Alberta sold $673.5 million worth of cannabis in 2023-2024

Written by David Brown on November 20, 2024. Posted in Alberta, Cannabis News, Financials.

The Alberta Gaming, Liquor and Cannabis Commission (AGLC) brought in $63.9 million in net revenue from $673.5 million worth of cannabis sold in the province for the year ended on March 31, 2024, reporting $10.8 million in net income after expenses.

This is up from the $60.4 million in net revenue in the previous year but down from the $18 million in net revenue for the 2022-2023 fiscal year. This is due to higher operating expenses and significantly lower profit from operations in the most recent year.

This figure does not include an additional $210 million in cannabis tax revenue collected by the Government of Alberta for the year ending March 31, 2024. The province’s additional 6% markup on cannabis products contributed to net revenue of $38.1 million.

Net income for the AGLC for all the files it manages (cannabis, liquor, and gaming) was $2.3 billion in the most recent fiscal year.

The 2022-2023 fiscal year was the AGLC’s first profitable year from cannabis sales.

The number of licensed cannabis stores at the end of March 2024 was down slightly from previous years, with 752 compared to 756 in the two previous years.

Every product category except for dried flower, milled flower, beverages, topicals and seeds saw total dollars sold increase.

Sales of dried flower were relatively flat at $207.4 million compared to $206.9 million in the 2022-2023 fiscal year, and down from $226.5 million in 2021-2022, likely reflecting ongoing price compression as well as a shift in the market to concentrates and vape pens.

Despite this decline in total revenue, the volume of dried cannabis sold continued to increase, reflecting declining retail prices. The province sold 65,127 kg in the 2024 fiscal year, up from 59,121 in the previous year and 59,490 in 2022.

The number of vapes sold and total sales also increased, as did pre-rolls, extracts (significantly so), edibles, and beverages.

Other highlights from the AGLC’s 2023-2024 fiscal report:

The AGLC estimates it saved the cannabis industry more than $4 million through the reduction of listing fees for cannabis SKUs, among other procedural changes.
Another nearly $3 million in estimated cost savings for the industry through the amendment of storage requirements.
Alberta expanded access to legally regulated cannabis with temporary retail sales at events (i.e. festivals) and extended hours of operations approved, increasing revenue-generating opportunities.
The AGLC conducted 3,442 inspections of cannabis retailers, with a 98% compliance rate.
The province spent $2.1 million on its Cannabis Sense education program.
The province is currently developing a recycling plan that will allow for cannabis containers to be recycled.
As of March 31, 2024, Alberta had 2,356 cannabis SKUs listed for sale, up from 2,085 in 2023 and 1,664 in 2022.

Atikameksheng Anishnawbek seeks negotiations with Ontario on retail cannabis

Written by David Brown on November 20, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

The Ontario NDP’s Opposition Spokesperson on Health is asking the provincial government to respond to a First Nations government request to enter into negotiations with the provincial government regarding the operation of a retail cannabis store.

The comments came during the debate of Bill 223, the Safer Streets, Stronger Communities Act, 2024, which includes a potential ban on the advertisement and promotion of cannabis that is sold unlawfully. France Gélinas, the NDP MPP for the riding of Nickel Belt, read the letter from the government of Atikameksheng Anishnawbek, formerly known as the Whitefish Lake First Nation, an Ojibway First Nation in northern Ontario. Gélinas is also the Vice Chair of the Standing Committee on Social Policy and a member of the Standing Committee on Public Accounts.

The MPP says Atikameksheng Anishnawbek is waiting on a response to a letter signed by the chief and sent to Ontario’s Ministry of the Attorney General. The MPP’s comments also state that she suspects that the proposed legislation that amends the provincial Cannabis Control Act to ban the advertisement and promotion of cannabis that is sold unlawfully is intended to target First Nations.

“When a First Nation takes the time—and this is signed by the chief, and copied to me and to everybody else—please make sure that you treat them with respect and that you answer their letter, so that they can be partners with the provincial government and not have the Cannabis Control Act and schedule 1 go after First Nations communities.”

However, Ontario Attorney General Doug Downey responded to Gélinas’ comments, assuring her that the section of the bill that references the advertising and promotion of illicit cannabis is not intended to target First Nations.

“We are providing another tool for police to go after those who are online, marketing and advertising illegal cannabis,” said Downy, directing his comments to the Speaker of the House.

“I did listen to my colleague from Nickel Belt and concerns around First Nations. This is not a tool focused on First Nations. This is a tool focused on the bad actors in the online space, because it is a little bit of Whac-A-Mole, where they sometimes put up a site and then switch over to another site, and the public is not protected in that unregulated market. So this is a tool for the police to go after them with provincial measures, in addition to the existing tools that are there federally, the Criminal Code and otherwise. We want to go after the advertising and promotion of the sale of illegal cannabis as part of our plan to go after the black market, protecting our communities and looking after our children.

“I don’t think anybody thinks that we should be ignoring the illegal cannabis market and the bad actors behind it, and I would look forward to my colleagues across the way supporting us on this piece and others.”

The comments were made during the second reading debate of Bill 223 on November 19. The letter from Atikameksheng Anishnawbek, as shared by MPP Gélinas, reads:

“Please accept this letter as our formal request to enter into negotiations regarding the operation of a retail cannabis store in Atikameksheng Anishnawbek.

“As a First Nation, it is important to us that we regulate and control businesses that operate on Atikameksheng lands. To that end, we would always reserve the right to control and administratively run those businesses to protect the interests of members of our community.

“It is necessary to point out that we reserve the right to license, as a governing body, those who wish to conduct all businesses, including distribution of cannabis.

“As such, formal approval from the provincial government is not a requirement for us to proceed with this process. Having said that, it is in everyone’s interest that we strive to harmonize rules and regulations between Atikameksheng, its citizens, and the policies and procedures set out by the provincial government.

“It would only be in matters where our interests may diverge that Atikameksheng would seek an independent path. At this stage, we do not foresee such a divergence.

“It is important for us to move forward expeditiously as we wish to ensure that the sale and distribution of cannabis within Atikameksheng lands is properly regulated so as to prevent third-party black market enterprises from establishment (sic) in our community.

“As we move forward, we are open to discussions with you to harmonize our processes and policies with those of the provincial government.

“We welcome your suggestions as to how we might best achieve the intended harmonization.”

The Atikameksheng Anishnawbek Cannabis Vending Bylaw 2018 banned the sale of cannabis in the community. In 2023, the community voted in favour of its proposed 2023 Cannabis Control Law. The law authorized and directed the Gimaa (Chief) & Council of the First Nation to make any changes as necessary to the Atikameksheng Anishnawbek Cannabis Control Law.

In 2021, members of the Anishinabek Police Service carried out a raid on an unauthorized cannabis store, with two charged with possession for the purposes of distributing and selling cannabis and the store’s cannabis seized by police. According to a media report, the store quickly reopened.

Representatives from Atikameksheng Anishnawbek were not immediately available for comment.

The 2023-2024 Atikameksheng Anishnawbek Annual Report refers to the completion and implementation of the community’s Cannabis Control Commission.

Featured image via atikamekshenganishnawbek.ca

BC court rejects retailers’ lawsuit calling for enforcement against cannabis stores on First Nations land

September 19, 2023

First Nations cannabis retailer says her community flooded with outsiders taking advantage of lax enforcement

January 25, 2022

First Nations make tough choices in cannabis market

November 16, 2020

Ontario cannabis retailer fined $100,000 for illegal “data deals”

Written by David Brown on November 19, 2024. Posted in Cannabis News, Government, Ontario, Retail.

A cannabis retailer in Ontario will have to pay a $100,000 fine for pursuing and accepting prohibited payments from licensed cannabis producers.

The decision, posted by the Alcohol and Gaming Commission of Ontario (AGCO) on November 19, comes following the issuance of an administrative penalty to Cannabis Xpress in April 2024 of $200,000.

The cannabis retailer, which operates 14 locations in Ontario and three in New Brunswick, had appealed that decision. Cannabis Xpress has now withdrawn its appeal, says the AGCO, with the retailer admitting that some of the “data agreement” effectively induced it to purchase the relevant products from Canadian cannabis producers.

The provincial regulatory agency began investigating after receiving information about possible “inducement activity.” The AGCO investigated Cannabis Xpress, including a review of over 82,000 relevant documents. The agency found that Cannabis Xpress’ “Data Services Program” and/or other agreements with licensed cannabis producers are actually an inducement program.

“Ontario’s anti-inducement rules exist to protect small businesses and consumers from predatory ‘pay to play’ schemes,” said Dr. Karin Schnarr, registrar and CEO of AGCO. “The AGCO will continue to monitor business arrangements between licensed retailers and producers and will take strong action against any licensee found to be engaging in illegal behaviour.”

A representative from Cannabis Xpress was not immediately available for comment.

The AGCO says that between January 2021 and July 2023, Cannabis Xpress entered into agreements or arrangements with at least 61 LPs, the majority of which were referred to as “Data Sharing Agreements” or “Data Agreements.” Data on cannabis sales, especially from larger chains with numerous locations, can be valuable to producers, allowing them to better understand what products are selling well and where.

So-called “data deals” have been controversial in the industry for some time, with some Ontario retailers calling out the practice last year. Provincial rules do allow retailers to sell data to producers. The OCS began sharing similar information earlier this year in a move that some hope would address these market demands.

Although Cannabis Xpress’ agreements appeared, on the surface, to be related to the sale of such sales data, the AGCO says that the fees to be paid under some of the agreements were based on the number of Stock Keeping Units (SKUs) to be carried at Cannabis Xpress stores.

Cannabis Xpress’ communications with cannabis producers, continues the AGCO, implied that these companies could expect to enhance sales volumes in their stores by entering into these “data deals.”

According to the AGCO, the company represented to the cannabis producers that: “our goal is to have long-term relationships with a limited number of suppliers, and pump as much volume as we can out of the stores.”

An email shared with StratCann from Cannabis Xpress by a cannabis producer confirms the same language, which also stated that the fee for the data depends on a few factors, such as the product category and total number of SKUs.

The AGCO also alleges that some Canadian cannabis companies (LPs) were told that the retailer was not willing to purchase their cannabis products without entering into a data agreement. Other cannabis companies that tried to renegotiate, terminate, or alter the terms of their data agreements with Cannabis Xpress say they saw the purchase of their cannabis products decline in volume and frequency.

Cannabis Xpress retail staff were also allegedly informed that, before they stocked new products, they were to confirm whether the LP had a data agreement in place.

Cannabis Xpress retail staff were also said to have been told not to “mention deals of any sort to customers or brand reps we don’t have a deal with” and “[i]f someone asks why we don’t stock a certain brand, just politely say we have the maximum amount of SKUs we’re able to get at the moment, or something along those lines.”

Some publicly traded cannabis companies report sales of their own data programs. Ontario’s rules allow retailers to sell data to producers, allowing them to better understand product sales trends.

Nova Cannabis, a company behind one of Canada’s largest chain of cannabis stores, Value Buds, recently reported revenue from its own “proprietary data licensing arrangements” of $12.4 million for 2023, an increase of 125% from $5.5 million in 2022.

High Tide, another sizeable retail cannabis business in Canada with more than 150 Canna Cabana locations across the country, reported sales from its own “Cabanalytics business data and insights platform” increased to $6.5 million in the third fiscal quarter of 2023 from $5.5 million during the same period in 2022.

Law firm says SQDC broke provincial rules with “rotating” SKU pricing

Written by David Brown on November 15, 2024. Posted in Cannabis News, Government, Quebec, Retail.

A law firm in Quebec has modified an application for a class action suit against the Société québécoise du cannabis (SQDC) relating to how the provincial cannabis retailer priced their products.

On November 15, 2024, lawyers at Groupe SGF amended an application for authorization to include what they say is a claim that the SQDC admitted they sold “rotating” SKUs at a lower price than regular SKUs, potentially violating provincial cannabis rules.

Groupe SGF first filed a class action suit against the SQDC earlier this year on behalf of the plaintiff, Gabriel Bélanger, alleging the provincial cannabis agency does not comply with the Consumer Protection Act (CPA). In that case, Bélanger argues that the SQDC forces people to make “blind purchases” of cannabis products listed on their website.

In a press release last May, the SQDC said it was taking the time to look into the issue properly but noted that its initial comment was that it disagreed with the applicant’s claims and intended to contest the application.

Lawyers at Groupe SGF say they believe that the class action is now open to all cannabis consumers who purchased so-called “Non-Rotating” products from the SQDC, whether online or in-store. Groupe SGF says this would have meant consumers paid a higher price for the same product than if it had been put in a product with a variety displayed as “in rotation.”

The lawyers for the plaintiff, Mr. Gabriel Bélanger, believe that all of this is in violation of the prohibition on providing a discount to the consumer on the price of cannabis as per Quebec’s Cannabis Regulation Act.

This amendment may still require approval by the Court, notes Bélanger’s lawyers, who believe that at this stage, such a request should be granted. If not granted, they say they will file a new class action.

The original class action includes anyone who has purchased cannabis in the “dried flower” and “pre-rolled” categories for which the strain displayed on the SQDC website has been “strain rotating” since October 17, 2018.

A media representative for SQDC tells StratCann that the agency will take the time to review those allegations.

“However, we remain confident that we comply fully with the law and that we respect our customers’ interests,” the representative added in an email.

BC Gov seeks to seize two properties they say are connected to cannabis trafficking

Written by David Brown on November 15, 2024. Posted in British Columbia, Cannabis News.

The BC Government filed a civil lawsuit in the BC Supreme Court on November 12 against a Kelowna business they say was purchased with proceeds of crime and operating as a money laundering operation for drug trafficking, primarily cannabis.

The government is seeking to seize two properties connected to the business that it says are connected to finds from illegal drug trafficking.

The province’s director of civil forfeiture says All Out Customs & Collision Ltd. in Kelowna is a front operation that does not conduct any legitimate business.

Police raided the business in December 2023 following an investigation that began in February of the same year. Police seized 8.2 kilograms of cannabis and about three kilograms of cannabis oil, as well as smaller amounts of cocaine, MDMA and psilocybin mushrooms. Police also seized $17,000 in cash. The owner of the business and the two properties the province seeks to seize, Richard Kelly Madore, was arrested at the time.

Madore has a previous cannabis-related arrest from 2012 when he was found on a logging road with $100,000 in cash and 20 kilograms of cannabis. Those charges were later downgraded to possession, a conditional sentence, and a fine, but police contend he is a “high-level” cannabis trafficker.

The BC Civil Forfeiture Office contends that one of the properties it wants to seize, Madore’s home, was purchased with the proceeds of crime, along with his All Out Customs business and property.

Last year, the BC government passed the Civil Forfeiture Amendment Act, 2023, giving it the power to begin legal proceedings against property connected to illegal cannabis grow operations. The government had pursued such cases prior to the passage of the 2023 law, as well. BC’s civil forfeiture program was created in 2006 and has come under criticism from civil liberties groups.

In December 2023, the BC Supreme Court put a pause on the province’s efforts to seize $12 million in properties connected to illegal cannabis and psilocybin dispensaries.

In May 2024, The BC Civil Forfeiture Office began civil forfeiture proceedings against two properties following investigations into the sale and distribution of illicit cannabis by a company operating in Surrey, BC.

The investigations by Surrey RCMP into the illicit sales and distribution of cannabis took place from April 2020 to February 2022. The two properties are located in Maple Ridge and Mission

The BC government filed its fourth unexplained wealth order (UWO) application in September 2024, seeking to seize $5.6 million worth of properties connected to what police say was a large, illegal cannabis production and distribution business.

h/t Castanet

One man’s journey to grow the cheapest cannabis in Canada

Written by David Brown on November 15, 2024. Posted in British Columbia, Cultivators, Profiles.

Todd Veri has been working with, and adjacent to, cannabis in BC’s Kootenay region going back decades.

When legalization lumbered its way into Canada, like many in his walk of life, he decided to take a crack at getting a federal license to grow cannabis on outdoor farms in the region.

What began as a co-op with two different farms (with plans for more) has been pared down over the years through layers of regulations and business and interpersonal challenges into a one-person operation on a small farm about one hour north of Nelson, BC.

Among the goats and cows and the hay he feeds them, Todd Veri grows four acres of cannabis varieties at Cedar Bug Farms, as he’s done there for several years. Now, after more than five years of trying, learning, and adapting, Veri says he hopes this will finally be his year to bring a crop fully to market.

“This year was all about trying to put the pieces together that worked. We had a lot of challenges in previous years, but I also learned a lot along the way.”

One of those lessons was not to over-build and to see how the plants respond to being left more to their own devices. In the first few years, the farms had multiple employees working all season long to plant, weed, tend, and harvest. This year, Veri has done most of this work on his own. And that has meant learning to let a lot go.

“Weeds were a big part of it. I learned to let a lot of the wild plants just grow, which created a more beneficial micro-ecosystem that seemed to support itself, rather than spending a lot of time and money weeding and mowing.”

This move alone meant he could handle on his own what would have been handled by a team of ten in the first few years. He says that keeping costs down was always part of the plan, which is one of the reasons he chose outdoor production.

“We chose outdoor because I saw the drive to the bottom in terms of prices. The amount of overproduction was predictable. I still see outdoor as the best way to deliver something of high quality and value for people to smoke.”

Though, over the years, the entire process has taken its toll on Veri and the farm. Not only did the co-op model unravel in the first few years, but he now needs to sell the farm to cover the ongoing expenses he’s incurred to get to this point.

Despite these challenges and obstacles, Veri is one of the more optimistic people in the industry. He says he prefers to own and learn from his mistakes rather than focusing on the things he cannot change or finding external situations to blame.

“It’s been very hard. Having to sell the land I’ve been growing on is hard. But I have to stay positive, and that perspective is why I think this is still a viable business. Every year, I’ve learned what to do right and what not to do next time.

“My hope is to find someone who will buy the farm and I can continue to operate it for them, so this year’s harvest will be what I hope will prove that model.”

Veri has about one-third of his field planted this year and expects 50-80kg to be ready for sale in the coming months.

His dream has been to sell into the BC market as an outdoor, BC-grown product, but he’s also exploring other options, including the export market. Finding a market for outdoor product in Canada can be difficult, he says, but he believes that growing at a lower cost than indoor, and with a better terpene profile from the natural light, will win over consumers who may be more accustomed to indoor product.

“BC has a long history of great outdoor cannabis, especially in the Kootenays. We need a way to bring that to the legal market.”

Record net revenue for Rubicon Organics despite softened demand and price compression in key markets

Written by Sarah Clark on November 14, 2024. Posted in British Columbia, Financials.

Rubicon Organics brought in $13.5 million in net revenue in Q3 2024, the three months ended September 30, 2024, its highest revenue in eight consecutive quarters, but a net loss of $168,498.

Net revenue was up compared to the same period in the previous year ($10 million) and the previous quarter ($12.1 million). Net losses have steadily declined over the last three quarters.

The BC-based certified organic cannabis producer has seen year-over-year quarterly revenue growth from Q1 2022 until Q2 2023, which the company attributes to increased demand in key provinces. In the most recent quarter, for the three months ending September 30, 2024, the company reported its highest net revenue achieved in one quarter.

Rubicon sells three flagship brands: their “super-premium” Simply Bare Organic, premium brand 1964 Supply Co, cannabis wellness brand Wildflower, and the Homestead Cannabis Supply brand. The company says it currently has over 294 unique SKUs available for sale across Canada, with over 99% coverage of the addressable market in both non-medical and medical sales channels.

Total operating expenses increased year-over-year from $3.4 million to $3.7 million, but general and administrative expenses decreased by $19,887. The company expects to continue its year-over-year growth in net revenue, much of this from its branded products that are produced using external capacity and thereby deliver lower gross margins.

In the last two quarters of 2023, Rubicon saw a decline in net revenue, which it says is due to softened demand and price compression in Alberta, Ontario, and Quebec, as well as overall economic challenges facing consumers.

The company incurred $4.3 million in excise taxes from $17.8 million in product sales, up from $2.9 million in excise taxes from $13 million in sales in the three months that ended September 30, 2023.

“Rubicon Organics record net revenue for both Q3 and year-to-date 2024 reflects our strength and position as Canada’s leading premium House of Brands,” said company CFO Janis Risbin. “Rubicon Organics continues to innovate and expand our product offerings, solidifying a strong market share in premium flower, pre-rolls, edibles, and more. I’m particularly proud of the success of our 2024 vape launch, which has already achieved 55% distribution in just six months. Looking ahead, we expect to drive further growth in Canada and beyond, as we intend for new market entry in 2025.”

