™ in the fall of 2024, starting with cannabis gummies. According to their most recent investor presentation, manufacturing scale-up trials for these gummies are reportedly already underway at Organigram’s 51,000 sq. ft. edibles facility in Winnipeg.

“Organigram has always been focused on consumer-centric innovation as one of its core differentiators and our commitment to the development of advanced technologies underscores this commitment,” said Beena Goldenberg, CEO of Organigram. “We are confident that our investment in this technology will pave the way for our continued success in the edibles space both here and in the future abroad.”

Global tobacco giant ups investment in Canadian cannabis producer Organigram

November 6, 2023

Organigram receives final ruling from Health Canada: Jolts are an edible

March 22, 2024

Organigram asks court to overrule Health Canada on edibles extract restrictions

April 24, 2023

Victoria Cannabis Buyers Club receives $3.2 million fine from BC gov

Written by David Brown on August 6, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

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

The fine was issued in July following a hearing and appeal. The total fine is $3,235,465.74, which is based on an amount equal to twice the retail value of the cannabis that was sold or possessed by the business for the purpose of sales.

The provincial government’s Deputy Director calculated that the retail value of the cannabis that VCBC sold and possessed for the purpose of sale was $1,617,732.87, following raids in 2019 and 2020. VCBC has until September 6, 2024, to pay the fine and can apply to appeal the ruling until that date.

BC’s Community Safety Unit (CSU) can undertake a range of enforcement activities against unlicensed cannabis retailers, including inspections, issuing tickets, obtaining warrants, conducting seizures, and more. The CSU can also recommend the prosecution of offences under the Cannabis Control and Licensing Act.

The province had previously proposed to fine the VCBC and Smith a combined $6.5 million for selling cannabis without a licence, including $3,235,465.74 to Smith personally.

However, in the most recent compliance order issued by the CSU, Meghan Oberg, Deputy Director of the CSU, says that she did find that Ted Smith was not personally selling cannabis contrary to provincial regulations. She notes, however, that she has not yet made a determination as to whether Smith or any of VCBC’s officers, directors, or agents, may be liable for the monetary penalty imposed on VCBC. This would be determined in a separate hearing.

The CSU is expected to hold another written hearing to determine if the directors of the VCBC will be held personally accountable for $3.2 million, as has been the case with other unlicensed store operators.

A press release from the VCBC says that lawyers Kirk Tousaw and Jack Lloyd will be challenging the compliance order issued by the province.

VCBC Founder Ted Smith stated in a recent online post that stores like his have never been allowed to have storefront access under Canada’s cannabis laws.

“Patients continue to rely on the VCBC because limits on THC in edible products, restrictions on smoking lounges, high prices and the lack of information regarding the potential medical uses of cannabis products in recreational stores, are unacceptable. For these reasons, the 28 year old VCBC has defied the CSU and reopened after every raid, including a third raid in March 2023 for which a fine has not been issued yet. Soon after that raid, Tousaw and Lloyd filed lawsuits and injunctions against both the provincial and federal governments, though no date for that hearing has been set.”

In January, the government issued a $156,125.50 fine against Kit Warren, the operator of another Victoria Cannabis store who faced enforcement actions from the BCU in 2019 and 2020. Two people connected to another unlicensed cannabis store who faced more than $1 million in fines rejected an appeal at a recent hearing in January.

As of June 3, 2024, the BC CSU has conducted 342 education visits to unlicensed cannabis stores, taken 111 enforcement actions, conducted 1,635 investigations of online cases, closed 233 unlicensed cannabis stores, and seized $38.2 million in cannabis. The BCU reports that $1.49 million in penalties have been paid so far.

The Victoria Cannabis Buyers Club is one of the oldest and longest continually operating cannabis dispensaries/compassion clubs in all of Canada. It was started in 1996 by owner Ted Smith. While many medical cannabis dispensaries prior to legalization said they sought to fight for medical cannabis access, the VCBC is one of the few who have stuck to their guns on the issue of fighting for access. The club was also at the core of a court case many years ago that made non-flower products like “edibles” and ingestible oils legal for medical use.

Vancouver Island’s VCBC again raided by BC’s Community Safety Unit

July 15, 2020

BC Cannabis Secretariat rejects call for a temporary exemption for the Victoria Cannabis Buyers Club

May 14, 2020

Victoria Cannabis Buyers club files lawsuit against BC government

May 2, 2023

Week in Weed – August 3, 2024

Written by Staff on August 3, 2024. Posted in Business, Cannabis News, Government, International.

This week at StratCann, we looked at the current state of cannabis sampling. This was one of the last pieces written for us by longtime contributor Tim Wilson, who is stepping away from the cannabis beat for a bit. We hope to hear from him again sooner than later!

We also ran our monthly cannabis jobs overview, looked at a recall from Canna Farms due to a labelling error, and checked in on Health Canada’s commitment to providing updates on the state of CBD and NHPs.

Uber Eats and Leafly announced they were expanding their delivery menu options for cannabis stores into the Alberta market, and the OCRC has a new board chair.

It was also a busy week for financial reports from the pubcos. We looked at Cannara Biotech’s Q3 2024 results, Tilray’s Q4 2024, MTL’s 2023-2024 report, Greenway’s annual report, Nova Cannabis’ Q2 2024, and SNDL’s Q2 2023.

Lastly, Delta 9’s monitor filed a sale and investment process notice for Delta 9 Bio-Tech.

In other Cannabis news

ROSE LifeScience Inc. received a Cannabis Research Licence from Health Canada, authorizing non-therapeutic research on cannabis, permitting in-house sensory and other consumer preference testing. ROSE is majority-owned by Village Farms International.

Just months after a successful 4-20 event that saw strong community support, downtown Prince George was once again home to a cannabis street festival on Saturday, July 27. The Street Summer Fest had a 19+ safe consumption site, as well as live music, dancers, food trucks, local businesses, and more.

High Tide announced the closing of $15 million in subordinated debt facility and opened four more stores in Alberta and Ontario.

Christina Lake Cannabis reported a loss and comprehensive loss of nearly $1.6 million from $3.3 million in sales in the three month period ended May 31, 2024

Statistics Canada examined the cannabis industry’s impact on GDP over the past five months. There were modest gains in the legal sector and declines in the illicit sector.

Aurora Cannabis Inc. announced a collaboration with a company that will launch its newly developed CBD lozenge on Aurora’s Canadian medical cannabis patient platform. The agreement between Aurora and Cogent International Manufacturing Ltd is expected to have an initial term of 24 months, and the first SKU is targeted for later in 2024.

A recent study compared the effects of oral THC, microdose LSD, and methamphetamine on brain activity. Although only LSD was said to have significantly increased neural complexity, oral THC did, unsurprisingly, induce an altered state of consciousness with strong subjective effects.

Psychology Today also looked at some of the hype around CBG.

Law enforcement

Eco Green Leaf Bar in Diamond Valley, Alberta, has reopened after being rammed by a truck during a burglary.

Two Cannabis NB employees have been charged with stealing thousands of dollars worth of cash and product from their employer, with one then falsely reporting the store had been robbed, reports the Telegraph-Journal.

Officers in New Brunswick used new inspection powers to seize products from an unlicensed store in Saint John.

Police in Saskatchewan intercepted four pallets of cannabis en route from BC to Ontario.

An Ontario farmer found 538 cannabis plants on his land, alerting the OPP.

During July 30 searches on Commercial St. in Nova Scotia, officers found and seized hundreds of small quantity packages of illegal cannabis, tobacco, and vape products, as well as a quantity of psilocybin. Two men were arrested.

A PEI man also landed in jail for driving to work while impaired by cannabis.

In international cannabis news

New Zealand recently approved changes to its Medicinal Cannabis Scheme, allowing companies to export cannabis immediately. Trade Minister Todd McClay said the changes provide opportunities for New Zealand cultivators and manufacturers. The article also includes comments from Helius Therapeutics, the New Zealand Medicinal Cannabis Council, and Regulation Minister David Seymour.

Czech Republic is considering cannabis legalization. While growing up to three plants at home and possessing up to 600 kg of cannabis is being considered, clubs or shops appear to be off the table for now.

New York City’s sheriff’s office says it has shuttered around 700 illegal stores since new state regulations passed in April. Officials had estimated some 2,900 unlicensed vendors throughout New York City—compared to around 60 licensed dispensaries currently operating. New York still has only 150 dispensaries statewide.

And finally, Missouri is banning the sale of drinks, candy and other foods made with hemp-derived Delta-8 THC and other unregulated CBD products.

Delta 9’s monitor files sale and investment process notice

Written by David Brown on August 3, 2024. Posted in Business, Cannabis News, Producers.

Following Delta 9 Cannabis’s recent CCAA filing, the company’s court-appointed Monitor has begun an investment process seeking interest in, and opportunities for, a sale of, or investment in, all or part of Delta 9 Bio-Tech’s assets and business operations.

On July 31, Delta 9’s Monitor, Alvarez & Marsal Canada Inc. (A&M) issued a sale and investment process notice (SISP) and distributed letters and NDAs to known potential bidders, with a bid deadline of October 28, 2024.

If required, an auction will be held on October 30, with a closing date deadline of November 12. The monitor may extend the dates set out in the SISP with the consent and approval of Delta 9 Bio0Tech, Fika Herbal Goods, Delta 9’s Interim Lender, and SNDL Inc.

In a press release earlier in July, Delta 9 stated that obtaining CCAA protection was in the best interest of it and its shareholders, especially in light of recent “aggressive” actions by its creditors, namely recent demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.

On July 15, Delta 9 announced that it had entered into a binding term sheet for the FIKA Company to act as a plan sponsor to its CCAA proceedings. Through this process, FIKA would acquire Delta 9’s retail cannabis and distribution business while also assisting with a sale and investment solicitation process for the assets of the licensed cannabis production business. In exchange, Delta 9 would receive equity in FIKA.

FIKA will participate in and fund the costs of Delta 9’s CCAA proceedings through interim financing and present one or more plans of compromise or arrangements to Delta 9’s creditors. Under the agreement, FIKA will provide up to $3 million to fund the costs of the CCAA proceedings and up to $13 million to repay the secured obligations owing to SNDL Inc.

A receiving a recent extension of its CCAA filing, granted after a court hearing on July 24, Delta 9 and its subsidiaries—Delta 9 Logistics Inc., Delta 9 Bio-Tech Inc., Delta 9 Lifestyle Cannabis Clinic Inc., and Delta 9 Cannabis Store Inc.—included the approval of the $16 million FIKA has offered in interim financing, as well as a key employee retention plan in the amount of $650,00.

In an affidavit posted on July 22, Delta 9 CEO John Arbuthnot says Delta 9’s current excise tax arrears are approximately $7,800,000. The affidavit continues that in November 2023, the company applied to the Canada Revenue Agency (CRA) for relief of interest and penalties “due to financial hardship.” Arbuthnot believes there is a chance to reduce that amount by approximately $2 million.

Because of Delta 9’s tax arrears, the CRA moved to only renew the company’s excise licence on a 30-day basis, beginning in December 2023. Delta 9 Bio-Tech was also required to enter into a payment plan to address its owed excise tax in monthly payments of $50,000.

To keep the licence renewed, the company must make not only the $50,000 payment but also the go-forward monthly excise tax amount, which Arbuthnot says is a significant financial strain on the company.

The Toronto Stock Exchange (TSX) has scheduled the delisting of Delta 9’s common shares on the TSX for August 22, 2024, for failure to meet the TSX’s continued listing requirements. Trading in the Common Shares is currently halted on the TSX.

Bio-Tech is the largest cannabis producer in the province of Manitoba and owns a 98,804 sq ft. cultivation and processing facility in Winnipeg, Manitoba. The facility contains 297 320 sq ft shipping containers modified into modular “grow pods.”

The Company says it has been able to cultivate cannabis at a cash cost of $0.60 to $0.70/gram.

The company was first licensed in 2014 and was one of the first handful of federally licensed cannabis producers under Canada’s first commercial medical cannabis program, the MMPR.

OCRC gets new board chair

Written by David Brown on August 2, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Connie Dejak, the board chair of the Ontario Cannabis Retail Corporation (OCRC), doing business as the Ontario Cannabis Store (OCS), has resigned, ending her three-year term early. Former Toronto City Councillor Gary Crawford replaces her.

Dejak, the President/CEO of Runnymede HealthCare Centre, joined the board in 2019 and became board chair in December 2020. Her term was scheduled to end in December 2025; however, her position is now listed as resigned.

Runnymede HealthCare Centre is a rehabilitation and complex continuing care hospital in Toronto.

Dejak is being replaced by former Toronto City Councillor Gary Crawford. Crawford served as a city councillor for Ward 36, Scarborough Southwest, for nearly 14 years, and submitted his resignation on July 22, 2023.

“We would like to congratulate Gary Crawford, who has been appointed the new chair of the Ontario Cannabis Retail Corporation (OCRC),” a communications representative at the OCS told StratCann via email. “His appointment took effect on July 25, 2024. We are confident in his leadership and vision for the future of the organization.

“We would also like to extend our sincere gratitude to Connie Dejak who had tendered her resignation as Chair of the OCRC board, and we wish her well in her future endeavours.”

“It should be noted,” they added, “that the appointment to the Chair position is made by the government through the Public Appointments Secretariat.”

The board currently has nine members, including the chair and co-chair, all serving part-time positions. The President and CEO of the OCS, David Lobo, reports to the board.

Depending on experience, board members can be compensated up to $200 a day, vice-chairs receive up to $250 a day, and chairs receive up to $350 a day.

From 2019-2023, Dejak received $61,845 in remuneration (2019-2020 $1,525, 2020-2021 $6,975, 2021-2022 $33,425, 2022-2023 $19,950).

As a city councillor, Crawford served as the Budget Chief from 2014 to 2023 and served on committees such as the Budget, Planning and Growth, Economic Development, and the Executive Committee.

He also served on City Boards and Agencies including East Metro Youth Centre, Sony Centre for the Performing Arts as Interim Chair, Harbourfront Centre, St. Lawrence Centre for the Performing Arts, the Toronto Centre for the Arts and the Toronto Arts Council. He has chaired the Mayor’s Task Force on the Arts, the Theatres Working Group, and Co-chaired the Film Board.

In 2007, Crawford ran in the Ontario provincial election for the Progressive Conservative Party of Ontario (PCPO) from the riding of Scarborough Southwest, but was not elected.

Incorrect labelling leads to recall for Canna Farms Tangerine Dream

Written by hm-admin on August 2, 2024. Posted in Business, Cannabis News, Products.

