A solution is on the way to the biggest problem impacting Canada’s cannabis industry.
2019 has been a bust for most of the stock of cannabis Canada. But it was not supposed to. This year marked the first year of sales in adults to use the leisure market in Canada. The country is finalized regulations for the sale of cannabis derivatives. However, there has been bad news for the flood of the Canadian cannabis industry.
Just in time for the holidays, though, something positive that happened that should benefit almost every player in the industry. Here’s the best news to share this year’s Canadian marijuana.
Ontario’s major move
The government of Ontario announced last week that it is moving forward with plans to dramatically expand the number of retail marijuana shops in the province. Ontario previously placed a cap on the number of allowed private retail marijuana shops in the province. hat would go. In addition, Ontario is eliminating the pre-qualification requirements for retailers marijuana.
Ontario also allows manufacturers licensed to open a retail store in one of their facilities. The province expects that these measures will pave the way for more stores to open more quickly.
This will not be a free-for-all, though. Ontario plans to phase in the limit on how many stores each licensed entity will be able to operate. Operators will be able to have no more than 10 stores until August 31, 2020. That number will increase to 30 in September 2020 and then to 75 in September 2021. Retailers also have to comply with strict rules relating to child safety province and criminal background of employees.
Ontario Attorney General Doug Downey framed the decision to expand the provincial retail environments as a way to limit the sale of cannabis on the black market. He said that “the law opens more stores are the most effective way to combat the black market” and that the Ontario government was “determined to open the marijuana market as responsible as possible.”
Better late than never
Ontario has become something of a scapegoat for the Canadian cannabis industry. Many of the largest Canadian producers of cannabis have pointed their finger right on the province as a major reason for the misery marijuana industry in 2019.
Aurora Cannabis (NYSE: ACB), for example, grew Ontario 10 times in the fiscal 2020 second-quarter conference call company. Canopy Growth (NYSE: CGC) CEO out Mark Zekulin said in its latest quarterly call that “the Ontario government’s inability to license a retail store right off the bat has produced half of the market is expected in Canada simply does not exist.”
Their criticism was on point. Prior to this month, Ontario claimed only 24 marijuana retail stores in operation – one store for every 600,000 inhabitants. It was not enough to support the growing recreational marijuana market.
But marijuana operators announced Ontario Canada cheered efforts to increase the number of retail stores. Even before last week’s announcement of the details of the plan, Canopy Growth Zekulin expressed its relief that the province is committed to open more retail stores.
Preparing well in 2020
Ontario’s decision to expand the retail infrastructure is the best news for the Canadian cannabis industry in 2019. However, the real impact will not be felt until next year.
Some 42 cannabis shops in the initial wave of expansion will be open for business in December, but not all of them. More importantly, there are many more shops opening on the road by 2020. Ontario announced that it will begin accepting applications from prospective resellers operator license on 6 January 2020. The retailer will be able to apply the authorization store that began on March 2, 2020. expects the province to issue approximately 20 retail license per month initially.
While Canada marijuana operators want to increase the number of stores larger quantities and at a faster pace, this Ontario plan is certainly better than the status quo. And as a result, 2020 is far less likely to be a bust as 2019 has been for the Canadian cannabis industry.
Here’s The Marijuana Stock You’ve Been Waiting For
A little-known Canadian company just opened what some experts think could be the key to profit from the booming marijuana coming.
And make no mistake – it will come.
Cannabis legalization is sweeping across North America – 10 states plus Washington, DC, have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian companies ready to explode from the marijuana coming revolution.
Due to an agreement to change the game simply fell between the Ontario government and the company’s power plants … and you need to hear this story today if you even have to consider investing in the stockpot.
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