Rubicon’s 125,000-square-foot hybrid greenhouse is certified by the Fraser Valley Organic Producers Association (FVOPA) for organic cannabis cultivation.

Nova Scotia’s “safe” cannabis campaign irks Dalhousie clinical psychologist

Written by Staff on November 14, 2024. Posted in Cannabis News, Government, Nova Scotia, Retail.

A marketing campaign by Nova Scotia’s cannabis regulator is catching flack from a clinical psychologist for what he says is the promotion of cannabis use.

The marketing campaign by Nova Scotia Liquor Corporation’s cannabis branch (NSLC) that seeks to draw a distinction between legal and illegal cannabis products based on product testing refers to legal cannabis as the “safe” choice.

Clinical psychologist Simon Sherry, a psychology professor at Dalhousie University, tells media in Nova Scotia that the campaign is in the wrong for what he says is promoting cannabis use and the idea that cannabis is a safe product.

“Representing cannabis as a safe and a no-risk product, … that simply is inaccurate,” Sherry told CTV News Atlantic.

“It flies in the face of an extensive research literature that links cannabis up to depression, anxiety, psychosis, impaired concentration, impaired memory, respiratory problems, and a host of other difficulties.”

A representative for NSLC tells CTV news that the goal of the campaign was to highlight the risks of using unregulated cannabis products rather than encouraging people to use cannabis.

“As the responsible retailer for beverage alcohol and cannabis in the province, NSLC has a duty to share messages to help consumers understand the risk in making cannabis purchases from the illicit market,” said an NSLC spokesperson.

“The goal of the awareness campaign is to help consumers understand the importance of safe, regulated cannabis, by focusing on product quality and public safety.”

Several other provinces have recently launched similar campaigns aimed at informing cannabis consumers of the difference between legal and illegal cannabis products, including the lack of testing and quality assurance standards in the unregulated industry.

In October, the Ontario government launched their Buzz Kill campaign, which included a pop-up store made to look like an illegal pot shop. The OCS’ goal was to help educate consumers on the difference between legal, tested cannabis products and those that can be found in an array of illegal and unlicensed stores operating in the province.

In Alberta, the Alberta Gaming, Liquor and Cannabis (AGLC) recently launched its Forget Bad Bud campaign, as well, drawing attention to the differences between the legal and illegal cannabis market in Canada.

The campaign focuses on issues like quality control, strain selection, and education. It also seeks to educate consumers on how to identify an illegal cannabis store, especially the prolific number of illegal cannabis websites that ship cannabis products across the country.

Cannabis NB launches Good to Know education campaign

November 17, 2022

The importance of safe cannabis purchase and consumption

February 14, 2023

Ontario, Alberta launch new cannabis education programs

January 12, 2023

Kahnawà:ke Cannabis Control Board issues first micro cannabis production licence

Written by David Brown on November 13, 2024. Posted in Cannabis News, Quebec, Retail.

The Kahnawà:ke Cannabis Control Board has issued their first micro cannabis production licence, a business called MSJ Cultivation.

The Mohawk Council of Kahnawà:ke (MCK) has spent several years creating its own licensing program for cannabis production and retail. The new micro licence was issued by MCK on November 8 and expires in five years. MSJ is licensed by Health Canada under the name Michael Stalk.

This is the second licence the agency has issued, the first was for a standard cultivation and processing licence. The standard cultivation licence and the standard processing licence from KCCB were both issued to 9076484 Canada Inc on December 3, 2021 and February 14, 2023, respectively.

The micro cultivation licence authorizes MSJ to cultivate, possess, and test cannabis, as well as sell cannabis to holders of a valid distribution licence or export from the Territory to a licensed processor or retailer in another jurisdiction. Only a distribution licence holder is authorized to distribute cannabis products within Kahnawà:ke territory (Kahnawake) to a retail dispensary licence holder. The board has said they will only issue one such distribution licence.

The business also has a micro cultivation licence from Health Canada, which is one of MCK’s licensing requirements for producers. In 2021, the band agency announced a memorandum with Health Canada in relation to their cannabis production regulations. The process was years in the making, Tonya Perron, who has led the cannabis file for the MCK for several years, explained to StratCann at the time.

The Kahnawà:ke Legislative Commission (KLC) posted its retail cannabis regulations in December 2023 and its production regulations in 2021. Comments on the community’s Facebook page regarding the announcement showed an array of opinions on the licensing process and the presence of cannabis in the community.

The territory’s cannabis regulations essentially mirror Health Canada’s production regulations while affirming the Band’s jurisdictional authority within their community. The community has no such relationship with Quebec’s provincial retail licensing authority. The Kahnawake Mohawk Territory is a First Nations reserve of the Mohawks of Kahnawá:ke, located on the south shore of the Saint Lawrence River in Quebec, Canada.

In October, the Kahnawà:ke Cannabis Control Board (KCCB) also posted notice of six cannabis retailers that submitted applications for a retail licence, which are currently under review

In her conversation with StratCann in 2021, Perron said the process of creating such regulations has been one of balancing the interests of those who want to operate in the industry with those who have concerns about the impacts of cannabis on the community.

“It’s a fine line to walk between all of those differing opinions, but that’s what makes our community so beautiful and so unique. People come from different places in the way that they think,” said Perron. “But one thing that’s for sure is that everybody in the community definitely states that it’s up to us to decide what needs to be done here and not for anybody else to tell us what should be done here.”

Earlier this month, MCK chiefs voted against having a new community-wide referendum on cannabis after the topic was raised at a Council meeting last week.

Kahnawà:ke is not the only community to issue cannabis licences. The Okanagan Indian Band in British Columbia recently issued at least three retail cannabis licences, two to Timix Wellness Inc. and one to Nature’s Own Cannabis.

Mohawk Council of Kahnawà:ke shares feedback on new cannabis regulations

June 7, 2024

The Mohawk Council of Kahnawà:ke’s approach to legalizing cannabis in their community

July 12, 2021

Canada’s first Indigenous-owned cannabis producer releases first products to a First Nation retailer

April 23, 2021

Assault with knife leads to two arrests, raid of unlicensed cannabis store in Halifax

Written by Staff on November 13, 2024. Posted in Law Enforcement, Nova Scotia.

On November 11, The Special Enforcement Section of the RCMP/HRP Integrated Criminal Investigation Division executed a search warrant at an illegal cannabis store located on Lucasville Rd., seizing cannabis products and arresting two.

Police seized edibles, pre-rolled joints, resin, shatter, and vape products.

The search came the day after Halifax Regional Police (HRP) received a report of an aggravated assault by a man armed with a knife at the same location. The victim suffered serious injuries and attended hospital. The two men are known to one another.

A 51-year-old man from Annapolis Royal and a 59-year-old woman from Chester were arrested. They will be facing charges of Possession for the Purpose of Distributing and Possession for the Purpose of Selling under the Cannabis Act.

The man and the woman were released on conditions and are scheduled to appear in Dartmouth Provincial Court on December 30, 2024, at 9:30 a.m.

The assault and cannabis investigations are being led by the RCMP/HRP Integrated Criminal Investigation Division with assistance from the RCMP Halifax Regional Detachment and Halifax Regional Police.

On October 17, the Cumberland Integrated Street Crime Enforcement Unit (CISCEU) arrested two people before executing a search warrant at a location on South Albion St. The search warrant followed public complaints about the ongoing sale of cannabis from the illegal storefront.

Nova Scotia seeks to change how police can conduct cannabis related searches

October 28, 2021

Arrests, cannabis and tobacco seized in several raids in Moncton area

August 16, 2024

Cannabis seized from unlicensed businesses in New Brunswick

February 6, 2023

Conservative BC MLA blames legalization for illegal weed bust

Written by David Brown on November 8, 2024. Posted in British Columbia, Cannabis News, Government.

A recently re-elected BC MLA is raising eyebrows with the province’s legal cannabis industry following a recent comment she made on social media platform “X” that said cannabis legalization is fuelling the illicit market.

Elenore Sturko, who was just re-elected as the representative for the riding of Surrey South in BC’s recent election, made the comment on October 29, the same day the RCMP announced the seizure of a large quantity of cannabis and cannabis products from two unlicensed stores on Vancouver Island. Sturko was previously elected under the BC United banner.

“Great work by police confiscating drugs marketed to kids,” wrote Sturko on X. “More proof that legalization does not eradicate the illicit market, but instead fuels more drugs & crime.”

Neither Sturko nor the BC Conservatives replied to a request for comment on the issue or if the party itself is supportive of the province’s legal cannabis industry as of press time. Sturko is a former Surrey RCMP officer.

Sturko was first elected to the riding of Surrey South in September 2022. Surrey, the second largest municipality in BC after Vancouver and eleventh in Canada, has a traditionally socially conservative voting base. The city itself only recently began the process of allowing companies to apply for a handful of cannabis store licences, one of the last prohibition-era holdouts in a region that has otherwise embraced cannabis legalization.

“It’s disappointing to see that. Whether this is in BC or any other province, the intention of legalization was to create a safe and regulated product and keep it out of the hands of youth. By raiding illicit operators, really what they’re trying to do is take away that unregulated product that is shown time and again to be untested and have toxic ingredients.”
Cory Waldron, Mood Cannabis

The issue highlights one of the challenges facing the cannabis industry in BC, where a large portion of the voting public is at best uninterested in industry concerns, if not still outright hostile or dismissive to them.

Cory Waldron, the owner of Mood Cannabis, a cannabis retailer in Nanaimo, BC, and president of the Licensed Retail Cannabis Council of BC (LRCCBC), says he thinks the MLA misunderstands the issue.

“It’s disappointing to see that,” says Waldron. “Whether this is in BC or any other province, the intention of legalization was to create a safe and regulated product and keep it out of the hands of youth. By raiding illicit operators, really what they’re trying to do is take away that unregulated product that is shown time and again to be untested and have toxic ingredients.”

The comments, he says, reflect a broader issue in BC politics where neither major party seems to be listening to the concerns of the legal industry. The industry is at a “critical point,” he explains, in terms of the sustainability of legalization. Companies are facing considerable challenges and not getting support from the government, be it provincial or federal.

*Screenshot* *via the platform formerly known as Twitter*

“I think both parties [in BC], the Conservatives and NDP for the most part, don’t really want to deal with the problems that we’re seeing in BC. Not only as retailers but at the producer level as well. The file is kind of treated like the bad kid in the corner. We’re forgotten.”

“Statements like these make me wonder if our policymakers are completely unfamiliar with how our industry works. The popularity of unregulated edibles is evidence that we need better regulations, not proof that legalization fuels more crime.”
Walker Patton, BC Cannabis Alliance

Walker Patton, from the BC Cannabis Alliance, representing cannabis producers in BC—especially craft producers—shared a similar sentiment.

“Frankly, it’s disappointing,” Patton tells StratCann. “Statements like these make me wonder if our policymakers are completely unfamiliar with how our industry works. The popularity of unregulated edibles is evidence that we need better regulations, not proof that legalization fuels more crime. Or maybe I’m being naive in taking a comment like that at face value.”

When elected in 2020, Sturko replaced BC NDP MLA Mike Starchuk, who served as MLA for Surrey Cloverdale from 2020-2022. Before that time, Starchuck was a member of Surrey City Council from 2014-2018. In 2018, he came out in support of cannabis legalization, noting his municipal party, Surrey First, had a plan for limited cannabis retail in the city rather than an outright ban.

Ridings in BC like Surrey Cloverdale are often dominated by more socially conservative politics, which highlights one of the challenges the legal industry faces in the province. The provincial government under the BC NDP have for years now been largely unresponsive to many industry concerns regarding provincial regulations and policies and their impact on the health of the legal cannabis sector in the province.

With an opposition apparently still stuck in the land of reefer madness and a voting public that appears to support this sentiment, there is little incentive for the BC NDP government to listen. MLA Sturko’s comments shouldn’t be surprising but instead should serve as another healthy reminder of how much further the industry has to go to shift this narrative among voters.

Even six years into legalization, there are still many who outright oppose the legal industry or, at the very least, don’t prioritize the industry’s concerns.

More than five years after legalization, Surrey approves plan to allow cannabis stores

April 9, 2024

RCMP seize more than 120,000 cannabis edibles in large raid on Vancouver Island

October 29, 2024

Conservative MP says he would vote to recriminalize cannabis if given a chance

June 5, 2024

AGLC launches Forget Bad Bud campaign

Written by Staff on November 7, 2024. Posted in Alberta, Cannabis News, Government.

Alberta’s cannabis regulator has launched a campaign to encourage cannabis consumers to not use the illicit market.

Alberta Gaming, Liquor and Cannabis (AGLC) launched their Forget Bad Bud campaign in October, drawing attention to the differences between the legal and illegal cannabis market in Canada.

Similar to a recent campaign launched in Ontario, AGLC’s Forget Bad Bud campaign focuses on issues like quality control, strain selection, and education. It also seeks to educate consumers on how to identify an illegal cannabis store, especially the prolific number of illegal cannabis websites that ship cannabis products across the country.

From the website:

“When you buy illegal, you can’t be sure what you’re getting. A website could look like the real deal but open you up to identity theft and fraud. The same old bud you’ve bought for years may look legit, but instead come loaded with ingredients that cause a dangerous reaction, and potency levels that could result in unwanted effects.”

The campaign includes several short videos with people “breaking up” with their illicit cannabis dealers, as well as an online quiz to test people’s knowledge about cannabis and Canada’s legal cannabis program.

Enforcement against illicit online cannabis retailers has been a challenge for law enforcement in Canada. Such websites are easily discovered in online searches.

Why is it so hard to shut down illicit online cannabis sales?

October 7, 2024

Edmonton police warn of identity theft and fraud risk in online cannabis sales

November 9, 2021

OCS to open illegal pop-up “cannabis shop” in Toronto

October 9, 2024

Winnipeg staff report recommends keeping designated production licensing in place

Written by David Brown on November 5, 2024. Posted in Business, Cannabis News, Government, Manitoba.

A new report from city staff in Winnipeg says there have been no public complaints or licence applications following the designated medical cannabis production zoning amendments adopted in 2022.

The city adopted their new bylaw to regulate designated medical cannabis production sites in April 2022 following community concerns at such operations occurring in residential areas within the city. Health Canada allows the licensing of designated individuals to grow cannabis for others who are authorized to access cannabis for medical purposes.

Such licences have been under increased scrutiny in the past few years from several municipalities and many Conservative MPs, especially in Ontario, where the OPP says criminal enterprises are exploiting the Health Canada medical, personal and designated cannabis production regime.

A southern Ontario county says they are the first in Canada to take steps to manage personal and designated medical grow licences through local zoning bylaws. Not limited to Ontario, though, in 2022, municipalities in Alberta called for limits on medical cannabis grows in residential areas.

As part of Winnipeg’s 2022 bylaw, city staff were also required to put together a report two years later on the effectiveness of the new licensing program. Staff were given an extra six months in April 2024 to complete the report, which is scheduled to be reviewed by the city’s Standing Policy Committee on Property and Development on November 8.

The report notes that since the program’s implementation, there have been no licence applications for designated cannabis production facilities. It also points out that the city has not received any calls from residents about such licences during this time.

City staff also note that while Health Canada’s public portal said at one point there were around 2,000 designated and personal medical growers operating in Manitoba, as of October 2022, these numbers now show fewer than 20 designated growers in the province.

While personal and designated production licences had seen several years of steady declines, a recent report from Health Canada notes an uptick in licence issuances in 2024, including in Manitoba.

The number of personal and designated medical grow inspections conducted by Health Canada has been increasing in the last few years. There have been more than 300 such inspections in the previous two years.

All such designated growers of cannabis for medical purposes in the City of Winnipeg are required to be licensed under, and comply with, the bylaw. The licensing program allows city officials to conduct inspections, suspend or revoke a licence, or issue a fine if there are health and/or safety concerns.

Manitoba also recently passed a law that will allow people in Manitoba to grow up to four cannabis plants at home, although the law is still not in force. The staff report says that public consultation will be launched through Manitoba’s online consultation platform, EngageMB in the fall of 2024, with proclamation expected to be in early 2025.

City staff does not recommend any changes to the city’s bylaw.

Winnipeg moves one step closer to regulating designated medical cannabis grows

April 5, 2022

Alberta Municipalities calls for limits on medical cannabis grows in residential areas

October 23, 2022

County in Ontario first in Canada to take steps to manage personal and designated medical grows

September 23, 2020

Legal pot shops in Vernon see surge in customers following recent raids

Written by David Brown on November 4, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

Cannabis retailers in Vernon, BC, say they have seen an increase in new customers in the days following recent raids of several unlicensed stores operating just outside city limits.

Provincial inspectors recently closed down a handful of unlicensed cannabis stores operating on Okanagan Indian Band Land near Vernon over a few days at the end of October. Although those stores have reportedly now reopened, some owners and managers at licensed retail shops in the Vernon area say they saw an increase in new customers following those temporary closures.

“Yes we have seen an increase in customers, especially new customers,” says Sarah Ballantyne, the owner of Spiritleaf Vernon. Ballantyne says her store even had to place a larger weekly order to respond to this increased demand.

She says she has seen similar cycles of new customers following other enforcement actions in the past, which can ebb and flow depending on how fast the raided stores restock and re-open.

“We go through this every once in a while when it happens. It can be a bit of a rollercoaster, but we get restocked every Thursday.” Lower-priced ounces, she notes, have been in particular demand.

Lance Ashlin-Mayo, the manager at Lucid Cannabis in Vernon, says he’s seen a similar increase, if only briefly.

“I have noticed an uptick in sales,” Ashlin-Mayo tells StratCann.

Still, not all of the new customers passing through his doors stick around, he says, as some still balk at the prices in the legal market, as well as the restrictions on edibles that don’t exist in the unregulated or illegal market.

“There’s some things with a legal store, we just cannot compete with them, and that’s flower and concentrates.” he continues. “They can sell flower for like $60 an ounce. I can’t even buy it from the government for $60 an ounce, and that’s before I mark it up. And the government ties my hands on the edibles, while they’re selling gummies with 100 milligrams [THC].”

“I’ve got people coming in and looking at my prices and yelling at me. And then I have people coming in and seeing the 10 mg edibles and turning around.”

“The people that were going to the Green Mile are on the low end of the pay scale. They like their weed, but they only have so much money. A lot of people on disability would go to the Green Mile to get as much as they could for the lowest price. People who have money, go to the legal stores.”

Some of these new people he’s seeing through his front doors stick around; others return to the illegal market as soon as they can.

“I’m a pretty good salesman, but people only have so much money.”

*Ounces for sale at an unlicensed cannabis store near Vernon, BC*

Details emerging in CSU raids on OKIB land near Vernon, BC

October 30, 2024

BC court rejects retailers’ lawsuit calling for enforcement against cannabis stores on First Nations land

September 19, 2023

Indigenous man sues BC over CSU raids of his cannabis store

May 5, 2023

Police arrest two in Woodstock, NB following raid of cannabis store

Written by Morton Robertson on November 1, 2024. Posted in Law Enforcement, New Brunswick.

Police in Woodstock, New Brunswick, raided what they say is an illegal cannabis shop on October 22, seizing cannabis and cannabis products and arresting two people.

Earlier in October, members of the Woodstock Police Force’s Integrated Enforcement Unit (IEU) initiated the investigation into an illegal cannabis dispensary that had set up shop in Woodstock.

Following the initial investigation, members of the Woodstock IEU, Street Crime Unit, and Community Engagement Unit, along with officers from the Department of Justice and Public Safety, executed a search warrant at the dispensary, Woodstock Medicine Chest & Trading Post, located at 114 Queen Street, Woodstock, in a coordinated operation.

As a result, a 48-year-old woman and a 57-year-old man were taken into custody and now face charges under the Cannabis Act. Both individuals were released and are scheduled to appear in court in April 2025. The investigation remains ongoing, and additional charges may follow as authorities continue their inquiry.

Items seized during the search included over six pounds of dried cannabis, more than 500 cannabis pre-rolls, hash, shatter, edibles, and vapes.

5 charged in New Brunswick following 2021 dispensary raids

December 5, 2022

Cannabis, mushrooms, cigarettes, cash seized from unlicensed dispensary in Moncton, NB

October 5, 2022

Cannabis, vapes seized from Fredericton store

August 15, 2024

Surrey City Council to consider 12 cannabis stores, the first in the city

Written by David Brown on November 1, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

City Staff are recommending that Surrey City Council initiate rezoning applications on behalf of the eight successful applicants at twelve locations to permit Cannabis Retail on the proposed sites.

The recommendation will be presented at a council meeting on Monday, November 4. The staff report intends to inform the council of the successful applicants to the Request for Expressions of Interest for Cannabis Retail.

