The Ontario government announced a move to open up the cannabis retail market including the removal of a temporary cap on the number of private stores a retail operator can open.
By September 2021 retail operators will be able to own a maximum of 75 cannabis stores.
Other new regulations pertaining to the legal cannabis market include allowing licensed producers to open a retail store at one of their facilities — think a retail bottle shop at a craft brewery, phasing in limits on the number of authorized stores a licence holder can have, and enabling retailers to sell additional cannabis-related items such as magazines and cookbooks.
Ontario government scrapping cannabis retail stores cap, removing pre-qualification rules https://t.co/O9F8OrP0C6
— ᴍɪᴋᴇʏ ᴄᴀɴɴᴀʙɪꜱ ? (@MikeyCannabis) December 13, 2019
It also looks like the government is ending the lottery system for granting cannabis retail licenses.
“The Alcohol and Gaming Commission of Ontario (AGCO) will begin accepting operator licence applications from prospective retailers on January 6, 2020, followed by store authorization applications on March 2, 2020. Store authorizations from this open application process are expected to be issued beginning in April, at an initial rate of approximately 20 per month.”
Ontario to scrap the lottery system it used to award #cannabis retail licences and changing to an open licensing modelhttps://t.co/2yZv6AjvlR
— Global Cannabis Institute (@CannabisMinds) December 13, 2019
In addition, the government states that “some of the 42 proposed cannabis stores selected through the second lottery have been authorized to open their doors this month.”
Cannabis retailers such as Superette, which is planning to open a store in Rosedale early in the new year, are expressing unabashed approval of the news via social media.
Boom!!! We are dancing over here. ???? https://t.co/pWZltoEa1r
— superette (@superette_shop) December 12, 2019
The moves come from the desire of the government to stem the continued existence and resurgence of illegal dispensaries.
“In response to the federal government’s decision to legalize cannabis, our government is determined to open the cannabis market as responsibly as possible,” said Attorney General Doug Downey. “We have said all along that opening more legal stores is the most effective way to combat the illicit market, protect our kids and keep our communities safe. That is our number one priority.”
The new rules come into effect in January 2020 and are designed to “provide consumers with more choice and convenience and a safe, reliable supply of cannabis.”
