Provinces Archives

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.

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.

Featured image via Reddit

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

September 19, 2023

“Indige-Smoke” re-opens in Ontario, but without cannabis—for now

June 25, 2024

Blood Tribe Police Services in Alberta seize cannabis, psilocybin from unlicensed store

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.

BC LDB warehouse making changes to improve product freshness

May 17, 2024

BC announces cannabis policy changes aimed at helping industry

April 12, 2023

BC provides updates to cannabis sampling rules

July 16, 2024

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

February 9, 2024

Ontario Provincial Joint Force Cannabis Enforcement Team raids online retailer

June 5, 2020

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

March 27, 2024

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

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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

AGCO, OCS rolling out new POS data platform

August 2, 2023

“Data scraping” concerns some Ontario cannabis retailers

February 9, 2023

Inside the world’s largest legal cannabis distribution centre

April 28, 2023

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.

Global tobacco giant ups investment in Canadian cannabis producer Organigram

November 6, 2023

Organigram reports $15 million loss due to lower international revenue and medical sale

February 13, 2024

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

March 22, 2024

“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.

BC allows smoking, vaping cannabis on public patios, cannabis stores can now promote places to consume

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Cannabis consumption spaces beginning to open in BC

March 5, 2024

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.

Indiva receives creditor protection

Written by Sarah Clark on June 13, 2024. Posted in Business, Cannabis News, Ontario, Producers.

The CCAA filing follows 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 is a major investor in Indiva and stands to take over the business through a stalking horse transaction. In their most recent quarterly report, Indiva announced a net loss of $1.8 million.

Indiva says the decision to file for creditor protection provides the company with a stay of proceedings in favour of the Indiva Group, the approval of debtor-in-possession financing, and the appointment of PricewaterhouseCoopers Inc. as monitor of the Indiva Group. The initial order also relieves Indiva of some reporting obligations under securities legislation and stock exchange rules.

The stay of proceedings and DIP Financing will provide the Indiva Group with a chance to consider potential restructuring transactions and maximize the value of its assets for the benefit of its creditors and other stakeholders, which could include the sale of all or substantially all of Indiva’s business or assets through a court-supervised sales process.

The Indiva Group says it also plans to seek approval to launch a sale and investment solicitation process (SISP) for its business and assets in the near term. Indiva also intends to enter into a transaction for SNDL Inc. to acquire the business and assets of the Indiva Group through the stalking horse transaction.

Located in London, Ontario, Indiva is a cannabis producer with an array of edibles and extracts in the Canadian market, including Pearls by Grön, No Future Gummies and Vapes, Bhang Chocolate, Indiva Blips Tablets, Indiva Doppio Sandwich Cookies, and Indiva 1432 Chocolate.

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.

Manitobans still waiting for right to grow cannabis at home

Written by David Brown on June 10, 2024. Posted in Cannabis News, Government, Manitoba.

Although Manitoba recently passed legislation to allow people to grow cannabis at home, they could be waiting several months before the law actually comes into force.

A source with the Manitoba government tells StratCann that the Minister of Justice and Attorney General of Manitoba are currently formulating legislation with the LGCA that will allow people in the province to grow up to four cannabis plants at home, and expects that this will be in place “within the next six months”.

The bill was passed on June 3, but the specific details of the law are still unknown.

Bill 34, The Liquor, Gaming and Cannabis Control Amendment Act, which repealed Manitoba’s ban on growing up to four cannabis plants at home, passed on June 3, but the specific details of the new law are still unknown.

A media representative with the Manitoba government tells StratCann via email that no information on the new law is currently available due to a media blackout related to a current bylaw election, but says the bill itself has not yet received Royal Assent. Government documents online, however, do show it received royal assent on June 4. This does not mean the law is in effect, though.

Jesse Lavoie, who spearheaded a lawsuit targeting Manitoba’s home grow ban, but says he would be disappointed by a long delay in implementing the law.

“We appreciate the progressive update to our archaic homegrown prohibition,” Lavoie tells StratCann. “Implanting this policy immediately will allow Manitobans to take advantage of the summer and grow as nature intended, in the sunshine. Any delay just means our status as second class citizens compared to the rest of Canada persists.”

Lavoie’s organization, TobaGrown, has now suspended their lawsuit following the government’s move to repeal the home grow ban, but he says they can still move forward with the lawsuit if the law takes too long to implement.

Study finds inaccurate labelling on some cannabis oils in Ontario

Written by David Brown on June 9, 2024. Posted in Cannabis News, Ontario, Products, Research.

A study from researchers in Ontario says that some cannabis oils on the market in Canada are inaccurately labelled for THC and CBD.

While there have been many studies looking at the accuracy of labelling on cannabis flower and edibles, and some extracts, this is potentially the first study to look at legal cannabis oils.

In a case series study, researchers at McMaster University and St Joseph’s Healthcare Hamilton tested 30 cannabis oil products available on the Ontario Cannabis Store (OCS) website.

The amount of THC and CBD in those products was then tested by the Centre for Microbial Chemical Biology at McMaster University for comparison against the amounts listed on the product label.

While none of the products contained significantly more THC than the labelled amount, 12 of the 30 tested products were found to be outside of the allowable variable limit for THC, and three products were outside the variability limit for CBD.

Of the 16 cannabis oils tested that had a label amount of 2.5 mg/g THC or greater, seven of them had amounts that were lower than what was labelled by more than the 15% allowable variance.

In addition, the study found discrepancies between the amount of THC and CBD listed on the OCS website’s product description for 10 of 30 oil products.

Five products were also found to be labelled with inconsistent listings of active THC/CBD and total THC/CBD, with one product being labelled as having 5 mg/g CBD but found to be 26 mg/g total CBD upon secondary testing. Unlike products like dried flower, cannabis oils of the type the study looked at should generally have the same active and total THC/CBD amounts.

The researchers involved argue that their findings merit greater quality control efforts by the industry, while also noting the limited scope of their research. The OCS currently lists around 50 cannabis oil SKUs online.

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OCS: Decline in high-THC flower following launch of testing program

April 10, 2024

Legacy Supply Chain’s new processing licence expands service capability in Ontario

Written by David Brown on June 7, 2024. Posted in Cannabis News, Government, Ontario, Producers.

A company connected to OCS’s distribution warehouse recently received a federal cannabis processing licence.

Legacy Supply Chain, an omnichannel third-party logistics provider that operates the OCS’ distribution centre through their subsidiary Domain Logistics, received a standard cannabis processing licence from Health Canada in April.

The licence allows the company to expand its logistics services to include storage, transportation, and distribution of cannabis products to all Canadian licensed cannabis producers and expands on Legacy’s existing service capabilities by leveraging its experience in its omnichannel North American supply chain, says Mike Glodziak, President & CEO of Legacy Supply Chain.

“This licence enables us to offer supply chain services that create value for the LP community in Canada,” he said.

“Since legalization in 2018, we’ve operated the world’s most expansive recreational cannabis supply chain, ensuring the safe, secure, efficient, and responsible flow of products to conscientious consumers across Ontario. We are excited to partner with licensed producers, and are committed to providing innovative solutions that help them grow and scale their business across Canada.”

The new licence and facility will allow Legacy to give an easier path into the Ontario market, especially for western Canadian producers. Rather than sending multiple shipments to the OCS’ central distribution warehouse in Guelph (managed by Domain), producers can now ship one large shipment to Legacy Supply Chain’s new facility. Legacy can then send those products into the central warehouse for the producer, explains Kyle Krug, VP of Corporate Strategy at Legacy.

“The value we’re bringing to these LPs is the ability to help grow and scale their brands better,” says Krug. “If you’re a western Canadian LP, you can now, instead of spending a lot of money and time and effort transporting your product into Ontario for real-time fulfilment, we have a distribution warehouse in Ontario that has one day access to the Guelph DC.

“So essentially, for all LPs, but especially if you’re a western LP, you can shorten that time to market here in Ontario.”

Legacy manages all aspects of shipping, from the producer’s facility to their new processing centre, and from the processing centre to the OCS central warehouse.