Canna Farms has recalled one lot of its Tangerine Dream five gram dried cannabis sold through its medical sales channel for incorrect labelling as of August 2.

The products were sold with incorrect cannabinoid values, where the total labelled THC and total CBD are lower than the actual total THC and total CBD values in the product.

The printed value of THC was 8.3 mg/g, while the correct amount was 3.7 mg/g. The total labelled THC was 175 mg/g, while the accurate amount was 246 mg/g. The labelled CBD was <0.15 mg/g, while the correct amount should have been <0.1. mg/g. Total CBD was labelled as 0.5 mg/g but should have been 1.4 mg/g

Health Canada has not received any complaints related to the recall as of publication. Canna Farms Ltd. has currently received one complaint which noted that the label on the product was incorrect. Neither Canna Farms Ltd. nor Health Canada have received any adverse reaction reports for the recalled cannabis product lot.

There were 23 units of recalled product sold from May 31, 2024, to July 23, 2024, under lot number 24AER-DF1. Affected clients can contact Canna Farms directly.

Canna Farms’ parent company, MediPharm, recently announced it was closing the Canna Farms BC facility and moving operations to Ontario.

Labelling errors remain the most common reason for cannabis product recalls in Canada.

Cannabis Jobs Update – August 2024

Written by Staff on August 1, 2024. Posted in Business, Cannabis News.

Want to work in the cannabis industry in Canada? There are many positions available, from entry-level to executive, from cultivation to retail, from policy to QAP; there’s a massive amount of marijuana jobs available at any given time.

Check out our July 2024 cannabis jobs roundup below for a small snapshot of the numerous positions available in Canada’s cannabis industry.

Aurora Cannabis is hiring a cultivation manager for its Pemberton, BC, facility and is hiring an applications analyst for a remote work job in Ontario and Quebec, as well as several other positions.

Medipharm Labs is hiring a patient experience associate in Vancouver.

Fika Cannabis is hiring a lead educator for one of its stores in Mississauga while SNDL is looking to hire a product management and supply chain coordinator in Edmonton and a supervisor at Value Buds in Red Deer.

Plantlife Cannabis is hiring for full-time and part-time jobs in several locations in Alberta. Tilray is also hiring for numerous positions across Canada.

Canna Cabana is hiring for several positions in BC, Alberta, Saskatchewan, Manitoba, and Ontario. Auxly is hiring a machine operator and a cultivation associate in Ontario.

BC’s Queen’s Cannabis has tw o vac ancies coming up for their lower mainland locations.

Motif Labs is looking to fill several positions, including a commercial project manager in Ontario.

Organigram Inc. is hiring a cost accounting manager in New Brunswick, and Wyld is seeking a territory manager in Ontario.

Coterie Brands is hiring a brand ambassador in the Hamilton/Burlington area (part-time), and Canopy Growth is hiring for several positions, such as a regulatory affairs manager and a production assistant both in Ontario.

In Quebec, Cielo Verde Quebec Inc. is hiring a packaging coordinator and Kizos Culture is hiring a general staff member.

Cheeky’s Cannabis in Maple Ridge, BC, is seeking a full-time or part-time budtender. The Herbary in Yukon is also hiring full-time and part-time budtenders.

And, TEC Cannabis Services is hiring a cannabis trimmer/packer and a cleaner in Nova Scotia.

Uber Eats and Leafly announce cannabis “delivery” expanding to Alberta

Written by David Brown on July 29, 2024. Posted in Alberta, Business, Cannabis News, Retail.

Beginning July 30th, cannabis consumers in Alberta will have another option for product delivery.

Uber Eats, in partnership with Leafly, announced that it would begin accepting orders from licensed cannabis stores at the end of July. The online delivery platform will then inform the store of the order placed on their app, which will then be delivered by store staff.

“More Albertans are accessing legal cannabis than ever before,” said Klaas Knieriem, General Manager of Grocery and Retail for Uber Eats in Canada. “We are partnering with industry leaders like Leafly to help retailers offer safe, convenient options for people in Alberta to purchase legal cannabis for delivery directly to their homes. This will help reduce impaired driving and improve road safety.”

Alberta began allowing retailers to offer online sales and deliveries in early 2022, and BC in 2023. A representative with Uber tells StratCann the company now has 80 retailers in over 30 cities in Ontario and British Columbia.

Some retailers in those markets say the partnership has been beneficial. Others have questioned the value given that Uber and Leafly take a percentage of any sales through their platform, and the store is still responsible for delivery fees.

“Partnering with Uber Eats has been a game-changer,” said Calvin Basran of Queensborough Cannabis in British Columbia earlier this year. “We’ve been able to tap into our strengths—rapid delivery, top-notch service, and strict compliance with provincial regulations—and combine them with Uber Eats’ vast user network to reach new customers across Metro Vancouver. As we get ready to celebrate cannabis culture this 4/20, we’re proud to offer a safe, smooth and convenient shopping experience for cannabis lovers in our community.”

Mike Dunn, the owner of 1922 Cannabis in Toronto, has been using this service for some time now and says he’s very happy with it. His store, he explains, has shifted to doing most of its business in online sales, and working with an app like Uber has allowed him to lean more into delivery without worrying about handling the online infrastructure.

“The user experience, the functionality, the close rate is so much more effective than I could develop with my web-based technology tools,” he explains. “Connecting with a technology leader that understands their customers so well and we can ride off their coattails, they are absolute masters at that. It saved our business.”

Arshi Kalkat, the co-founder of retail chain Dank Cannabis, which is one of the first five retailers participating in Alberta, says they are excited by the opportunity.

“Our focus at Dank Cannabis has always been to bring a stress-free retail experience to our customers since we started our business in 2021,” said Kalkat. “This partnership will help us continue to do that and expand our reach to even more people in Calgary. Just like the in-store experience, our provincially certified delivery staff understand and comply with local regulations around cannabis transactions, including checking ID.

Not everyone has had positive things to say about the service, though.

Jazz Samra, the owner and founder of Sativa Bliss Cannabis, with five locations in Ontario, says he initially used the service when it was first launched in Ontario. However, he says he quickly found it was not worth his time. In addition to buying a monthly subscription to Leafly, he says he had to pay a percentage of each sale to Leafly and Uber, adding up to 15%.

“I had them set up for two of my stores and quickly cancelled one because I found out Uber doesn’t have a customer base (in that region). And I still had to get one of my employees to do the delivery. So I have to take an employee out of the store to do a delivery for an hour, and then I’m paying pretty much my entire profit margin on the sale back to Leafly and Uber. It doesn’t make sense. Leafly is a dinosaur in the industry, nobody is using those things anymore.”

Samara does allow that if third-party delivery services like Uber could also manage delivery, the program might make more sense. But given that retailers still have to take on delivery, he says it’s just not worth it for his locations.

Another Ontario retailer, Jennawae Cavion, founder of Calyx + Trichomes in Kingston, tells StratCann she has opted not to use the service as it eats too much into her limited profit margins. Uber, she says, wanted to charge her a 15% fee for all sales made on their platform, with the retailer while still having to take on the cost of delivery themselves.

Although she says there’s an argument to be made that the sales on the platform might bring in new customers, from her perspective, this would just mean cannibalising sales that might have already come through their own online store.

It’s too expensive, and for what?” asks Cavion. “It’s a terrible deal. Just deliver yourself. It’s not just a bad deal for retailers, it’s also a bad deal for consumers because it will just add to the cost.”

“Just work on your own website optimization. Nobody is buying weed from Leafly and Uber Eats.”

Note: This article has been edited to add comment from Uber.

Week in Weed – July 27, 2024

Written by Staff on July 27, 2024. Posted in Business, Cannabis News, Government, International.

This past week, we heard from Global Affairs Canada and the Canadian Cannabis Council about their disappointment over Israel’s preliminary report proposing massive import fees for Canadian cannabis.

We also examined changes coming to OCS’ warehouse distribution centre and new licensing information from Health Canada that shows a continued YOY decrease in new licence applications.

Tilray and Aurora both announced expansion opportunities for their facilities in Germany.

Cannara reported their Q3 2024 results and Delta 9 had their CCAA protection extended to September 15.

It was also a busy week for cannabis and law enforcement stories, with CBSA seizing cannabis in Nova Scotia and Ontario, while police in London seized a large quantity of cannabis products from a residential neighbourhood.

In other cannabis news in Canada:

Canada has shared new cannabis and industrial hemp contact information for licence holders, applicants, and industry.

Guelph Today covered a research paper StratCann first reported in early June, looking at the accuracy of labels on cannabis oils sold in Ontario.

An “odour app” chronicles behavioural responses to smells in the Metro Vancouver region. The City of Vancouver reports a disproportionately large number of reports with the suspected cause of animal processing (95%), while suburbs like Delta report disproportionately more on garbage and compost (58%), cannabis (73%), and farming (60%) causes.

UBC Medicine researchers awarded over $25 million in CIHR project grants, including just over $1 million for a project entitled “The impact of medical cannabis on driving safety: A driving simulation study.”

International cannabis news

An Ottawa man was found not guilty of smuggling almost $1 million of cannabis into Bermuda in 2023. Ngongo-Eric Sampassa, 32, successfully argued he didn’t know there was cannabis in his baggage. Local media reports that he is the spouse of a Canadian diplomat. Last week, another man from Ontario pleaded guilty to importing cannabis into Bermuda and was sentenced to 8.5 years.

Reuters also looked at the current zeitgeist surrounding the German cannabis market.

California officials are scrambling to test cannabis products for pesticides following a recent investigation by the LA Times and numerous recalls.

Thailand will work towards legislating cannabis for medical use, signalling a U-turn on plans to re-criminalize the plant and another change in the government’s back-and-forth on the subject over the past few years.

The American College of Physicians released eight recommendations, calling for an evidence-based public health approach to cannabis regulation, including the decriminalization of possession of small amounts of cannabis for personal use.

Finally, the 8th annual Cannabis Research Conference will be held in Colorado from August 7 to 9.

Delta 9 receives amended and restated order for creditor protection through Sept 15

Written by Sarah Clark on July 26, 2024. Posted in Business, Cannabis News, Producers.

Delta 9 Cannabis, the Manitoba company granted CCAA protection on July 15, due to expire on July 25, has now received an extension of a stay of creditor claims until September 15, 2024.

In a press release earlier this month, the company stated that obtaining CCAA protection is in the best interest of it and its shareholders, especially in light of recent “aggressive” actions by its creditors, namely recent demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.

Those creditor claims are now held off until September 15, giving Delta 9 and FIKA several more weeks to address them.

On July 15, Delta 9 also announced that it had entered into a binding term sheet for the FIKA Company to act as a plan sponsor to its CCAA proceedings. Through this process, FIKA would acquire Delta 9’s retail cannabis and distribution business while also assisting with a sale and investment solicitation process for the assets of the licensed cannabis production business. In exchange, Delta 9 would receive equity in FIKA.

The newest extension, granted after a court hearing on July 24, Delta 9 and its subsidiaries—Delta 9 Logistics Inc., Delta 9 Bio-Tech Inc, Delta 9 Lifestyle Cannabis Clinic Inc., and Delta 9 Cannabis Store Inc.—includes the approval of the $16 million FIKA has offered in interim financing, as well as a key employee retention plan in the amount of $650,00.

Delta 9 receives CCAA protection, enters into agreement with FIKA following “aggressive” SNDL move

July 15, 2024

Delta 9 Bio-Tech Inc.

April 2, 2020

SNDL to lay off 106 employees as part of restructuring

July 16, 2024

Changes coming to Canada’s largest cannabis market

Written by David Brown on July 26, 2024. Posted in Business, Cannabis News, Government, Ontario.

The Ontario Cannabis Store is 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, which will begin this September, comes as several other provincial distributors have made similar moves to handle a growing number of products, limited storage space at central distribution warehouses, and slowing market growth as demand seems to be reaching a saturation point.

While growth in the Canadian cannabis industry was exponential following legalization in late 2018, that growth has slowed considerably in recent years, matched by a slowing or even contraction in the retail and production space.

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

One way Ontario has been seeking to address the large array of products (currently 5,000 SKUs) and limited warehouse space is through its flow-through program, which creates an on-demand list of products that can be ordered through the OCS without being permanently stored in its distribution centre.

Introduced in 2021, the flow-through program has continued to expand and evolve over time. The newest announcement will introduce changes like a multi-tier delivery platform that will try to reduce the program’s end-to-end lead times, a common complaint from producers and retailers, as well as additional tools.

In addition to these changes, the OCS is also increasing from four product calls a year to five while reducing the time needed to launch a product into the market and creating a single, harmonized submission process.

In late August, the OCS will also introduce more detailed wholesale metrics through its Supplier Data Program, ideally giving producers a chance to improve product availability. The provincial agency will provide more information to the industry on these proposed changes in the coming weeks and months.

Cannabis stores in Ontario sold nearly $2 billion worth of cannabis in 2023

May 14, 2024

OCS shortens payment processing timelines for Flow-Through products

July 9, 2024

Inside the world’s largest legal cannabis distribution centre

April 28, 2023

Aurora Cannabis receives additional German licences

Written by Sarah Clark on July 25, 2024. Posted in Alberta, Business, Cannabis News, Government, International, Producers.

A second cannabis company with operations in Canada announced this week that it is expanding its footprint in the emerging German cannabis market.

Aurora Cannabis announced on July 25 that the Alberta-based producer has been granted two licences by Germany’s Federal Institute for Drugs and Medical Devices (BfArM) under the country’s new Medical Cannabis Act (MedCanG).

The announcement follows one made earlier this week by the American cannabis company Tilray, which has several operations in Canada.

On April 1, 2024, cannabis was reclassified in Germany as a non-narcotic, allowing adults to possess small amounts in the process of moving towards a regulated commercial supply chain. The country recently began allowing participation in cannabis production clubs.

Aurora and Tilray (through their subsidiary Aphria) are two of the three existing domestic medical cannabis producers in Germany, along with Germany-based Demecan. The latter announced on July 25 that it was now the first German company to receive a cultivation permit for medical cannabis under MedCanG. The licence allows for the cultivation of up to seven different cultivars.

Aurora’s new licences add to the company’s ongoing cannabis production in Germany, which the company says has been underway for two years. Under the new licence, Aurora is also allowed to cultivate an approved “additional product,” with the company saying it has plans to expand its offerings in the German market.

Aurora also expects to be issued a cannabis R&D licence in Germany, which would allow the trial of up to seven additional novel cultivars at the company’s local EU GMP facility in Leuna, Germany.

