Per a new set of regulations, Ontario will license an unlimited number of recreational marijuana retail shops when it begins licensing and regulating the province’s cannabis marketplace Oct. 17, but it will allow federally licensed producers only one retail location each at their production sites inside Ontario’s borders.
A government agency called the Ontario Cannabis Retail Corp. will handle online cannabis sales and wholesale distribution to retailers, beginning next month. Ontario announced in August that private stores are expected to open in April 2019, and the province will operate an online sales portal and home-delivery system through the Ontario Cannabis Store from the launch of retail sales in October through the opening of retailers in April. The government unveiled legislation this week to govern the province’s private cannabis storefronts, which will be regulated by the Alcohol and Gaming Commission of Ontario. The commission will not place a cap on the number of retail stores allowed to operate in Ontario, but licensed cannabis growers, known as producers in Canada, will be permitted only one retail location each. The news is a mixed bag for most established companies with boots on the ground in Ontario.
"Although this is one more location than would have been allowed under the old LCBO model, we believe this represents an overall headwind for the sector," Canaccord Genuity analyst Matt Bottomley told CTV News.
Ontario municipalities have until Jan. 22, 2019 to opt out of hosting cannabis retailers, and the province can require that marijuana shops be located a certain distance away from schools.
The Ontario Cannabis Store is publicly-run, has partnered with 26 licensed producers for its online retail platform and will sell a variety of products, including flower, cannabis oil and seeds, to customers 19 and older when adult-use becomes legal next month.
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