The processing licence from Health Canada allows Legacy to handle and store the cannabis products, but Krug says the company has no plans for any value-add processing under the licence.

Featured image via Legacy Supply

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

Written by David Brown on June 7, 2024. Posted in Business, Cannabis News, Government, Producers, Quebec, Retail.

The Kahnawà:ke Legislative Commission in Quebec released the results of a call for feedback on its recent Cannabis Control Law draft Regulation Concerning Suppliers, and Regulation Concerning Alternate Board Members Feedback Report this week.

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.

On December 6, 2023, the Kahnawà:ke Legislative Commission (KLC) shared that the final Regulation (Regulation Concerning Dispensaries and Dispensary Licences) for the Kahnawà:ke Cannabis Control Law was enacted at a duly convened Council meeting held on December 4.

Only two responses to the survey were published, both of which shared concerns about the proposed regulations being aligned with Health Canada’s cannabis regulations. In response, the commission argues that while its long-term goal is to have “complete control and jurisdiction over the cannabis industry, we are not currently equipped to replace the role of Health Canada.”

“In order to take over their complex role, it will take significant time to develop and implement and will require drafting and amending the Law and its regulations,” continued the official response from council.”

Ietsénhaienhs Tonya Perron, who helped to lead the cannabis file for the Mohawk Council of Kahnawà:ke (MCK) for several years, told StratCann in an interview in 2021 that the process of creating cannabis regulations in Kahnawà:ke has been an act of balancing community concerns.

“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, the councillor told StratCann at the time. “People come from different places in the way that they think. 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.”

The feedback and responses were compiled during the 30-day review period of the draft regulations that took place from April 12, 2024, to May 13, 2024.

The MCK announced a memorandum with Health Canada in 2021 in relation to their cannabis production regulations. The memo, which harmonizes federal and MCK cannabis production regulations, was years in the making. In late 2018, the community passed their own Cannabis Control Law, and draft regulations to regulate production, sale, and personal medical production.

The memorandum established channels of communication between the Mohawk Council and Health Canada regarding inspections of production facilities and information sharing, as well as assisting the community in better understanding supply chain management. The MCK regulations also require that any cannabis producer must be owned by a member of the community.

Those regulations closely mirror the federal cannabis regulations while allowing for additional approvals by the MCK. In addition to production, the regulations cover cannabis sales, which are to be limited to three stores. Although MCK was open to harmonizing its cannabis production rules with Health Canada, the organization has no similar plans with the province of Quebec, which only licences its own provincially-run cannabis stores. Numerous cannabis stores operate within the community without council approval.

Despite all these regulations to allow the community to manage cannabis production and sales, Perron also explained to StratCann that there are many concerns and differing opinions within the community. While some are open to allowing the industry a foothold in their community in some fashion, others have been deeply opposed. Much of this opposition, she explains, is deeply rooted in those trying to protect the community from drug use and addiction that can arise from generational trauma that is still present today.

“The opinions of the community are from one spectrum to the other, so it’s a balancing act for the Mohawk Council of Kahnawà:ke, and even just for the community decision making process. On the one hand, we have been a zero tolerance community, so public policy was zero tolerance of illicit drugs. Obviously the word illicit is important because once cannabis became legal, it took it out of the illicit definition. There are a number of community members who still want it to be zero tolerance, but there’s a number of community members on the other side of the spectrum that see this as economic opportunities, a way to push jurisdictions.

“So there are very different mindsets,” she continued. “Some want it in a regulated fashion, and then there’s some obviously who don’t want it regulated, who just want the opportunity to have revenue generation from it. So you have these two diverse opinions, and then you have some people in the middle.”

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

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

Written by David Brown on June 5, 2024. Posted in Alberta, Cannabis News, Government.

In a recent interview on a podcast, Conservative MP Arnold Viersen told host and Liberal MP Nate Erskine-Smith that he would vote for a bill that made cannabis illegal again if given a chance.

The comments came in a relatively friendly exchange between the two MPs posted on May 31 on Erskine-Smith’s podcast called Uncommons. Erskine-Smith has hosted the show since 2020, speaking with an array of policymakers, politicians, and other subject experts on various Canadian political issues.

The interview with Viersen was centred around Bill C-270, known as the Stopping Internet Sexual Exploitation Act (SISE), a private member’s bill introduced by Viersen in 2022, but it also delved into the broader issue of social conservatism in Canada.

In that vein, Erksine-Smith pressed Viersen on what he framed as a contradiction between a conservative ideology that wants the government to leave people alone with more socially conservative ideas centred around policing people’s personal behaviour, such as abortion or gay marriage or cannabis.

Sharing that he uses cannabis to manage symptoms from Chron’s Disease, Erskine-Smith asked, “If there was a vote to recriminalize cannabis, are you going to make me a criminal again?,” to which Viersen replies: “Your predictions are correct. Yeah.” This remark was met by an exasperated, but laughing, “no” from Erskine-Smith.

Viersen also told Erskine-Smith that he does not see a contradiction in social conservatives like himself claiming to want the government to leave people alone while also criminalizing and policing some peoples’ behaviour.

Erskine-Smith also suggested cannabis could help with Vierson’s poetry, which he has shared in the House. “…if you want the rhyme to flow better, definitely cannabis will help.”

Such sentiments from the Conservatives around cannabis are not uncommon. Marylyn Gladu, Conservative MP for Sarnia—Lambton (ON), who has a storied anti-cannabis history in the House as one of those who led the charge to oppose legalization in the first place, has long said the party would push back on legalization.

In 2019, she told the Globe and Mail last year that the party wouldn’t roll back cannabis legalization but would like to make major changes to it, including raising the age of access, banning home grows (including medical), supporting larger companies over smaller ones, while also wanting to pare back packaging restrictions for foods and drinks.

Recently, another Conservative MP in Ontario has called on the federal Health Minister to look at issues with medical cannabis home grows. Conservatives have also continued to call for an end to a medical cannabis “loophole”.

On April 20 of this year, Erskine-Smith spoke with Gladu on a broad range of topics, which included cannabis legalization. She rebutted Erskine-Smith’s assertion that the sky did not fall after Canada legalized cannabis, claiming there is under-enforcement of the regulations, infiltration of organized crime, and a 32% increase in drug-impaired driving.

She also criticized legalization for allowing provinces to manage distribution and sales, complaining about the number of cannabis stores in Ontario. Of course, provinces have jurisdiction around distribution and sales and any attempt to take that power away would have been unconstitutional, and the number of cannabis stores in Ontario is directly due to the management of the file by Doug Ford’s Progressive Conservative government.

Gladu and the rest of the Conservative party all voted against legalizing cannabis, save for one Conservative MP, Scott Reid (ON), who says the party punished him for breaking ranks on the bill.

Erskine-Smith, Scott Reid, and NDP MP Don Davies are co-chairs of the federal cannabis caucus.

Featured image of Arnold Viersen via YouTube.

Health Canada issues recall for cannabis products containing undeclared intoxicating cannabinoid

Written by David Brown on June 4, 2024. Posted in Alberta, Business, Cannabis News, Producers, Products.

An Alberta-based cannabis company has recalled several cannabis oils and softgels due to the “presumed presence” of hexahydrocannabinol (HHC), considered by Health Canada to be an intoxicating cannabinoid.

HHC is a “semisynthetic CBD” often synthesized from CBD.

The recall involves six lots of products from cannabis producer iNaturally Organic Inc’s Emprise CBN+CBD 50mg Softgels, NuLeaf Naturals 1800 mg Full Spectrum Hemp Multicannabinoid Oil Softgels, and NuLeaf Naturals 1800 mg Full Spectrum Hemp Multicannabinoid Oil cannabis extracts.

The NuLeaf Naturals oil contains Delta 9, CBC, CBD, CBG, and CBN each at 3 mg per softgel. The NuLeaf Naturals softgels contain CBC, CBD, CBG and CBN, each at 15 mg/ml.

The recalled products were sold in Ontario, British Columbia, Alberta, Manitoba, Saskatchewan, and the Yukon, and through medical cannabis platforms Herbal Dispatch, Open Fields Winnipeg, and Médicibis.