“We thank the German government for its continued investment in the growth of medical cannabis, made possible by decriminalization, which will improve access to medical cannabis for patients all across Germany,” says Michael Simon, President of Aurora Europe. “Being one of the few companies to receive (an) enhanced licence is a testament to Aurora’s established leadership in the region and unparalleled commitment to making available the highest quality cannabis. We now have the framework to extend our portfolio, invest in domestic research and leverage Aurora’s global cultivation expertise locally.”

Aurora’s medical cannabis production facility in Leuna, Saxony-Anhalt, in eastern Germany, has been in operation 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.

Earlier this week, Tilray, another large, publicly traded cannabis company with operations in Canada, announced it had received the first new cannabis cultivation licence issued in Germany.

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

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 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 going through extensive export requirements and costs from Canada.

Featured image via Aurora Cannabis

Data presented by Health Canada indicate cannabis exports may continue growing

October 25, 2023

Cannabis exporters’ biggest challenges are regulations, not market demand

April 15, 2024

Canadian cannabis companies increasingly exploring export market

June 14, 2023

Cannabis industry, Global Affairs Canada disappointed with Israel’s preliminary report

Written by David Brown on July 23, 2024. Posted in Business, Cannabis News, International, Producers.

Global Affairs Canada and the Canadian Cannabis Council say they are dismayed by the recent preliminary decision from the Israeli government to consider imposing import fees on Canadian cannabis products.

The Israeli Commissioner for Trade Levies at the Ministry of Economy and Industry, Danny Tal, recently posted the decision following an investigation that began in January of this year.

According to the report, the preliminary findings determined a fair price and profit margin for Canadian companies selling cannabis into the Israeli market. A final version, with finalized recommendations, is expected later this year.

In the course of the investigation, it was determined that the large volume of cannabis sold into the Israeli medical market from Canada was having a significant impact on both the local market and domestic companies’ ability to compete.

“The root data on which this decision was based was fundamentally incorrect, making the decision unreliable. We object to the process Israel has taken in this investigation. Any government or jurisdiction following should look closely here and not make the same mistakes.”
Paul McCarthy, President of the Cannabis Council of Canada (C3)

According to Tal’s report, these products were sold at lower prices that, he argues, do not reflect the normal course of business and are lower than production costs or prices in the Israeli market, especially given the additional cost of exporting cannabis from Canada.

Based on investigations into Canadian production costs, including packaging and shipping, as well as additional export costs, the commissioner’s preliminary report recommends a floating levy or tariff on Canadian cannabis products, ranging from 63% to 369%.

These figures are based on the commissioner’s investigation into production costs and market rates for domestic sales of cannabis in Canada.

Paul McCarthy, the President of the Cannabis Council of Canada (C3), says the organization is “severely disappointed” that the Israeli government’s anti-dumping investigation completely disregarded the concerns C3 put forward in their response for feedback to the Ministry.

C3 has previously highlighted its concerns that the Israeli government’s investigation leaned on pricing in the “Canada Spot Index” provided by a private, third-party agency, which they say does not represent all of the factors that add to the cost of cannabis exports from Canada.

“This process has been flawed from the beginning,” McCarthy tells StratCann. “The Canada Spot Index is not representative of a domestic whole price for cannabis, nor is it an appropriate comparison with Israeli wholesale prices for bulk product: it includes various mark-up fees that do not belong to producers, packaging costs that are specific to individualized products, and federal and provincial cannabis excise taxes (all of which we pointed out in our response).”

“Investigators failed to assess domestic market conditions correctly,” he continues. “The root data on which this decision was based was fundamentally incorrect, making the decision unreliable. We object to the process Israel has taken in this investigation. Any government or jurisdiction following should look closely here and not make the same mistakes.”

A representative from Global Affairs Canada also tells StratCann that they were let down by Israel’s preliminary decision. Global Affairs Canada manages Canada’s diplomatic and consular relations, promotes Canadian international trade, and leads Canada’s international development and humanitarian assistance.

“We are disappointed with Israel’s preliminary determination in its self-initiated investigation on alleged dumping of imports of medical cannabis from Canada. We are in contact with Canadian industry and we are reviewing the details of Israel’s preliminary determination, and we will continue to closely monitor Israel’s investigation to ensure that it is conducted in accordance with all applicable WTO rules.”

The preliminary report states that the commission will also submit a report on its findings to the World Trade Organization.

The floating prices exist, 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 in the World Trade Organization as “unfair trade,” and 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.

Israel opens “anti-dumping” investigation into cannabis imports from Canada

January 26, 2024

Canada’s legalization framework serves as roadmap for Israel and other nations

April 3, 2021

Preliminary report: Israel might apply import fees on Canadian cannabis

July 10, 2024

Tilray receives first new commercial medical cannabis licence in Germany

Written by Sarah Clark on July 22, 2024. Posted in Business, Cannabis News, Government, International, Producers.

Tilray has received the first cannabis cultivation licence issued under Germany’s new Cannabis Act.

The American cannabis company, which operates in Canada, the United States, Europe, Australia, and Latin America, made the announcement on July 22. Tilray’s Aphria RX Facility in Germany was the first to receive such a licence in the country.

In February, 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”).

At the time, the licence allowed for a total of five lots (1,000 kgs) and was the only licensed producer in Germany with permission to grow all three strains of medical cannabis approved by the BfArM.

The new licence, made possible by recent legislative changes in Germany that increased the number of patients and subscribers for cannabis for medicinal purposes, allows the Aphria RX facility to expand its growing capacity. Rather than growing just three cultivars for patients, the company can now grow and sell up to 31.

Tilray says its growing rooms were designed by Kevin Anderson, the master grower behind Tilray subsidiary Broken Coast, located on Vancouver Island in British Columbia, Canada.

“We are thrilled to receive this license as it will provide greater access to some of the highest quality medical cannabis produced in Germany and enable us to expand the range of treatment options available to patients,” says Denise Faltischek, Tilray’s Chief Strategy Officer and Head of International, in a press release. “We appreciate the trust that the German Government has placed in Tilray, and we are proud of our team for their groundbreaking work in medical cannabis cultivation and patient care.”

The new licence will allow Germany to better address that growing demand through domestic supply. Anyone who 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 requires a permit from the German Federal Institute for Drugs and Medical Devices.

In addition to Tilray, Canadian cannabis company Aurora and the German company Demecan were first allowed to grow a combined total of 10,400kg of medical cannabis in Germany beginning in 2019.

Reliable data are still lacking, but it is conceivable that the growing demand for medical cannabis is to some degree, driven by people using the drug exclusively or partially for recreational purposes.

Week in Weed – July 20, 2024

Written by Staff on July 20, 2024. Posted in Business, Cannabis News, Government, International.

This week at StratCann, we looked at Delta 9 receiving CCAA protection, while SNDL announced it was laying off 106 employees as part of a restructuring process.

We also dove into new cannabis sales figures from Stats Canada, the new adverse reports review from Health Canada, and cannabis clinical trials being hampered by a lack of GMP cannabis.

BC provided updates to its cannabis sampling rules, and the federal government responded to a recent edibles petition tabled in the House of Commons.

A cannabis farmgate store in Victoria moved one step closer to reality, and Purileaf recalled their Frank CBD Oil 100 due to a labelling error.

Lastly, Alberta and BC reached an agreement over wine sales. We point out that the cannabis industry has similar asks.

In other cannabis news

The town of Aurora, Ontario, is frustrated by a cannabis facility that continues to operate against municipal bylaws. The article says the business is i420.club, or the Toronto Cannabis Delivery Club, with more than 20 locations across the GTA. Since the dispute is a bylaw issue, York Regional Police are not involved, according to York Regional Police Const. James Dickson.

The owner of True North Cannabis in Cambridge, Ontario, says he is frustrated by the lack of enforcement against unlicensed stores by the Waterloo Regional Police Services.

Highlighting this ongoing issue in Ontario with unlicensed cannabis stores, one company shared a press release about a new delivery service for an unlicensed cannabis store in Kensington Market.

Council in Esterhazy, SK, denied a second cannabis store, citing concerns that its main street could be lined with cannabis stores. The town of about 2,300 residents currently has one cannabis store.

The Wheatland County Municipal Planning Commission refused a development permit for a cannabis store within the Hamlet of Gleichen, Alberta. The town is home to one cannabis store, the Gleichen Cannabis Store.

The National Post once again trotted out some rage-bait fan fiction about the “failure” of legalization that distorts and misrepresents real issues facing the industry with some boring, run-of-the-mill Trudeau-bad/taxes-bad nonsense.

Law enforcement

NL RCMP seized cannabis, cigarettes, and cash in Grand Falls-Windsor.

The OPP charged three people after executing two search warrants in Dunnville and Cayuga, seizing around $200,000 in cannabis, cannabis products, and currency on July 17.

On July 17, 2024, at approximately 6:00 a.m., officers from the East District in Winnipeg responded to a report of a Commercial break-in at a cannabis shop in the 1000 block of Henderson Highway.

Saskatchewan RCMP says they recently suspended 35 drivers for operating a vehicle under the influence of cannabis during a two-day check stop.

Canada Border Services reported 32 kg of cannabis seized at Halifax International Airport in a video shared on social media.

International cannabis news

A man from Ontario pleaded guilty to importing cannabis into Bermuda this past week. He was sentenced to 8.5 years for the 19.5 kilograms of cannabis found hidden in the lining of his baggage. Last week, a Canadian woman admitted in the Supreme Court that she smuggled a similar quantity into the island.

A New York court has thrown out a suit filed by investors in Canopy Growth Corp, arguing they failed to show that the cannabis producer’s executives had the necessary level of intent for securities fraud when they allegedly misrepresented the success of sports drink subsidiary BioSteel.

California has recalled several vape pens in recent weeks, including two this past week, for the presence of the pesticide chlorfenapyr.

A US federal judge refused to halt New York City’s crackdown on unlicensed sellers of cannabis, citing public safety concerns. New York City has closed 640 unlicensed smoke shops since early May, using enforcement powers under a new state law known as the Smokeout Act.

And finally, US Federal Court for the District of Massachusetts dismissed a case brought by a coalition of cannabis companies challenging the federal prohibition on cannabis.

Cannabis farmgate store in Victoria moves one step closer to reality

Written by David Brown on July 19, 2024. Posted in British Columbia, Business, Cannabis News, Government, Producers, Retail.

A cannabis farmgate store in Victoria has moved one step closer to becoming a reality.

Victoria City Council has voted to support the application from the Victoria Cannabis Company (VCC) cannabis farmgate store at 340 Mary Street, in Victoria West.

In a 7-1 decision, council voted to direct staff to advise the BC Liquor and Cannabis Regulation Branch (LCRB) of their decision to issue the producer store retail licence (farmgate) to the VCC.

The approval will still be subject to the company’s compliance with the city’s bylaws and permits. The city is requiring the VCC to build a sidewalk adjacent to the facility, which is located near the Galloping Goose Trail, a multi-use trail on a former rail line through the city.

The Victoria Cannabis Company first filed its application for a farmgate store licence in early 2023. The company’s application passed third reading shortly by September 2023, with council sending it back to city staff to address concerns with the location.

BC’s retail cannabis regulations require an approval from local council before considering approval of the application.

In the most recent staff report approved by Council, it was noted that there were no significant concerns about community impact of storefront cannabis retail at the application’s location, that the location would have minimal community impact, and that there were no concerns from police. The report did not have ongoing concerns with odour associated with the store’s adjacent cannabis facilities.

The possible future cannabis farmgate store is located at VCC’s production facility, which is currently home to a nursery, two micro cultivation sites, and a standard processing site.

*Sugar Cane Cannabis’s farmgate store in Williams Lake, BC, which includes an in-store window into their grow room. Image via William’s Lake First Nation.*

The province began accepting applications for producer retail stores (PRS) in November 2022. The program allows micro cultivators, standard cultivators, and nurseries to sell their own products in a retail cannabis store at their own production facilities or sites, as well as an array of products from other producers.

Only one such licence has been approved since then, ShuCanna in Salmon Arm, which was licensed in August 2023. 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.

A third farmgate application is also making its way through the municipal process in Pitt Meadows, currently.

More than 100 licensed cannabis facilities could theoretically be eligible to apply for such a farmgate licence. Some BC cannabis growers say the low number of applicants indicates a policy failure, citing concerns with the nearly $10,000 in licensing and application fees and additional costs associated with BC’s retail cannabis regulations.

Kyp Rowe, VP of brand development at VCC, who spoke with StratCann at an earlier date about the application, says their goal is to create a dynamic storefront that can show off not only their own unique cannabis products from cannabis grown on-site, but also other small craft producers in BC. VCC’s location is near the E&N Rail Trail, a popular bike path.

“We are very excited at the opportunity to be among the first potential Production Retail Store locations in British Columbia,” says Rowe. “What sets us apart from other locations is the amount of frontage traffic we have in Vic West. We are not located in an industrial park on the outskirts of town. Our store is just minutes from the sea wall in Lime Bay and has the potential to become a tourist destination.

“Our goal will be to focus on British Columbia producers as well as featuring our own flower grown and packaged on-site. Now, more than ever, small provincial craft producers need an opportunity at the retail level to showcase their products. With all of the pay-to-play for shelf space and the discount retail chains, more and more small producers are getting edged out by large corporations. We want to be able to tell BC’s rich craft cannabis story, and we feel this new farmgate store will give us this opportunity.”

Rowe tells StratCann that he and the VCC team are excited to move forward with the project. They estimate that their sidewalk will be completed in the coming weeks.

BC has a long way to go create a thriving cannabis industry

January 24, 2024

Few BC growers interested in farmgate a year after program launched

October 25, 2023

ShuCanna receives cannabis farmgate store in Salmon Arm

August 15, 2023

Wholesale cannabis sales, CPI increase in May

Written by Staff on July 19, 2024. Posted in Business, Cannabis News, Retail.

Wholesale cannabis sales increased to $553 million in May after a steep decline in April, following record-high rates in March 2024.

Cannabis continues to outperform much of the Canadian economy, with sales declining in five of seven sectors. Excluding petroleum products and other hydrocarbons, as well as oilseed and grain, wholesale sales fell 0.8% in May across Canada.

Wholesale cannabis trade and inventories also saw an increase in May, rising to $294,102 from $289,764 in April. The previous high point was $301,077 in November 2022.

The most recent monthly retail cannabis sales figures show sales rebounded in February and April after dropping to their lowest in nearly a year in January 2024.

While wholesale cannabis sales in May were around $553 million, this was more than double what cigarette and tobacco product merchant wholesalers brought in, at about $228 million.

Wholesale merchants’ sales of cannabis, seasonally adjusted, were up 12.1% in May 2024 from May 2023 and up 19% from April 2024 to May 2024.