Surrey City Council released a proposal for up to 12 cannabis stores in BC’s second-largest city in early 2024, approving the plan in April. The city has said it would consider up to two locations for each of its six distinct communities: Whalley/City Centre, Newton, South Surrey, Guildford, Cloverdale, and Fleetwood.

If the council approves the recommendations in the report, staff will then begin a site-specific rezoning application for council consideration on behalf of each of the selected applicants to permit cannabis retail use at their proposed locations.

If the rezoning of a property to permit cannabis retail use is approved, prospective retailers would then need to get a business license from Surrey.

City staff screened out six applications on the basis of an incomplete submission submitted within the RFEOI period. The remaining applications were then deemed eligible for the second stage evaluation.

The results of this secondary selection process identified that the successful applications in each of the communities are:

Whalley/City Centre
- “Dutch Love Cannabis” #201-13650 102 Avenue
- “Local Cannabis” 10449 King George Boulevard
Newton
- “Imagine Cannabis” #502-7380 King George Boulevard
- “Surrey Cannabis Connection”
South Surrey
- Burb Cannabis” #108-15775 Croydon Drive
- “Dutch Love Cannabis” #125-16030 24 Avenue
Fleetwood
- “Inspired Cannabis” #103-9014 152 Street
- “Surrey Cannabis Connection” 15148 Fraser Highway
Cloverdale
- “137 Brands” 17608 56 Avenue
- “Queensborough Cannabis” 19581 Fraser Highway
Guildford
- “Inspired Cannabis” 10383 150 Street
- “Imagine Cannabis” #5-10330 152 Street

Court weighs in on cannabis company’s stock valuation

Written by Sarah Clark on October 31, 2024. Posted in Alberta, Financials, Processors.

An Alberta court had to weigh in on a dispute regarding share price between a Canadian cannabis company and the company’s former Chief Operating Officer.

The case involved a dispute between Daniel Jean Laferriere, who was the COO of Simply Solventless Concentrates Ltd. (SSC) in 2020 and 2021, and the company itself. Laferriere argued that shares he sought to have redeemed at the end of 2023 were worth $0.20 a share, while the company argued they were worth $0.017 per share.

While the former valuation would have made Laferriere’s two million shares worth $400,000, the valuation offered by Simply Solventless would have made the shares worth $34,000. The judge in the case found the value of the SSC shares on December 5, 2023, was $0.05 per share, or $100,000 total.

The dispute goes back to SCC’s attempts to take SCC stocks public in 2021 through another company, Dash Capital Corp. SCC shareholder approval of the deal was required, and Laferriere exercised his right at the time to disagree with the deal and have his own shares redeemed. SSC shares began trading in late December 2023.

Laferriere argued that his shares were worth $0.20 at the time he redeemed them because SCC shares were offered and purchased for $0.20 per share in the private placement with Dash Capital Corp.

SCC’s representatives disagreed, arguing that the $0.20 per share private placement was based on a price for “units,” each of which included a share as well as a warrant. This warrant allowed its holder to purchase another share at the same price at a later date. SCC argued the fair value of a share was from $0.02 to $0.05, while the warrant’s value was $0.15 to $0.17 each. This made the average share price $0.035 per share, which is what the SSC offered to the former COO.

The judge disagreed with both parties’ arguments. He noted that the $0.20 per share valuation claimed by the former COO would mean that the attached warrants had no value, while saying that SCC’s arguments placed its share price (alone, without the warrant) at $0.035 per share, just over 10% of the unit price.

The court rejected both of these valuations, instead ruling that the value of the SSC shares on December 5, 2023 was $0.05 per share.

Court documents also show some of the reasons behind SCC’s “hail Mary” attempt to stay afloat after finding themselves with “significant and long overdue” accounts payable, which included outstanding legal fees of over $500,000 and a tax debt of approximately $1.5 million.

Since that time, the company has seen a considerable turnaround. For the twelve months ended December 31, 2023, SCC generated net income of just over $1 million, up from a nearly $1.7 million loss in the previous year. In the first two quarters of its most recent fiscal year, the company has reported $502,536, and $1,220,798 net and comprehensive income. In September, they announced a plan to buy Alberta cannabis producer ANC for $10 million.

SCC’s stock (HASH.V) closed at 0.64 on October 30.

Simply Solventless announces plan to acquire ANC for $10 million

September 26, 2024

Simply Solventless reports another profitable quarter

August 15, 2024

Preliminary approval of US$8 million settlement in Aurora Cannabis investor lawsuit

October 18, 2024

Details emerging in CSU raids on OKIB land near Vernon, BC

Written by David Brown on October 30, 2024. Posted in British Columbia, Cannabis News, Government.

BC’s Community Safety Unit, which focuses on enforcement of provincial retail cannabis rules, shut down several unlicensed cannabis stores in the Vernon area this week.

Many details remain unclear, but what is known is that on October 29, CSU officers attended three or four small cannabis stores operating on Okanagan Indian Band (OKIB) land near the town of Vernon. Local media has confirmed the action was taken by the BC CSU.

The BC Community Safety Unit, under the Policing and Security Branch of the Ministry of Public Safety and Solicitor General, is responsible for compliance and enforcement under the provincial Cannabis Control and Licensing Act (CCLA), focusing on the illegal sale of cannabis. CSU investigators can carry out compliance and enforcement activities against unlicensed cannabis retailers and other illegal sellers across the province.

A request was made for comment from OKIB leadership on the issue, but no response was provided by press time. Local Media also reported that the raided locations have since re-opened.

The outlet further reports that OKIB chief and council met with the CSU in July at a meeting open to the public.

“Chief and council have asked the Provincial Community Safety Unit to assist in the enforcement of OKIB’s Cannabis Control Law,” the meeting announcement reads. “OKIB’s Cannabis Control Law was developed in consultation with community and reflects a balance that allows businesses to thrive while providing community members with peace of mind.”

One cannabis store owner operating on OKIB land that was not raided tells StratCann that his understanding is that OKIB leadership had been in recent talks with the BC government about bringing in the CSU to address some stores that were potentially violating OKIB cannabis regulations that require among other things, certain levels of First Nations ownership of stores operating within their territory.

Cory Brewer, who operates two Timix’x Wellness cannabis shops and is the president of the Syilx Cannabis Society, representing members of the Syilx Okanagan Nation, says there have been concerns in the community that some stores have been taking advantage of the ability to operate under the protection of First Nations communities without following community standards.

He says his understanding is that OKIB is also in the process of updating its cannabis regulations, which currently require that a store be at least 51% owned by a Band member. The regulations also include requirements such as those for security cameras, 19+ access only, no onsite consumption, no proximity to schools, etc.

“A lot of band members will take chump change just to let someone that’s not First Nations plop a sea can or something like that on their land and open up using their status card,” Brewer tells StratCann.

He says the distinction is frustrating to himself and others who are indigenous-owned and operating with the support of the community.

“It makes us all look really bad because we’re very particular about who we work with.”

Rob Laurie, a lawyer who represents several First Nations cannabis businesses in the province, including Brewer, says he is seeing law enforcement in BC taking a divide-and-conquer approach—sometimes in coordination with First Nations leadership and sometimes not.

On the same day as the CSU raids in Vernon, the federal RCMP announced a series of raids on Vancouver Island that took place in early October, resulting in six arrests and the seizure of more than 120,000 cannabis edibles from two unlicensed cannabis stores. Specifically, police listed Green Coast Dispensary in Port Alberni, Coastal Storm Dispensary in Lantzville, and five residences on Vancouver Island.

Laurie says the stores they closed appear to be connected to First Nation-owned stores he represents but were decidedly not First Nations owned, while others under the same or similar retail brand that were operating on First Nations land went untouched.

“There seems to be a distinction in the stores that they’re hitting,” Laurie tells StratCann. “They’re splitting the herd between the Indigenous and the non-Indigenous participants.”

Still, Laurie says there doesn’t appear to be much rhyme or reason to the raids. Cannabis shops, some of which he represents, operating on First Nations land in Comox, BC, were twice raided by the CSU earlier this year.

Despite the raids, he says he hasn’t seen any charges related to them, many months later.

“For whatever reason,” Laurie told Stratcann earlier this year, “they are just not taking the same degree of enforcement against the Indigenous operators as they would against non-Indigenous. And I think that’s similar to the test cases with dispensaries in the City of Vancouver, they’re taking a cautious approach because what if they’re wrong? What if the courts agree with the Indigenous community, not the government.”

The province has shared a similar perspective on the subject.

Although the BC Government has long taken the position that BC’s Cannabis Act is a “law of general application” that applies to all of British Columbia, including First Nations’ land, the province’s Minister of Public Safety and Solicitor General Mike Farnworth has said in the past that there is a concern that this interpretation could be “tested” by actions such as enforcement that could be interpreted differently by the courts.

Edit to add: Castanet, which covered these raids quite well, noted that as of October 31, the initially-raided stores had re-opened, while a new store faced a raid.

Featured image via Google Maps

BC CSU lists 4 dispensary fines worth $1.2 million, another 29 outstanding

August 25, 2021

BC CSU raids cannabis stores on K’ómoks First Nation

February 14, 2024

Cannabis shop on Osoyoos Indian Band land destroyed in “suspicious” fire

February 22, 2022

Ontario affirms $31 million commitment to take on illicit cannabis market

Written by David Brown on October 30, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

The Ontario government has affirmed their plan to invest $31 million over the next three years to take on illegal cannabis stores.

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

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

The new economic and fiscal outlook in brief is an affirmation of the province’s previous 2024 budget, which had referenced the $31 million commitment.

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

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

*An unlicensed cannabis store in downtown Ottawa operating as an “Indigenous trading post” according to a sign on the window.* Image from StratCann.

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

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

McGovern also argues that public awareness is an issue. While store owners might follow this closely, the general public, municipal and provincial lawmakers, and the legal system in general might not. While some in the justice system might still think the landscape is similar to the wave of stores opening in the years before legalization, he says the arguments that might have held up in court then will not now.

“I get the impression that maybe not everybody in the justice system is aware of what’s going on. We’re hyper focused on this in our industry but I don’t think the same is true for the general public or for police agencies. So part of the challenge is helping them understand how different things are today than in, say, 2016.”

Raj Grover, CEO of High Tide, which operates more than 70 of its Canna Cabana retail cannabis locations in the province, welcomed the new announcement in the budget.

“As Canada’s largest cannabis retail chain with 72 stores + over 700 employees in Ontario, we at [High Tide] welcome the Ontario gov FES commitment to help law enforcement crack down on illegal cannabis promotion/advertising,” wrote Grover in a Tweet. “We look forward to seeing more details as they are released.”

Ontario’s portion of the federal cannabis excise duty, which is 75% of every dollar collected, is expected to be around $379 million in 2024-2025. The province brought in $215 million in 2021-2022, $310 million in 2022-2023, and $344 million in 2023-2024 (interim figure).

The Ontario Cannabis Store brought in $186 million in 2021-2022, $234 million in 2022-2023, $242 million in 2023-2024, and is projected to bring in $225 million in 2024-2025.

Ontario to add $31 million to budget to deal with increasing number of illegal cannabis stores

March 26, 2024

OPP shut down six “Indige Smoke” locations, building subject to closure orders

June 14, 2024

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

April 12, 2021

In 2018, Ontario set aside $40 million over two years to help cities manage the implementation and oversight of cannabis legalization. The first $30 million was distributed in 2019, with $10 million set aside for unforeseen costs. Ontario also invested $3.26 million to support municipalities through enhanced enforcement against illegal cannabis operations.

This plan, called the Ontario Cannabis Legislation Implementation Fund (O.C.L.I.F.), was to be used for increased enforcement (e.g. police, public health and by-law enforcement, court administration, litigation), increased response to public inquiries (e.g. 311 calls, correspondence), increased paramedic services, increased fire services, and by-law/policy development (e.g. police, public health, workplace safety policy).

Ontario has distributed four payments from this fund, with cities receiving at least $5,000 each payment. Toronto received just over $3 million for its first payment, $3.7 million for its second, and $1.5 million for its third, and just last month received the fourth and final payment of $747,954 for a total of just under $9 million.

The cost of policing and enforcement has been a major part of municipal budgets all across Canada, with a significant portion of cannabis tax revenue and other related funding going to police, enforcement, fire and emergency services as it relates to cannabis legalization. This is in addition to costs associated with developing and maintaining municipal zoning rules and bylaws.

Toronto police asked for an additional $1.5 million from the city in 2021 to address the cost of cannabis-related enforcement in the department.

Toronto Police Services’ (TPS) 2022 operating budget noted that the department had a balance of $3 million in reserve, with an expected $500 million in funds withdrawn that year. It was projected to have just over $1 million in reserve for these funds in 2023 and just over $500,000 in the beginning of 2024.

Those numbers were updated in the 2023 budget to an expected $136,000 after withdrawing nearly $2 million.

When negotiating for a 75% share of all federal cannabis excise taxes collected, provinces argued that the costs of addressing the new cannabis laws in Canada would largely be borne by themselves, cities, and law enforcement.

According to the Federation of Canadian Municipalities (FCM), municipal administration and local policing costs linked to the legalization of cannabis will total $3-4.75 million per 500,000 residents.

Ontario cannabis retailers frustrated by increasing number of unlicensed stores

October 22, 2024

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

August 12, 2024

Brighton, Ontario looks to manage personal/designated medical grows through proposed bylaw

October 5, 2020

New Brunswickers prefer convenient cannabis products

Written by David Brown on October 28, 2024. Posted in Cannabis News, Financials, Government, New Brunswick.

New Brunswickers prefer more “convenient” cannabis products as the market continues to shift to products like vape pens, concentrates, and pre-rolls, especially infused pre-rolls, according to a new annual report from Cannabis NB.

Sales of dried flower still represented just over half (50.6%) of sales by category, down from 52.5% in 2022-2023, with concentrates and extracts at 35.2%, up from 33.5% in the previous year. Sales of edibles were the third largest product category, with 7.4% of sales by category.

The newest annual figures from the provincial cannabis agency Cannabis NB show $93.8 million in total sales for the year ended March 31, 2024, a 12.4% increase from the previous year. From this, the provincial agency generated $22.7 million in net income, a 24% increase from the previous year.

While dried cannabis sales still increased year-over-year, whole flower sales in the Picture Province were just over 30% of overall sales, while infused pre-rolls now represent 15% of total concentrate sales.

In the most recent fiscal year, Cannabis NB brought in eight of its planned nine private retail cannabis locations, part of a commitment to diversify the retail market and bring stores into more remote regions of the province. Total sales in the private retail channel were more than $2.8 million.

New Brunswick also has 25 Cannabis NB locations in the province and seven approved cannabis farmgate locations. The provincial cannabis agency also supports the local cannabis industry by working with local producers who currently contribute 21.5% of total sales. Cannabis NB says they expect this number to continue to grow as more locally-made products become available.

There were 279 products from New Brunswick producers available in the province as of March 31, 2024 (out of 1,927 from across Canada). Whole flower was the largest category, with 58 SKUs, followed by cannabis accessories at 46 and concentrates at 42. The province carried 19 clone SKUs in 2023-2024, the most of any province. Ontario is the only province that eclipses New Brunswick producers in terms of available SKUs (848).

Cannabis NB was the first ever cannabis board in Canada to host a consumer-facing education event, the New Brunswick Cannabis Expo, with over 1,400 attendees. The Cannabis Expo is a cannabis education trade show that’s expertly crafted for 19+ New Brunswickers who consume cannabis.

“For us, delivering for the people of New Brunswick means generating revenue to support the province, while consistently prioritizing safety, responsibility, and top customer service,” writes Cannabis NB president and CEO Lori Stickles in the annual report.

Cannabis NB begins process for ten new private cannabis stores

September 6, 2022

NB Munis want to know where their share of cannabis tax revenues went

May 24, 2023

New Brunswick’s sixth cannabis farmgate set to open soon

June 13, 2023

BC pot shop fined for selling cannabis at too low of a price

Written by David Brown on October 25, 2024. Posted in British Columbia, Business, Cannabis News, Government, Retail.

A cannabis store in BC has been ordered to pay a $1,000 fine for selling cannabis at too low of a price.

Cost Cannabis in Revelstoke, BC was ordered to pay a $1,000 fine after it was ruled in a hearing in October that it had violated provincial rules that prevent a retailer from selling cannabis at a price below the price that the licensee paid to the government for the cannabis, and below the wholesale price of the cannabis on the day the licensee sells it to the patron.

A Notice of Enforcement Action (NOEA) issued to the business alleged that on April 22, 2024, BC’s Liquor and Cannabis Regulation Branch (LCRB) received a complaint that the retailer was advertising all products and accessories in the store were for sale at 50% off.

Following that report, an LCRB inspector conducted an inspection of the store on April 25. In the report, the inspector noted that they had asked about four specific products, and the staff member they spoke with confirmed that their sale prices were lower than their list prices.

A few days later, on April 29, the same inspector then sent a request to the store licensee asking for a list of cannabis products inventory, a list of cannabis sales records, monthly Health Canada reports, and cannabis purchase records for January through April. The licensee provided responses to these requests in May, except for the monthly Health Canada compliance reports.

Through this process, the inspector determined that the retailer had sold products below the price they paid the provincial wholesale distributor (LDB) for them.

From the options of a one to three-day licence suspension and/or a $1,000-$3,000 monetary penalty, the licence holder received a $1,000 fine. This was because it was the retailer’s first violation of this type within a one-year period.

The retail licence holder admitted that the province’s minimum pricing rules had been broken, accepting a financial penalty, but also argued that the rule for minimum pricing is not effective in the government’s stated goal of preventing over-service and/or over-consumption.

Instead, they argue the rule should be changed.

“The Licensee says the historical illegal market in cannabis sales continues to be significant,” reads the document. “These ‘grey sale’ cannabis products can and are being sold cheaper than the government-supplied cannabis products, and this disparity is pushing the industry to remain underground. This (the underground market) is much more likely to be a source of over-service and over-consumption than sales by Licensees for less than the minimum pricing. This is especially concerning as the grey market products may be tainted and are not as safe as the government-supplied products.”

The licensee will be required to pay the $1,000 penalty to the general manager of the Liquor and Cannabis Regulation Branch, on or before November 23, 2024. Signs will also need to be posted within the store showing that a monetary penalty has been imposed, and be placed in a prominent location by a Liquor and Cannabis Regulation Branch inspector or a police officer.

Featured image of a Cost Cannabis location in Ontario

Radicle Femmes celebrates Canadian women in weed this November

Written by Staff on October 24, 2024. Posted in Alberta, British Columbia, Cannabis News, Ontario.

This November, Marigold PR is bringing together professional women in cannabis with a trio of Radicle Femmes Holiday Networking events across three major Canadian cities. Whether you’re in Vancouver, Calgary, or Toronto, join Marigold PR for the perfect way to wrap up 2024.

These events are designed to celebrate the achievements of women working in the cannabis industry with an afternoon of meaningful conversation, community building, and inspiration.

Celebrating the achievements of women in cannabis is important for many reasons. Most importantly, it promotes diversity and inclusion in a historically male-dominated sector. Networking events like Radicle Femmes help pave the way for a more open and inclusive industry where women are empowered to take on leadership roles and bring their unique perspectives to business, advocacy and product development.

Showcasing these achievements also helps inspire the next generation, showing that success is possible. It also helps to challenge industry norms around gender bias and fosters a culture where women can excel.

Building strong networks of support, collaboration, and mentorship is essential to succeed in this evolving industry. Many women in weed have had to overcome significant barriers working in the industry, and celebrating these achievements acknowledges their resilience and builds momentum for continued progress where it’s most needed.

The Radicle Femmes Holiday Networking event features delicious food, refreshing non-alcoholic drinks, and plenty of opportunities to meet and mingle with some of the most dynamic women in the cannabis community. From seasoned industry veterans to emerging entrepreneurs, Radicle Femmes offers a unique space to foster relationships, share insights, and inspire collaboration. Plus, fabulous gift bags!

Whether you’re looking to expand your network, reconnect with familiar faces, or simply enjoy a relaxing event with like-minded women, Radicle Femmes is the ideal way to end the year.

Tickets are available here for all three locations:

Vancouver: Wednesday, November 13 @ the Water Street Cafe
Calgary: Thursday, November 14 @ The Wednesday Room
Toronto: Tuesday, November 19 @ KISSA

Partners include Spark Business Strategies, Sense & Purpose, Frankie Smoke, Blunt Botanicals, OB Consulting, Social Smoke Co, Sister Merci, Jane West, Jane Dope, Stewart Farms, BZAM, Mindful Vitality Practice, StratCann, Cannabis MarketSpace, Grow Opportunity, ADCANN, Cannabis Retailer, Mixed Sweet Media, Candace Cosentino, Miranda Hudson, and Maggie Jane Marketing, with VIP partner Canadian Cannabis Exchange (CCX).