Health Canada says the recall is due to the identified hazard of the presumed presence of hexahydrocannabinol, which consumers may not be aware of. To date, iNaturally Organic Inc. says it has received two adverse reaction reports about these products. Health Canada has received three adverse reaction reports and one complaint related to these products.

There were 8,526 units of Emprise CBN+CBD 50mg Softgels distributed, 2,286 units of NuLeaf Naturals 1,800 mg Full Spectrum Hemp Multicannabinoid Oil Softgels (with Delta 9, CBC, CBD, CBG and CBN each at 3 mg per softgel) distributed, and 2,534 units of NuLeaf Naturals 1,800 mg Full Spectrum Hemp Multicannabinoid Oil (CBC, CBD, CBG and CBN, each at 15 mg/ml) distributed from December 2022 to May 31, 2024.

Health Canada says consumers should immediately stop using the product, either returning the product to where it was purchased or disposing of it.

Mukhdeep Mangat, VP of operations at Emprise, tells StratCann that they have independent lab tests showing no presence of HHC and were surprised by Health Canada’s findings.

“Analytical testing laboratories working with iNaturally Organic did not detect HHC in any of the products prior to batch release.”

“iNaturally Organic received two adverse event reports about all three products combined. Health Canada received three adverse event reports and one complaint. The adverse event reports and complaint total six reports after sale of well over 10,000 units total of the three products, or less than one in 1,000 units.

“iNaturally Organic prioritizes the health of its customers and is investigating Health Canada’s assertion of presumed presence of HHC, despite no evidence of HHC in the products from analytical testing laboratories working with iNaturally Organic.”

Manitoba passes legislation to allow growing cannabis at home

Written by David Brown on June 3, 2024. Posted in Cannabis News, Government, Manitoba.

Manitobans will soon be able to legally grow cannabis at home.

Bill 34, The Liquor, Gaming and Cannabis Control Amendment Act, which repealed Manitoba’s ban on growing up to four cannabis plants at home, passed on June 3, 2024.

The bill fulfills a commitment Manitoba Premier Wab Kinew made prior to forming government in late 2023 when the Manitoba NDP defeated the previous Progressive Conservative government. The ban on growing cannabis at home had been put in place by the Progressive Conservatives.

Although the Bill was delayed for several weeks, along with other legislation, due to delay tactics by the opposition, the proposed legislation received little pushback from the opposition, save for the newly-elected MLA for Brandon West Wayne Balcaen. Balcaen raised concerns at second reading in the house and when the bill was discussed in the Standing Committee on Social and Economic Development.

In the Committee, Balcaen referenced his experience as the former Chief of Police in Brandon, Manitoba, in his concerns with the bill, saying he had seen many homes with extensive damage from indoor cannabis operations.

The MLA also said he had concerns with children eating cannabis off of a plant, that it will lead to less tax revenue for the province because they will be growing their own, that it will lead to the legalization of other drugs, and that it will “open the doors to organized crime.”

“This legislation will be a segway for organized crime into very lucrative black market sales and I believe that this will open up the doors for organized crime to find ways into this business and certainly gain further financial gains within our province,” he stated for the record in committee.

Balcaen expressed similar concerns when the bill was debated at second reading, asking, “who will monitor these grows, and who will monitor the sale of the seeds to produce these cannabis products?”

PC MLA Jeff Wharton (Red River North) had similar concerns: “Can the member explain how the bill–or how we can ensure that the cannabis grown in a private residence will not be blended potentially with dangerous additional substances that could hurt not only the user but the children in the home?”

Despite these concerns, the Bill passed with no amendments in committee on May 27 and passed concurrence and third reading on June 3, 2024.

The group challenging Manitoba’s ban on growing cannabis at home filed an appeal earlier this year against a court decision to uphold the ban. That group, TobaGrown, has now suspended their lawsuit following the government’s move to repeal the home grow ban.

“TobaGrown is pleased to observe the progress of this Bill and values the ongoing positive communication we’re having with the Manitoba Government,” says Jesse Lavoie who has led the charge against the ban through his organization, TobaGrown. “We have formally suspended our lawsuit against the Province and will fully withdraw it upon the enactment of the new legislation.”

Affidavits filed in Manitoba home grow court challenge

January 29, 2021

$5,000 fine for Winnipeg woman who gave out cannabis edibles on Halloween

March 25, 2024

Manitoba NDP could lift home grow ban

April 19, 2024

Growing Relationships – Kelowna 2024 Agenda

Written by Staff on June 1, 2024. Posted in British Columbia, Events.

We look forward to welcoming you to Growing Relationships in Kelowna, BC, on Monday, June 10!

Below are the details for our Growing Relationships 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 June 10. We will not have paper agendas but we will have signage at the event.

TIME

The doors open at 8:45am PDT for registration, networking, and a light breakfast; programming will begin at 9:30am. We will end around 4:30pm with some prize give-aways, don’t forget to put your name in the bowl at registration!

VENUE

Growing Relationships is at the Manteo at Eldorado Resort (3762 Lakeshore Rd, Kelowna). We will be in the Waterfront Ballroom & Patio. Look for signage in the lobby of the Manteo hotel at the resort.

► Bring your government-issued ID, this is an age-gated event.

DRESS FOR THE WEATHER

Our event room opens up to our exclusive outdoor lakeside patio. This space will be available for informal networking throughout the day, and for the industry speed-dating if the weather cooperates. You may also wish to enjoy your lunch al fresco, so come prepared!

PARKING

The Eldorado Resort has very limited parking available, typically used for guests registered at the hotel. However, the Kelowna Public Parking lot is right beside the hotel, and there is a parking lot at Gyro Beach just a short walk from the venue.

The Eldorado Manteo Resort Event Parking Fee is $15 per day. QR codes will be available in the event room for you to scan, register & pay for your parking. Or, you can register & pay at the hotel’s front desk.

The hotel lot is limited and on a first-come-first-served basis. There is also a public space in the Kelowna Public Parking lot on Cook Road, located directly in front of Hotel Eldorado, for up to $11.00 a day or $1.65 per hour.

EVENT AGENDA

Time	Monday, June 10, 2024
8:45-9:30	Registration & Light Breakfast
9:30-9:40	Welcome & Introductions Presentation
9:40-10:00	Navigating the Green Frontier
10:00-11:00	Industry Roundtable Workshop
11:00-12:30	Industry Speed-Networking session
12:30-1:30	Lunch
1:30-1:55	Prizes & Presentations
2:00-3:00	CannaTalks Panel: Exploring the Supply Chain
3:00-3:15	Nutrition Break
3:15-4:15	Retail Panel: Realities of Cannabis Retail in BC
4:20-4:45	Closing Remarks… and more Prizes!

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.

PLEASE NOTE: the elevator pitch applies to Producers and Services primarily, as you will be presenting your business to the retailers. 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 the beautiful lakeside patio reserved for us, to enjoy networking and lunch. As the weather looks like it will cooperate, we will likely have groups outside for various portions of the speed-networking activity!

TETHER EVENT

We’ve partnered with Tether as they deliver their Kelowna Sampling Event the evening before Growing Relationships, on Sunday, June 9. Use promo code STRATCANN for 20% off any ticket type for you and your budtenders – 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

Study finds driving impairment was not correlated with blood THC

Written by David Brown on May 31, 2024. Posted in Cannabis News, Ontario, Research.

A recent study in Ontario looking at the effects of edible cannabis on simulated driving and blood THC levels found that driving impairment was not correlated with blood THC.

The study is the first of its kind to look at the impact of cannabis edibles on simulated driving, with researchers using an average dose of around 7.3 mg THC to provide real-world context for the impact legally available cannabis can have on driving.

The 22 participants (sixteen male and six female) were required to have a valid Ontario driver’s licence, to have used cannabis edibles at least once in the past six months, and to drive at least once a month. Participants could be from 19-79 years of age.