Meanwhile, Statistics Canada’s consumer price index shows that the price of cannabis increased by one tenth of a point from May to June and from June 2023-June 2024 (71.6).

This small increase was after a seven month decline, which itself was preceded by a brief spike in prices in October 2023. The CPI baseline was set at 100 in December 2018, following legalization.

Price of cannabis in Canada continues to decline, except for medical cannabis

April 18, 2023

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

February 1, 2022

Retail cannabis sales year-over-year growth continues to slow, retail stores decrease

June 21, 2024

Federal government responds to edibles petition

Written by David Brown on July 18, 2024. Posted in Business, Cannabis News, Government.

The federal government has provided a response to a petition tabled earlier this year calling on an increase of the THC limit for edibles from 10mg to 100mg.

The petition was launched in November 2023 and sponsored by Liberal MP for West Vancouver—Sunshine Coast—Sea to Sky Country, Patrick Weiler.

The Minister of Mental Health and Addictions and Associate Minister of Health, Ya’ara Saks, posted a response to the petition on July 17, noting that the 10 mg THC limit was established to protect public health and safety and was supported by the recent Expert Panel report on the Cannabis Act.

“The limit draws heavily on lessons learned from, and the limits established by U.S. states that have legalized cannabis,” says the response, in part.

“Health Canada is currently carefully reviewing and analyzing the report and its recommendations,” it continues. “The Panel’s findings will help inform Health Canada’s ongoing efforts to improve the operation and administration of Canada’s cannabis control framework.

Health Canada recently proposed many changes for federal cannabis regulations, which did include a proposal to remove the cumulative 10 mg THC limit for an outermost container of edible cannabis product to allow greater flexibility in packing multiple immediate containers, as long as the immediate containers do not have more than 10 mg of THC each.

Many in the industry, though, have noted that unless there is an allowance for less onerous immediate packaging on those edibles, the change likely won’t result in any cost savings for producers or consumers.

The original petition noted that both the Canada Competition Bureau and the Ontario Cannabis Store have called upon Health Canada to increase THC limits. The industry has argued for years now that the 10mg THC limit on edibles hamstrings its ability to directly compete with the illicit market, with consumers being enticed by higher THC products at a much lower cost.

While other categories of cannabis products like dried flower, concentrates, and vapes have become increasingly competitive with the illicit market in terms of price, edibles remain one of the biggest advantages available to the illicit market.

In an interview with StratCann in 2022, Christina Clarke, the CEO of the Songhees Development Corporation, which operates a provincially-licensed cannabis retail store on Vancouver Island, said she knows that edibles remain one of the main drivers of demand in the illicit market.

Although legal products in nearly every other cannabis product category are competitive with the illicit market in terms of price, quality, and variety, edibles lag behind.

“If people are going to go to the black market because the product they want is not in the regular market, then if it’s a product that’s safe we should be able to sell that in the legal market and not leave it as a product (only in) the black market.”

“The reality is, anybody who’s an edibles user knows, those doses are really quite low for somebody, especially if you’re a regular user of edibles. Your tolerance is such that some of these (edibles) barely do anything. I’m waiting for the market to catch up with what the customer wants.”

Jennawae McLean, co-owner of Calyx + Trichomes Cannabis and the Executive Director of Norml Canada, says she agrees with the idea of opening up the limit to at least allow producers to sell more than 10mg per package, even if the potency on individual servings stays the same.

“(Ten)mg is fine for a suggested serving, but edibles should not be 10mg per pack,” McLean tells StratCann.

“In other regulated markets, the limit per package is not as restrictive as it is in Canada. A couple of weeks ago I was in Las Vegas and was able to get edibles that had many 10mg portions per bar or box.

“Customers mostly get confused about the price per mg (which seems expensive) and the quantity limit,” continues McLean. “Unregulated edibles seem half the price for 10x the potency.”

Canada’s 10mg potency limit was in part informed by feedback from states like Colorado and Washington that legalized cannabis for non-medical purposes several years prior to Canada. When these states initially legalized they had very few restrictions on edibles potencies and saw a lot of problems with people consuming too much, increasing emergency room visits and other health and safety concerns.

These states have since imposed more strict standards, with some only allowing 10mg or even 5mg of THC per serving, but still allowing much more THC to be in a package. Colorado, for example, has had a 10mg per serving limit in place now for several years but allows up to 100mg per package.

“Now is the time to review this area,” adds Beena Goldenberg, CEO of Organigram. “Maybe it was fine at first, the idea of starting slow, but we can now see that after three years, we are unintentionally keeping the illicit market active in this area because we are not providing equivalent legal options to consumers.

“If you could do a 100mg package and you could have ten 10mg pieces in it, isn’t that better?”

Canada’s 10mg edibles limit empowering black market, hamstringing legal industry

June 13, 2022

Petition to increase THC limit for edibles gains traction, MP support

November 15, 2023

Media continues to misreport issues relating to illicit cannabis edibles

March 24, 2024

Adverse reports associated with cannabis declined for third year in a row

Written by David Brown on July 17, 2024. Posted in Business, Cannabis News, Products, Research.

The number of reports received by Health Canada of adverse reactions associated with cannabis has declined for the third year in a row.

The majority of those reports are associated with legal cannabis products, which also declined in the past year after an increase in 2021.

Of the 159 reports received in 2022, 92 were unique cases associated with legal cannabis products. In 2021, there were 260 reports, 174 of which were associated with legal cannabis products. In 2020, there were 287 reports, 159 of which were associated with legal cannabis products.

In 2019 (October 17, 2018-December 31, 2019), there were 219 adverse reaction reports to Health Canada’s Canada Vigilance Database, with 151 associated with legal cannabis products from the medical and non-medical supply chains.

The majority of reports in 2022 come from the cannabis licence holder.

Of the adverse report cases related to cannabis in 2022, 40% involved males and 28% involved females, while 51% involved cannabis used for medical purposes (self-reported). As in previous years, the majority of cases (53%) involved ingestible cannabis liquid extracts (that is, ingestible cannabis oils and softgels).

However, when looking at only reports associated with legal products, 47% were associated with inhalation, while 46% were associated with oral consumption.

Three-quarters of these reports were considered serious. According to Health Canada, a “serious adverse reaction” is an adverse reaction that requires inpatient hospitalization or prolongation of existing hospitalization, causes congenital malformation, results in persistent or significant disability or incapacity, is life-threatening, or results in death.

The most commonly reported symptoms were headache, seizure, hallucination, trouble breathing, and drug effectiveness.

There was also one suspected case of vaping-associated lung injury (VALI) that was reported as involving a legal cannabis product in 2022.

There were two cases in 2022 associated with legal cannabis products that resulted in fatal outcomes, although one of these was connected to a case in 2021.

That case from 2021, also reported as part of 2022’s results, involved two cannabis vaping products “with other concomitant medications in a patient with complex medical history and several risk factors who experienced seizures which led to hospital admission then death.”

Health Canada notes that while the use of the cannabis vape may have caused an initial seizure in the patient, it was less likely to be the cause of death, which was most likely due to a staphylococcal infection, of which the source was the temporary hemodialysis line placed in the patient to address deteriorating kidney function.

The second fatal case report received in 2022 was connected to a single ingestible cannabis oil product used for medical purposes, with an authorization, to treat symptoms related to arthralgia (joint stiffness). Health Canada notes that the individual had a complex medical history and was using multiple concomitant health medications in addition to the cannabis product, and assessed the event of seizure as “possibly related to the cannabis product while the outcome of death was assessed as unlikely.”

Ingestible oils most common cause of adverse reactions in two annual reports

December 22, 2022

Study finds inaccurate labelling on some cannabis oils in Ontario

June 9, 2024

Hospital visits for cannabis among older Ontarians were increasing even before legalization

May 22, 2024

BC provides updates to cannabis sampling rules

Written by David Brown on July 16, 2024. Posted in British Columbia, Business, Cannabis News, Government, Producers, Retail.

BC’s cannabis branch has provided updates on its cannabis sampling rules for cannabis marketing licensees.

The BC Liquor and Cannabis Regulation Branch (LCRB) first updated its regulations in September 2023 to allow cannabis retail store licensees and their employees to accept samples from a federal licence holder.

In BC, a marketing licence authorizes the licensee to promote cannabis for the purpose of selling it in British Columbia. A federally licensed cannabis producer is required to have a marketing licence to promote their products in BC.

Cannabis Retail stores and Farmgate stores (PRS licensees), as well as Section 119 authorization holders, are no longer required to pay a nominal fee for product samples. They may now also share product samples they receive (from federal licence holders and marketing licensees) with other cannabis store licensees and authorization holders.

All licensees and authorization holders must also ensure they keep records relating to cannabis samples.

The newest updates to the province’s handbook for the marketing of non-medical cannabis in BC clarify that the amount of cannabis in the cannabis sample may not exceed 3.5 grams of dried cannabis or the equivalent amount per class of cannabis. This is the equivalent of one gram of cannabis extracts or three cannabis seeds.

However, an exception applies if the class of cannabis is not available in 3.5 g or less of dried cannabis or an equivalent amount. In that case, the smallest available amount of the class of cannabis may be provided as a sample.

A marketing licensee cannot provide cannabis samples to non-licensees such as patrons and members of the public.

A marketing licensee must keep records respecting cannabis samples received from a federal licence holder that contain the following information:

the unique excise tax identifier from the original packaging of the cannabis sample;
the LDB SKU for the cannabis that the sample is from that is registered under the Cannabis Distribution Act;
the date the licensee received the cannabis sample;
the name and licence number of the federal licence holder that provided the cannabis sample to the marketing licensee;
the amount of cannabis for each class of cannabis product in the sample received

A marketing licensee must also keep records respecting cannabis samples provided to another licensee that contain the following information:

the unique excise tax identifier from the original packaging of the cannabis sample;
the LDB SKU for the cannabis that the sample is from that is registered under the Cannabis Distribution Act;
the date the licensee provided the cannabis sample;
the name and licence number of the non-medical cannabis retail store licensee that received the cannabis sample;
the amount of cannabis for each class of cannabis product in the sample provided

A marketing licensee may possess cannabis samples if:

the cannabis sample was supplied to the marketing licensee by a federal licence holder of a cultivation or processing licence;
the marketing licensee is authorized under the Cannabis Act (Canada); and
the cannabis sample is from cannabis registered under the Cannabis Distribution Act.

A marketing licensee may supply cannabis samples to non-medical cannabis retail store licensees for no consideration if the cannabis meets the following requirements:

the supply of the cannabis sample by the marketing licensee is authorized under the Cannabis Act (Canada);
the cannabis sample was previously supplied, for no consideration, to the marketing licensee by a federal licence holder of a cultivation or processing licence; and
the cannabis sample is from cannabis that is registered under the Cannabis Distribution Act.

A marketing licensee who offers or gives, or agrees to offer or give, a cannabis sample, for no consideration, to a licensee or an employee of a licensee is exempt from provincial rules about offering or providing inducements in respect of that offer, gift or agreement as long as the amount of cannabis in the sample does not exceed the maximum amount specified by the general manager for the class of cannabis product in the sample.

The same applies to a marketing licensee who requests, accepts or agrees to accept a cannabis sample, for no consideration, from a federal licence holder of a licence for cultivation or a licence for processing. They are also exempt from provincial rules against requesting or accepting inducements in respect of that request, acceptance or agreement as long as the amount of cannabis in the sample does not exceed the maximum amount specified by the general manager for the class of cannabis product in the sample.

Cannabis producers can now provide samples to cannabis stores in BC

September 25, 2023

Alberta makes changes to cannabis sampling rules, event sales, and more

January 31, 2024

New cannabis patio opens in Mission, BC

June 16, 2024

SNDL to lay off 106 employees as part of restructuring

Written by Sarah Clark on July 16, 2024. Posted in Alberta, Business, Cannabis News, Producers.

SNDL Inc. announced an $11 million “restructuring” that includes laying off 106 full-time employees.

The Calgary-based company announced the move on July 16, saying it aims to reduce corporate overhead and improve the efficiency of its organizational structure. SNDL says the process is expected to provide over $20 million in annualized cost savings but will require a “one-time investment” of $11 million over the next 18 months.

As part of these operational adjustments, SNDL is consolidating its cannabis businesses into a single unit under the leadership of Tyler Robson, who has been president of SNDL since January 2023. The consolidation, argues SNDL, is intended to enhance efficiency, improve alignment, and improve process speed within the company’s vertical model.

“This restructuring project and segment consolidation are critical steps in our journey towards better capital deployment, improved agility, focus, and profitability, and will free up resources to invest in profitable growth opportunities,” said Zachary George, Chief Executive Officer of SNDL. “We are committed to enhancing our organizational effectiveness by streamlining processes while leveraging technology and automation.”

SNDL says it expects to achieve most of the anticipated annualized savings by mid-2025, while starting to capture some of the opportunities as early as Q3 2024.

SNDL has been aggressively acquiring other companies through processes like debt acquisition.

On July 5, SNDL announced it had completed its acquisition of the principal indebtedness of Delta 9 Cannabis Inc. from Connect First and Servus Credit Union Ltd. On the same day, the company announced it had entered into a stalking horse purchase agreement for Indiva Limited’s business and assets. In March it announced it was acquiring four Dutch Love cannabis stores.

In May, the Alberta company reported its first profitable quarter for cannabis production, but increased losses for retail. Although these figures represent growth compared to the same quarter in 2023, the company still reported a $1 million loss on its retail operation, up from a $78,000 loss in Q1 2023.

SNDL’s cannabis retail wing consists of its 63% ownership interest in Nova Cannabis Inc., which operates 188 locations under four retail banners: Value Buds, Spiritleaf, Superette, and Firesale Cannabis. These 188 locations represent the largest holding of private retail cannabis stores in Canada, although this is only 9% of all retail stores in Canada.

As of May 9, 2024, there are 84 Spiritleaf locations in Canada (20 corporate stores and 64 franchise stores), four Superette stores, one Firesale store, and 99 Value Buds locations. The majority of these stores are in Alberta and Ontario.

SNDL/Nova’s “proprietary data licensing program” generated $3.5 million in revenue in the first three months of 2024, an increase of 139% from the same period in the year prior. The data licensing program generated $12.3 million in revenue in 2023, compared to $4.2 million in 2022, a 193% increase year-over-year.

The company has seen such growth in this program with its retail cannabis locations that it has expanded the program into its liquor retail segment.

In addition to owning the largest number of cannabis stores in Canada, SNDL is Canada’s largest private-sector liquor retailer, operating 171 locations, mainly in Alberta, under its three retail banners: Wine and Beyond, Liquor Depot, and Ace Liquor.