AGLC quickly corrects course on sampling rule change

Written by David Brown on October 23, 2024. Posted in Alberta, Business, Cannabis News, Government.

Alberta’s cannabis regulator is walking back a recent rule change for cannabis sampling, saying some of the messaging in an industry memo was incorrect.

In a memo that was sent out to cannabis companies on Friday, October 18, Alberta Gaming, Liquor and Cannabis (AGLC) said cannabis sampling could only take place in retail cannabis stores. The agency now says that parts of that memo were not accurate and sampling activities can still be conducted in age gated settings like industry events, not only retail stores.

The previous memo, the provincial agency now says, was only intended to serve as a reminder of existing policy.

“There was an error in the memo that went out on October 18,” a media representative for AGLC said in an email to StratCann. “AGLC apologizes for the confusion and any frustration this may have caused. An updated letter was sent today to clarify that policy has not changed and update the information that was shared with cannabis licensees.”

“The previous letter incorrectly stated that samples may only be provided in retail cannabis stores. The updated letter clarifies that policy does allow cannabis representatives and retail cannabis store licensees to promote cannabis products and accessories in places where persons under the age of 18 are prohibited. This provision allows for cannabis representatives to provide cannabis licensees samples at locations where minors are prohibited such as an industry event. The intent of the letter was to remind cannabis licensees that samples cannot be provided or sold to the public.”

Responding to concerns expressed in a StratCann article earlier this week, a new memo to industry from AGLC also notes that a “cannabis licensee” who is authorized to receive a cannabis sample can include those representing and acting on behalf of a licensee, such as a store manager.

This is not the first time such messaging had to be walked back by the agency. In September 2023, the AGLC reversed course after a policy change to delist products containing CBN was said to be based on a misinterpretation of federal messaging.

AGLC reduces SKU listing fee listing for cannabis producers

October 1, 2023

AGLC reverses decision on including CBN, THCV in THC total

September 18, 2023

AGLC delisting more than 500 cannabis SKUs

May 24, 2024

Manitoba extending pause of “controlled access” licensing another 18 months

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

Manitoba is extending its review of licences that allow some convenience stores to sell cannabis.

Earlier this year, Manitoba announced that it was pausing its “controlled access” licensing, which allowed cannabis sales in convenience stores, until October. In an announcement reported by the Canadian Press, the province is extending that moratorium for another 18 months, to December 31, 2025.

Such controlled access licences allow for cannabis to be sold in convenience stores and gas stations that carry other non-cannabis products. According to provincial rules, businesses holding a controlled-access licence may allow young persons to enter the store, but cannabis must not be visible or accessible.

“This is a very important issue, and the province wants to make sure we get this right,” said Glen Simard, the minister responsible for the Manitoba Liquor and Lotteries Corporation, in a written statement, as reported by the Canadian Press.

“That’s why we are extending the pause to continue our consultations.”

Some cannabis retailers in the province have, in the past, expressed concern about such licences. Melanie Bekevich, the owner of Mistik Cannabis in Winnipeg and a member of the Retail Cannabis Council of Manitoba (RCCMB), told StratCann in April that the organization had met with the Manitoba government to express their concerns with how these licences are being issued.

When the moratorium was first announced, Edwardo Famakin, a spokesperson for Manitoba cannabis producer WOWKPOW, told StratCann that he and his partners were “blindsided” by the announcement as they were in the final stages of receiving approval for an agreement with Manitoba retail/gas station Domo to supply the chain with their locally-produced cannabis products.

At the same time, Raj Grover, the CEO of High Tide Cannabis, which operates several Canna Cabana cannabis stores in the province, said he had concerns that the licences were being granted in ways that may not have fit with the intention of the rule.

“We applaud Manitoba’s new NDP government for confirming today that it will place a six-month moratorium on new controlled access cannabis retail licences,” said Grover in April. “These licences were intended to provide access to legal cannabis in rural communities without an established legal retail cannabis store; however, many of the controlled access licences were granted to convenience and grocery stores within downtown Winnipeg. We hope that the six-month review will help establish important guardrails to ensure that these licences are limited to underserviced communities only, as was originally intended.”

Manitoba businesses caught off guard by province’s recent “pause” on “controlled access” retail cannabis licences

May 3, 2024

First of Manitoba’s new “phase three” cannabis retailers to open soon

July 31, 2020

Five private cannabis distributors now fully licensed by Manitoba’s LGCA

July 4, 2024

AGLC says sampling restricted to retail store owners in Alberta (This decision has now been reversed)

Written by David Brown on October 21, 2024. Posted in Alberta, Business, Cannabis News, Government, Producers.

The AGLC is reminding the Canadian cannabis industry that cannabis product samples may only be provided by provincially-registered cannabis representatives within retail stores.

Note: AGLC has now said this memo was incorrect. You can read about this correction here.

The provincial cannabis regulator (Alberta Gaming, Liquor and Cannabis) sent out a memo on October 18 to all cannabis licensees, representatives, and suppliers, reminding them of the province’s rules around cannabis sampling.

While AGLC allowed cannabis sampling in 2023, cannabis suppliers must be registered with AGLC as “cannabis representatives,” and samples can only be provided by those representatives directly to retail cannabis store licensees in retail cannabis stores.

These product samples, reminds AGLC, are for licensee use only and may not be provided directly to a licensee’s staff or the general public.

The memo also notes that “AGLC inspectors attended recent cannabis industry events and observed Cannabis Representatives and Cannabis Suppliers providing cannabis product samples to event attendees.”

From the memo:

“Cannabis product samples may only be provided by Cannabis Representatives directly to Retail Cannabis Store Licensees in retail cannabis stores. Cannabis product samples are for licensee use only and may not be provided to a licensee’s staff or the general public. They must meet all Health Canada requirements including packaging, labeling and federal compliance reporting. Records of all cannabis product sampling activities must be retained for 6 years. Cannabis Suppliers are not permitted to represent or promote cannabis products in Alberta including engaging in cannabis product sampling activities unless they are a registered Cannabis Representative with AGLC. Cannabis Representatives and Cannabis Suppliers may not sell or give away cannabis products in Alberta.”

Trina Fraser, who works with many clients in the cannabis industry as a partner at Brazeau Seller Law in Ottawa, says she has some initial questions about the new guidance provided in the memo.

“The clarification that samples can only be provided within retail cannabis stores (thereby prohibiting the provision of samples at industry events taking place outside of a retail store) is new,” Fraser tells StratCann via email. “That said, it has always been clear that the quantity limit is on a ‘per licensee’ basis (as opposed to a ‘per budtender’ basis), making compliant distribution at events challenging.

“It is interesting, though, that they say samples are ‘for licensee use only and may not be provided to a licensee’s staff’,” she adds. “Most licensees are corporations. How does a corporation “use” cannabis? Who exactly are you providing the sample to, if not to a staff member?”

Randy Rowe, CEO and President of the Grow Up Conference and Expo, which held its two-day industry conference and trade show in Edmonton in September, said he’s surprised by the memo and is prepared to take all steps necessary to ensure his event and its attendees remain compliant.

“I agree that there needs to be strict processes for handing out samples,” says Rowe, who has worked with other provinces to ensure that all his events carefully track any sampling activities that may occur at his trade shows—information he’s happy to provide to regulators as well as brands.

“It’s not affordable for smaller craft growers to compete with larger producers that can go store to store providing samples,” adds Rowe. “Holding events that allow compliant sampling is essential for brands to get their product to as many retail cannabis store licensees as possible. By allowing compliant sampling, brands can hit hundreds of retail stores in one day, saving thousands of dollars.”

Jen Meyers, CEO & Founder of Alberta-based micro processor Zelca Ltd., tells StratCann that she would prefer to see the province find a way to regulate sampling at events because it’s more cost-effective for smaller companies like hers rather than needing to hire a marketing agency to visit hundreds of stores across the province.

“Do you know how hard it is to get to all the stores? It’s very nice to be able to go to an event and talk to 30 retailers in an hour. They can’t just kill that altogether. How can I, as a small producer, get out to all those stores if I do want to give them samples?”

The AGLC lists more than 700 licensed cannabis retailers in the province.

Kendra Richter, an assistant manager at Calgary Co-op Cannabis, says she’s open to guidance, but is left with more questions than answers with the way the memo is worded.

“I agree that there needs to be strict processes for handing out samples. The surprise here is this feels over and above the initial cannabis sampling policy. It’s interesting that they put this policy in place and let it run for over a year and are now adding to it in this way.”

Two key pieces she’s reaching out to the AGLC to get more clarity on are the requirement that samples be provided to the licensee rather than a store owner, manager, or buyer and if the part about samples not going to employees applies to store managers like herself, as well.

“The way this has been presented is as if it’s just making sure we’re aware [of existing policy], but I think more questions need to be asked so we can know what this really means.”

Alberta’s rules for cannabis sampling allow for a maximum size of 3.5 grams of flower or its equivalent in other product types. For products that are not available in that small of SKU size, the smallest available product may be used instead. Records of all samples provided must be retained for six years and are subject to AGLC review upon request. Each product may be sampled no more than twice in a calendar year.

*The Kind cannabis sampling event took place in Edmonton recently.*

Health Canada confirms cannabis samples are allowed

February 12, 2024

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

January 31, 2024

BC gov reviewing cannabis sampling rules for producers, retailers

August 3, 2023

Yukon cannabis report highlights need for cannabis consumption spaces for tourists

Written by David Brown on October 21, 2024. Posted in Business, Cannabis News, Government, Retail, Yukon.

Municipalities in the Yukon say there is a need for public consumption spaces in the Territory to provide a legal space for tourists to smoke cannabis when visiting.

Currently, cannabis consumption is only allowed in a private residence in the Yukon, and adjoining property, although the Territory’s regulations do allow for other possibilities for other types of locations in the future.

Despite this ban, in a recent survey, municipalities told the territory about what they say are high rates of cannabis smoking and vaping in outdoor public spaces. The territory sees hundreds of thousands of tourists annually, a significant part of the economy.

This call for public cannabis spaces was just one of many pieces of feedback provided to the Yukon government as part of its recently released five-year review of its cannabis legislation and regulations, as well as the overall impact of federal legalization.

In a new What We Heard report, which helped to inform its Five Year Review report, an array of issues are highlighted from the 307 responses received, as well as engagement with First Nations, municipalities and local advisory councils, RCMP, MADD, and many other organizations and government officials.

Among the feedback and recommendations:

Concern with “normalization” and public consumption, overall health risks, youth use rates, and impaired driving, including consumption while driving.
Concern about illicit online stores and what RCMP say are challenges with enforcement.
Call for more education of the general public about the harms and effects of cannabis.
Better insight is into how the government uses cannabis tax revenues.
Municipalities expressed concern with excess packaging leading to litter.
Retailers want to be able to sell products other than cannabis, like t-shirts, water bottles or snacks, and offer loyalty programs. Some would like to buy cannabis directly from producers.
More clarity around what constitutes a “THC unit” for proper dosing.

Yukon cannabis industry

The five-year review also notes some statistics about the overall result of the industry in the territory in the first five years of legalization.

The legal cannabis market in the most western of the three territories has grown from just over $2 million in 2018/19 to $13 million in 2023/24. More than 80% of Yukoners acquired their cannabis from legal sources within the territory.

Yukon has six cannabis retailers which employ around 40 people. Cannabis distribution is overseen by the Yukon Liquor Corporation (YLC). Wholesale-to-retailer sales went from $3.5 million in 2019-2020 to $9.2 million in 2023-2024.

The territory sold 495,850 units of pre-rolls from 2018-2023 and 448,993 units of dried flower (all SKU sizes). Edibles sold more often than vapes (272,775 vs 136,233).

During the 2023/24 fiscal year, the Yukon Liquor Corporation remitted $369,000 to the Government of Yukon’s general revenues in relation to cannabis. The Yukon government received $952,639 from its share of the federal cannabis excise tax. The report says the Yukon government uses all cannabis-related profits for general government services and programming.

Cannabis laws

There were 73 total violations from cannabis-related charges from 2019-2023, the majority (40) for unauthorized possession/care and control in a vehicle. There was one reported charge for public consumption in this time period.

Public Health

Cannabis-related emergency department visits increased from 40 in 2016 to 104 in 2021 (with a drop in 2020) before declining significantly to 50 in 2023. There were 275 emergency room visits related to cannabis use in the five years before legalization and 471 in the five years after. The paper notes this could be due to an increase in consumption or because people felt more comfortable presenting at an emergency room with a cannabis-related issue after its use became legal.

While the rate of cannabis use among young people remains a concern, the age at which Yukoners say they first tried or started using cannabis has increased with legalization, from 18.9 in 2018 to 20.8 in 2023.

Those who report consuming cannabis actually declined from 2022-2023 for those 16-35 and over 56, while it stayed the same for those 36-55.

With website closure, Yukon completes handover of cannabis retail sales to private sector

October 17, 2022

Yukon introduces new special order program for low-demand cannabis products

October 25, 2022

Yukon sold more than $6 million worth of cannabis last year

October 19, 2021

BC Budtenders Union secures contract wins for Vancouver cannabis store employees

Written by Staff on October 18, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

A union representing cannabis retail workers in British Columbia says it has secured key contract wins for workers at a Vancouver cannabis store.

The BC Budtenders Union, which represents workers at several cannabis stores in BC, first served strike notice at a Canna Cabana in Vancouver on October 8 following a vote in favour of a strike by employees in May.

The Union, UFCW 1518, now says they have received concessions from Canna Cabana addressing employee concerns. Those concessions include ensuring a minimum of two members on duty, with an additional staff member available on weekends, allowing workers to receive tips, creating full-time positions, paid breaks, and paid education and bereavement leave, with eligible employees receiving access to group health and medical plans.

“These workers stood together and were united in their fight for a fair contract by delivering a 100% strike vote,” said UFCW 1518 President Patrick Johnson. “United, the committee returned to the bargaining table with a strong mandate and won significant improvements, including new full-time positions, adequate staffing levels, paid breaks, and benefits.”

Canna Cabana is part of a chain of cannabis retailers across Canada that is owned by parent company High Tide, which operates more than 180 stores, including eight in BC. BC doesn’t allow a company to operate more than eight cannabis stores in the province. Four are located in Vancouver, and the other four are spread out across the province, including Fort St John, Prince George, Kamloops, and Cranbrook.

In March of this year, the union announced that employees at the Davie Street Canna Cabana had joined the BC Budtenders Union. At the time, the union said staff were pushing back against low wages, minimal protections, and limited job security.

The BC Budtenders Union has slowly been gathering members since it became the first union to represent budtenders in Canada in 2020. There has been an increase in cannabis store employees joining unions in the past year, especially in BC and Ontario.

As of April 2024, the BC Budtenders Union said it represents workers at nine cannabis businesses and 16 locations.

Budtenders Association launches new travelling cannabis event

September 18, 2022

BC Budtenders’ Union gives strike notice to Vancouver Canna Cabana

October 9, 2024

More than 100 budtenders in Manitoba accept their first collective agreement

June 15, 2023

BC cannabis nursery and university collaborate on cannabis barcoding project

Written by David Brown on October 18, 2024. Posted in British Columbia, Cannabis News, Producers, Research.

A Vancouver Island cannabis nursery has teamed up with BC’s Kwantlen Polytechnic University (KPU) to develop affordable methods for growers to more accurately identify what cannabis cultivars they are growing.

Life Cycle Botanics, a cannabis nursery located just north of Nanaimo, BC, has been partnering with researchers at KPU in 2024 to develop a barcoding project for cannabis that creates a library of known cultivars.

The process creates a database of Short Sequence Repeats, or SSRs, which are repeating sequences of DNA that are used as molecular markers in genetics. By working with a cannabis nursery with a large array of cannabis cultivars to draw from, KPU’s researchers could utilize their knowledge and experience with documenting these SSRs, creating the foundation for an expanding library of known cultivars.

The benefit for growers, explains Andrew Hand, head of science at Life Cycle Botanics, is that this can both help them better identify cultivars they have in-house, as well as serve as IP protection by creating a way to accurately identify any of their exclusive cultivars being used by other cultivators without permission. The project with KPU is nearing completion, at which point they hope to release it to other growers.

It’s a well-known technology, he explains, and is an easy and cost-effective way to identify one plant phenotype, in this case cannabis, from another.

“For the most part, even experts have a hard time splitting hairs between strains when they’re in their vegetative state. So this is a way to be able to determine, definitely, without needing to flower a plant, ‘yes, this phenotype is what we think it is’”.

“[KPU] have been great to work with, and have done a great job helping us document this entire process,” Hand tells StratCann. “We’re right on schedule where we have these regions identified and they’re being validated and we’re almost ready to go so we can utilize this technology internally, or to provide for other growers.”

In instances where a plant may have been mislabelled, or even inaccurately identified in the first place, or simply lost in the crowd, such cost-effective technology, continues Hand, can help quickly and easily get a mother room back into order. Given the amount of genetic drift in some cannabis cultivars, as well as how easy such misidentification can be, this can lead to problems for breeders and growers alike who might otherwise need to grow a plant out for several weeks or months to know its true genetic expression. This testing will save that time and effort.

This can also help more rapidly identify any new cultivars, he notes.

“We’ve developed a barcode database for all of our strains [at Life cycle]. We know what the barcode should physically look like when you do this test. So if we have a bunch of unknown plants, we would test against our known catalogue of barcodes. And if it doesn’t line up, then we know we have a new genotype.”

In addition, as more breeders and nurseries are selling their unique cultivars to commercial growers, often under a limited or exclusive contract, such testing can help protect that IP, he adds.

Dr. Paul Adams, the Director of the KPU Applied Genomics Centre, says the partnership is like many others his department has with different branches of agriculture. By partnering with LCB, his team has access to a greater cannabis genetic bank, while KPU offers the equipment and expertise, as well as interpretation of the data they collect.

“Our entire focus is using genomic, genetic tools to support agriculture. We have a bunch of…high tech equipment and a bunch of people who know how to use that technology and we use it to support agriculture in whatever way they need.”

Another valuable application of the technology, he adds, is for breeding, by selecting for desirable traits or selecting out undesirable traits.

“There’s actually quite a bit you can do in terms of cultivar development and breeding strategies,” says Adams.More about KPU’s program is available here.

Genetic authentication of cannabis cultivars

October 11, 2021

BC’s Life Cycle Botanics on what it means to be a full-service cannabis nursery

September 22, 2023

UBC and Aurora Cannabis looking at developing better outdoor cultivars for Canada

July 31, 2023

Cannabis research lounge in Toronto exploring cannabis and music

Written by Staff on October 18, 2024. Posted in Business, Cannabis News, Ontario, Research.

A new cannabis consumption lounge is now open in downtown Toronto, and it’s looking to explore the relationship between cannabis consumption and music.

Operating alongside cannabis retailer Body and Spirit Cannabis and Lit Research, Club Lit is a new, legally operating cannabis consumption lounge at 361 Yonge Street.

Like its neighbour at Lit Research, the Club Lit lounge operates for research purposes only. An example of that research is a new observational study, in collaboration with Toronto Metropolitan University (TMU), to better understand how cannabis influences auditory experiences and musical enjoyment.

The new program is launching with a grant from the Science of Music, Auditory Research, and Technology (SMART) Lab at TMU, located just steps away from Club Lit.

Made possible by an Accelerate Grant from Canadian nonprofit Mitacs, the SMART Lab will utilize the new cannabis consumption space to explore how the level of high may affect how a listener engages with music.

“The research we conduct in this space will break new ground,” says Frank Russo, Director of the SMART Lab. “I am particularly interested in the concept of absorption in music and to see how it might be altered while under the influence. Looking ahead, I can see how this might even open new avenues of research on music-based treatments for mental health.”

Club Lit is located on the same block as TMU’s Student Learning Centre, providing the centre with more immediate access to a real-world laboratory for cannabis research and education.

Al Shefsky, President of Cannadigm, which operates Lit Research, said: “We are excited to collaborate with TMU on this groundbreaking research initiative at Club Lit. Cannadigm is leveraging our team’s extensive cannabis knowledge and expertise to enhance consumer experiences, supporting academic research that has the potential to improve people’s enjoyment and quality of life.”

Shefsky also owns and operates the neighbouring cannabis store Body and Spirit Cannabis and is the founder of Lit Research. Launched in 2022, the latter has been hosting regular sessions that seek to help cannabis producers and brands provide a unique, value-added educational experience to anyone looking to learn more about their products.