Participants were asked to not use cannabis for 72 hours before the test, or any other drugs or alcohol for 12 hours. Researchers gave them three independent, pre-programmed scenarios, including a two-lane rural highway and a “potentially frustrating event” to test the drivers’ speed, and a lateral control test on a four-lane highway to rate drivers’ reaction time.

On average, participants chose to consume about 7.3 mg of THC with 2.14 mg CBD. Eleven chose the maximum of 10 mg THC, while ten chose edibles with 5 mg THC or less. A blood sample was then collected two hours after consuming the cannabis edible or a control candy.

The mean speed of the drivers who consumed a cannabis edible was found to decrease at the two-hour mark, but not at the four or six-hour mark. Some participants noted effects up to six hours after ingestion, with some reporting being less able or willing to drive up to six hours after consuming a cannabis edible.

While past studies have found evidence of increased swerving (“standard deviation of lateral position”) and decreased reaction time after smoking or vaping cannabis, these effects were not observed in this study.

The researchers speculate that this may be due to the relatively low amount of THC consumed, or the inability of the driving simulator to detect small changes in performance.

After two hours, blood THC was relatively low at about 2.8 ng/mL. Blood THC was significantly increased after consuming the cannabis edible, but the mean increases in blood THC were lower than those reported for smoked cannabis. Researchers also found no direct relationship between blood THC and driving impairment, speculating that “the present study suggests that blood THC may not be as useful for detection of impaired driving after edibles as it may be for the smoked route.”

“Analysis of the relationship of blood THC to SDLP (standard deviation of lateral position) or MS (mean speed) revealed no correlation with blood THC, which fits with emerging evidence from studies of smoked cannabis that there is no linear relationship between blood THC and driving impairment.”

The paper also speculates that it’s possible the participants had a high THC tolerance that allowed them to manage the effects of cannabis more effectively.

Twelve of the participants reported using cannabis at least once a day, while another six reported consuming it more than once a week.

The study was approved by the Centre for Addiction and Mental Health (CAMH) Research Ethics Board and the Health Canada Research Ethics Board, and was conducted at CAMH in Toronto, Canada.

The Toronto Star has a video of someone using simulated driving equipment at their research centre.

Shiny Bud files notice of intention to make a proposal under Bankruptcy and Insolvency Act

Written by Sarah Clark on May 28, 2024. Posted in Cannabis News, Ontario, Retail.

The parent company of Shiny Bud, a cannabis retail chain in Ontario, announced it has filed a Notice of Intention to make a proposal pursuant to the provisions of the Bankruptcy and Insolvency Act.

The parent company, Shiny Health & Wellness Corp., emphasizes that it is not bankrupt. Instead, it says the primary purpose of the Notice of Intention (NOI) filing is to “create a stabilized environment for the Company and its financial advisors to run an orderly and flexible sale, investment and solicitation process (“SISP”) with the goal of identifying one or more interested parties that wish to acquire or make an investment in the Company’s business or all or some of its assets.”

Shiny Bud says it currently operates 20 locations in Ontario. On May 16th, the company announced it had temporarily closed five of its retail cannabis stores effective immediately. It had previously closed another three locations and opened one since October 31, 2023. Its website currently lists 36 locations. The AGCO lists 37 locations as authorized to open.

If the agreement is approved, Shiny Health believes it has enough resources to fund its operations during the SISP, and its stores will remain open for business during that time. This would be subject to any restructuring steps the company may take during this process.

It expects that its 20 licensee stores will not be impacted by the NOI and will be able to continue to use the Shiny Bud brand in accordance with the licence agreements.

Due to the NOI filings and other “financial resource constraints,” Shiny Health says it does not expect to file its annual financial statements and accompanying management’s discussion and analysis for the fiscal year ended January 31, 2024, by the prescribed deadline of May 30, 2024.

In addition to its retail cannabis stores, Shiny Health also owns one pharmacy in Ontario, initially intending to create a chain of pharmacies that would provide access to cannabis, as well. A recent report proposed allowing sales of medical cannabis through pharmacies in Canada.

As of October 31, 2023, Shiny Health had cash of $239,817, liabilities that exceeded current assets by $7.4 million, an accumulated deficit of $26.7 million, and a shareholders’ deficit of $5.1 million.

“The current negative working capital deficit indicates the existence of material uncertainties that may cast significant doubt on the company’s ability to continue as a going concern,” says its most recent report for 2023. “Management’s view is that the success of the Company is dependent upon its ability to generate sufficient positive cash flow from its total operations to cover all its costs, including overhead and public company costs and obtaining financing through a combination of equity and additional debt where possible for working capital, debt service and to sustain its operations until positive overall cash flow is achieved.”

For the three months ended October 31, 2023, Shiny Health had $4.3 million in revenue, with a loss of $752,594 and a net comprehensive loss of $5.9 million.

In the same period, it brought in $3.6 million in revenue from its retail cannabis operations, $220,849 from its “data program,” and $346,828 from its pharmacy. This represented about a 45% decline in revenue for its retail cannabis operations and data program from the same period in 2022.

For the nine months ended October 31, 2023, retail cannabis operations brought in $14.8 million, a 30% decline from the same period in 2022 and $852,450 from its data program, down 33% from the same period in 2022.

The company blames the decrease in cannabis sales and data program revenue on the market conditions in Ontario and the closure of some of its stores.

Second cannabis store opens in Nunavut

Written by David Brown on May 28, 2024. Posted in Business, Cannabis News, Government, Nunavut, Retail.

A second cannabis store opened in Iqaluit, Nunavut, in April, to help serve the Territory’s population of just over 40,000 people.

The store, Higher Experience, is located about a 15-minute walk from Iqaluit’s first cannabis store, Nuna Cannabis, which opened in 2021. The territory began accepting applications for private retailers in 2020. The population of Iqaluit, the territory’s capital, is about 7,000.

Prior to this, the only way for Nunavummiut to buy cannabis was from two businesses under a licence category the territory calls Registered Suppliers. Residents can still order online or by phone from Canopy/Tweed or AgMedica/Vertical Cannabis.

In the most recent annual report from the province for 2020-2021, revenues from online cannabis sales through the NULC’s partners accounted for less than a tenth of a percent of total revenues the Commission earned in the year.

Higher Experience’s application had been in the works for several years. Kevin Ikeno, one of the owners at the store, said it was a long process, but he’s excited to now be open.

“We’re phenomenally excited to finally get [a licence],” Ikeno tells StratCann. “It has been a long time coming, but we’re very happy to now be open for business. The community has been fantastically welcoming. They’ve been very friendly.”

Unlike most provinces, Nunavut has no central delivery, so the Territory’s two stores must arrange for orders from each of the approximately 40 registered wholesale suppliers.

The territory allows two other licence types in addition to its registered suppliers: physical cannabis stores and what it’s calling remote sales. These two licence categories can also be combined.

There are also two subclasses of physical stores: enclosed cannabis stores and integrated cannabis stores.

Enclosed cannabis stores can be either stand-alone buildings or located within an existing commercial space such as a multi-unit building. Higher Experience is located at 760 Queen Elizabeth Way in Iqaluit, the Territory’s capital.

The age of access in Nunavut is 19.

h/t nunatsiaq.com

Alberta government researching impact of legalization on province’s youth

Written by Sarah Clark on May 27, 2024. Posted in Alberta, Cannabis News, Government, Research.

The Alberta Government is looking into the impact of cannabis legalization on young people in the province.

The provincial government made their announcement on May 27, saying that now that more than five years have passed since cannabis was legalized in Canada, Alberta’s government is working with drug policy experts, doctors, and professors to examine the impacts of cannabis on people 25 and under.

The provincial government says it is providing a one-time grant of about $280,000 to conduct a review of the available evidence and data regarding the impacts of cannabis use on youth, in coordination with experts from the University of Alberta, University of Calgary, Dalhousie University, Harvard Medical School, and the University of Birmingham.

“We owe it to young Albertans and their families to make sure we fully understand the effects of legal cannabis,” says Dan Williams, Minister of Alberta Mental Health and Addiction. “We’re proud to bring together this group of respected health experts to provide insight and advice as we continue to navigate this evolving area of health care.”