The company also announced around 85 layoffs in a 2023 restructuring, part of a plan to cut labour and operational costs by nearly $9 million.

Delta 9 receives CCAA protection, enters into agreement with FIKA following “aggressive” SNDL move

Written by Sarah Clark on July 15, 2024. Posted in Business, Cannabis News, Manitoba, Producers.

Manitoba-based Delta 9 Cannabis announced on July 15 that it had received an initial order for creditor protection.

In a press release, the company stated that obtaining CCAA protection is in the best interest of the company and its shareholders, especially in light of recent “aggressive” actions by its creditors, namely recent demand notices from SNDL Inc. on May 21 and July 12 and SNDL’s recent acquisition of all the Company’s senior secured debt for $21 million.

According to SNDL, the total purchased indebtedness brings Delta 9’s total indebtedness owing to SNDL to more than $40 million, making SNDL Delta 9’s senior creditor.

The Initial Order provides for a 10-day stay of creditor claims and proceedings in respect of Delta 9 and its subsidiaries, Delta 9 Logistics Inc., Delta 9 Bio-Tech Inc., Delta 9 Lifestyle Cannabis Clinic Inc., and Delta 9 Cannabis Store Inc.

As part of that announcement, Delta 9 also shared that it has entered into a binding term sheet for The FIKA Company to act as a plan sponsor to the CCAA proceedings. Through this process, FIKA would acquire Delta 9’s retail cannabis and distribution business while also assisting with a sale and investment solicitation process for the assets of the licensed cannabis production business. In exchange, Delta 9 would receive equity in FIKA.

FIKA will participate in and fund the costs of Delta 9’s CCAA proceedings through interim financing, and present one or more plans of compromise or arrangements to Delta 9’s creditors.

“We are pleased to have entered into the Plan Sponsor Term Sheet with FIKA in a series of transactions which we believe will maximize value for our stakeholders, shareholders, and creditors,” said John Arbuthnot, CEO of Delta 9. “We appreciate the hard work of all of Delta 9’s employees, management, executive, and board of directors over the past twelve years to help create what has been an incredible growth story for Delta 9. We look forward to working with FIKA through the restructuring process to unlock the value of Delta 9’s assets for stakeholders, and to create the next chapter of growth for Delta 9.”

FIKA will provide up to $3 million to fund the costs of the CCAA proceedings and up to $13 million to repay the secured obligations owing to SNDL Inc.

In an interview in May, Arbuthnot said he did not believe the company was in default.

Delta 9 Cannabis Inc. brought in $16.5 million in net revenue in its most recent quarterly report in May from its retail and wholesale cannabis businesses but reported a net income loss of nearly $5 million.

Delta 9 operates 41 retail locations, 21 under the Delta 9 brand and another 20 retail cannabis stores under the Discounted Cannabis, Uncle Sam’s Cannabis, and Garden Variety brands.

Delta 9’s sales of merchandise and cannabis devices accounted for another $345,955 in revenue, along with $83,392 from B2B sales. It paid $583,235 in excise, up from $454,339 in the previous quarter and $589,267 in the same quarter in 2023.

Delta 9 Bio-Tech Inc.

April 2, 2020

Winnipeg’s Delta 9 Cannabis to “temporarily” lay off approximately 40 staff in cost-cutting move

January 9, 2023

Delta 9 receives CCAA protection, enters into agreement with FIKA following “aggressive” SNDL move

July 15, 2024

Week in Weed – July 13, 2024

Written by Staff on July 13, 2024. Posted in Business, Cannabis News, Government, International.

Our biggest story last week was the release of a preliminary report from Israel on allegations of product dumping by Canadian cannabis companies.

In Ontario, the OCS shortened payment processing timelines for flow-through products, and a fire at JC Green is estimated to have caused several million dollars in damage.

We spoke with Calgary retailer Chinook Cannabis about their mobile cannabis lounge, The Garden, which was in its third year at the Badlands Music Festival in Calgary before making its way to the Great Outdoors Comedy Festival in Edmonton from July 12-14, in partnership with Plantlife Cannabis.

We also spoke with micro processors who say they are excited by a proposed increase in how much cannabis they can process, and we took a look at the recent increase in the volume of medical cannabis products supplied in New Zealand.

In other cannabis news

Burlington’s first legal cannabis store, Relm Cannabis, reopened in April after a nearly four-month closure due to a burst pipe.

The co-founder of WeedMD (now Entourage Health) was ordered to pay $350,000 for disclosing confidential information about the company’s expansion plan to a friend, who then engaged in insider trading.

Nova Cannabis Inc. announced the opening of its 100th location, Value Buds Belmont, in Edmonton, Alberta. The chain has locations in Ontario, Alberta, and BC.

A new cannabis store has opened in North Vancouver.

The owner of True North Cannabis in Cambridge, Ontario, tells local media they are frustrated by the lack of enforcement against unlicensed stores. In March 2024, an OPP-led coalition of police was given $31 million over three years to crack down on these unregulated stores.

Tilray released the results of a study showing the effectiveness of medical cannabis for people over 50.

Active Canadian hemp licenses declined for the third year in a row from a peak in 2020, reports MJBiz.

In addition to our coverage above, local media spoke with Plantlife Cannabis about their licence to sell cannabis at a festival, one of the first of its kind in Canada.

A neuroimaging study shows differences in brain activity between cannabis users and non-users during cognitive tasks that involve switching behaviour based on changing task requirements. Cannabis users exhibited weaker neural responses during these switches compared to nonusers, although both groups performed equally well on the tasks.

Ohio-based Cannabix Technologies Inc., with locations in Ontario and BC, reports that early testing by Omega Laboratories Inc. has established a delta-9 THC calibration curve for the purpose of quantification. This is using Omega’s preexisting and well-established extraction and detection processes for a cannabis breathalyzer.

A man has been charged with the armed robbery of a CannabisNB on June 17. He’s accused of stealing more than $5,000 worth of money and product from a Cannabis NB location in Riverview on two occasions.

US and Canadian law enforcement officials seized 123 kg of cannabis in Montreal.

Red Deer RCMP recovered $19,000 worth of cannabis stolen from a local store, and

a man from Moncton, New Brunswick, has received a $3,250 fine for selling cannabis without a licence after recently entering a guilty plea.

International cannabis news

Australia’s Therapeutic Goods Administration (TGA) issued three infringement notices totalling $56,340 to News Life Media Pty Ltd for alleged unlawful advertising of medicinal cannabis on their lifestyle website Body+Soul.

Cannabis advocates in Thailand protested a proposal to ban the general use of cannabis.

Finally, coverage of the challenges of Germany’s legalization effort continues, but the country’s first “social club” has been approved.

Preliminary report: Israel might apply import fees on Canadian cannabis

Written by David Brown on July 10, 2024. Posted in Business, Cannabis News, Government, International, Producers, Products.

The Israeli Government has released its preliminary decision regarding accusations that Canadian cannabis companies are dumping low-cost cannabis products in the Israeli medical cannabis market.

The preliminary findings have determined a fair price and profit margin for Canadian companies selling cannabis into the Israeli market. A final version of the report, with finalized recommendations, is expected later this year.

The commissioner has decided against imposing a temporary guarantee of any levies and will provide his final recommendations on the matter in the investigation’s final findings.

The investigation was announced in January 2024 by the Commissioner for Trade Levies at the Ministry of Economy and Industry, Danny Tal.

These products, determined Tal’s report, were sold at lower prices that, he argues, do not reflect the normal course of business and at prices that are lower than production costs or from their prices in the Israeli market, especially given the additional costs of exporting cannabis from Canada.

*An example of some of the Canadian cannabis products available in the Israeli market*.

Many Israeli cannabis companies told the investigators that 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.

Cannabis Magazine, an online publication in Israel, says that many Israeli medical patients have preferred Canadian cannabis because it is seen as a higher quality than locally-produced products. However, the report also notes that the quality of cannabis from licensed Israeli companies has improved in recent years.

Israel imported 78,394 kg of cannabis from 2020-2023, with 62,345 kg coming from Canada, or about 80%. Other countries of origin were Portugal, Uruguay, and Uganda.

The investigation looked into all Canadian cannabis companies selling products into the Israeli market. They specifically visited Organigram, Decibel, and Pure Sunfarms who welcomed investigators to look closer at their facilities and books.

Once the investigators determined an accepted price and an export price per gram of cannabis, the commissioner calculated overflow rates in the complaint products for each of the three companies that cooperated with the investigation and for the rest of Canada.

Based on these factors, the investigator determined that these companies are entitled to an 8% profit on products sold into their local market. The investigation also determined that a fair price for Canadian cannabis sold into the Israeli market was about $2-8 a gram (in Canadian dollars).

Based on investigations into Canadian production costs, including packaging and shipping, as well as additional export costs, the commissioner recommends a floating levy or tariff of 63% for Decibel, 74% for Pure Sunfarms, 112% for Organigram, and 369% for all other producers.

The preliminary report states that the commission will also submit a report on its findings to the World Trade Organization.

*All prices in CAD unless otherwise noted*

The floating prices exist, 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 in the World Trade Organization as “unfair trade” and 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.”

“Sales at floating prices,” it continues, “may arise in cases where the foreign manufacturer suffers from excess inventory that is not sold in his local market alongside a limited validity of the goods that affects his ability to store unsold production surpluses, or in cases where he wishes to capture market share in the importing country even at the cost of a continuous damage to his profitability due to long-term considerations, range of penetration and establishment of its activity in foreign markets.”

The report found that Organigram exported about 5,000-1,000 kg of cannabis flower to Israel in 2023. The investigator determined that a fair price for their products on the market was NIS$10-20, or about CAD$3.75-$7.50 per gram. NIS is the new Israeli Shekel.

The investigator found an acceptable price for Decibel’s products in the Israeli market was also about NIS$10-20. Pure Sunfarms’ products were determined to be about NIS$5-15 per gram, or CAD$2-6.

Another recent report shows that the use of medical cannabis in Israel has been declining in the last six months. A similar trend has been emerging in Canada.

The report notes that the Israeli market faces similar challenges to the Canadian market and others around the world, dealing with market contraction after an initial rush, over-supply, and other issues.

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, which include special approvals and certifications, producers can often find better payment terms in the export market than selling into provincial markets, where payments can take weeks or even months.

Stay tuned to StratCann for more on this issue as it evolves.

Israel opens “anti-dumping” investigation into cannabis imports from Canada

January 26, 2024

Canada’s legalization framework serves as roadmap for Israel and other nations

April 3, 2021

Canadian cannabis companies increasingly exploring export market

June 14, 2023

OCS shortens payment processing timelines for Flow-Through products

Written by David Brown on July 9, 2024. Posted in Business, Cannabis News, Government, Ontario.

The Ontario Cannabis Store (OCS) is reducing its payment processing timelines for products sold through its Flow-Through ordering program.

Beginning July 9, the OCS will adjust its payment terms for products sold through this program to “approximately” 15 days, where possible. The OCS’ standard payment term for products is up to 60 days.

The provincial cannabis agency says the change will better support producers by giving them quicker access to cash. This builds on previous changes to payment terms for products sold through its central warehousing system.

Ontario announced its Flow-Through program in 2021. The program allows retailers to order products not stocked in the Ontario Cannabis Store (OCS) warehouse and has been undergoing a long development phase, from working with just a handful of suppliers to opening the program up to more widespread industry use.

Retailers can order products from Flow-Through that are not normally available through its central distribution warehouse, providing retailers with access to more unique products or even white-label products.

Provinces can often have different payment terms for products sold through their jurisdiction, which can sometimes take several weeks or even months. Such payment terms can be challenging, especially for smaller producers with less available capital than publicly traded companies. Provinces may also apply additional fees and taxes for products sold in their markets.

BC announces cannabis policy changes aimed at helping industry

April 12, 2023

Processing the pain: Financial disputes in a tight cannabis market

October 23, 2023

Much more needed than just a change to tax payment timeline

November 8, 2022

Fire at JC Green Cannabis in Ontario

Written by Staff on July 9, 2024. Posted in Business, Cannabis News, Ontario, Producers.

A reported explosion and fire at a cannabis facility near London, Ontario, took over an hour to get under control the night of Monday, June 8, reports the London Fire Department.

According to local media, the London Fire Department was on scene around 7:30 PM responding to the active incident. The Ontario Fire Marshal’s office has been called to investigate.

The cause is unknown at this point in the investigation, but CTV reports damages are over $1 million. A company representative tells StratCann that everyone is okay and that they expect to release an official statement in the coming days.

The JC Green facility is located in the former Leesboro Central School in Thorndale, Ontario. Recent social media posts show plants being moved into a field at the facility. The company also grows indoors.

StratCann will provide more information on this story as it evolves.

Update: On July 10, CTV News reported damage was estimated at $5 million.

Updated: On July 12, Rob O’Neill, CEO of JC Green says the fire was caused when an ignition source ignited a fuel source in or around their extraction facility. He adds that there are no charges, fines or orders issued to the company and the company is now in the process of rebuilding the damaged facility. No timeline is yet available when the company will be returned to 100% capacity.

O’Neill adds that there was a “minimal impact” on their outdoor crop and JC Green was recently licensed for an additional 10-acre field, with planting beginning immediately.

“Indoor cultivation was in the dark for a period of time with plants in all stages, we quickly got some emergency systems in place to limp by, power will be restored today, and we will evaluate over the coming weeks,” he adds. “As of now we have not lost anything.

“Assessments are ongoing for finished product loss. Operations will carry on at a limited capacity and expect to be shipping product again in the coming days to weeks.”

“More details will be available when the Fire Marshal’s report is completed,” he continues. “I’m very proud of our dedicated staff members who were on site at the time, they followed procedures and took the correct preclusions to avoid injuries. I’m also very pleased with our senior staff who have assisted in the investigation to get us to the point that the building has been turned back over to JC Green.

“Damages have been limited to a portion of our building related to extraction, processing and product/material storage. Health Canada and the CRA have been contacted to assist in the handling and destruction of damaged cannabis products and ensure we are fully compliant.

“Our insurance company has assembled a team that is working hard to get JC Green back to full capacity. We are thankful to our provincial partners and distributors who have all been reaching out in support as we will have intermittent supply issues of certain products for a period of time. We are in the midst of expanding our facility as well as now rebuilding the damaged space and will return to full capacity and increased capacity in very short order.”

Active Incident – Mutual Aid – Thames Centre – Structure Fire – Evelyn Dr.

LFD on scene assisting Thames Centre with a structure fire involving a cannabis growing facility. Truck 7 deployed for aerial operations. #ldnont pic.twitter.com/hnIYUTDFyU
— London Fire Department (@LdnOntFire) July 9, 2024

Expanding micro processing can benefit all micros

Written by David Brown on July 9, 2024. Posted in Business, Cannabis News, Government, Micro, Producers.