The Health Canada-licensed research facility says it has administered and collected data from over 12,000 individual product testing sessions to date. Cannadigm’s new consumption space, Club Lit, is located adjacent to but separate from Lit Research and bills itself as a real-world observational laboratory where participants may consume cannabis while enjoying music and authentic cannabis culture, all in support of academic research and education.

Club Lit is located at 361 Yonge Street, Unit C, in the heart of Downtown Toronto. More info on Club Lit can be found here.

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

April 6, 2022

Manitoba explores cannabis consumption lounges

September 18, 2020

Cannabis consumption space provides examples for BC government

September 18, 2023

Ontario sold more than a billion dollars worth of weed in the first half of 2024

Written by Staff on October 17, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Authorized cannabis stores in Ontario sold more than one billion dollars worth of cannabis in the first half of 2024.

This was 21% more cannabis by volume and 11.8% in dollars sold in the first six months of 2024 compared to the same period in 2023, according to new figures shared by the Ontario Cannabis Store (OCS).

Total cannabis sales at legal, licensed stores in Canada’s most populated province totalled $1,029,614,280, from an array of 4,746 different SKUs. The average wholesale (not retail) price of cannabis sold in this time frame was $3.84 a gram, not including HST. This figure includes both dried flower and pre-rolls.

Ontario had 1,721 authorized retailers as of June 20, 2024, a 3% year-over-year increase. The number of stores increased in every part of Ontario except for Toronto, which lost 11 stores compared to the same period in 2023, a 3% year-over-year loss.

New store authorizations have slowed down considerably. There were 123 new stores “onboarded”* from January 1 to June 30, 2024, a 20% decrease from the first six months of 2023. There were also 80 stores offboarded from January 1 to June 30, 2024, a 13% decline from the number of stores that closed in the first six months of 2023.

*Onboarding is the process an authorized retailer and authorized cannabis store goes through to be able to access the OCS online B2B portal for wholesale orders.

The OCS distribution centre shipped 204,314,110 grams of cannabis (and its equivalent) to authorized stores over this period, an increase of 18.5% year-over-year.

The number of units of cannabis pre-rolls delivered to stores surpassed dried flower in early 2023, with that trend increasing in the first half of 2024. The OCS delivered 34,063 total deliveries in this time period, a 5% year-over-year increase, and delivered more than 50 million units.

Cannabis vapes remain the most common source of product complaints, with 71% of the 14,161 complaints relating to vapes, just 16% relating to dried flower products and 9% related to extracts.

The number of SKUs available through the OCS’s flow through program increased considerably in the first half of 2024, while the number of active SKUs stocked at the OCS distribution warehouse remained relatively consistent.

Total grams of cannabis sold in the first six months of 2024 were 190,527,442, a 21% increase from the 157,495,201 grams sold in the first six months of 2023. And while cannabis sales have appeared to cool off nationally in the past year, the OCS says the total value of legal cannabis sales in the first six months of 2024 was $1,029,614,280, an 11.8% increase compared to the $921,021,041 sold over the same period in 2023.

Dried flower still dominated retail sales, followed by pre-rolls, infused pre-rolls, and vapes. A new report available to OCS vendors says that 58% of consumers are looking for lower-potency cannabis products so they can have more control over their dose.

The average wholesale price per gram of pre-rolls in the first half of 2024 was $4.63, while a 3.5 gram SKU was $5.24 per gram. A 7 gram SKU was $3.56, a 14 gram was $3.66, and a 28 gram was $2.82.

While the OCS sets wholesale prices for cannabis in Ontario, retailers choose their own retail price. According to Headset, a cannabis data tracking company, the average price of cannabis at retail stores as of September 2024 was $9.39 in Ontario. This is slightly higher than BC, but lower than Alberta, says Headset. The average sale price for cannabis in Quebec in the three months ending June 22 was $5.84.

OCS launches more detailed sales metrics for producers

August 23, 2024

A tale of two markets: The future of retail cannabis in Ontario and Quebec

August 27, 2024

Cannabis-related complaints to Ontario’s Ombudsman lowest since legalization

June 28, 2024

How much does a legal weed grower in Canada actually get from that ounce you bought?

Written by Staff on October 16, 2024. Posted in British Columbia, Business, Cannabis News, Government, Producers, Retail.

Ever wonder just how much of your hard-earned dollars make it back to the grower when you pick up some weed at the store?

A group of BC-based cannabis businesses recently launched a campaign to draw attention to just how little cannabis growers receive for their cannabis amidst a complex supply chain.

While the general public may think the cannabis industry is awash in cash, the reality is much more dire, especially for small, craft growers who are not propped up by investor dollars.

The BC Cannabis Alliance—comprising around two dozen cannabis cultivators and processors in BC—says they are seeking to draw attention to how issues like provincial and federal taxes and fees impact growers, especially BC’s small craft cannabis growers.

As part of the campaign, the Alliance is sharing information with retailers and consumers on where the money consumers pay for cannabis actually ends up. Using a series of infographics that feature popular dried flower SKUs in the BC market, the organization breaks down how various levels of government receive a little over half of every dollar spent. In contrast, cannabis producers receive less than 20%.

Using one example produced by the Alliance, a popular 28-gram package of cannabis sold in BC for about $82:

nearly $9 goes to sales tax
another $28 goes to the excise tax (75% of which goes to BC)
The BC LDB receives another six dollars as the distributor

This leaves about $15 for the producer out of the $82 the consumer spends, with that $15 often further divided between processor and grower.

Various cards highlighting different popular flower SKUs in BC will be shared with retailers in the coming weeks.

In addition, the Alliance is highlighting an additional fee charged by the BC government to use their Direct Delivery program, which allows some small BC growers to ship directly to retailers. This program was touted as a way to help small, craft growers and producers in BC, but the BC LDB has kept the 15% “proprietary fee” they charge to warehouse and distribute cannabis attached to these direct sales. This is despite the provincial cannabis distributor not actually handling or processing these direct sales in any way.

“The addition of this 15% markup to be paid to the government, despite them not ever handling the product at any point in the supply chain, is an example of the government saying one thing ‘to support small farms’ and doing the opposite,” says Alannah Davis, CEO of Dabble Farms, who is a part of the Alliance.

The organization has also created a petition to draw attention to this BC-specific issue, which calls for the BC LDB to drop its “Proprietary Fee” for Direct Delivery from 15% to 3.5% to help improve economic viability for all BC’s craft producers.

“BC is now home to some of Canada’s favourite cannabis brands, but excessive taxation means our best growers, processors, and retailers are struggling to get by,” says the organization’s website. “Between taxes, fees, and mark-ups, the government often takes the most while contributing the least. For BC’s most popular products, that take can be more than half.

“We’re here to rally support for simple changes while helping policymakers create a more sustainable cannabis industry.”

More information can be found at BCCannabisAlliance.c om.

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

July 18, 2024

BC’s cannabis Direct Delivery program is growing, but fees still too high

May 29, 2023

The rocky road to excise duty reform

February 28, 2024

Santé Cannabis launches 3-year real-world evidence study

Written by Staff on October 11, 2024. Posted in Cannabis News, Quebec, Research.

A Quebec company that helps bridge the gap in medical cannabis access launched a new study this week that will look at the outcomes and effectiveness of different medical cannabis treatment plans.

Santé Cannabis, a community-based centre focussing on medical cannabis care and clinical research for more than a decade, will be drawing on this experience to lead the recruitment of 3,000 people using cannabis for medical purposes.

The study is also supported by grants from Aurora Cannabis, Tilray Medical, and Vectura Fertin Pharma, a Singapore-based company working with cannabinoids. Santé is also seeking assistance from other organizations.

“This study will investigate outcomes of a new wave of medical cannabis product formats, including capsules, tablets and innovative sublingual products, as well as new cannabinoid formulations such as CBN and CBG,” says Dr. Lorne Wiseblatt, a family medicine and palliative care physician with Santé Cannabis. “As clinicians, we must uphold our responsibility to support our patients with safe and effective treatment options.”

Dr. Michael Dworkind, the Medical Director & Co-founder of Santé Cannabis and an Associate Professor in Family Medicine at McGill University, adds:

“While medical cannabis has been legally accessible in Canada for almost 25 years, there are still many unanswered clinical questions to support its therapeutic use for conditions including chronic pain, epilepsy, spasticity, sleep, anxiety, and depression. This is such an important initiative to prioritize patients’ needs in the age of cannabis legalization.”

Santé Cannabis has—with the help of its team of physicians, nurses, and support staff—provided assessment and support to more than 20,000 patients since 2014, and is Canada’s first independently accredited cannabis Contract Research Organization (CRO).

The organization also holds four Cannabis Research Licences, allowing it to conduct clinical trials and observational studies. It also launched a patient-centred Psychedelic-Assisted Therapy program in 2024 to advance access to legal treatments, improve research & insurance coverage, and lead the development of innovative supportive care models.

There were more than 180,000 medical client registrations with federally licensed sellers of cannabis for medical purposes in March 2024, the most recent figures available. The average daily amount authorized by healthcare practitioners for individuals registered to access cannabis for medical purposes from federally licensed sellers was 2.4 grams per day.

Active medical registrations with LPs continue to decline, while personal and designated increase

April 6, 2022

Australian Senate Standing Committee releases report on the current barriers to patient access to medicinal cannabis in Australia

March 26, 2020

BC researchers look at the impact of legalization on Canadian medical users with cancer

September 14, 2020

OCS to open illegal pop-up “cannabis shop” in Toronto

Written by David Brown on October 9, 2024. Posted in Cannabis News, Ontario.

The OCS will be hosting a fake cannabis store in Toronto on the sixth anniversary of legalization to highlight the need for consumers to distinguish between legal and illegal stores.

Beginning on October 17, 2024, the Ontario Cannabis Store (OCS) will host a four-day “Buzzkill” pop-up—a retail space designed to look like an illegal cannabis store within the heart of the largest city in Canada, at 474 Queen Street West.

The OCS’ goal is to help educate consumers on the difference between legal, tested cannabis products and those that can be found in an array of illegal and unlicensed stores operating in the province.

“With this campaign, the intention is to reach adult consumers who may not realize they shop at illegal dispensaries, or who may believe that all cannabis is created equal, in a way that captures their interest and creates conversation,” says Amanda Winton, Manager, Communications and Strategic Engagement at the OCS. “We want to drive the message that shopping legal means shopping safe.”

Instead of cannabis products, those who visit the “store” will find mock packaging that highlights the risks of illegal cannabis. One example is a satirical beverage called ‘Pesti Cider’ which reads: “What gives this cannabis-infused cider its signature oomph? We like to think it’s love. But realistically, it’s probably our unregulated use of toxic pesticides. Don’t worry though, we’re like pretty sure it doesn’t have any long-term effects …”

The Buzzkill pop-up is part of a broader Buy Legal campaign the OCS launched on October 7 and will run through November 30. The buylegal.ca page on the OCS website has complimentary information emphasizing the need for third-party testing for cannabis products, something generally not found in products in the illicit and unregulated market.

The page also includes information on how to distinguish a legal, licensed cannabis store in Ontario from some of the many new unlicensed stores that have been proliferating in different parts of the province, especially Toronto and Ottawa, often operating within a few steps of legal stores.

The Buzzkill campaign, meanwhile, takes a more tongue-in-cheek approach.

“At Buzzkill, we’re all about bringing you the best selection of cannabis products from sources unknown and untested,” reads a page on the OCS website. “So what if we don’t have the right paperwork? Just roll with it. Whether it’s a mystery strain or an edible with a surprise kick, we’ve got you covered – as long as you don’t ask too many questions.”

As part of the campaign, OCS has also launched a “takeover” of the Reddit page /r/TheOCS, an otherwise unofficial review page for products available through the OCS. The takeover includes numerous ads promoting the campaign to “Shop safe. Shop legal.”

A 2022 study from the National Research Council on behalf of the OCS and Ontario Provincial Police showed that 86% (19 out of 22) of the illegal cannabis edibles tested contained multiple pesticides, in many cases at levels several hundred times above Health Canada’s limits. THC levels in those edibles were also often much lower than advertised. New Brunswick and British Columbia have released similar testing results looking at illicit products.

The OCS also notes that a recent survey found that 62% of all Ontarians aged 19+ ranked “no quality control or assurance of product safety” as one of the top three downsides of illegal cannabis. The survey also noted that two in three Ontarians believe that if a cannabis store is open, it must be legal, which can allow some unlicensed operators to operate in plain sight.

Ontario study shows illicit edibles have significantly less THC than advertised, high levels of pesticides

April 6, 2022

BC report shows high levels of pesticides, inaccurate THC levels in illicit cannabis, vape carts

July 8, 2022

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

August 12, 2024

BC Budtenders’ Union gives strike notice to Vancouver Canna Cabana

Written by David Brown on October 9, 2024. Posted in British Columbia, Business, Cannabis News, Retail.

The BC Budtenders’ Union says they have served a strike notice at a Canna Cabana store in Vancouver.

In a post shared on UFCW 1518’s social media accounts on Tuesday, October 8, and confirmed to StratCann in an email, the union said the store’s workers were prepared to strike to address what they say is a shortage of hours at the Davie Street Canna Cabana in downtown Vancouver, leading to understaffing. UFCW is the United Food and Commercial Workers Union.

“Members at this store have made it clear they are prepared to strike to seek a fair contract that addresses a shortage of scheduled hours,” wrote the union in a post. “It’s not in the interests of staff or customers for a dispensary to be understaffed.”⁠

Canna Cabana is part of a chain of cannabis retailers across Canada and is owned by parent company High Tide, which operates 184 stores as of October 7, including eight in BC. BC doesn’t allow a company to operate more than eight cannabis stores in the province. Four are located in Vancouver, the other four are spread out across the province in Fort St John, Prince George, Kamloops, and Cranbrook.

A representative for High Tide told StratCann that the company did not wish to weigh in at this time.

“Out of respect for the collective bargaining process, we will not be commenting at this time.”

A post on the union’s Facebook page at the time said the two-year contract for those employees includes a 6.5% wage increase, retroactive pay on all wage increases to November 11, 2023, doubling the call-in premium to $1.00 per hour, and “timely and fair redistribution of cannabis samples from sales reps.”

BC began allowing producers to provide samples to retailers in 2023.

As of April 2024, the BC Budtenders Union said it represents workers at nine cannabis businesses and 16 locations.

Fifteen of these locations are cannabis stores. It also represents workers at a cannabis production facility in BC, the first cannabis production facility to successfully unionize in Canada, following a 2020 court ruling that found the company had unfairly penalized workers for trying to unionize.

Not all employees have stuck with their decision to join a union, though. Employees at Eggs Canna on East Hastings in downtown Vancouver voted to join the union in early 2022 but changed course shortly after, voting to decertify union membership, meaning it no longer acts as their bargaining agent.

A media representative with UFCW 1518 told StratCann they currently have around 150 members in 12 cannabis stores and one commercial grower. In April 2024, the union told StratCann that UFCW represented workers at nine cannabis businesses in BC (including one grower) and 17 locations.

In December 2023, Trees Cannabis, which has several unionized stores, announced that it and its subsidiaries filed for and were granted creditor protection under the CCAA. Two of four unionized Trees locations in BC have since closed (Alpha St and Fort St).

Employees at a Kiaro Cannabis in Port Moody, BC recently joined the union.

UFCW 1518 is British Columbia’s largest private sector union, with more than 27,000 workers in the retail, industrial, cannabis, healthcare, professional, and agricultural sectors.

In September, about 40 workers at five The Joint cannabis dispensaries in the city of Saskatoon joined UFCW Local 1400. This marked the first time cannabis workers have organized with this union in Saskatoon.

Featured image via Google Maps

BC court rules cannabis producer violated labour code by firing employees seeking to unionize

October 20, 2020

Cannabis industry union adds new stores, loses one

March 6, 2024

SQDC and trade union say they have reached an agreement, pending review from union members

June 24, 2022

Lessons learned on choosing a processor, from one outdoor micro grower

Written by David Brown on October 4, 2024. Posted in British Columbia, Business, Cannabis News, Producers.

An outdoor micro cultivator on Vancouver Island who recently gave up their federal cultivation license says their biggest challenge wasn’t taxes or regulations, but the struggle to find a reliable processing partner to get their product to market.

Highlighting one of their most recent challenges, Katy Connelly of Sea Dog Farm, says they recently had to take a processor to court over non-payment, resulting in a default order in BC Small Claims Court in June 2024. In July, the court issued an Order for Seizure and Sale, granting permission for a bailiff to seize and sell Black Fin Extracts Ltd.’s assets in order to pay their debts.

Black Fin is a micro processor also located on Vancouver Island. The company’s representatives did not respond to a request for comment for this article. The company’s website is no longer available but was active and archived as recently as July.

Connelly says after agreeing to buy their cannabis harvested at the end of the 2023 season and sending it to them to be processed and packaged for retail sales, she and her partner never heard back from Black Fin. After several months of trying to contact them, Sea Dog was forced to sue Black Fin for their payment for or return of their cannabis.

This was not Connelly’s first challenge with producers, though. She explains that previous deals with four different processors in 2020, 2021, and 2022 also did not work out as promised, saying they either never received their product or payment, or they received much less than anticipated or promised.

Sea Dog Farm first received its outdoor micro cultivation licence in late 2019 for just $15,000, markedly lower than the hundreds of thousands or even millions of dollars some spend on a facility to get licensed. Sea Dog is a small, 5-acre, family-run farm selling fruits, veggies, honey, flowers and alpaca fibre, often through their farmgate stand in Saanichton.

Now that she has revoked her federal cannabis cultivation licence, she says she’s looking forward to turning all her focus to the rest of the farm, which does not come with such challenges.

“Every year, I make a multitude of verbal agreements with florists, local farmers markets and distributors to sell my organic farm-grown products (non-cannabis),” Connelly tells StratCann. “I then give out thousands of dollars in invoices every month. Without fail, every single invoice was paid in the manner agreed upon and on time.

“My experience with five different processors in the cannabis space has been the exact opposite. Not one processor has paid the agreed upon price, processed on time or paid in full.”

“In my experience, the challenge, for small-scale growers in the legal cannabis industry do not stem from taxes or government oversight. Challenges for micros can be directly linked to unprofessional conduct by processors.”

For other growers in similar shoes, Connelly says payment up-front is much smarter than profit sharing, even if it can mean (in theory) more money to do profit sharing.

“Toll processing, with the costs upfront, would have been a better approach than profit sharing with a processor who can add costs and hold on to profits. Sending flower to a processor (or multiple processors) in smaller batches with firm, non-negotiable deadlines would have reduced the risk to the grower.”

Sea Dog Farm’s micro cultivation licence was officially revoked on Friday, September 13, 2024.

Aurora and UBC partner on research to breed fruity-smelling cannabis

Written by David Brown on October 2, 2024. Posted in British Columbia, Cannabis News, Producers, Research.

The University of British Columbia (UBC) has received a grant to help improve the breeding of more fruity-smelling cannabis.

The $500,000 grant, provided by Genome British Columbia (Genome BC), was announced by Aurora Cannabis Inc., which says the project, Genomics-enabled Aroma Breeding in Cannabis, will directly support the companies’ genetics work around cannabis.

The project is led by Dr. Jose Celedon, Principal Scientist, Breeding and Genetics at Aurora, and by Dr. Joerg Bohlmann, a professor at UBC, focusing on validating genetic and chemical markers for fruity aroma in cannabis.

“Through this work Aurora will deepen our understanding of cannabis genetics with a focus on aromas, a leading driver of consumer preference that directly impacts the user experience,” said Dr. Jose Celedon, Director, Breeding and Genetics at Aurora.

“By collaborating with UBC on this Genome BC-funded project, we are able to fully execute this aroma research without the typical financial constraints, allowing us to continue simultaneous work on additional important breeding traits, such as yield, potency and disease resistance. We are eager to see the outcomes of our work and the impact on the future of cannabis breeding.”

Aurora has been collaborating with researchers at UBC for several years. In 2023, Aurora announced they were teaming up with a UBC researcher to create cannabis more adapted for outdoor production in Canada. The company’s breeding program and cannabis breeding facility, Occo, is in collaboration with an adjunct professor from UBC.

Aurora recently patented a series of genetic and chemical markers for fruity aroma, which were identified through its CanD diversity panel. This new collaboration, says the cannabis company, will allow Aurora to validate these markers using cutting-edge approaches that would otherwise require significant funding. The data generated from this work will support the discovery and launch of cultivars with unique and improved aromas, alongside high yield and potency.

