Ontario, Canada, Signs Deals With 26 Cannabis Producers
Canada’s legalization law allows provinces to establish how they want cannabis commerce to proceed within their boundaries. Government-run stores are okay, as are licensed private establishments. Online sales and delivery are also an option, a choice that Ontario has selected, just announcing agreements with cannabis producers to supply its retail system, as Reuters has reported:
Ontario, Canada’s biggest province, has signed agreements with 26 cannabis producers including Canopy Growth Corp, Aurora Cannabis Inc and Aphria Inc to supply products when it begins online sales of recreational marijuana in October.
The selected companies, which also include Hydropothecary Corp, Tilray Canada Inc, and CannTrust Holdings Inc, will supply the province with dried flower, cannabis oil and cannabis seeds, the provincial government said in an emailed statement late Monday.
Recreational sales are set to begin Oct. 17 across Canada, making it the only Group of Seven nation to legalize marijuana. But Ontario’s newly elected Progressive Conservative government said last week there will only be online sales until April, after which private retailers will be allowed to operate, in an about-face from its Liberal predecessor’s plans for government-run stores.
You can click here to see the full list of producers that have reached agreements with Ontario. This is a major win for all of these companies and a good sign for their immediate future as the profit estimates for initial sales are likely to underestimate the revenue that will be brought in.
The Canadian law isn’t perfect as every place with legalization laws has overregulated the system to varying degrees, and the flexibility that the federal government has provided provinces can be a double-edged sword. Hopefully, over time, regulations will ease down to a reasonable manner, comparable to beer, and profits will increase and micro-companies can thrive. No one knows exactly how the Canadian market will shake out after October 17th, but we know that these contracts with Ontario present an excellent opportunity for the marijuana businesses and that the world will be watching.
Learn the latest about Canada, Oregon, the United States in general, and cannabis laws around the globe at the International Cannabis Business Conference in Portland, Oregon, this September 27th-28th, while networking with top investors and entrepreneurs from around the world. Be sure to purchase your tickets by September 12th to save $200!