While some micro cultivators have said they see little need for an expanded canopy, some micro processors say they believe the changes could benefit smaller craft producers.

Kayla Mann, CPA at Habitat Life, a micro cultivator and micro processor in BC, says she sees the changes as especially positive for micro processors and great for micro cultivators, who will have more processors to choose from.

In a previous article, we spoke with several micro cultivators who said they were surprised by Health Canada’s recently proposed changes to micro licensing, which would allow the maximum canopy space to increase from 200 m2 to 800 m2. While some micro cultivators told StratCann they could see expanding their space, limitations like funding or zoning stood in the way.

“This gives us the opportunity to become a more formal processor and bring product in, not just processing our own.”
Kayla Mann, Habitat Life

Mann explains that Habitat Life grows, packages, and distributes its own products under its own brand. She says she understands the concerns from a cultivator standpoint. But for Habitat, being able to expand its processing space under its existing micro licence means it could begin processing for other micro cultivators, potentially even contracting out some of its unique genetics.

Through this process, she explains, Habitat could address its own financial hurdles in expanding its canopy by generating more cash flow on the processing side. She says this could also give the numerous stand-alone cultivators more options when choosing who to use as a processor, ideally giving them more leverage on price and terms.

“This gives us the opportunity to become a more formal processor and bring product in, not just processing our own,” explains Mann. “Cash flow is one of the biggest issues facing the industry for smaller companies, especially if one’s focus is on domestic consumers sales, falling within the payment terms of each province.”

She also says she understands concerns that making micros four times bigger can compromise the integrity of a small craft-style facility. However, she feels the potential new limit of 800 m2 is still within the manageable scope of a small business and certainly still much smaller than many standard producers.

It’s also more cost-effective and manageable than building out a second micro, as some companies have done in recent years.

“I do think there’s a threshold of where craft can go, and I think the proposed changes are likely on the higher end of that, but it’s certainly manageable. For those who imagine growing something that big, I think this is the most cost-effective. The plants still need the same amount of care, so if you’re stretching yourself too far things can happen. But there are ways to address that while maintaining that quality.”

“It’s another size t-shirt for people to put on instead of just extra small or extra large.”
Jonathan Wilson, Crystal Cure

Jonathan Wilson, CEO of Crystal Cure, a micro cultivator and micro processor in New Brunswick, thinks the proposed changes will help carve out a distinction between smaller craft growers that are larger than a micro but still much smaller than many other standard producers who can have a significantly larger canopy.

Wilson explains that the ideal would be a third licence category right in the middle of micro and standard, but he thinks the proposed changes are at least a good step in that direction.

He compares it to the beer industry in New Brunswick, where there are local micro breweries, somewhat larger craft breweries, and then standard large-scale breweries. While the micro breweries have a very limited capacity that allows them to stay mom-and-pop businesses, the craft designation allows a company to still build a brand based on a “craft” style quality but expand it in ways that can benefit from more efficiencies of scale, all without compromising quality.

“I believe in the true micro, the mom-and-pop,” says Wilson. “When you start to get up to 800 metres squared, that’s necessarily a micro. I agree. But this, to me, opens up the possibility of having maybe three licence classes, I hope.

“We know that some micros are going to say they cannot afford to go there, don’t want to go there, don’t have the demand to go there, and that’s fine. But this gives a chance for those who do want to get just a little bit bigger, they can do that.”

“It’s another size t-shirt for people to put on instead of just extra small or extra large.”

Crystal Cure was first licensed as a standard producer, explains Wilson. In 2023, the company announced it had downgraded its cultivation and processing to micro licences. The company had initially developed business plans for a much larger facility, but by the time it found itself licensed in mid-2019, the market had already begun to pivot to more modest expectations.

*The team at Crystal Cure showing off their farmgate licence*

Scaling down to a micro licence not only allowed them to save money on annual licensing fees but better reflected how small the operation actually was, and still is. But with the proposed canopy and processing increase, Wilson says he can see beginning to slowly build up to something a little larger.

Like Mann at Habitat, he says expanding under their current licence, rather than getting a second micro, will be a more efficient way to build the company and brand.

“The timing is actually great for us. We were talking about building another micro and expanding Crystal Cure, but now if this changes where we can grow more under our existing licence, then there’s no need to go and build two other buildings until we maximize these.”

Featured image shows the inside of Habitat’s current processing space as they package dried flower.

2023’s tough year in cannabis

April 3, 2023

Micro licences continue to grow in popularity

December 12, 2022

Micro cultivators, processors and nurseries give their thoughts on regulatory changes

December 21, 2020

Week in Weed – July 6, 2024

Written by Staff on July 6, 2024. Posted in Business, Cannabis News, Government, International.

This past week at StratCann, we spoke with the industry about proposed regulatory changes, discussing what the government got right and what is missing the mark. We also looked at the five companies now offering cannabis distribution in Manitoba.

We also broke the story of MediPharm’s plans to close Canna Farms’ facility in BC and move its medical sales to Ontario. On Canada Day, we dropped our newest monthly Cannabis Industry Jobs update.

Lastly, this week, our newest company profile features BC’s Fort 20 Farms, a newer micro cultivator with products for sale in BC.

In other cannabis news…

SNDL Inc. announced that it completed the acquisition of the principal indebtedness of Delta 9 Cannabis Inc. from Connect First and Servus Credit Union Ltd. for a purchase price of $28,138,284. As a result, SNDL has become Delta 9’s senior secured creditor with a first-priority security interest in all of the assets of Delta 9 and certain Delta 9 subsidiaries. The Purchased Indebtedness brings Delta 9’s total indebtedness owing to SNDL to $40,653,352.

SNDL Inc. also announced that it had entered into an agreement to offer to purchase all of the issued and outstanding shares of Indiva and the business and assets of the Indiva Group. The Bid Agreement has been entered into in the context of Indiva’s CCAA proceedings as part of a sales process where the Indiva Assets will be marketed to prospective purchasers.

The Ontario government has told four of its largest provincial agencies, including the Ontario Cannabis Store (OCS), to allocate 25% of their annual advertising spending to Ontario publishers. StratCann has reached out to the OCS for more information on their past annual advertising expenditures for context. We’ll share that with our readers when the OCS can respond.

Health Canada is hosting a hybrid meeting on July 10 with representatives from several cannabis industry associations discussing various updates from Health Canada on topics such as licensing, compliance, medical access, cannabis inspections, legislative changes, and more. It will include members of AQIC, C3, C-45, Craft Cannabis BC and the Canadian Chamber of Commerce.

Village Farms International, the parent company of Pure Sunfarms, is listed as the 95th largest business in BC by revenue on their performance for the 2023 fiscal year, according to BCBusiness.

The Canadian Cannabis Spot Index was assessed at $4.50 per gram this week, or $3.37 after excise taxes are subtracted, down from last week’s C$4.56 per gram, according to Cannabis Benchmarks.

PEI Cannabis wishes those attending the Cavendish Beach Music Festival this weekend to have fun and be safe. Unfortunately, that safe fun can’t include smoking or vaping cannabis, as the festival website notes that smoking is not allowed due to provincial regulations.

The City of Kawartha Lakes OPP seized 56 cannabis plants growing outdoors. One male was arrested and charged under the Cannabis Act.

International cannabis news

A Canadian woman admitted that she smuggled almost $1.8 million of cannabis into Bermuda. No quantity of cannabis was noted in news reports, just a dollar value.

Collective cannabis growing clubs were allowed to begin in Germany on July 1 formally, but confusion around licensing, regulations and other aspects of the new laws continue to be a challenge.

A federal judge in the US dismissed a lawsuit by several Massachusetts cannabis businesses who argued that the federal prohibition on cannabis is unconstitutional, saying only the US Supreme Court could overturn its 2005 ruling upholding the law.

A move to legalize medical cannabis in North Carolina appears to have died on the vine after the state House of Representatives did not take up the bill.

However, the Eastern Band of Cherokee Indians Tribal Council in the same state voted to allow the sale of cannabis, opening the door for North Carolina’s first recreational cannabis dispensary to open by the end of the summer, despite being illegal there.

Finally, one in four admissions to adult mental health ward in 2023 on Guernsey, an island in the English Channel, was likely to be linked to cannabis use, a report has found. The figures are based on “clinical judgement,” which means there could be other contributing factors, but doctors think it is more likely to be linked to cannabis than not, reports the BBC.

Five private cannabis distributors now fully licensed by Manitoba’s LGCA

Written by David Brown on July 4, 2024. Posted in Business, Cannabis News, Government, Manitoba, Producers.

Manitoba has several private cannabis distributors now available for producers selling into the market and looking for an alternative to direct-to-retail shipping or cross-docking.

Manitoba Liquor & Lotteries (MBLL) began seeking new applicants to offer cannabis distribution services in Manitoba in late 2023. This past February, the MBLL announced five companies that had successfully applied to participate.

Those five companies, Delta 9 Logistics, Open Fields Distribution, Maqabim Distributors, 100 LBS, and Lineage Distribution, have now passed the second stage of licensing and been issued their Cannabis Distributor License from the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA).

“[Cross-docking] just kind of saved a couple bucks on shipping, but in some cases actually increased lead-time because you now had to wait for orders to pile up before you ship it out.”
Graham Taylor, Lineage Distribution

The first four licences were announced on June 20, while the most recent, Lineage Distribution, was issued its licence on July 3. Prior to this, the province’s cannabis operations launched a pilot project for cross-docking services with four distributors with a goal of decreasing lead times for shipments into the province and improving supplier access to small, rural, and remote retailers.

Graham Taylor, the president of Lineage Distribution, says cross-docking was well-intentioned but didn’t really solve the issue of getting products to retailers faster and more efficiently. Cross-docking is a method of distribution in which goods are received and stored on a short-term basis before being consolidated and sent to retailers.

“That really didn’t solve the biggest headaches that suppliers and retailers were both feeling, which is really poor lead times,” says Taylor. “That just kind of saved a couple bucks on shipping, but in some cases actually increased lead-time because you now had to wait for orders to pile up before you ship it out.”

Now, he explains, companies have the option of more long-term storage to better meet market demands for companies unable or uninterested in shipping individual orders to multiple retailers. Manitoba is one of the few provinces without a centralized warehouse or distribution system, instead allowing producers to ship directly to retailers.

He explains that some companies, like Lineage, had previously operated as distributors by storing products under a federal production licence. However, the new licence allows the province to more directly regulate and oversee the process through the MBLL and LGCA. Lineage also offers distribution in four other provinces.

“The original intent of this is to help bring in the best of the best… for all the independent retailers in Manitoba.”
Sean Stewart, Hundred Pound Hauling

Another benefit of going through a distributor vs. direct-to-retailer, adds Taylor, is that it can provide better inventory management in the province to ensure retailers have consistent access to products.

Sean Stewart, the founder of Hundred Pound Hauling (100 LB), which also has a distribution licence from the LGCA, says his team is taking a different approach to distribution by focusing on unique, exclusive products that can supply his own AAAAA Supercraft Cannabis stores, with two locations in the province, as well as other independent retailers in Manitoba.

Stewart says he sees this approach as similar to the legacy cannabis market, where only certain growers or cultivars could be found at certain stores, or in the clothing or sneaker worlds with unique, limited-edition products that can only be found in specific stores.

“The original intent of this is to help bring in the best of the best, not just for Supercraft, but all the independent retailers in Manitoba,” he explains. “I really want to try to give those advantages to those in the know. We’re hand-picking products, and we’re working with producers to create new formats and unique price strategies that are unique for Manitoba.

Manitoba currently has 206 private retail cannabis stores, 124 of which are in Winnipeg.

In the 2022-2023 fiscal year, Manitoba’s cannabis operations earned a comprehensive income of $31.3 million, a 27% increase from the year prior, or $6.7 million. Revenue generated by cannabis operations in 2022-2023 was $130.9 million, a 14% increase from the year prior, or $17 million.

The MBLL also recently told producers it is putting new rules in place to ensure cannabis sold in the province is fresher.

Featured image via Hundred Pound Hauling

MediPharm to close Canna Farms facility, move medical sales to Ontario

Written by David Brown on July 2, 2024. Posted in British Columbia, Business, Cannabis News, Ontario, Producers.

Long-time BC cannabis producer Canna Farms is closing shop as its parent company shifts its medical platform to its Ontario facility.

MediPharm Labs, which took over ownership of Canna Farms as part of its 2023 acquisition of Vivo Cannabis, says the move will allow the company to source lower-cost products from other producers. Vivo had acquired Canna Farms in 2018.

The Canna Farms facility was one of a handful of companies to receive a commercial production licence in January 2014. It was also one of the first of these companies to post a profit while large pubcos continued to spend more than they brought in.

Keith Strachan, president of MediPharm Labs, tells StratCann that the decision to ramp down production at Canna Farms’ 47,000 sq ft. facility in Hope, BC, was made earlier this year. This decision reflects the declining price of cannabis and the small facility’s inability to compete with larger-scale growers, especially greenhouse growers.

“We slowly stopped cultivating there due to existing inventory and market conditions and just the ability to buy bulk flower at a better price than what we can grow it for,” explains Strachan.

Canna Farms’ primary business is direct-to-patient medical sales, he continues, which is why MediPharm has maintained Canna Farm’s licence, but says the final crop was planted in the facility earlier this year. In addition, in the company’s Management Discussion and Analysis (MD&A) for the three months ending March 31, 2024, posted in May of this year, it says that MediPharm had made the decision to begin to relocate Canna Farms’ direct-to-patient medical sales logistics to MediPharm’s Barrie facility.

In that same MDA, the company listed a cost of $323,000 related to “employee compensation for terminated employees and write-downs of the carrying value of inventory at the Hope Facility.”

Strachan says one of the challenges is the facility’s size, which was not small enough to keep its costs down and not big enough to compete at scale.

“There’s lots of great small, craft indoor growers who can fetch a premium price in Canada. And then there’s some great greenhouse and even outdoor growers that could sell a good product at a good price. And you can’t really be in the middle and that’s really where this facility ended up lying. It’s big enough that it wasn’t craft but not big enough that it had the ability to scale.”

Canna Farms’ Health Canada Cultivation and Medical Sales licences expire on December 14, 2027.

MediPharm’s “Barrie facility” is 70,000 sq. ft., and its Health Canada Standard Processing Licence expires September 28, 2026.

MediPharm Labs also operates out of its 29,000 sq. ft. EU GMP Napanee-Ontario facility.