Aurora’s in-kind contributions to the project include conducting sensory analysis of fruity aromas, and leading bioinformatic analyses with in-house software. UBC’s contributions to the project through Genome BC funding will involve sequencing transcriptomes, analyzing the volatile chemistry, and conducting functional characterization of the genes responsible for fruity aromas in cannabis.

If successful, Aurora hopes the methods developed in this project can then be adapted to explore other aromas, strengthening the publicly traded cannabis company’s “aroma-related intellectual property portfolio.”

Genome BC is a not-for-profit organization that has helped conduct genomics research and innovation for nearly 25 years. Genome BC has attracted over $1 billion in direct co-investment to the province, which has contributed to funding more than 550 genomics research and innovation projects. In 2020, Genome BC announced a $4.3 million project to breed powdery mildew-resistant cannabis cultivars.

Manitobans may finally be able to grow cannabis at home in 2025

Written by David Brown on September 26, 2024. Posted in Business, Cannabis News, Government, Manitoba.

Manitobans may finally be able to grow cannabis at home beginning in 2025, according to a new announcement from the provincial government.

In an email to the Winnipeg Free Press on September 25, Manitoba Justice Minister Matt Wiebe said the provincial government is in the process of drafting the regulations for a bill passed in June.

“The (Liquor, Gaming and Cannabis Authority) is drafting regulations to ensure the framework for growing cannabis at home prioritizes public safety, with a focus on protecting youth and ensuring cannabis plants are not accessible to young people,” the minister’s email said.

The provincial government is expected to post the proposed regulations by the end of 2024 to allow time for public feedback. This is a change in the plans announced in June when a source with the Manitoba government told StratCann that such rules would be expected to be in place by November 2024.

When the bill was being debated in Manitoba parliament earlier this year, the Progressive Conservative opposition brought up concerns that they were passing a bill that had not yet been written. Only once the regulations are finalized will people in Manitoba be able to grow up to four plants at home.

Specifics such as where plants can be grown on a person’s property are still unknown.

“Who will monitor these grows, and who will monitor the sale of the seeds to produce these cannabis products?” asked PC MLA for Brandon West Wayne Balcaen when the bill was debated earlier this year.

The penalty in Manitoba for growing cannabis at home is currently a $2,542 fine, as well as up to a year in prison and forfeiture of personal property.

Manitoba and Quebec are the only two provinces to ban growing cannabis at home. In April of this year, the Supreme Court of Canada upheld Quebec’s ban on home-grown cannabis, ruling that the province has the authority to enforce such a ban, even in the face of federal rules allowing up to four plants per household.

Canadian Cannabis Leadership Summit 2024 in Ottawa

Written by David Brown on September 20, 2024. Posted in Business, Cannabis News, Ontario.

The Cannabis Council of Canada (C3) is hosting its Canadian Cannabis Leadership Summit 2024 in Ottawa on Tuesday, October 1.

The half-day event will take place at the National Arts Center (NAC) in Ottawa near Parliament Hill, with four panels from 1:00-5:00 pm focussed on issues facing the industry.

Those panels will include an in-depth conversation about the excise duty and its impacts on the industry, with C3 calling for a 10% ad valorem rate to replace the $1 a gram rate. A second panel will explore the need for a single national excise stamp. The third and fourth panels will focus on reducing the overall regulatory burden and the need for industry to come up with a standard “unit” of THC.

C3 president Paul McCarthy, who has been busy reinvigorating the organization since taking on the position in April, says he’s bringing together topics and speakers that reflect the most pressing issues the industry currently faces.

“There are a number of goals associated with this conference. I think it is important to establish the Canadian Cannabis Council not just as a trusted voice in this industry but as the trusted voice. To do that, we need to be leading the conversation, and doing so in a responsible and credible manner. That requires taking on the tough issues by bringing together the leading experts, be it in cannabis, mental health, finance, or whatever discipline is needed. That is how you advance the conversation. And if you look at our panels, you’ll see precisely that.”

Speakers include Beena Goldenberg, CEO, Organigram; Orville Bovenschen, President, Pure Sunfarms; David Lobo, CEO, Ontario Cannabis Store; Dr. Mark Ware, Director, Allan Edwards Pain Management Unit; Gillian Schauer, Executive Director, US Cannabis Regulators Association; and, Barry Katzman, Managing Director, Peak Processing.

“Job number one,” continues McCarthy, “is about the financial viability of licensed producers. That is why two of the four panels we are hosting are on the excise duty rate and the excise stamp. These represent our top two issues. We want to bring these conversations to the doorstep of Parliament so that there is broader awareness and understanding and so that everyone is clear on what we are asking for.”

McCarthy says he has plans for C3 to host more events of this kind in the next year. Keeping events like this to just a few panels not only reflects the busy nature of the industry, he explains, but also recognizes that the politicians and policymakers they are also speaking with have busy schedules and many competing priorities.

“We are hosting this over an afternoon because we feel that’s the most effective way to do it: be laser-focused on the top priorities. You cover less width but get more depth. And then people are really clear about what is important to you and why. Of course, in this instance, change to the excise tax is imperative if we are to have financial viability for licensed producers. It’s the top issue by far.”

More information on the Canadian Cannabis Leadership Conference is available here.

Arbitrator rules cannabis detection was not impairment

Written by David Brown on September 19, 2024. Posted in Cannabis News, Saskatchewan.

A federal arbitrator recently ruled that a train engineer who was found to have had cannabis in his system did not need to face penalties because he was not impaired.

The locomotive engineer from Saskatchewan tested positive for THC in a urinalysis conducted on March 30, 2022, after an incident where the engineer had failed to secure his train.

Although an oral swab and breathalyser were both negative, urinalysis showed that he was positive for cannabis metabolites (53 ng/ml).

The man’s union brought the grievance to arbitration, arguing that since the man was not found to have been impaired, a penalty of a thirty-day suspension and six months of random on-the-job testing was uncalled for.

The company, Canadian Pacific Kansas City, argued that the random testing is appropriate for safety reasons, given the dangerous nature of the work, even if no discipline is imposed.

The man told company investigators at the time of testing that he had consumed a cannabis candy some 16.5 hours before his tour of duty.

In his analysis, the arbitrator noted that urinalysis has “repeatedly been found by arbitrators to be incapable of assessing when or in what quantity drugs were consumed, and whether the employee was impaired.” Because of this and because the engineer, who had 28 years of seniority at the time of the incident, showed no signs of impairment, the arbitrator found him not to have been impaired.

As such, in a ruling posted on September 16, federal arbitrator James Cameron ruled that the thirty-day suspension be struck down, with the employee compensated for lost time. He also found that the six months of random testing was not warranted since he was not impaired and was, therefore, not in violation of company policy.

Another ruling, posted on the same day by the same arbitrator, ruled that a subsequent termination of the same employee who had been found to have alcohol in his system following testing conducted under the initial six-month random sampling penalty was uncalled for.

The locomotive Engineer, John Downey of Sutherland, SK, was dismissed from service by Canadian Pacific Kansas City on January 28, 2023, after testing positive for alcohol on December 5, 2022.

The man’s union argued that he was not actually impaired at the time of testing, nor had he intentionally violated company policy by consuming alcohol nearly a full day prior to his shift.

Downy told company investigators at the time of his random sampling that he had consumed alcohol around 20 hours before the start of his next shift, accounting for the breath alcohol content screening at 0.051% Blood Alcohol Content and subsequent lab confirmation positive at 0.046% BAC.

Company policy based on his previous suspension and six months of random testing was that Downy could not consume any intoxicating substances during the six-month period. He and his union contend that Downy thought the only substance covered in this ban was cannabis.

The company argued that Downy was subject to duty in the day prior to the shift where he tested positive for alcohol because he was on call. The union successfully argued that he was not subject to duty at the time and, therefore, should have his position reinstated and made whole for the loss of wages and benefits, minus mitigation.

New cannabis distribution warehouse coming to NWT

Written by David Brown on September 13, 2024. Posted in Cannabis News, Government, Northwest Territories, Provinces.

The Northwest Territory Liquor and Cannabis Commission (NTLCC) has selected a contractor to build a new cannabis warehouse in Hay River.

Buffalo Parcel Courier Services was recently selected to build a new cannabis warehouse, first reported by NNSL Media. The procurement process for a new cannabis warehouse in NWT began in June. The territory received two applications, awarding the contract to Buffalo Parcel Courier Services on September 6.

The territory’s current staging area for cannabis distribution was 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 (NWT) under contract with the NTLCC, four private stores, and one private online store.

In the year ended March 31, 2024, $8.4 million worth of cannabis was sold in NWT. Most of this ($5.6 million) was dried cannabis while $2.3 million was inhaled extracts.

The Northwest Territories Liquor and Cannabis Commission is responsible for the purchase, sale, classification and distribution of liquor and cannabis in the Northwest Territories and is administered through the Government of the Northwest Territories, Department of Finance.

NWT has one licensed cannabis producer, Boreal Cultivation, located in Yellowknife. Boreal was licensed in 2021.

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 six 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, Green Herb Farms in St Joseph-de-Kent, and Pinnacle Farms in Drummond. 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.

BC cannabis producers prepare for farmgate, but questions remain

January 12, 2022

Cannabis farmgate across Canada

June 12, 2021

OCS to allow farmgate stores to sell exclusive products

May 9, 2024

High Tide to launch Queen of Bud branded products through Canna Cabana

Written by Staff on September 12, 2024. Posted in Alberta, British Columbia, Cannabis News, Manitoba, Ontario, Retail, Saskatchewan.

After purchasing the retail brand earlier this year, High Tide is launching Queen of Bud branded white label products in its Canna Cabana stores in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.

High Tide will first launch smoke-eliminating candles in its retail locations, followed by products like a Zippo lighter, as well as pre-rolls and infused blunts in provincial markets where white label cannabis products are allowed.

The announcement comes after Alberta began allowing private label cannabis products in May.

“Our announcement today follows Alberta’s decision to allow white label sales and underscores how timely our strategic acquisition of the Queen of Bud brand was,” said Raj Grover, founder and CEO of High Tide in a press release. “The thoughtfulness and diligence of our team have brought these highly differentiated and unique products to market for our ELITE and Cabana Club members… New and innovative cannabis product, such as raspberry chocolate diamond infused rose petal blunts and a mango honey live rosin chamomile petal blunt, will launch in the coming weeks, as these products are accepted by provincial wholesalers.”

High Tide plans on the Queen of Bud brand playing a significant part in the company’s approach to white label products, Grover adds, with a goal of in-house brands accounting for around one-quarter of all in-store cannabis SKUs within the next five years.

The Queen of Bud Crystal Smoke eliminating candles will be available to High Tide’s ELITE and Cabana Club. The company also recently re-launched its Canna Cabana website for its flagship retail brand, providing an improved experience for its ELITE and Cabana Club members.

High Tide also opened its 183rd Canna Cabana location in Lucan, Ontario. Canna Cabana is the second largest cannabis retailer in the world by store count, and the largest in Alberta.

The cannabis company also recently announced it is partnering with Aberta-based Positive Intent Events (PIE) to bring the Canna Cabana store to event locations across Canada.

“As Canada’s largest retail cannabis chain, we intend to bring the power of our innovative and disruptive discount club model that has helped us achieve almost 11 percent market share in the Canadian provinces where we operate, into the nascent world of cannabis sales at adults-only events, such as music festivals, comedy shows, and business conferences,” said Raj Grover in a press release earlier this week.

“Partnering with High Tide allows us to seamlessly grow across Canada as regulations make space for cannabis to be included as part of hospitality and tourism,” said Daffyd Roderick, Managing Partner, Positive Intent Events.

“The positive reception we received at the Edmonton International Fringe Theatre Festival confirmed that the public is very ready to embrace cannabis and make it a responsible part of their entertainment experiences,” added Roderick.

Peace Naturals recalls infused pre-rolls, CBD extract from Ontario

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

Peace Naturals Project Inc. has recalled two lots of cannabis products sold in Ontario due to incorrect cannabinoid values on the products’ labels

The cannabis producer recently recalled one lot of its Spinach Fully Charged Tropical Pack infused pre-rolls cannabis extract and one lot of its Peace Naturals Peppermint 75 CBD cannabis extract.

The total labelled THC for the former is lower than the actual total THC (Lot #017186). The products were labelled as having 0 mg/g THC, while the product should have been labelled as having 400 mg/g THC.

The total THC labelled and total THC per activation for the Peace Naturals Peppermint 75 CBD (Lot #017171) is labelled lower than the actual total THC and the actual total THC per activation, respectively. Total THC is labelled as 1 mg/g, while the actual value is 2 mg/g. The total THC per activation is labelled as 0.3 mg/g. The correct amount is 1 mg THC per activation.

There were 456 units of the recalled Spinach Fully Charged Tropical Pack infused pre-rolls sold in Ontario and 96 units of the recalled Peace Naturals Peppermint 75 CBD. The OCS first listed the recalls on September 6.

Health Canada says that, as of September 10, the Peace Naturals Project Inc. has received two complaints, one for each product, in connection to the labelling. Health Canada has not received any complaints related to the recalled lots. Neither Peace Naturals Project Inc. nor Health Canada have received any adverse reaction reports for the recalled lots of cannabis products.

Health Canada reminds consumers who wish to return an affected product to contact the retail store where the product was purchased.

This is the tenth product recall notice issued by Health Canada so far this year. Labelling errors remain the most common issue for a cannabis product recall in Canada.

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

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.”

SQDC sold $162.9 million worth of cannabis in Q1 2024-2025

Written by David Brown on September 5, 2024. Posted in Cannabis News, Government, Provinces, Quebec, Retail.

In the first quarter of its 2024-2025 reporting period, the Société québécoise du cannabis (SQDC) brought in $23.9 million in net sales from $162.9 million in sales.

Net sales were up for the three months ending June 22 compared to $20.6 million for the same reporting period in the previous fiscal year, but down from $25.6 in the last quarter (Q4 2024) to $33 million in Q3 2024.

In addition, Quebec brought in another $43 million in its share of federal excise tax, with $17 million going to the federal government for a total of $60 million in excise tax on cannabis sales in the province. This brings the total the SQDC generated for Quebec in the three months ending June 22 to $66.9 million.

The SQDC sold 32,098 kg of cannabis in the most recent quarter (Q1 2025), up from 25,675 kg for the same period in 2024 from 4.1 million transactions. SQDC says these increases are due to a settled labour dispute, which limited the operation of 24 of its retail locations, and the growth in demand for cannabis concentrates.

Most sales were through SQDC’s brick-and-mortar locations ($155 million), up from $133.5 million in Q1 2024, while online sales were $7.9 million for the current quarter, down from $9.1 million in Q1 2024.

The average sale price for cannabis in Quebec in this reporting period was $5.84. The average price per gram in the previous fiscal year was $6.22 per gram.

The SQDC recently opened their 100th retail store.

Recent figures from Statistics Canada show retail sales in dollars declining in Canada in 2024, correlating with continued retail price compression and a slowing down of new cannabis stores being opened compared to the first few years of legalization. However, Quebec’s sales were an outlier, showing sales in dollars remaining relatively steady, with a slight increase in recent months.

CSN union members accept agreement for SQDC wage increases

June 27, 2022

Cannabis sales in Quebec plateauing, as SQDC continues to focus on enhancing consumer experience

June 12, 2023

A tale of two markets: The future of retail cannabis in Ontario and Quebec

August 27, 2024

Surrey wants cannabis store applications by September 17

Written by David Brown on September 4, 2024. Posted in British Columbia, Cannabis News, Government, Retail.

Those interested in opening a cannabis store in Surrey, BC, have until Tuesday, September 17, to send in their application.

Surrey City Council released a proposal for up to 12 cannabis stores in BC’s second-largest city in early 2024, approving the plan in April. The city has said it prefers to receive applications on or before September 17, 2024, with up to two locations for each of the city’s six distinct communities: Whalley/City Centre, Guildford, Fleetwood, Newton, South Surrey, and Cloverdale.

The city’s plan requires stores to be a minimum of 200m from schools, community centres, and other cannabis stores.

A previous city council had banned cannabis stores from Surrey entirely. Since then, several stores have popped up on the city’s border in neighbouring communities. Residents can also receive deliveries from stores located in other cities.

The city says the Request for Expression of Interest (RFEOI) selection process is expected to be completed in October. Selected applications will then advance to the council for consideration and a public hearing, which is expected in the fall of 2024. The city has also indicated it could allow more rounds of applications in the future.

Although there is no fee associated with responding to the RFEOI, applications that advance to city council for rezoning will face a rezoning fee of around $5,209 to cover the city’s costs. If an application is approved by council, there is also a business licence fee of around $913.00.

There is also an associated $7,500 application fee to the BC Liquor and Cannabis Regulation Branch (LCRB) (the application for a liquor store is $2,200).

The city will not begin reviewing applications prior to September 17, 2024. Applications will be scored by the city based on different factors such as location and distance from sensitive areas like schools, recreation areas, and other cannabis stores within the city limits, as well as availability of parking, and related experience of the proposed store operator. The city will then decide on the highest-scored finalist and notify all finalists in writing of its decision.

With more than 600,000 residents, Surrey is the second largest city in BC, just behind Vancouver. The BC government currently lists more than 80 stores as approved in Vancouver. Neighbouring city Langley, with a population of about 150,000, has three cannabis stores, while Delta, another neighbouring city, has a population of about 100,000 and has seven cannabis stores.

Although many residents responded to a city survey saying that they supported more than 12 locations, some councillors said starting with 12 was a good way to avoid the flood of new stores some other cities have seen.

The survey found that 68% of respondents support the idea of 12 or more stores in Surrey. Some 62% said they strongly disagree/disagree with limiting the number of cannabis stores to just 12 locations. Another 38% said this was too many locations.

Several cannabis retailers are located along the city’s border in neighbouring municipalities like Langley and Vancouver.

Because of this timeline, cannabis stores in Surrey will not likely factor into the provincial election scheduled for October 19.

Surrey Board of Trade says its time for cannabis stores in the city

March 1, 2023

More than five years after legalization, Surrey approves plan to allow cannabis stores

April 9, 2024

Surrey Drug Unit busts illegal cannabis operation

December 23, 2020

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 industry gears up for Summer Sesh in Richmond, BC, Sept 12-14

Written by Staff on August 29, 2024. Posted in British Columbia, Cannabis News.

Cannabis retailers and producers are gearing up for the highly anticipated Summer Sesh industry networking conference in Richmond, BC, from September 12-14.

The event is a collaboration between the Licensed Retail Cannabis Council of BC (LRCCBC), Craft Cannabis Association of BC (CCABC), and HOWBOUTTHIS Events, taking place at Lipont Place in Richmond, about 30 minutes outside downtown Vancouver.

The packed three-day event features presentations, panel discussions, and a B2B Networking party on Thursday evening. There will be a consumption-friendly Direct Delivery Speed Networking session for producers and retailers, and an exclusive “block party” featuring over 30 brands, indoor vape consumption, movie theatre, art market, and food trucks on Friday evening. Topics will cover a variety of current issues facing the BC and national market, including financial issues, direct delivery, farmgate, sampling, Indigenous business, and more.

The Lipont Building is located just below the Aberdeen Skytrain Station, a short ride from locations across the Lower Mainland, including Vancouver International Airport.

Attendees can dive into the Sweet Justice Bevvy Bar and the HOWBOUTTHIS Dab Bars, sampling and consumption, food trucks, and more.

The LRCCBC also notes that the BC government’s Liquor and Cannabis Regulation Branch (LCRB) will be present just in time for the upcoming BC election.

“The Directors at the Licensed Retail Cannabis Council of BC are thrilled to co-host our upcoming cannabis industry conference, Summer Sesh,” says Jaclynn Pehota, executive director for the LRCCBC.

“It’s a fantastic group of brands and individuals supporting this initiative and indoor vapor brings consumption and tourism discussions to the forefront.” says Brittney Guthrie, Founder of HOWBOUTTHIS Events.

“Additionally, we are pleased to facilitate a regulatory conversation from the team at LCRB during the event. Summer Sesh represents a significant opportunity for our association to foster collaboration, share insights, and drive meaningful dialogue with government regulators. We are excited to bring together industry leaders and policymakers to shape the future of cannabis and continue advancing our sector with innovation.”

Sarah Campbell, Director of the Craft Cannabis Association of BC, says the event is a chance for the industry to let their hair down following a very challenging few years.

“It has been a difficult couple of years,” says Campbell. “CCABC is excited to bring stakeholders together from all corners of the industry for networking, support, learning, and fun. There is a little something for everyone at the Summer Sesh.”