The research team will report to the Minister of Mental Health and Addiction, and the work is expected to be completed in summer 2024. Alberta has the lowest age of access in Canada at 18. All other provinces and territories have an age of access of 19, except for Quebec, which has set the age of access at 21.

The government says the review could potentially inform future policy changes in Alberta and could recommend policy changes to ensure children and youth are protected from the harms of cannabis.

“As cannabis products have become more widely available, we must continue to evaluate their health impacts—particularly on young people whose brains are still developing,” says Blair Gibbs, a former advisor to the Prime Minister of the United Kingdom and policy consultant who is advising on the project. “I look forward to working with leading experts from around the world to closely examine the evidence and help inform decisions in the best interest of Albertans.”

In addition to Gibbs, the province lists: Dr. Sebastian Straube, professor and division director, Division of Preventive Medicine, Department of Medicine, University of Alberta; Dr. Philip Tibbo, professor in the Department of Psychiatry with a cross-appointment in Psychology and Neuroscience at Dalhousie University; Dr. Charl Els, fellowship-trained addiction psychiatrist and occupational physician, clinical professor, Department of Psychiatry and Medicine, University of Alberta; Dr. Emily Hennessy, associate director of Biostatistics, Recovery Research Institute and assistant professor, Harvard Medical School; Dr. Victoria Burns, associate professor, University of Calgary, and director, University of Calgary Recovery Community and Recovery on Campus Alberta; and Dr. Ed Day, United Kingdom government’s drug recovery champion and clinical reader in Addiction Psychiatry at the Institute for Mental Health at the University of Birmingham.

The government of Alberta says it spends more than $1.55 billion annually on addiction and mental health care and supports, including prevention, intervention, treatment and recovery.

A recent study in Alberta found an increase in hospitalization rates among younger adults (18-24) before legalization, yet no increased risk was associated with cannabis legalization, for either younger (18-24) or older adults (25+).

A recently published study looking at cannabis use rates in Ontario estimates that teens using cannabis are at an 11 times higher risk of developing a psychotic disorder compared to teens not using cannabis.

The study found a “strong but age-dependent association between cannabis use and psychotic disorders, consistent with the theory that adolescence is a particularly vulnerable time to use cannabis as the brain is still developing,” arguing that more evidence-based cannabis prevention strategies for adolescents are needed as more jurisdictions move to “liberalize cannabis use and perception of harm declines among youth.”

Other provinces have also taken measures to mitigate concerns with youth cannabis use. Ontario has released a document entitled How to Talk to Youth About Your Cannabis Consumption through its Cannabis Made Clear program.

Younger Canadians are twice as likely to use cannabis than older Canadians according to data from Statistics Canada, although this rate depends on the age demographic. In 2023, 38% of adults aged 18 to 24 years and 35% aged 25 to 44 years reported having used cannabis in the previous 12 months, compared with just 15.5% of adults aged 45 years and older.

In 2023, about 1 in 10 adults aged 18 to 24 years (8.7%) and 25 to 44 years (10.3%) reported having used cannabis daily or almost daily in the previous 12 months, compared with 4.8% of adults aged 45 years and older.

Cannabis use among those 15 years and older actually declined slightly in Alberta from 2020-2021, according to data released by Statistics Canada in late 2023.

BC’s T’iitsk’in Spirit Ventures revive production at former CannTrust facility in Ontario

Written by David Brown on May 27, 2024. Posted in British Columbia, Business, Cannabis News, Ontario, Producers.

A company owned by a First Nation in BC is looking to grow cannabis in CannTrust’s old facility in Ontario.

T’iitsk’in Spirit Ventures Ltd. (TSV), owned by the Uchucklesaht Nation in BC, recently acquired the facility through a reverse vesting order structure earlier this year under numbered company 1000832157 Ontario Inc. According to court documents, the purchaser intends to begin growing cannabis at the facility again at 1396 Balfour Street, Pelham, Ontario (previously known as the “Fenwick Premises”).

The move recently caught the eye of a Ward Councillor in Pelham, as activities at the site had begun again. Ward 1 Councillor Wayne Olson told Pelham Today that he stopped by the facility recently to introduce himself and provide suggestions on how the owners could engage with the community.

“I told (the representative) that maybe they should have a public meeting. They seemed open to that,” Pelham Today reported Olsen as saying.

The facility, and others in the community of Pelham, have generated a lot of negative attention from Council and some community members over the past few years regarding concerns about light, odour, and noise pollution. The facility itself was also at the centre of concerns with allegations of unlicensed activities under its previous owners.

Three executives connected to CanTrust at the time, Peter Aceto, Mark Litwin, and Eric Paul, faced charges after the Ontario Securities Commission (OCS) and the RCMP declared they were aware of these activities. They were acquitted when the OCS decided it could not obtain a conviction.

Mayor Marvin Junkin told Pelham Today that the town has not received any notification of the facility’s sale or the company’s plans to begin cannabis production.

The Uchucklesaht Nation, located on the west coast of Vancouver Island, owns and operates the Thunderbird Spirit cannabis brand.

Representatives from the Uchucklesaht Nation were unavailable for comment at press time.

Featured image via Google Maps

Break-in at West Kelowna cannabis store

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

A cannabis store in West Kelowna was broken into in the early hours of Friday morning, leaving behind extensive damage and making off with a handful of pre-rolls.

Skye Cannabis Co., located on Industrial Rd in West Kelowna in a small shopping centre shared with a gas station, is open again for business after cleaning up following the break-in just before 3 am on Friday, May 24.

Natasha Raey, the owner of the store, says she received an alert on her phone and quickly contacted police who responded quickly, but not before the burglars escaped with a handful of cannabis pre-rolls.

Video of the incident shows the two bumbling burglars struggling to use a truck and chain to rip the doors off the store, before seeming to search in vain for products inside. Raey says they made off with only a handful of pre-rolls but caused significant damage, not only to the two doors but to the back office and at least one display case.

“Luckily we’re very secure,” says Raey. “We’re happy that no one was hurt, but it’s a lot of damage for very little profit on their part.”

She says the two could have probably made more money working in her store for a day than they will likely make selling the handful of products they stole.

Raey and her team have shared the video with police and with the community, many of whom she says have reached out to her saying they believe they recognize the maroon Dodge 4×4 truck and the two men involved.

Two cannabis stores in BC’s Lower Mainland faced similar break-ins earlier this year, causing significant damage to the stores and a loss of product.

*Image from inside Skye Cannabis showing damage to the front door. Image via Natasha Raey.*

Police in Calgary seek assistance to identify cannabis store robbery suspects

June 11, 2021

RCMP seeking assistance identifying man involved in robbery of BC Cannabis Store in Oliver

March 4, 2021

BC cannabis producer loses 120 kg of cannabis in early morning burglary

July 18, 2023

AGLC delisting more than 500 cannabis SKUs

Written by David Brown on May 24, 2024. Posted in Alberta, Business, Cannabis News, Government, Producers.

Alberta Gaming, Liquor and Cannabis (AGLC) has notified several licensed producers that they will soon be de-listing more than 500 slow-selling SKUs from their central warehouse.

Several producers received recent notices from the AGLC, informing them the SKUs will be put into the agency’s Do Not Purchase list.

A representative from AGLC confirmed with StratCann:

“AGLC is reviewing our cannabis product listings in order to streamline our supply chain, better manage inventory and remove some slow moving SKUs. Simplifying our supply chain will create more efficiencies and allow Alberta to focus more on best-performing products. This impacts between 550-600 SKUs. We are working with stakeholders to make this transition gradually over the next month to allow sell-through of impacted products.

“Alberta continues to have a wide range of products available for retailers and consumers. We encourage Albertans to talk with their retailer to find something similar if a product is no longer available.”

The move will allow the AGLC to free up warehouse space through their third-party vendor for faster-moving products. 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.

This sort of “SKU rationalization” is not uncommon, in or outside of the cannabis industry, and other provinces have instituted similar measures, although at times with more notice.