As of September 30, 2023, MediPharm’s management was committed to selling the Vanluven Road facility in Nappanee, Ontario, and the Yale Road facility in Hope, British Columbia.

Featured image via Google Maps

Cannabis Jobs Update – July 2024

Written by Staff on July 1, 2024. Posted in Business, Cannabis News.

Are you looking to work in Canada’s cannabis industry, or to find a new position? There are always many different positions available, from entry-level to executive, from cultivation to labs, from budtending to brand reps; there’s a plethora of pot jobs available at any given time.

Check out our July 2024 cannabis jobs roundup below for a brief snapshot of the many jobs currently available in Canada’s cannabis industry.

The OCS is looking to hire for several positions, including a Social Responsibility Analyst and a Digital Merchandising Specialist, as well as a Social Media Manager and Senior Financial Analyst.

High Tide, Canna Cabana’s parent company, is looking to hire an E-Commerce Specialist. Canna Cabana is also looking to fill many retail positions at locations in several provinces.

Cannara Biotech Inc. in Quebec is hiring for several positions, including a Refrigeration Engineer, a Quality Assurance Associate, an Accounting technician, an Evening Packing Attendant, and an Electromechanic.

Cannabis producer Greentone is hiring a Chargé de projects in Quebec and a Territory Sales Rep in Toronto (remote)

Inspired Cannabis is hiring full-time and part-time budtenders and managers for several locations in BC and Ontario.

Aurora Cannabis currently lists more than a dozen open positions ranging from Total Rewards Specialist and Production Associate to Senior Legal Counsel and Senior Manager.

Decibel Cannabis Company is hiring a Key Account Manager for eastern Canada.

Cronos is hiring for several jobs: three operations positions at its Stayner, Ontario facility, a Sensory Sciences Specialist for its R&D facility in Toronto, a head of Sales in Israel, and a Territory Manager for Vancouver Island.

A Circle K in Brampton, ON is hiring a Cannabis Store Manager.

Fika is hiring a Lead Educator for a retail store in Kitchener, Ontario.

BC’s Pure Sunfarms is hiring a VP of International Business Development, along with several other positions.

Motif Labs is hiring a Packaging Associate in Aylmer, ON.

Gage Cannabis is hiring an Assistant Manager in Toronto.

Cannabis NB is hiring a Store Manager in downtown Fredericton and Cambellton and Customer Experience Representatives in several locations across the province.

Hive Cannabis is hiring a Cannabis Sales Associate in Fort St John, BC, and a part-time Sales Associate in Port Alberni, BC.

The Herbary in Yukon is hiring full and part-time retail clerks.

Adastra is seeking a National Key Account Manager and a Quality Assurance Manager (QAP) in Langley, BC.

You can see some of our past monthly cannabis job listings below.

Cannabis Jobs Update – June 2024

June 3, 2024

Cannabis Jobs Update – May 2024

May 6, 2024

Cannabis Jobs Update – April 2024

April 2, 2024

Week in Weed – June 29, 2024

Written by Staff on June 29, 2024. Posted in Business, Cannabis News, Government, International.

This past week, we looked at record-low cannabis-related reports to Ontario’s Ombudsman and Manitoba’s announcement of its new cannabis product freshness criteria. The OCS also made a promising move by announcing plans to provide sales data to producers, a move highly welcomed by the industry.

New Brunswick’s ninth private retail store is coming soon to St. Andrews. Organigram announced plans to expand into the German cannabis market. Nova Scotia sold $121 million worth of cannabis in 2023, and several micro cultivators say they see no real need for an expanded canopy.

We also looked into Australia’s cannabis regulator issuing more than $600,000 in marketing fines. Police in Edmonton are still searching for two suspects in a cannabis store robbery, and CanadaBis reported a continued trend of profitability in their newest quarterly report.

In other Canadian cannabis news this past week

One of the big stories this week was a new study of blood tests taken from injured drivers at emergency departments across Canada that revealed that cannabis (16.6%) has now narrowly edged out alcohol (16%) as the most commonly detected single substance. While some media reports predictably sensationalized this report, UBC notes that in most cases the cannabis level was not high enough to indicate impairment and increased crash risk. Drunk driving remains a bigger problem in road safety and public health, notes UBC’s writeup on their research.

David Brough, CEO of Klonetics Plant Science, announced he was stepping down in a post on Linkedin.

Alberta’s Simply Solventless Concentrates Ltd. announced it entered into a share purchase agreement with Lifeist Wellness Inc. for the acquisition of all of the shares of CannMart Inc., a wholly owned subsidiary of Lifeist and the brands Roilty and Zest Cannabis. CannMart Labs Inc., another of Lifeist’s subsidiaries, which is currently in Companies’ Creditors Arrangement Act (Canada) proceedings, is not involved in the Transactions.

UFCW’s BC Budtender’s Union held their Solidariweed 2024 event on June 15th, wowing the crowd with speakers like Jodie Giesz-Ramsay and Dana Larsen.

HYTN Innovations Inc. announced it has been granted a Drug Establishment License (DEL) by Health Canada. This license allows HYTN to engage in the GMP fabrication, packaging, and labeling of non-sterile pharmaceuticals containing both cannabis and psilocybin.

High Tide announced it intends to acquire a Cantopia location in Mississauga for $600,000. Cantopia lists four other locations under its brand, all in Ontario. The company also announced plans to open two Canna Cabana stores later this month in Alberta and Saskatchewan as well, High Tide’s 175th and 176th Canna Cabana locations in Canada.

A new research paper reports that medical cannabis use in Canada increased from 4% to 11% between 2014 and 2019, while recreational cannabis use increased from 9% to 15% between 2014 and 2019.

As we head into the long weekend, the Canadian Border Services Agency reminds people not to bring cannabis into or out of the country.

The Vancouver Sun ran a piece on BZAM’s sale of its facility in Midway, BC, to Christina Lake Cannabis, which was announced in 2023 and finalized months ago.

Pure Sunfarms launched its new ‘Trials by Pure Sunfarms’, offering consumers limited batch, ‘trial’ cultivars, for the first time, launched exclusively to consumers in Pure Sunfarms’ home market of British Columbia. The first small batch release is Trial No. 001 (Gas Face x Purple Kush), beginning July 1.

Ayurcann Holdings Corp. and Arogo Capital Acquisition Corporation announced they entered a definitive business combination agreement.

Law firm Miller Thomson LLP posted a good overview of some of Health Canada’s recently proposed regulatory changes. Remember to get your feedback to Health Canada by July 8!

Also, two were arrested, and cannabis was seized in Saint John, NB, and police in Quebec seized around 1,000 cannabis plants and 100 kg of cannabis in two raids.

International cannabis news

In the US, Kentucky announced it will open applications for the state’s medical cannabis business beginning July 1 as part of an accelerated push to have products available in early 2025. Qualifying patients can apply for medical cannabis cards starting January 1. The state initially will issue 48 dispensary licenses divided among 11 regions.

Brazil’s Supreme Court voted to decriminalize possession of cannabis for personal use, making the nation one of Latin America’s last to do so. The process began in 2015.

The NCAA lifted its ban on cannabis use for Division 1 athletes in championships.

And finally, Cannabis Europa was held June 25-26 in London. Prohibition Partners has some coverage here.

Cannabis-related complaints to Ontario’s Ombudsman lowest since legalization

Written by David Brown on June 28, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Ontario’s Ombudsman reports a near-record number of complaints in its recent 2023-2024 report, but a record-low amount of issues related to the province’s cannabis industry.

The majority of cannabis-related cases heard by the Office of the Ombudsman of Ontario were connected to the Ontario Cannabis Store, or OCS.

Ontario Ombudsman Paul Dubé’s ninth Annual Report, released on June 26, says the organization only heard six cases related to the OCS in 2023-2024, down from 18 in the previous year and 2,411 in the first year of legalization.

The Ombudsman’s report at the time said that most of these were quickly resolved, helping the OCS and its partners like Canada Post address “serious service gaps.”

In fiscal 2019-2020, following the first year of legalization, OCS-related complaints dropped significantly to just 49. In that same year, the Ontario Ombudsman also received 16 complaints related to the Alcohol and Gaming Commission of Ontario’s (AGCO) process for granting licences, as well as other retail sales matters. The Ombudsman’s report says these were resolved by referral to the AGCO’s complaint and appeal processes.

In the following year, 2020-2021, Ontario’s Ombudsman heard 20 cases related to the OCS, and a case where a quorum of council for the Town of Pelham, Ontario, “decided over email not to accept a donation from a cannabis producer,” and that the “Ombudsman found this was wrong and contrary to law, as municipalities are only permitted to make decisions by by-law or resolution.”

Then, in 2021-2022, the organization heard 31 cases about the Ontario Cannabis Store, mostly customer service-related. One of these cases involved a woman who reached out to the Ombudsman after spending several weeks trying to get a refund for an OCS order she had placed that had been destroyed when a postal truck caught fire.

In 2022-2023, the Ombudsman’s office received 18 complaints about the Ontario Cannabis Store, and just six in 2023-2024, out of 27,030 complaints and inquiries total. Over half (57%) of these were addressed in two weeks or less. The Office of the Ombudsman of Ontario says this near-record total case volume is up 10% from the previous year and is among the office’s highest in decades—surpassed only by 2018-2019’s total of 27,419.

Ashley Bursey, manager of communications for the Office of the Ombudsman of Ontario says that while the organization cannot reveal the details of any specific complaints due to confidentiality requirements, it often addresses cases related to the Ontario Cannabis Store in regard to delays, customer service, concerns about product quality, or billing issues. She also says that all six of cases mentioned in their most recent annual report have been closed.

“We receive relatively few complaints about the OCS each year, with the exception of 2018-2019, the year the OCS began online retail operations, where it was our single most-complained-about organization,” Bursey tells StratCann. “That year, we received 2,411 cases about the OCS and we established a dedicated team to triage and prioritize these complaints, working collaboratively with senior staff at OCS and the Ministry of Finance.

“Among the issues we identified (including delays, product quality concerns, and customer service issues) was a serious privacy breach involving Canada Post’s online tracking portal, which allowed anyone to see the name and address of an OCS customer if they had a tracking number; this was quickly rectified.”

Inside the world’s largest legal cannabis distribution centre

April 28, 2023

OCS bug gives some retailers early access

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OCS continues to grow, with nearly $1.5 billion in wholesale sales in 2022-23

December 14, 2023

Manitoba announces new cannabis product freshness criteria

Written by David Brown on June 26, 2024. Posted in Business, Cannabis News, Government, Manitoba, Other, Producers, Retail.

Manitoba Liquor & Lotteries (MBLL) is putting new rules in place to ensure cannabis sold in the province is fresher.

The provincial agency sent a notice to producers on June 26 informing them of new “product freshness criteria” coming into effect July 15 for cannabis flower, edibles, some extracts, and topicals.

As of that date, all cannabis flower, including infused flower products sold into the Manitoba market, must arrive at the retailer no later than nine months from the packaging date.

All edible cannabis products with no “best before” date must also arrive at the retailer no later than nine months from the packaging date. Those edibles with a “best before” date must arrive at the Retailer 60 calendar days or more prior to the Best Before date.

Cannabis topicals must also arrive at the Retailer no later than nine months from the packaging date, but cannabis extracts other than infused flower products will have no packaging date limitations.

Cannabis retailers in Manitoba will also be allowed to refuse delivery or return products that do not follow these new freshness rules. A credit will be issued to the retailer in such cases, at the supplier’s expense. Suppliers can choose to issue a credit in the case of a customer return.

The move from Manitoba comes as other provinces seek to manage a growing inventory of older products. Alberta’s AGLC announced it would be delisting more than 500 slow-moving SKUs in May. BC recently announced similar changes to its policies for accepting new products and storing existing products as the industry closes in on six years of operation.

Unlike most other provinces, Manitoba does not operate its own distribution centre for cannabis sold in its territory, but instead allows producers to ship directly to retailers. They have also recently begun licensing Cannabis Distributor Licenses to third parties offering distribution services. As of June 20, they have licensed four of these businesses.

Manitoba currently has 206 private retail cannabis stores, 124 of which are in Winnipeg.

BC LDB warehouse making changes to improve product freshness

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AGLC delisting more than 500 cannabis SKUs

May 24, 2024

Why cannabis has no expiry date

May 10, 2021

Micros question proposed increase in canopy space

Written by David Brown on June 26, 2024. Posted in Business, Cannabis News, Government.

Health Canada recently proposed numerous changes to the federal cannabis regulations, including increasing capacity for micro cannabis cultivators and processors, as well as cannabis nurseries.

The industry’s response to these proposed changes has generally been positive. Many of the proposals will streamline specific aspects of the regulations, arguably saving industry and the regulator time and money. The proposal also contains some changes that are likely to benefit consumers, such as allowing more than one gram in a pre-roll or allowing view windows on some dried cannabis packaging.

The increase in the amount of space someone can grow cannabis under a micro cultivation limit is something many micro cultivation licence holders tell StratCann is not a priority, or even something they can afford to take advantage of.

This distills down to several key reasons, says Jeff Aubin of Smoker Farms, a micro cultivator in BC’s interior. The significant issues are the federal and provincial taxes and regulatory fees. But another issue is the challenges small growers like him face in balancing all the stops in the supply chain before their product reaches consumers, and the small portion of that total consumer price that they get to keep.

“It’s completely tone-deaf from the government to even think this is the problem that everybody is facing in the cannabis industry,” says Aubin. He says other micro growers he talks with echo the same sentiment.

“Nobody says ‘Oh I don’t have enough space to grow more weed’. No, it’s always the same. I’m being overtaxed and over regulated to death. And it’s completely unsustainable.”

Aubin says even if he could afford to build more, he likely won’t, noting that he is currently only using about 3/4s of his allowed 200m2, something many other micros tell StratCann as well.

“We’d love to increase the size of our footprint, but just the construction of a new building and the price of construction these days is so daunting compared with price compression of cannabis. Raising capital to expand four times is pretty extreme for a micro cultivator like ourselves.”
Kevin McBride, Kootenays Finest Craft Cannabis

Not all micros are entirely opposed to the change, though. Kevin McBride, the general manager and QAP at Kootenays Finest Craft Cannabis, another micro cultivator in BC’s interior, says he would consider expanding his footprint if he could afford it. However, he also says he would likely build a second micro facility rather than expand his existing footprint.

“It seems like a double edged sword,” says McBride. “We’d love to increase the size of our footprint, but just the construction of a new building and the price of construction these days is so daunting compared with price compression of cannabis. Raising capital to expand four times is pretty extreme for a micro cultivator like ourselves.”