Tickets are available here.

Content brought to you by: Craft Cannabis Association of BC (CCABC) and the Licensed Retail Cannabis Council of BC

SNDL announces successful bid to purchase Indiva

Written by David Brown on August 29, 2024. Posted in Cannabis News, Ontario, Other, Producers.

SNDL Inc. has announced that its stalking horse bid has been chosen as the successful bid to acquire Indiva’s business and assets.

Ontario-based cannabis edibles producer Indiva Limited announced on June 13 that it had been granted an order from the Ontario Superior Court of Justice under the Companies Creditors Arrangement Act (CCAA) in order to restructure its business and financial affairs.

The CCAA filing followed an update from Indiva in early June announcing that its liabilities under an amending agreement with Alberta-based SNDL had been extended to June 13, 2024. In April 2024, Indiva repaid $2 million of the principal amount outstanding from a strategic investment of $22 million provided by SNDL in 2021.

SNDL’s acquisition includes Indiva’s facility in London, Ontario and a portfolio of owned and licensed brands like Pearls by Grön, No Future gummies and vapes, Bhang chocolate, Indiva Blips tablets, Indiva Doppio sandwich cookies, and Indiva 1432 chocolate. Indiva boasts a portfolio of seven brands and 53 listed SKUs, all manufactured in the company’s 40,000-square-foot production facility.

“We are thrilled by the opportunity to partner with our colleagues at Indiva to deliver high quality products and brands to consumers,” said Zach George, SNDL’s Chief Executive Officer. “This transaction will materially improve our market share in the edibles category and is expected to unlock value through improved capacity utilization, a reduction in aggregate corporate expenses, and the potential sale of redundant real estate holdings.”

Indiva still needs approval for the transaction from the court on or about September 19, 2024, which is subject to the court granting an approval and vesting order and the transaction receiving the approval of other regulatory authorities.

Earlier this year, SNDL reported its first profitable quarter for cannabis production and increased losses for its retail cannabis holdings. SNDL has invested in several cannabis companies in the industry’s production and retail sectors.

In May, SNDL alleged that Mantioba-based Delta9 Cannabis was in default of its financing agreement with SNDL and demanded immediate payment of a $10 million convertible debenture financing. Delta 9 CEO John Arbuthnot denied the claim.

SNDL agrees to deal for four NOVA-operated Value Buds in BC

April 2, 2024

SNDL to lay off 106 employees as part of restructuring

July 16, 2024

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

July 15, 2024

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.

Coterie sour apple blunt recalled from Alberta

Written by Staff on August 29, 2024. Posted in Cannabis News, Products, Quebec.

Quebec-based cannabis producer Culture Kizos Inc./Kizos Culture Inc. recalled one lot of its Coterie Double Infused Sour Apple Blunt Pre-rolls cannabis extract earlier this month.

On August 19, Health Canada listed a voluntary product recall for the one-gram pre-rolls due to microbial contamination for Lot L24135H packaged on May 14, 2025. This product was sold through authorized retailers in Alberta.

Health Canada says the affected product does not meet certain microbial contaminant limits for bacteria as specified by the Good Production Practices requirements of the Cannabis Regulations. However, the probability of serious adverse health consequences is remote, adds the recall notice.

As of August 19, Culture Kizos Inc./Kizos Culture Inc. and Health Canada say they have not received any complaints related to the recalled lot. Neither Culture Kizos Inc./Kizos Culture Inc. nor Health Canada have received any adverse reaction reports for the recalled cannabis product lot.

There were 1,281 units of recalled product sold from June 9 to August 12, 2024.

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.

Edmonton Fringe Fest gets cannabis consumption space

Written by David Brown on August 22, 2024. Posted in Alberta, Cannabis News, Retail.

An Edmonton festival welcomed its first official cannabis consumption space at this year’s Edmonton Fringe Festival from August 15-25th.

The fenced and age-gated space provides a place for festival attendees to purchase and consume cannabis edibles and beverages, along with alcohol-free mocktails in an exclusive space.

Positive Intent Events (PIE) recently launched the adults-only, alcohol-free cannabis consumption garden space as a way to encourage safe, responsible cannabis consumption at festivals and other events.

The PIE Experience Garden Event has been located inside the gates of the Edmonton Fringe Fest since the first day of the ten day event located across the street from the Strathcona Farmers Market. PIE operates an age-check for entry and a second age-check to order and receives delivery of cannabis products on-site.

Cannabis deliveries are in partnership with Edmonton retailer NUMO Cannabis. Guests can also order in advance by visiting NUMO’s online store for pickup at the PIE Garden.

“Our vision for Positive Intent Events is to create event spaces for adults who want a fun, responsible cannabis consumption experience while enjoying music, art, and entertainment,” said Daffyd Roderick, Managing Partner, PIE. “The Fringe Festival’s courage to be the first top-level event organizer to support an exclusively adults-only cannabis garden event demonstrates their commitment to creating amazing guest experiences and perfectly aligns with our goals for PIE.”

The updates to the Gaming, Liquor and Cannabis Regulation that allow licensed cannabis retailers to set up temporary sales at adults-only events, like trade shows and festivals, were announced by the provincial government in December 2023 and took effect in January 2024. A statement from the province says the aim is to reduce barriers for businesses and “better combat the illegal market.”

Earlier this year, Alberta began allowing cannabis retailers to apply for a licence extension for the purposes of selling cannabis at a minors-prohibited entertainment event or cannabis industry trade show. However, municipal licensing for on-site sales has remained an issue for other cannabis consumption spaces at Alberta events this year.

The Edmonton International Fringe Theatre Festival is in its 43rd iteration this year, highlighting hundreds of theatre productions across dozens of venues in the city for 11 days.

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July 8, 2024

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June 14, 2022

Western Cannabis brings cannabis sales to Saskatchewan music festival

July 25, 2022

OPP raid two Indigenous-owned cannabis stores in London

Written by David Brown on August 21, 2024. Posted in Law Enforcement, Ontario.

Police in London, Ontario closed at least two Indigenous-owned cannabis stores on August 21 as part of an enforcement action. Ontario Provincial Police say they will provide more information on the raids later this week.

Police have in the past said the stores, Spirit River Cannabis, were on their radar going back nearly two years. In 2022, OPP told CBC they were looking into the stores after the grand opening on Dec. 3 at its 72 Wellington St. location in London.

Since that time, a second location at 685 Richmond St. has also opened. Both these stores were targeted this week by OPP in these most recent enforcement actions, with both locations being closed and, according to at least one eye witness, officials carrying away products.

“This property has been closed,” reads an interim closure notice posted by OPP on one of the business doors, as shown in a picture posted online. Local media have also now confirmed the closures. The notice goes on to say anyone wishing to enter the premises must receive judicial permission or face the possibility of charges like breaking and entering.

The business has a poster outside both locations noting sections 25 and 35 of the Canadian Constitution Act. Section 35 of the Constitution Act says that the existing aboriginal and treaty rights of the aboriginal peoples of Canada are recognized and affirmed. Section 25 ensures that the designated rights and freedoms of Indigenous peoples are protected.

Some Indigenous store owners and other legal experts have argued that federal and provincial cannabis laws don’t apply to Indigenous-owned cannabis businesses. While the majority of these stores have opened on recognized treaty territory, some have opened on traditional lands outside of those treaty territories. The latter tend to be more likely to face enforcement by police or bylaw officers.

In 2022, Spirit River’s owner, Maurice French, told CBC News that he follows regulatory standards under the rules and bylaws created by the Northshore Anishabek Cannabis Association, which he said are similar, if not more rigorous, than the rules set out by the Alcohol Gaming Commission of Ontario (AGCO). The AGCO oversees Ontario’s retail cannabis regulations.

OPP say they will provide more information on the closures and apparent raids later this week.

French has faced enforcement action in the past in relation to cannabis stores he’s operated in Chippewa of the Thames First Nation. In 2018, the RCMP raided his store there, but in 2022, the federal government dropped all charges against French. He had argued that the police raid against his business had violated his rights to sell a traditional product. By dropping charges, the Crown did not have to see that argument weighed in court.

Indigenous-owned-or-affiliated cannabis stores have been popping up in Ontario, and in several other provinces, both on First Nations reserve land and, to a lesser degree, on traditional territory outside of those reserve lands. Some provinces, like New Brunswick, have argued they cannot enforce provincial cannabis laws on First Nations Lands, while other provinces, like British Columbia, have said they can but tend to tread lightly. Authorities in these and other provinces are less hesitant to target Indigenous-owned or affiliated stores that are operating outside of reserve territory. Bylaw agents and law enforcement in New Brunswick recently targeted stores in the Moncton area, although at least one quickly reopened.

Some owners of cannabis stores licensed and regulated by their respective provincial agencies have for years now expressed frustration at having to compete with unregulated stores, regardless of who owns them. A report earlier this year said Toronto had more than 50 such unlicensed stores operating in the city at the time.

In 2022, a handful of BC cannabis stores took the government to court over what they argued was a lack of enforcement against stores operating on First Nations land without provincial authorization. The court later rejected their argument. However, earlier this year, the province’s bylaw enforcement team raided several cannabis stores operating on First Nations land twice over the course of several months.

The owner of an Indigenous-owned cannabis store in Vernon, BC that was raided by the province after opening outside of reserve land in 2020 filed suit against the BC government, arguing the province’s laws are unconstitutional. That case has yet to be resolved.

In a recent court case in Nova Scotia, a judge rejected an attempt by several Indigenous cannabis store owners in the province to argue they can operate without provincial approval.

OPP recently raided six Indigi-Smoke locations in southwestern Ontario.

More on this raid as information from OPP becomes available.

Update: OPP shared this on September 27:

The Ontario Provincial Police has shutdown two illegal cannabis storefronts operating in London, and seized illegal cannabis valued at more than $350,000.

The OPP-led Provincial Joint Forces Cannabis Enforcement Team, in partnership with the Middlesex OPP Community Street Crime… pic.twitter.com/PJ2cbIEaE1
— OPP West Region (@OPP_WR) September 28, 2024

https://twitter.com/search?q=opp%20cannabis&src=typed_query&f=live

Featured image via Reddit

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May 12, 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

Cannabis sales stay strong in New Brunswick

Written by David Brown on August 20, 2024. Posted in Cannabis News, Government, New Brunswick.

Cannabis sales bounced back in New Brunswick in the three months that ended June 30, 2024, following seasonal declines in the previous quarter from January through March.

Total product sales in the province for the quarter were $24.7 million, up 12.6% compared to the same quarter in the previous year. The provincial cannabis agency also brought in $5.9 million in net sales, up 15% from the same period in 2023.

Cannabis sales have continued to increase in the province annually, with consistent spikes in Q2, covering July, August and September, and declines in Q1, covering the first three months of the year.

Cannabis NB operates 27 stores in 18 communities in the province, along with nine private stores since the province began allowing them in 2023. There are also six cannabis farmgate locations in New Brunswick that allow cannabis producers to have a retail store on-site.

The agency’s 2024-2026 strategic plan says legal cannabis sales in the province have been approaching about 50% of the total cannabis market and includes plans to increase the number of retail outlets and products available, as well as exploring on-site consumption and customer loyalty programs.

Competition in the market has helped to bring prices down, continues the report, noting that while some of the big LPs are “struggling and trying to recover from over-investing” in incorrect market assumptions, “many new LPs and micro-producers are being licensed that have learned from the challenges at launch, and are approaching the industry with better information and a more sustainable plan.”

The organization also plans to establish a comprehensive loss prevention program to reduce risk. A Cannabis NB employee was recently charged with stealing more than $5,000 worth of products and cash. The case has been adjourned to September 6.

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.

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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

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.

“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

Growing Relationships – Ottawa 2024 Agenda

Written by Staff on August 7, 2024. Posted in Events, Ontario.

We look forward to welcoming you to Growing Relationships in Ottawa, Ontario, on Tuesday, August 20!

Below are the details for Ottawa attendees. Please read the details fully and email us if you have any questions. We suggest you bookmark this page and have it handy on your phone for the event. We will not have paper agendas, but we will have signage at the event.

TIME

The doors open at 8:15am for registration, networking, and light refreshments; programming will begin at 9:00am. We will end at 3:00pm with some prize giveaways. Don’t forget to put your name in the bowl when you register!

VENUE

Growing Relationships is at the Preston Event Centre (523 St Anthony St, Ottawa, ON K1R 6Z9). The venue is accessible from the parking lot up to the Main room, the Main Hall. Accessible washrooms are available. Other levels in the venue are only accessible via stairs.

► Bring your government-issued ID, this is an age-gated event and you may be asked for ID to enter.

PARKING

There is limited FREE parking available on site, at the back of the Preston Event Centre. Additional Free Parking is available across Preston Street at the Adult High School located at 297 Preston St.

There is also a paid parking lot right across the road from the Preston Event Centre – the Preston Parking Lot at 301 Preston Street.

EVENT AGENDA – all times in ET (Ottawa time)

Time	Tuesday, August 20, 2024
8:15-9:00	Registration, Light Refreshments & Networking
9:00-9:20	Welcome & Introductions Presentation
9:20-10:20	Industry Roundtable Workshop
10:20-10:50	OCS Flow-Through Distribution Model – presentation with Q&A
10:50-12:15	Industry Speed-Networking session
12:15-1:15	Lunch
1:15-1:30	Prizes & Presentations
1:30 -2:45	Retailer & Producer Panel: Realities of the Cannabis Market in Ontario & Beyond
2:45 – 3:00	Final Prizes & Closing Remarks

INDUSTRY SPEED-NETWORKING: how to prepare

This is a fun and fast-paced experience! We strongly encourage you to practice and perfect your B2B elevator pitch before you arrive: craft a concise 1-minute introduction to introduce your business, your brand, and your current products.

► The elevator pitch applies to Producers and Services primarily, as you will be presenting your business.

► Retailers: we recommend you bring business cards to share with those you make connections with!

We’ll guide you through this fast-paced activity with the goal of making impactful connections that can be further developed as we move into lunch and beyond.

DRESS CODE

We do not have a formal dress code, though most people dress business casual. We have access to the rooftop patio, so keep your eye on the weather and dress accordingly.

ACCOMMODATION

As we are hosting this at an event centre, we do not have any specific recommendations for accommodation if you are coming from out of town. The Liv Extended Stay is a nearby option, only a 10-minute walk to the Preston Event Centre. There are also a number of guesthouses nearby, numerous hotels in downtown Ottawa, and of course AirBnB’s might be useful.

TETHER BUDTEDER EVENT

We’re very excited to celebrate Tether’s 3rd anniversary as they deliver their Budtender Sampling Event from 6-9pm – same day, same venue!

Growing Relationships will end at 3pm, attendees are invited to visit a nearby pub while we set-up for the Tether Budtender event hosted from 6-9pm. Growing Relationships ticket holders can use promo code YOWSTRATCANN for 20% off any ticket type for you and your budtenders to attend in the evening – grab your tickets here!

HASHTAGS

Help us keep the relationships growing, use the official event hashtags: #stratcannevents #growingrelationships

FEDERAL & PROVINCIAL REGULATIONS

Please note this event will adhere to all federal and provincial regulations. We appreciate your cooperation, participation and support.

Adult Only Event

This is an adult-only event (19+).

Please ensure you have your government-issued ID with you, or you may be denied entry.

THANK YOU TO OUR EVENT PARTNERS

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

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.

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.

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

NL RCMP seize cannabis, cigarettes, cash

Written by Morton Robertson on July 19, 2024. Posted in Law Enforcement, Newfoundland and Labrador.

RCMP in Newfoundland and Labrador say they have arrested a 63-year-old man following the execution of a residential search warrant on July 15, 2024 in which they seized tobacco, “suspected hashish” and nearly $17,000 in Canadian currency.

While the police report refers to 2.25 pounds of “suspected hashish”, an image shared by RCMP NL shows boxes labelled as containing cannabis gummies and “shatter chews”.

A website advertising the shatter chews, Euphoria Extractions, shows dozens of locations where the unlicensed products can be purchased. None of the listed locations are in Newfoundland and Labrador.

The search warrant was executed at a residence on Seventeenth Avenue in Grand Falls-Windsor. The 63-year-old is Andrew Noseworthy of Grand Falls-Windsor, was arrested on the property and was charged with possession of contraband Cannabis, possession of unstamped tobacco, and possession of contraband tobacco.

He is scheduled to appear in court on September 4, 2024. The investigation is continuing.

There are currently 55 licensed cannabis stores listed by Cannabis NL.

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

Purileaf recalls Frank CBD Oil 100 due to a labelling error

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

Purileaf Brands has recalled one lot of its Frank CBD Oil 100 cannabis extract due to a labelling and packaging error.

The products were distributed in Ontario.

The recall was due to the product label on the secondary packaging having an incorrect brand name and incorrect cannabinoid values.

Health Canada says the labelled CBD, total CBD, and total CBD per activation values are lower than the actual CBD, total CBD, and total CBD per activation values, but the primary label on the bottle is correct.

The printed name on the label is Frank CBD – CBD Oil 20, while it should have been Frank CBD – CBD Oil 100.

The printed amount of CBD on the label is 20 mg/g and total CBD as 20 mg/g while the actual name and value should have been labelled as CBD: 100 mg/g and Total CBD: 100 mg/g.

This product was sold through the Ontario Cannabis Store and authorized retailers in Ontario.

To date, neither Purileaf Brands Corporation or Health Canada have received any complaints or adverse reaction reports related to the recalled lot.

There were 108 units of recalled product sold from June 24 to July 12, 2024. Consumers can return the recalled products to the store where they purchased them from.

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

Written by David Brown on July 18, 2024. Posted in Alberta, British Columbia, Insight.

British Columbia and Alberta recently signed an agreement allowing B.C. wineries to ship their products directly to Alberta consumers.

The move came after Alberta’s liquor wholesaler told BC winemakers in January that it would stop selling their products in retail stores. This followed concerns that these BC businesses were shipping directly to Albertans, bypassing the Alberta Gaming, Liquor, and Cannabis Commission.

While the move is good for BC winemakers who are struggling following catastrophic crop damage earlier this year, it also highlights a disconnect between how provinces treat alcohol and cannabis.

Not only do BC and Alberta not allow out-of-province producers to sell to consumers, but they don’t even allow in-province producers to do so. While this is within their power, most provinces across Canada still tightly control cannabis distribution and sales, requiring products to go through a provincially-run warehouse before being shipped to retailers and sold ultimately to consumers.

Provinces can, however, allow for much more nuance in managing these issues, going as far as allowing producers to sell directly to retailers. This was even a recommendation by the federal government’s expert panel review of the Cannabis Act, which argued that provincial and territorial governments “should consider permitting direct-to-consumer sales from smaller cultivators and processors in a way that allows smaller players to generate and keep more revenue than they would by selling cannabis through distributors.”

When implemented, the federal cannabis act even included an allowance for producers to ship directly to consumers in any province that didn’t establish a retail framework. However, this was never utilized because every province and territory did create such frameworks.

To their credit, BC began allowing “direct delivery” sales between some BC producers and retailers, bypassing their central distribution warehouse. However, this is only open to small-scale BC growers and doesn’t go as far as allowing sales directly to retailers.

Taking this a step further and allowing producers to ship directly to retailers and in cross-province sales would only increase the viability of cannabis growers, who face many of the same struggles BC’s (and Canada’s) wine sector is facing.

Federal and provincial governments seem to have no problem going to bat for Canada’s beer and wine industries. Earlier this year, the federal government announced plans to provide thousands of dollars in alcohol excise duty relief to Canadian businesses, particularly local craft breweries.

In a press release at the time, with comments from Deputy Prime Minister and Minister of Finance Chrystia Freeland and Minister of Small Business Rechie Valdez, the government acknowledged the number of jobs created by the brewing industry in Canada and the contribution this makes to the broader economy.

“This announcement is great news for breweries, distilleries, and wineries from all across Canada who contribute so much to our national economy,” said Valdez. “Not only are they producing incredible products, they are also small businesses who are creating jobs and opportunities in their local communities. Today’s relief on alcohol excise taxes will allow craft breweries to spend less on duties, and more on what matters most: growing and innovating their small businesses.”

These are examples of smart, proactive policies by the federal and provincial governments to protect these small businesses. However, there is a significant disconnect between the logic applied to protecting businesses operating in the beer, wine, and spirits sectors and these same governments’ unwillingness to take steps to do the same for small cannabis businesses.

On one hand, the cannabis industry needs to take some blame here. The alcohol sector’s lobbying efforts are well-funded and coordinated and result from years of effort. The cannabis industry’s representation is less established and sophisticated and has tended to focus on a handful of high-level issues like federal excise or edible limits rather than on tweaking provincial regulations.