One complaint StratCann heard from more than one producer who reached out to us on the issue was a sense of frustration that this policy change came with little to no advanced notice. Another producer, speaking on background, says they had received an initial notification from AGLC last week informing them that certain SKUs would be delisted effective immediately, before receiving a second notice giving them 30-45 days before they would be delisted.

Although the reasoning behind such a quick delisting process is unclear, the province has been making efforts to provide more opportunities for its local cannabis industry.

Sources close to the file say the regulator is interested in topics like farmgate and even direct delivery, which could potentially offer more opportunities for local producers and retailers to distinguish themselves from bigger chains.

The AGLC uses a third party company, Connect Logistics, to manage its warehouse and wholesale distribution.

AGLC reports its first cannabis profits

March 6, 2024

AGLC reverses decision on including CBN, THCV in THC total

September 18, 2023

AGLC reduces SKU listing fee listing for cannabis producers

October 1, 2023

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

Written by David Brown on May 22, 2024. Posted in Cannabis News, Ontario, Research.

A study released this week shows that the annual rate of Emergency Department visits among older people in Ontario increased post-legalization.

What many stories covering this new research paper overlook, however, is that rates were already increasing significantly in the years before legalization in late 2018. In fact, post-legalization, the rate of increase slowed considerably.

In addition, while many news articles on the paper are highlighting that there was an increase in these hospital visits in 2020—and attributing this to the introduction of cannabis edibles in Canada—they again overlook that cannabis edibles were not widely available in Canada in much of 2020.

While these products were made legal in late 2019, they did not become widely available, and at competitive prices, until mid-2021. This is a misunderstanding of the market, which has been repeated many times by researchers and the media reporting on their work.

The most recent study, published on May 20 in the Journal of the American Medical Association, shows that emergency department visits in Ontario for cannabis-related poisonings increased from 55 per 100,000 visits in 2015 to 107 in 2016, 190 in 2017, and 337 in 2018.

*Figure: Annual Rates of Emergency Department (ED) Visits for Cannabis Poisoning*
*in Ontario Older Adults, 2015-2022*

It then increased to just 375, 392, and 462 in 2019, 2020, and 2021 before declining to 404 in 2022.

The most significant increases in this timeline covered by the study occurred in the years leading up to legalization. In addition, while the study and some articles on the study discuss an increase in emergency department visits related to the introduction of edibles, the increases in 2020 and even 2021 were very modest, especially compared to previous years.

The increase from 2019 to 2020 was just 17 per 100,000, while the increase from 2020-2021 (when edibles began to be more common in the legal market) was just 70 per 100,000. Then, in 2022, when these products were even more available and affordable, those visits actually declined by 58 per 100,000 compared to the previous year.

So, on the one hand, yes, there are notable increased emergency room visits among older Canadians related to cannabis use. And yes, this is a legitimate public health concern and cost. But to say this is caused by legalization, or specifically by cannabis edibles, is misleading. These figures were already rising in the years leading up to legalization—significantly so—and grew much less in the years following legalization, comparatively speaking.

In addition, in the most recent year recorded (2022), those visits declined from a peak, potentially supporting the idea that consumers are becoming more knowledgeable about how to self-regulate the use of these products and better manage any symptoms without needing to visit the emergency department.

Unfortunately, news reports that inaccurately attribute these increases specifically to legal edibles or to legalization in general simply serve to feed prohibitionist straw men. This is not new; we’ve seen similar issues in the past in regard to edibles and young people, with researchers and media seemingly unaware of the prevalence of illicit edibles.

New authority for inspectors in New Brunswick to deal with more than 100 illegal cannabis stores

Written by David Brown on May 21, 2024. Posted in Business, Cannabis News, Government, New Brunswick, Retail.

New Brunswick recently passed new legislation to give provincial inspectors more authority to target a growing number of illegal cannabis stores.

Bill 29, An Act Respecting Cannabis Control Act, passed third reading on May 15, and gives inspectors more authority and increases fines for those operating illegal cannabis stores, as well as their landlords.

The legislation was also debated by the Standing Committee on Economic Policy, where several questions were raised by Robert McKee, MLA for Moncton Centre, and Kevin Arseneau, MLA for Kent North, fielded by Bruce Fitch, the Bill’s sponsor.

According to Fitch, as of April 1, 2024, 107 illegal cannabis stores are operating in the province. Of these, 74 are operating in First Nations communities, says Fitch. Provincial representatives have in the past repeatedly said they do not have the authority to enforce their cannabis regulations on First Nations reserve lands, and this legislation is not expected to change that.

During debate of the bill in the Committee, Fitch did not directly respond to several questions from both McKee and Arseneau about how this new legislation would apply to these First Nations-affiliated stores, or about the current provincial government’s stance on these types of stores, instead making references to the complexity of the issue, often referring to provincial and federal jurisdictions or explaining the difference between provincial and federal rules. This mirrors similar statements made by the RCMP.

The legislation increases penalties to $5,000 if you operate a store, $2,000 if you are selling illegal cannabis (but not necessarily operating a store), and $5,000 for a landlord who knowingly allows such an operation on their property.

Law enforcement in New Brunswick has raided several unlicensed cannabis stores in recent months, with one recent raid in April, two in March, and two more arrests and products seized from an unlicensed dispensary in Saint John in January.

A court recently issued a $20,000 fine following a raid in 2022, while charges against two men connected to the company have been withdrawn.

There are 25 Cannabis NB stores in the province, plus a handful of licensed, privately-run cannabis stores.

BC LDB warehouse making changes to improve product freshness

Written by Staff on May 17, 2024. Posted in British Columbia, Business, Cannabis News, Government.

BC is updating its rules for how long cannabis can sit in its warehouse before it will be returned to the producer.

In a notice sent out to producers on Friday, May 17, the British Columbia LDB wholesale division noted upcoming changes to the inventory thresholds for licensed producers. This means changes to the maximum storage time at the LDB distribution centre in Richmond and a new maximum age limit at the time of delivery to the LDB distribution centre.

The stated intent of these changes is to improve product freshness. The change will also likely allow the LDB to maximize storage space in their 70,000 square-foot warehouse. There are more than 125 licensed cannabis producers registered to do business with the LDB.

Under the new rules, which the LDB will begin using in November 2024, cannabis flower, pre-rolls (including infused), and cannabis edibles products must be delivered to the LDB distribution centre within three months from the packaging date. Inventory of these products will be held for a maximum of six months from the date it is received by the LDB.

Other categories of cannabis products will be required to be delivered within five months from the packaging date. These categories will be held for a maximum of nine months from arrival at the LDB distribution centre.

Inventory that exceeds these timelines will be put on hold and returned to the producer. Any products that exceed the age limit at the time of delivery will be required to be pre-approved by the LDB demand planner.

Producers selling into BC must also provide the LDB with an estimated minimum shelf life before being registered for sale. Products with a Best Before Date or Expiry Date printed on the label must be delivered to the LDB with at least six months remaining until the stated Best Before or Expiry Date.

The BC Cannabis Customer Care Centre also recently updated their business operating hours, and are now closed on Saturday.

Alberta makes changes to retail secure storage, “simulated or actual mixing” of cannabis, and more

Written by David Brown on May 15, 2024. Posted in Alberta, Business, Cannabis News, Retail.

New cannabis stores in Alberta may have a chance to save money on their secure storage rooms after recently announced regulatory changes from the AGLC.

The changes were part of a handful announced by Alberta Gaming, Liquor and Cannabis on May 10. Retailers can also now use samples from producers in sensory containers in-store, along with changes to record-keeping for such sensory displays. The AGLC also removed a section of their provincial rules that had previously prohibited the “simulated act of mixing cannabis” in retail stores.

This last piece is a reference to a section from the provincial retail cannabis handbook that had previously prohibited the “simulated or actual mixing, application or consumption of cannabis with other ingredients or substances.”

A request from clarification was made to the AGLC on May 13. No reply was available as of press time.

The section this was removed from concerns what kinds of activities are permitted in cannabis stores. Previously, there were more restrictions on what types of activities can occur within a cannabis store other than the sale of cannabis.

