Retail cannabis is Ontario is set to change. Global News this evening confirmed that Doug Ford’s government is set to make an announcement related to cannabis retail in Canada’s most populous province, with more licenses expected to be issued in the near term.
The province is expected to announce that it will be scrapping the retail lottery system that was utilized for issuing the first 75 licenses within the province. In its place, the Ontario government is expected to move towards a methodology akin to the Province of Alberta’s, where no limits are placed on the amount of licenses issued. Rather, the expectation is that retailers will survive based on a free market model, rather than operating as a result of license scarcity.
The result is that hundreds of new licenses for cannabis retail are anticipated to be issued in 2020, as per a Global News scoop. Other unconfirmed reports indicate that license applications will start being accepted January 6, 2020, on a first-come, first-serve basis. Store authorization applications are then rumoured to be accepted on March 2, with authorizations beginning to occur in April.
Under this unconfirmed process, it is expected that approximately 20 retailers will begin to receive licensing each month following these authorizations.
It is unclear when the Alcohol and Gaming Commission of Ontario will be making the confirmed announcement.
Twenty four cannabis retailers are currently in operation within Ontario.
Information for this briefing was found via Global News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