And various governments’ hesitations to provide incentives to the cannabis industry are somewhat well-founded. The industry abounds with businesses struggling under the weight of their own poor planning as much as they are struggling under the weight of federal and provincial regulations. Governments don’t want to hand out money to a business that won’t be around next year.

Ultimately, the government at all levels needs to be willing to see the potential of the cannabis industry and put their money where their mouths are when it comes to rhetoric about supporting small businesses. If they can do it for beer and wine, they can do it for cannabis.

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

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

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

Written by David Brown on July 8, 2024. Posted in Alberta, Cannabis News, Retail.

A Calgary cannabis retailer is hosting its third cannabis consumption space at the Badlands Music Festival, which will take place from Thursday, July 4, to Sunday, July 14, 2024.

Chinook Cannabis, with two stores in Alberta, will host “The Garden” as a place for people to relax and smoke a joint, vape, or consume an edible or beverage somewhat removed from the heat and excitement of the rest of the festival. Badlands is a large electronic music festival held during Calgary Stampede.

Festival-goers can use the “Garden” space to relax, purchase, and consume cannabis, and can order cannabis from Chinook’s website to be delivered to the cannabis garden at the festival. Chinook Cannabis’s website includes a tab for festivals and events with an array of products.

Although Alberta made changes to provincial regulations earlier this year that allow for cannabis retailers to apply for a licence to sell cannabis at a minors-prohibited entertainment event or cannabis industry trade show, Chinook owner Casey Baer says that Calgary’s municipal bylaws still don’t allow for cannabis sales at these types of events. He hopes that by next year, they will also be able to facilitate on-site sales.

Baer and Chinook Cannabis worked closely with the AGLC, the province’s cannabis regulator, to establish these rule changes provincially, and now plan to begin working with municipalities like Calgary to do the same.

“We worked side by side with the AGLC to make sure everything was compliant and created kind of the first of its kind consumption gardens on festival spaces. It was that work over the last few years that helped change the rules earlier this year.”

He says they are bringing their “Garden” consumption space to Edmonton at the Great Outdoors Comedy Festival from July 12-14 and will have on-site sales as the city already allows. Sales will be in partnership with a local Edmonton retailer, Plantlife Cannabis. Baer says they also plan to bring The Garden to some events in BC next year.

“The Garden was created to bridge the gap between cannabis and large scale events,” he explains. “The idea that kicked this off is we were at a festival and the cannabis consumption areas were a sort of forgotten part of the event where you were basically in a parking lot or a mud pit. So we decided we needed to really flip the script to create a place where, whether you consume cannabis or not, it’s the spot of the festival that you want to come check out.”

Other events in Canada have attempted at least some version of cannabis sales at festivals, such as this festival in Saskatchewan in 2022. In this instance, consumers could order cannabis products online and have them delivered to the festival.

The Edmonton Folk Festival has previously hosted a cannabis consumption space, although it did not include on-site sales. Glenda Dennis, the sponsorship coordinator with the Edmonton Folk Music Festival, told StratCann at the time that she was happy to see a cannabis consumption space there.

“It’s a folk festival, so you can’t really not have cannabis!” she said at the time.

Featured image from Badlands Music Festival.

Fort 20 Farms crafting unique strains in BC Lower Mainland

Written by Staff on July 5, 2024. Posted in British Columbia, Cultivators, Profiles.

Fort 20 Farms is a newly licensed indoor micro cultivator in BC’s Lower Mainland, located on a 40-acre farm about an hour outside of Vancouver.

The owner and director, Andrew Neitzel, started the company with two other partners who serve as the master grower and facility manager. After about a year of renovation and applications, they received their licence to cultivate in December 2023.

“We want to make smart decisions as we go forward and create opportunities as we can. With any young business, any decision can be a make-or-break decision.”
Andrew Neitzel, Fort 20 Farms

A few months later, Fort 20 released its first two crops into the B2B market and under its brand in the BC market through local processor TriCanna—its BC Kemo and Purple Jelly, available in 7-gram SKUs and pre-rolls. Neitzel says they plan to offer products through BC’s direct delivery program beginning in July.

Neitzel says the Kemo cultivar is one of the original UBC Chemo strains, and the Purple Jelly is a unique cultivar brought in by Fort 20’s master grower.

Although their first crops were sold into the BC market, the micro cultivators are also considering the export market. They recently received their GACP certification.

Still, they aren’t looking to make any big moves, opting to take each step carefully.

“We’re just putting one foot in front of the other, not trying to do everything at once,” explains Neitzel. “We want to make smart decisions as we go forward and create opportunities as we can. With any young business, any decision can be a make-or-break decision.”

Currently, the priority has been connecting with local retailers in BC and talking to them about the products they have for sale through the BCLDB and through the direct delivery platform.

“We’re out there talking to retailers, letting them know who we are, that we’re just a small team who is passionate about good cannabis, and we have some very unique strains so I think we can help those retailers have something unique.”

Being a micro producer isn’t easy, he adds, but working in agriculture much of his life as a second-generation farmer, he says he’s used to it.

“The cannabis industry is a challenging business. I love agriculture, and with a farming background we’re used to not making money (laughs). Some years are good, some years are bad. The [cannabis] industry is obviously going through a lot of changes right now, and I’m hopeful that the cream will rise to the top and people who put out a good, reliable, clean product will find success. But there’s a lot of competition, and probably a lot of people who do a good job with that. So we’re doing a good job, connecting with people and just taking it one step at a time.”

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-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

January 18, 2023

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

May 17, 2024

AGLC delisting more than 500 cannabis SKUs

May 24, 2024

Why cannabis has no expiry date

May 10, 2021

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.

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.

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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Organigram investment helps expand its presence into German market

Written by Sarah Clark on June 25, 2024. Posted in Cannabis News, International, New Brunswick, Producers.

Organigram Holdings Inc. has taken a minority stake in German cannabis company Sanity Group GmbH, giving them a foothold in the German market.

In an announcement on June 24, the New Brunswick-based producer says the $21 million investment comes from the proceeds of its Jupiter strategic investment pool from British American Tobacco.

Organigram could also invest approximately $4.5 million as part of a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity, subject to the satisfaction of certain conditions.

Sanity controls about 10% of the current German medical cannabis market with its brand “avaay” and a network of 2,000 pharmacies and 5,000 physicians. Sanity is also participating in a recreational cannabis pilot program in Switzerland, with one store currently operational, a plan for more, and an expected investment in distribution channels in the market.

Organigram’s investment into Sanity Group builds on its previous supply agreement with the German company in 2023 to distribute its cannabis into the German market, with Sanity committing to buy even more cannabis from the New Brunswick producer. The new commercial agreement also considers allowing Ogranigram to sell its own branded cannabis to the German market.

Once Organigram receives EU-GMP certification at its Moncton facility, a requirement to sell into the German market, Sanity Group will move its annual purchase commitment to a percentage of Organigram’s dried flower offerings for the European market. Organigram says it expects to complete its final EU-GMP audit before the end of 2024.

“A meaningful presence in Germany and Europe is essential to achieving our ambitions to be a global cannabis leader,” said Paolo De Luca, Chief Strategy Officer of Organigram. “We believe that after Canada, Germany will emerge as one of the more promising markets under a nationally legal model.

“With its evolving program for medical cannabis and recent limited legalization for recreational consumption, Germany may eventually adopt a full adult-use cannabis framework. This growth opportunity is magnified by positive regulatory developments in several neighbouring European jurisdictions where Sanity Group is expanding its presence,” he concluded.

Finn Hansel, co-founder and CEO of Sanity Group, said:

“We are extremely pleased to close this strategic financing with Organigram, which has consistently demonstrated itself to be a leader in the highly competitive and regulated Canadian cannabis market. With its commitment to responsible R&D, innovation and product development, including through its relationship with BAT (British American Tobacco), we feel that we have chosen a partner that will support us in becoming a leader in the rapidly expanding legal European markets.”

Germany launched its new cannabis rules on April 1, 2024. According to Cannabis Data Company BDSA, Germany is estimated to bring in more than $2 billion in 2024 and more than $5 billion by 2027.

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“Indige-Smoke” re-opens in Ontario, but without cannabis—for now

Written by David Brown on June 25, 2024. Posted in Cannabis News, Ontario, Retail.

A chain of Indigenous-branded retail stores that sold cannabis in Ontario which police have targeted in two rounds of raids for operating without a licence has re-opened—but this time without cannabis, at least for the time being.

On June 5, Ontario Provincial Police (OPP) executed nine search warrants in an attempt to shut down six “Indige Smoke” cannabis stores operating in various locations in the province. The chain is now advertising on social media that several of these locations have reopened in some capacity as of Sunday, June 23.

Until the owners of the chain can successfully challenge the raids in court through a constitutional challenge, the company says it will be only selling tobacco products, not any cannabis, as they were before the raids. The store’s website still advertises cannabis for sale.

The company’s Instagram account first posted on June 22 that its landlords were not allowing them to re-enter these properties, but a subsequent post later the same day said they had regained control of the stores and would be reopening the following day. A follow-up post on June 23 then instructed customers to visit sea cans behind or next to some of the stores’ previous locations.

Police estimate they seized around $1 million worth of cannabis in the raids in early June, along with weapons and other equipment. Eleven people were arrested and charged with 34 offences. They were released from custody and will appear before the Ontario Court of Justice in St. Catharines on July 18, 2024.

These raids were at least the second time police have targeted the Indige Smoke stores. In March, three were shut down, seizing products and arresting three people. Those stores were quickly opened again following the raids, according to posts on their Instagram account, although at least one location had a notice of Closing Orders posted as well.

While some Indigenous and First Nations activists have argued that they can operate cannabis businesses without provincial or federal oversight, the provincial and federal governments have disagreed. In a recent court case in Nova Scotia, a judge rejected an attempt by several Indigenous cannabis store owners in the province to argue they can operate without provincial approval but said he would welcome a “stronger” argument along the same lines.

Enforcement of provincial cannabis laws is a jurisdictional and political challenge for provinces, often taking different enforcement approaches. For example, the British Columbia government has said that its cannabis laws apply even within First Nations communities but that they choose not to enforce them in most cases. However, law enforcement agencies have recently conducted raids on several of these stores.

New Brunswick, on the other hand, has said it cannot or will not take enforcement action against unlicensed cannabis stores operating within First Nations reserve lands. Police in both provinces, though, have taken enforcement action against unlicensed cannabis stores operating outside of First Nations reserve lands, even if owned and operated by Indigenous peoples.

Such jurisdictional and legal complexities have played out in Ontario, as well. In 2022, crown prosecutors dropped all charges against the owner of an unlicensed Indigenous-owned store operating on traditional First Nations territory in southwestern Ontario that OPP had raided several years prior.

That store subsequently opened a new location in late 2022 in London, Ontario, which is still in operation today.

Featured image from Instagram, showing the new tobacco-only store next to an Indige-Smoke location.

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.”

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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.”

New cannabis patio opens in Mission, BC

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

A cannabis store in BC is taking a second swing at hosting a cannabis-friendly patio space, this time in Mission.

Cheeky’s Cannabis, which has two locations in BC, one in Maple Ridge and one in Kitsilano, first briefly launched a similar cannabis-friendly patio in Maple Ridge earlier this year. Then in May, Cheeky’s partnered with the Mission Springs Brewing Company to host an outdoor cannabis-friendly patio to join the large, family-friendly restaurant and brew pub just off Highway 7 in western Mission.

Both businesses are owned, at least in part, by parent company Springs Group, which also helped to bring the two businesses together to create the cannabis consumption space as part of the restaurant.

Customers of the Mission Springs Brewing Company can sit inside or enjoy several outdoor patio spaces. One is smoking-friendly and now also allows cannabis smoking and vaping. Overlooking the Fraser River, customers can order food and drinks and enjoy them while sharing a joint with friends.

Earlier this year, BC began allowing businesses like cafes, restaurants, bars, and casinos that have approved smoking areas to allow cannabis smoking in those same areas. However, municipal bylaws can still be a barrier. A handful of spaces have opened, although many municipalities in the province do not allow these types of smoking areas, regardless of what is being smoked.

Laura Rowse, the co-owner of Cheeky’s Cannabis, says a previous partnership with a restaurant and pub in Maple Ridge called Billy Miner faced too many challenges from city inspectors, prompting her to launch this new space in Mission. The reception at the new space has been positive.

“Billy Miner was a trial, but we really struggled to keep the location in Maple Ridge open”, says Rowse. “Once we gave up on Maple Ridge, then we looked to Mission and the Mission bylaws allow for smoking on patios. We wanted to take a soft approach and not disrupt anybody. The feedback has been good so far.”

The space has about ten tables accessible from the restaurant, with notices on the door that it is a smoking patio. Customers can also choose a nearby non-smoking patio. Rowse says Cheeky’s supplies matches and ashtrays with the store’s branding, and signs within the space that note it’s in partnership with the cannabis store.

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Nova Scotia court rejects First Nations cannabis sovereignty argument

Written by David Brown on June 13, 2024. Posted in Business, Cannabis News, Government, Nova Scotia.

A Nova Scotia court has rejected a claim that the members of a First Nation can operate cannabis stores outside of provincial and federal cannabis regulations.

The defendants in the case argued that provincial regulations for cannabis stores in Nova Scotia do not apply to businesses operating within the territory of the Millbrook First Nation and that they do not need to pay provincial or federal duties on the products sold.

In a provincial court ruling from June 7, a judge said the defendant’s case did not make an effective argument for the existence of aboriginal and/or Treaty rights attached to their cannabis store operations, siding with the Crown, who argued the case was “frivolous” and a waste of the court’s time.

The defendant’s lawyer argued that the First Nation had a historical connection to cannabis and cannabis trade prior to contact with Europeans, that the development of federal and provincial cannabis regulations did not include consultation with the First Nation, and that Millbrook First Nation is on unceded territory.

The judge rejected the claim that a Treaty right to sell cannabis exists and rejected claims that there is evidence the First Nation had engaged in the cultivation or selling of cannabis prior to contact with Europeans.

However, the judge also said they welcome a “stronger” argument along the same lines.

“The matter cannot proceed on this foundation. I welcome a stronger one,” wrote Associate Chief Judge Ronda van der Hoek in her decision.

“The Court cannot allow the matter to proceed on such a foundation given its role to protect scarce judicial resources and in light of the Crown meeting the test to summarily dismiss, in the words of the Supreme Court of Canada, “manifestly frivolous” applications. This decision is not taken lightly…. It cannot be understated that decisions affirming and defining, or denying and restricting, aboriginal and Treaty rights are significant for the communities who advance them and Nova Scotians. The Court is aware that we are all Treaty people, but how the Treaties are interpreted must be based on a foundation that warrants consideration. At this time, that foundation has not been established for cannabis sales outside the lawful regime, and the existing regime applies to all Nova Scotians.”

In a similar ruling posted on the same day by Judge van der Hoek, she also rejected efforts to have charges thrown out related to the three raids of unlicensed cannabis stores in the province in 2021.

The defendants in the case heard in a court in Truro, Nova Scotia, attempted to make several arguments intending to have the charges dismissed, including claiming that the Crown could not prove that the cannabis was for sale or that one of the men arrested was not actually working at the store.

The judge rejected these arguments, noting evidence showing the cannabis products were listed as for sale, and the person in question was found behind the counter of the store when police arrived.

One defendant also argued that the Crown had failed to prove the elements of the offences are subject to the Kineapple principle, which prevents multiple convictions for a single criminal matter. The judge said they were willing to hear that argument at a later date.

Another related constitutional challenge by a band councillor from Millbrook First Nation, Chris Googoo, who has claimed a similar treaty right to sell cannabis, had his case dismissed earlier this year after the court found there was not enough evidence to proceed. Since the case was dismissed, the charter challenge did not proceed.

Nova Scotia RCMP officers raided Chris Googoo’s High Grade Smoke Shop, which sits on reserve land in Cole Harbour, NS, in December 2020 as part of a series of raids on several unlicensed cannabis dispensaries operating in the area. Googoo was arrested and charged with illegal possession and distribution of cannabis.

Googoo—who was represented by long-time cannabis rights lawyer Jack Lloyd—staged the constitutional challenge under section 35 of the Constitution Act, which protects Indigenous treaty rights in Canada. Specifically, Googoo is referring to the 1752 Peace and Friendship Treaty, which promises the Mi’kmaw “free liberty to bring to sale to Halifax or any other settlement within this province skins, feathers, fowl, fish or any other thing they shall have to sell.”

“Exercising our inherent treaty rights is something that all of our people should be doing freely, and not have to be harassed by any bodies of government,” said Googoo at a rally of supporters outside a Nova Scotia provincial courthouse in 2022, where he appeared to set trial dates.

Googoo was being backed by former president of the National Indian Brotherhood (precursor to the Assembly of First Nations) and one of the authors of section 35, Chief Del Riley, who has argued that the section grants Indigenous communities the authority to write their own cannabis regulation in parallel to federal and provincial law and to sell cannabis on reserve land. “You’re actually in a hell of a good position here,” he told members of the Millbrook community in April.

However, in 2019 Millbrook First Nations Chief Bob Gloade also said that such businesses are not supported by treaty rights.

“There is no treaty right protecting them in regards to selling, growing or distribution of cannabis whatsoever,” Gloade said. “It’s not a treaty or an aboriginal right because it does not state that anywhere. Our treaty rights basically focus around hunting and gathering not growing and distribution,” he said. “Individuals feel that it is a right and they’re extending it beyond the meaning of how the treaties are laid out in black and white and it puts us in a difficult situation.”

Since then, the Chief has changed his tune.

“Since that time, council has debated and discussed how to advance a cannabis strategy that is respectful of, and a benefit to, all community members, carried out in a way that prioritizes community sovereignty, safety, and well-being of everyone,” Gloade said in 2021.

“This is consistent with our inherent right to govern and our fiduciary duty to exercise jurisdiction over matters such as the community’s health and safety as a whole,” he said. “We continue to discuss the development of a cannabis regime and measures necessary for the Millbrook First Nation residents’ safety and enjoyment of life.”

Last year, the Assembly of First Nations called on federal politicians to “recognize First Nations jurisdiction over cannabis and remove regulatory barriers that exclude First Nations from the marketplace.” Thus far, federal and provincial governments have held that Indigenous communities can harmonize their regulations with Canadian law, and governments have attempted (to varying degrees of success) to help with that process.

Millbrook First Nation is one that finds itself in just such a position, and they have had a rocky relationship with the legal cannabis industry. Initially hopeful that legalization would be a source of economic opportunity for the community, in 2018 the band council invested $5 million in licensed producer Zenabis’ growing facility in Stellarton, NS, which opened in 2019 but was decommissioned in 2022, less than three years later. Financial statements show that Millbrook had lost more than $4.2 million on that investment, amidst a broader market downturn for public cannabis companies.

In 2022, Millbrook First Nation published a report following a community consultation exploring the idea of sovereign cannabis regulations, concluding that there was significant community support for “developing Millbrook laws and regulations.” A group called the Mi’kmaq Cannabis Association has also formed in the wake of the raids and has argued that “cannabis can be regulated informally by the customs and conventions of the Mi’kmaq people.”

An almost identical case in Cape Breton, where an Indigenous man was arrested for operating a dispensary on reserve land, was dropped by the crown suddenly in 2022, averting a planned constitutional challenge. “I’m kind of upset about it,” said defendant Albert Marshall. “I would have liked to have gone all the way to the end of it—right to the Supreme Court—to justify our inherent right to trade medicine, to trade plants.”

An Indigenous man in BC sued the provincial government in 2023, arguing that both federal and provincial cannabis laws ignore First Nations’ and Indigenous peoples’ jurisdiction.

Ongoing issue of jurisdictional authority

The issue of jurisdiction around cannabis laws is contentious in Canada as it relates to First Nations and Indigenous authorities. Canada’s Cannabis Act and Regulations provide the authority to regulate the sale of cannabis to provinces and territories. Many provinces, including BC, along with the federal government, have said that their own respective cannabis regulations are laws of general application, meaning they apply to all areas in those jurisdictions, including Indigenous land.

In 2020, BC’s Minister of Public Safety and Solicitor General, Mike Farnworth, said the province does not recognize such sovereignty in regard to federal and provincial cannabis regulations, but it is hesitant to enforce the law on First Nations territory out of fear of a court challenge.

Meanwhile, the New Brunswick government claims it is powerless to enforce its cannabis laws on First Nations land.

In 2023, the federal Senate Committee on Indigenous Peoples called for jurisdiction over cannabis possession, sale, and distribution in Canada.

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