A source close to the issue explained to StratCann that while a store still can not be used for activities not related to cannabis (for example, hosting an art show or a yoga class), events or activities that are directly related to cannabis can now occur within the store. The section that had previously prohibited a cost being charged to the public, directly or indirectly, to attend an activity in a retail cannabis store was also removed as part of this recent set of changes.

Most of the changes are just cleaning up aspects of the retail cannabis handbook but include the announcement that AGLC may now approve alternative construction methods to secure cannabis rooms.

As of January 2024, the AGLC no longer requires retailers to keep their products in locked display cases when the store is closed, however, these new changes can still mean significant savings for any future stores seeking to create a secure storage area.

“We’ve been looking at the cannabis market to determine what’s working, what needs to be improved, and what’s redundant or unnecessary while protecting public health and safety,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction at the time those initial changes came into force on January 31.

Nally has been one of the provincial government’s key voices on regulatory change for the cannabis industry through the Red Tape Reduction Act. Nally and other ministers and Alberta MLAs were also part of a recent provincial cannabis industry lobbying day on May 9 in Edmonton, put together by an Alberta-based consulting firm that works in the cannabis space.

Alberta has led the country on several recent cannabis regulatory changes. In addition, in 2022, the province removed the requirement for window coverings for cannabis retailers and in 2023, Alberta began allowing producers to hand out samples at cannabis events.

The AGLC also announced in late 2023 that the agency had reduced the SKU listing fee for cannabis producers. Previously $1,500, the reduced cost to list a new SKU to sell into the Alberta market is now $250.

Featured image via Spiritleaf

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

Written by David Brown on May 14, 2024. Posted in Business, Cannabis News, Government, Ontario, Retail.

Cannabis stores in Ontario sold nearly $2 billion worth of cannabis in 2023 to more than 10 million people, a 12% increase in sales from the previous year. This was the equivalent of 338 million grams of cannabis, a 23% increase from the prior year.

Ontario added 80 new licensed cannabis stores in this time period. The province authorized 276 new stores, a decrease from 497 added in 2022. Another 142 closed in 2023, up from 114 in 2022.

The new report from the OCS is the first of its kind from the agency since Q4 2022. The agency plans to update and publish its By the Numbers data report twice per year.

“As the largest wholesale distributor of legal cannabis in the world, the OCS is proud to deliver comprehensive data aimed at informing Ontarians and supporting industry partners as we enable Canada’s largest and most vibrant cannabis marketplace,” said David Lobo, President and CEO of OCS.

Total cannabis sales in 2023 through authorized cannabis stores in Ontario were $1,941,213,130. The OCS shipped 94,507,896 units to some 1,700 privately owned stores from its distribution centre in Guelph, a 26% increase from 2022.

The average wholesale price of dried cannabis flower was $4.05 a gram, not including HST. As of December 31, 2023, there were 3,983 total active product SKUs listed by the OCS.

Dried flower and pre-rolls were the bulk of these SKUs (28% and 21%), followed by concentrates (infused pre-rolls, distillate, dabs, hash, etc) at 15%, vapes at 14%, edibles at 10%, extracts (ingestible oils, tablets) at 5%, beverages at 5%, and topicals at 2%.

The wholesale price of all cannabis flower, including pre-rolls, dropped compared to 2022, except for 7 gram SKUs, which increased by just 3%.

About one-fifth (20%) of Ontarians say they consume cannabis on a regular basis, with 27% indicating they consume occasionally. More than half (54%) report purchasing cannabis only from legal sources, while 39% report purchasing from legal and illegal sources. Just 7% say they only buy from illegal sources.

Nearly three-quarters (74%) of Ontarians say legalizing cannabis has been good for Canada.

There were nine product recalls for cannabis in Ontario in 2023, compared to six in 2022 and 10 in 2021.

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Organigram recalls small batch of its Big Bag o Buds for having too much THC

Written by David Brown on May 10, 2024. Posted in Cannabis News, Ontario, Products.

Organigram has recalled one lot of its dried cannabis sold in Ontario due to a labelling error.

The products, Big Bag o Buds CombOz GMO Cookies + Ultra Sour dried cannabis, were recalled due to the label showing a lower total THC level than was present in the cannabis.

The 28 gram SKUs (two 14 gram units) were labelled as having total THC of 209 mg/g (20.9%), while the actual total was 271 mg/g (27.1%).

There were 138 units of recalled products sold from April 28, 2024 to May 9, 2024, lot number 11304240425.

Health Canada reminds consumers that they can contact the store where they purchased the cannabis if they wish to return it.

Any health or safety complaints related to the use of this cannabis product or any other cannabis product can be made by filling out Health Canada’s online complaint form. Labelling errors are the most common reason for cannabis product recalls in Canada, and the process can be costly for producers. There have been five recalls listed by Health Canada for cannabis products so far in 2024.

Group launches suit against SQDC for forcing consumers to make “blind purchases”

Written by Staff on May 9, 2024. Posted in Cannabis News, Government, Quebec.

A group of legal advisors and cannabis consultants is launching a class action suit against the Société québécoise du cannabis (SQDC), alleging the provincial cannabis agency does not comply with the Consumer Protection Act (CPA).

The organization, Groupe SGF, is bringing the class action to court on behalf of the plaintiff, Gabriel Bélanger. Bélanger argues that the SQDC forces people to make “blind purchases” of cannabis products listed on their website.

“All cannabis products which are sold online and which have the mention “strain rotating” in their description sheet do not comply with the CPA since it provides that consumers must have access to a description which includes the characteristics and technical specifications,” says a press release from Groupe SGF. “By not allowing consumers to know what variety is in the product when ordering, the SQDC forces consumers to make blind purchases.”

Groupe SGF says their goal with this collective action is justice for cannabis consumers. The 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.

“The SQDC, a state-owned company, appears to be violating its own Consumer Protection Act, and it seems abnormal to us that cannabis consumers in Quebec are forced to make blind purchases when they buy cannabis on the only legal cannabis sales site in the province,” said Maxime Guérin, a lawyer with Groupe SGF.

Groupe SGF is a Quebec law firm specializing in the cannabis industry.

Bélanger and Guérin are involved in another cannabis-industry-related class action suit filed in 2023 alleging that several Canadian banks have engaged in financial discrimination against legal cannabis businesses.

SQDC Public Affairs and Corporate Communications officer Vanessa Roland Director confirmed with StratCann that it has received the motion to exercise a class action related to products whose strain “rotates”, and says it contends to contest the application.

“The SQDC will take the time necessary to properly analyze the matter. However, at first sight, the company disagrees with the applicant’s claims and intends to contest the application.

“The SQDC does indeed sell rotating-strain products. The company clearly mentions this special feature on the information sheets for the products concerned and, more importantly, does not require anyone to choose these products. Customers in search of a specific strain enjoy access to a broad range of single-strain products.

“In addition, dropping rotating-strain products would limit consumers’ ability to choose. Several rotating-strain products are among the most affordable for customers. Removing them would run counter to the interests of consumers seeking these products. It should also be borne in mind that that if the SQDC is to fulfill its mission of migrating customers from the illegal market while maintaining a focus on health protection, the company needs to meet its customers’ varied needs.

“Furthermore, removing these products would be detrimental to the SQDC’s small producers, particularly the Québec-based and artisanal ones, whose rotating-strain products provide a way to make themselves known and sell their production despite having smaller harvests.

“We also note that similar approaches exist in other business contexts. Take, for example, spontaneous chef’s menus in high-end restaurants or cook’s choice meals at rotisseries, where the main is either a breast or a leg as determined by the cook. Customers without a preference can save money while helping the rotisserie prevent waste. Consequently, the SQDD defends the relevance of its offer of rotating-strain products and hopes they will remain an option for its customers.”

Note: This article has been edited to add comments from SQDC.

OCS to allow farmgate stores to sell exclusive products

Written by David Brown on May 9, 2024. Posted in Business, Cannabis News, Government, Ontario, Producers.

The Ontario Cannabis Store (OCS) has plans to soon allow cannabis farmgate stores to sell cannabis products that are exclusive to their location.