*Kevin McBride, tends to his plants at Kootenays Finest Cannabis*

In addition, expanding that much would mean hiring more people to manage the extra grow space, or risk quality dropping, he continues.

“We’ve got about as much as we can handle here. For us to quadruple our staff, genetics, quadruple everything, I don’t think we could do it even if we wanted to. Not to mention the raising of the capitol to do that.

“If you think about micro, craft growers trying to be as hands-on as possible. Bigger isn’t always better. The bigger you are the more automated you are, the less hands on you are. The quality seems to go down. I don’t think bigger is always better with growing.”

Instead, McBride thinks the offering may be more about benefiting smaller and mid-sized standard cultivators who would gain from some lower fees by being classified as a micro.

“To me, this seems more of an offering to medium to smaller standard LPs to lighten their load as opposed to helping micros.”

“If they wanted to really help us, where’s the help on the excise tax?”

“Nobody says ‘Oh I don’t have enough space to grow more weed’. No, it’s always the same. I’m being overtaxed and over regulated to death. And it’s completely unsustainable.”
Jeff Aubin, Smoker Farms

Aubin at Smoker Farms agrees with the concerns about excise tax but adds that there are many other issues preventing growers like him from profiting, too.

“Excise is the number one thing on the tip of everyone’s tongue,” Aubin continues. “But it’s not just that, it’s provincial taxes and fees as well…So it’s not just the excise tax, it’s the provinces that are really greedy on it, too.

“The provinces are affecting us just as much as anything else. All these provinces have such different rules. There’s no standard when it comes to trying to get your product in a province and there’s no standard how much it’s going to cost, or when you get paid.”

*Josh Beckett inside his micro garden at Magi Cannabis*

Josh Beckett, the owner of Magi Cannabis on Salt Spring Island in BC, takes a similar view to McBride in that he sees the proposal as something more likely to benefit standard cultivators who are already operating within, or close to, the proposed 800m2 canopy, rather than helping micros like himself get bigger.

This is because micro cultivators pay a lower rate in terms of federal regulatory fees.

While micro cultivation, micro processing, and nursery licences pay an annual $2,500 regulatory fee to Health Canada, standard cultivation, standard-processing, and sale for medical purposes licences pay $23,000. And, while micros pay 1% of their revenues on sales up to $1 million (and 2.3% on any revenue over $1 million), standards pay a flat 2.3%.

“What is the benefit of having a micro that’s four times bigger? What does it matter? Why not just go for a standard licence, or would it be better to go for a second micro?
Josh Beckett, Magi Cannabis

Since the cost of adding four times as much cultivation space would be so high, especially with the added costs of construction (and nearly everything else) since COVID-19, he says he doesn’t think most micros will be expanding, but he does see some producers downsizing to a new larger “micro” licence.

“What is the benefit of having a micro that’s four times bigger?” asks Beckett. “What does it matter? Why not just go for a standard licence, or would it be better to go for a second micro? If you were going to quadruple space, wouldn’t it be better to go for another micro licence so you could take advantage of another $1 million of 1% instead of a 2.3% gross licensing fee?

“I’m trying to wrap my head around what the big advantage is here. What is the carrot they are throwing at us with this?”

The most significant current limit for his operation, explains Beckett, is that his location doesn’t allow him to draw more power that would enable him to expand even if he could afford to. Instead, he recently partnered with someone to build a second micro facility elsewhere on the island, an approach he says, like other growers, will be easier to manage as separate sites rather than one large grow.

That’s not to say all micro cultivators won’t look to expand, adds Beckett. But he doesn’t see a trend of any current micros wanting to expand, or even being able to afford to.

These factors, of course, are different for outdoor micro cultivators, who don’t have the same added infrastructure costs, as long as they have the land available to expand. Collier Quinton, co-founder & cultivation director at Weathered Islands Craft Cannabis, a micro and nursery licence holder on BC’s Texada Island, says if the rules come into force, they will consider expanding, but notes they will need to put in more security fencing and extensive work to prepare the land, including excavation, and installation of beds and drip lines.

Similar to other micros, with the current state of the market, he says it can be difficult to justify those expenses or find outside investors.

“We would take a serious look at it,” Quinton tells StratCann. “It makes a lot of sense, but this is also a challenging market and investing more money at this point in time needs to be seriously considered.”

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

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OCS plans to provide sales data to producers

Written by David Brown on June 25, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

The Ontario Cannabis Store (OCS) says it plans to begin providing cannabis producers with more specific cannabis sales data, including access to store-specific information.

In an announcement posted on the OCS’ B2B platform on June 25, the Crown corporation says it will be offering its cannabis producer-partners “greater visibility into the specific authorized stores that are purchasing their products through the OCS,” which includes the types of products each of these stores order from OCS each day at the SKU-level and the number of units ordered from OCS by each retailer, by SKU, each day.

These are changes many Canadian cannabis producers have been asking provincial cannabis agencies, like the OCS, to provide for some time. Such figures will allow producers to better understand what products are selling better in what parts of the province, providing an opportunity for more targeted sales measures. Alberta and BC have provided similar data programs for producers/suppliers.

The OCS is gearing up to roll these changes out in the “coming months,” a development that will build upon the existing Supplier Data Program. This, in turn, will assist cannabis producers/suppliers with sales and operations planning, leading to improved inventory availability, fulfilment, and delivery service levels for Authorized Retail Stores.

The OCS offers two levels to its supplier data program. Level one allows OCS suppliers to access insight into their products’ sales performance across the province. A level two data subscription also provides access to more broad sales figures about other producer/supplier sales. These new changes would occur only under level one.

Suppliers will only receive detailed and specific SKU and store-level wholesale sales data for their own products. This information will only come from the OCS, not from any retailer point-of-sale metrics or retailer inventory data. Suppliers also cannot provide the store-level wholesale sales information from OCS with anyone outside of their organization.

The OCS is seeking industry feedback on the changes to its supplier data program through July 9, 2024.

Featured image via potguide.com

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Ninth private retail store coming to New Brunswick

Written by David Brown on June 24, 2024. Posted in Business, Cannabis News, New Brunswick, Retail.

Retail chain Cannabis Xpress says it plans to open its third store in New Brunswick soon, the first cannabis store in the small town of St. Andrews, located in the back of the historic Kennedy House Hotel.

The St. Andrews store will be the 17th Cannabis Xpress location in Canada, with the rest located in Ontario. It will also be the ninth private retail store in New Brunswick since the province began accepting applications in 2022.

The provincial government’s goal in adding private stores was to bring cannabis to smaller, under-served communities like St Andrews. Tenders were accepted for Blackville, Bouctouche, Caraquet, Chipman, Dalhousie, Grand Bay, Hampton, St. Andrews, Saint-Quentin, and Salisbury. The closest licensed cannabis store to St. Andrews is currently a thirty-minute drive.

The province currently operates 27 public Cannabis NB stores, up from 25 in March, plus its eight private stores and six farmgate stores, for a total of 41.

The province has also said bringing private retailers to these smaller communities will help compete with unlicensed stores that continue to operate there. The New Brunswick government also recently created new powers for inspection officers to handle such stores. However, it maintains that it cannot enforce its cannabis regulations and laws on First Nations lands.

The owner of Cannabis Xpress, Chris Jones, says his company will continue to apply for new licences as they become available and is interested in acquiring other private retailers in the province.

“We are very excited to finally be opening in the town of St. Andrews, which has a strong local population and an even stronger amount of tourists visiting. Our plan is to continue expansion in New Brunswick and be the only private retailer, so we are looking at mergers and acquisition opportunities in New Brunswick.”

Jones also says that operating cannabis stores in New Brunswick is easier than in Ontario, and the two current locations in the Maritime province are the company’s best-performing stores, with the average consumer purchases (baskets) being higher in New Brunswick than in Ontario.

Cannabis NB’s most recent quarterly report shows product sales for the three months ending March 31 were $22.8 million, an increase of 11% compared to the same period in 2023.

Sales of dried flower increased 9.7% from the same period last year, extract sales (oils and capsules) decreased 9.9%, sales of edibles increased 12.3%, sales of infused beverages increased 4.7%, topicals sales increased 44%, and concentrates sales increased 17%.

New Brunswick has taken some relatively unique approaches to cannabis retail since opening its public-only model in 2018. In addition to being one of only two provinces with a mixed public and private retail mode (BC is the other), it is one of only three provinces (along with Ontario and BC) to have a formal farmgate retail licensing system in place.

There are currently six cannabis producers in New Brunswick now licensed to allow on-site sales direct to consumers, including a cannabis nursery.

In its 2024-2025 Strategic Plan, the provincial cannabis agency also says they are exploring “on-site consumption opportunities” that can increase legal access and “meet the needs of current and potential customers.”

5 ways retailers can grow their sales

March 4, 2024

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February 23, 2024

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April 8, 2024

Week in Weed – June 22, 2024

Written by Staff on June 22, 2024. Posted in Business, Cannabis News.

This week at StratCann, we looked at retail national cannabis sales, which continue to grow, but at a much slower rate. We also looked at a new cannabis patio in BC, and at some recent Indigenous cannabis-related topics for National Indigenous History Month.

In finance-related cannabis news, we looked at the ongoing conflict between BZAM and Final Bell. Atlas Global Brands was granted CCAA protection, BC’s Christina Lake Cannabis filed its year-end report for 2023, and Aurora shared their most recent quarterly report.

Also, a Danish medical cannabis company is looking to bring its unique cannabis oil to Canada.

In other cannabis news this past week…

Vancouver’s Travis Petersen, known as ‘the Nomad Cook,’ was in Winnipeg last week serving up a five-course infused dinner made with cannabis at a pop-up event to a handful of local cannabis connoisseurs.

A property near Mission, BC, with a 16-year history of bylaw contraventions, including unpermitted cannabis production, has racked up over $5,000 in fines.

A new study has found that the rate of cannabis-related disorders diagnosed among pregnant women in Québec increased by more than 20% after legalization, while rates for all other drug- and alcohol-related disorders remained stable.

The Chicoutimi borough council refused to authorize a potential move of the branch of the Société québécoise du cannabis (SQDC) on Racine Street.

A town council in Quebec refused to authorize a potential move by the SQDC. During a meeting of the Chicoutimi council on Tuesday, 4 of the 5 councillors spoke against the approval of the use of sales of products resulting from the cultivation of cannabis in the building in question, located at the intersection of the streets Racine and Sainte-Anne.

Cronos Group Inc. announced an expansion of Cronos Growing Company (GrowCo), with about $71 million provided by an additional credit facility from Cronos intended to assist GrowCo’s expansion to satisfy domestic and international demand.

Village Farms International, a Canadian company that holds one of ten licenses to cultivate and distribute cannabis in the Netherlands, congratulated the country on the expansion of its cannabis supply pilot project.

MediPharm Labs Corp. announced it has entered into a licensing agreement with Remidose Aerosols Inc. to acquire the exclusive rights to the latter’s cannabis products. Current Remidose customers will be serviced through MediPharm starting August 2024.

High Tide Inc. announced the opening of a new Canna Cabana retail cannabis store in Calgary, opening on June 21. This is the chain’s 80th location in Alberta and High Tide’s 173rd Canna Cabana branded retail cannabis location in Canada.

And finally, Fort St John RCMP seized cash, cannabis, and psilocybin in a case they say involves sales to minors.

Vancouver VR company teams up with local retailer to create virtual cannabis store

Written by David Brown on June 21, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

A BC cannabis retailer is partnering with a Vancouver-based Web3 company to develop a virtual cannabis store experience.

ARCannabis, a retail cannabis chain in BC with seven locations, has teamed up with Vancouver’s Metasphere Labs Inc., which recently announced its plans to create an “online cannabis shopping experience with the use of advanced virtual reality (VR) technology.”

The plan is still in the early stages, as the two companies just signed an agreement on June 21. The goal is to develop a platform for consumers to visit a virtual, 3D version of an ARCannabis store, guided by a virtual budtender, to make actual purchases that can be delivered or picked up.

The new VR virtual store will integrate with ARCannabis’ existing backend shopping cart system, powered by another Vancouver tech company, Cova Software. The virtual experience will build on ARCannabis’ current online shopping platform, and provide a chance to interact with that platform in a fully immersive way.

In a press release, Metasphere says the store is also being designed to be embeddable in open metaverse environments and gaming platforms like Fortnite, subject to their terms of service, and presumably with age-gating in place.

“We are thrilled to partner with ARCannabis to bring their vision of a VR virtual store to life,” said Natasha Ingram, CEO of Metasphere Labs. “Our expertise in developing immersive metaverse environments aligns perfectly with AR Cannabis’ innovative approach to retail. This collaboration will set a new standard for the online shopping experience in the cannabis industry.”

Metasphere says it expects the platform to be completed by September 2024.

“We are excited to work with Metasphere Labs to enhance our customers’ shopping experience,” said Joe Le, Co-Founder of ARCannabis. “This VR virtual store will not only showcase our products in a unique and engaging way but also reinforce our commitment to leveraging technology to improve customer satisfaction.”

Retail cannabis sales year-over-year growth continues to slow, retail stores decrease

Written by David Brown on June 21, 2024. Posted in Business, Cannabis News, Producers, Retail.

Retail cannabis sales rebounded in February and April after dropping to their lowest in nearly a year in January 2024, according to the most recent figures from Statistics Canada.

Although cannabis sales in Canada still show year-over-year growth, the increase in those sales continues to slow as the market reaches a possible saturation point.

Retail cannabis sales in Canada were $539 million in April 2024, after dropping to $518 million in January after the holiday shopping season. Those numbers were up $11 million in February to $529 million, then declined again in March before increasing again in April to $539 million.

Sales numbers are still down from a record high of $564 million in August 2023, which was followed by five months of declines before bouncing back to $539 million in December. Then, in January 2024, retail cannabis sales dropped to $518 million, using seasonally adjusted numbers. This represents a $20 million year-over-year increase from sales figures in January 2023 ($498 million).

Retail cannabis sales have continued to increase on a year-over-year basis since legalization, but the exponential increases have given way to more modest gains as the market appears to be reaching a ceiling in terms of sales.

From January 2019 to January 2020, sales increased from $54 million to $160 million, nearly tripling. These numbers nearly doubled to $310 million by January 2021 and then increased by about one-third to $418 million by January 2022. By January 2023, that figure was $498 million, and in January 2024 it was $518 million, an annual increase of only about 4%.

Wholesale sales, price and volume of cannabis (seasonally adjusted) dropped in April from a record high of $636 million in March 2024. Previously, the high water mark in this category was $606 million in August 2023 followed by several months of declines to a low of $515 million in January 2024 before increasing again in February and March.

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