In an announcement posted on Thursday, May 9, the OCS says the rule change will occur in late spring, creating new opportunities for cannabis farmgate locations.

Ontario’s cannabis farmgate program issued its first licenses in April 2021, and since then has issued nine such licences across the province, with five in operation.

These new changes, says the OCS, will add value to its farmgate framework and “will help to create engaging destinations for consumers that elevate legal products above illegal alternatives.”

The OCS also plans to engage cannabis producers and retailers about the opportunities presented by this operating model and assess its impact.

One company that helped consult with the OCS on this new program, Sensi Brands, is excited by the opportunity to expand its unique offerings. Station House Cannabis is the retail location attached to Sensi Brands, a licensed cultivator and processor in St. Thomas, Ontario, who received their farmgate licence from the province in 2021.

Sensi Brands’ Founder & CEO Tony Giorgi says the new change will allow them to test out new cultivars and products through their farmgate store before launching them to a wider market, as well as providing a unique opportunity for their farmgate customers.

“For us, we think it’s a huge win and another key step forward in favour of Ontario producers for those who have the ability to offer farmgate. This is a win for Ontario LPs.

“It’s great to have this process to be able to innovate new products and introduce them into the marketplace very quickly before going through national commercialization.”

Giorgi says Sensi Brands now employs around 120 people, and the farmgate location has helped build their brand within the local community of St. Thomas.

“There’s a lot of value to the farmgate store as we’ve learned after running it now for three years. The ability to continue to educate and work within the community is really important.”

Ontario’s farmgate rules allow licensed cannabis producers to apply to operate an Authorized Retail Store at their production facility. These Farmgate Stores are licensed and regulated by the Alcohol and Gaming Commission of Ontario (“AGCO”) like any other retail cannabis store.

One key difference, however, is that these producers can sell products directly from their farms rather than first sending them through the OCS distribution centre.

There are five cannabis farmgate stores open in Ontario: Thrive Cannabis, Kingston Cannabis, Level Up, Royal Cannabis Supply Company, and Station House Cannabis Co. There are four other locations that have received a Retail Store Authorization (RSA), but have not opened.

British Columbia and New Brunswick have also implemented their own farmgate programs. New Brunswick now has six such stores, while BC has only one currently.

Featured image of Station House Cannabis’ farmgate store in St. Thomas, ON.

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

Written by David Brown on May 3, 2024. Posted in Business, Cannabis News, Government, Manitoba, Producers, Retail.

Two Manitoba businesses say they were caught off guard by a recent change to the province’s cannabis store licensing program, impacting their business plans.

In April, the Manitoba government said it was placing a temporary freeze on any new “controlled access” retail cannabis licences for at least six months while the new provincial government looked into the issue more. These licences for retail cannabis stores allow for cannabis to be sold in convenience stores and gas stations that carry other non-cannabis products.

The province currently lists 205 cannabis stores licensed. Eleven of these stores are “controlled access” stores.

Edwardo Famakin, a spokesperson for Manitoba cannabis producer, WOWKPOW, says 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.

Famakin tells StratCann that WOWKPOW and Domo had been in talks with the provincial government about their plans to supply five gas stations in the Winnipeg area with cannabis products, and had expected some of the first licences to be issued in May of this year.

Instead, he said he learned of the news that the province was pausing the program in media reports, rather than from the government—something that has left him and his colleagues confused.

He says WOWKPOW signed an agreement in June 2023 with Domo to supply several of their locations with cannabis, an ongoing discussion he says Manitoba Liquor and Lotteries (MBLL) and the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA) were aware of.

“We all had a big meeting about how we were going to do this,” explains a frustrated Famakin. “Then over the next 11 months we all worked together to get everything ready. So seeing this in the news instead of them informing us, it was gut wrenching. It threw us off.”

Now, he says the company is already having to lay off employees they had hired in expectation of this new agreement.

“The directive I’ve provided to MBLL, through the board chair, is to put a pause on licences for controlled access in urban areas and cities. We do have concerns about the availability of cannabis for young people and we want to make sure that we’re making socially responsible choices. Widespread availability of cannabis outside of an age restricted area is a concern, and we want to make sure we’re balancing availability and social responsibility.”
Glen Simard, the Minister responsible for Manitoba Liquor and Lotteries Corporation (MBLL)

In a prepared statement sent to StratCann, Douglas and Kate Everett, the chairman and president of Domo Corporation Ltd., said the company was disappointed to hear of the pause on the issuing of licences for Controlled Access Cannabis Stores, a change they blame on lobbying from Manitoba’s Retail Cannabis Council, an organization representing some cannabis stores in the province.

“After a year-long extremely detailed application process, Domo was in the final stages of obtaining Controlled Access Retailer Licences for our five stores when [the] Government derailed the process. We feel it is particularly unfortunate that the Manitoba Government is favouring large out of province chain retailers instead of local Manitoba-based cultivators, distributors, and retailers.”

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

“In their review process they should have consulted their regulatory bodies to see the impact of their decisions for stakeholders who had been working with them the entire time. For existing applications already in the system, to just end it without any type of communication or forewarning, is striking.
Edwardo Famakin, WOWKPOW Cannabis

“The RCCMB is pleased that the Minister has been responsive to the industry’s calls for a review on the controlled access licence category,” said Bekevich. “This category was intended to provide access to legal cannabis for rural and remote communities, but we’re seeing most of these licences in Winnipeg and Brandon. A review of the category could ensure controlled access licensing is being used in the spirit of its original intent. The Minister will need to find a balance between limiting exposure of minors to cannabis sales and access for rural remote communities.”

Steven Stairs, the chairperson of the Cannabis Business Association of Manitoba, questions the pause, arguing that Manitoba needs moore access to legal cannabis, not less.

“Why put a moratorium on the Controlled Access licenses? If anything, we need more of these in urban areas to combat the black market. Recent police reports have shown that the black market cannabis industry is selling cannabis through small corner stores and bodegas. Pausing the ability for these types of stores to become legal licensed stores only enables the black market to continue selling out of these locations across the city without obstruction.”

Famakin, at WOWKPOW, says one of his frustrations is that the new provincial government, which replaced the previous government in an election in 2023, had not contacted stakeholders like WOWKPOW or Domo to let them know about the changes in advance.

“In their review process they should have consulted their regulatory bodies to see the impact of their decisions for stakeholders who had been working with them the entire time. For existing applications already in the system, to just end it without any type of communication or forewarning, is striking. I don’t think there’s just cause for the pause. Manitoba producers need more places to sell Manitoba products.”

Glen Simard, Manitoba Minister of Sport, Culture, Heritage and Tourism, as well as the Minister responsible for Manitoba Liquor and Lotteries Corporation (MBLL), told StratCann the “pause” on such licences was in urban areas and was based on concerns with young people being able to potentially access cannabis in less-than-secure retail settings.

“We know that when legalization took place, that this was a new and emerging market. As with liquor and lotteries, our focus is on ensuring social responsibility,” Simard tells StratCann. “We want to make sure that people are accessing cannabis in a safe and reliable manner. What we see now is that consumers don’t struggle to access cannabis. With over 200 stores in Manitoba, people in urban areas have access to cannabis.

“The directive I’ve provided to MBLL, through the board chair, is to put a pause on licences for controlled access in urban areas and cities. We do have concerns about the availability of cannabis for young people and we want to make sure that we’re making socially responsible choices. Widespread availability of cannabis outside of an age restricted area is a concern, and we want to make sure we’re balancing availability and social responsibility.”

“I’ll be frank,” he added, “we’re not hearing an overwhelming desire from Manitobans to see cannabis available in convenience stores. That’s why we’re taking the time to do a review and get this right. People would expect this on the liquor side, where we’ve always considered market viability when looking at liquor retail licences.”

Simard also says the new provincial government has no plans of changing Manitoba’s private retail cannabis model into a publicly-owned retail model, despite some claims from the opposition.

“One important side note: We’re not looking to bring cannabis sales under public ownership and are committed to working with our existing retail partners to ensure a continued focus on social responsibility.”

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