Sask. receives more than 1,500 applications for cannabis retail stores

The Saskatchewan Liquor and Gaming Authority (SLGA) received 1,502 applications for the 51 cannabis retail permits spread across 32 communities.

The request for proposal (RFP) process closed April 10 and the applications are currently being reviewed.

“Interest in the cannabis retail sector was very strong,” SLGA Minister Gene Makowsky said. “The evaluation process is now underway and submissions that meet the requirements will be randomly selected for permits. We expect to announce the successful cannabis retail permittees in the coming weeks prior to federal legalization.”

SLGA critic Nicole Sarauer said these weeks will put stress on a large number of applicants, not knowing if they need to have concrete infrastructure in place for legalization.

Additionally, she agreed that it is important to take a prudent approach to issuing these first rounds of permits. However, she is concerned the 51 permit holders will have a hard time meeting demand.

“Based on what we’ve seen just in the city of Regina how many businesses opened up and were thriving frankly, the retail numbers that they put forward aren’t going to be enough,” she said.

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Saskatoon has seven available permits and received 177 applicants. There are six permits for Regina, and 169 applicants. Both Prince Albert and Moose Jaw have two permits for retail stores and received more than 100 applications each.

Estevan has the overall stiffest competition, 61 applicants for a single permit. La Loche saw the least interest, but still 19 applications were filed for a lone permit.

In addition to this announcement, the SLGA has now opened the wholesale permitting process. Unlike the retail permits, there is no cap for wholesale permits.

Wholesalers will be able to purchase dried cannabis from federally-licensed producers that are registered to supply the Saskatchewan market. Federally-licensed producers must also register with the SLGA to sell cannabis to Saskatchewan-based wholesalers or retailers.

Wholesalers must physically operate in Saskatchewan, and will only be able to sell their product to registered retail locations.

READ MORE: Marijuana to be sold in private Saskatchewan stores and online

“Our government is committed to ensuring that the legalization of cannabis is focused on protecting the public,” Makowsky said. “Having SLGA permitted wholesalers and federally-licensed producers will help ensure that the supply of cannabis in our province is safe.”

Wholesale permittees must meet required criteria regarding good character, storage and transportation security, capacity and ability to track and report inventory and sales.

The retail location RFP carries the same good character criteria.

The fee for a wholesale permit is $5,000 (a non-refundable $2,000 application fee and $3,000 annual permit fee) while the registration fee for federally-licensed producers is $2,000 ($500 non-refundable application fee, $1,500 annual permit fee).

Saskatchewan, along with Newfoundland, are the only province’s adopting the private wholesale model.

“I think they’ve made a mistake on the wholesale side. I think they’ve handed the keys to the kingdom to the producers,” University of Regina associate economics professor Jason Childs said.

Childs explained that instead of the province or retailers “driving the bus” on the market, the bulk of market power will rest with producers.

“You’re going to have a concentration of market power, and a lot of the benefits follow market power. So the primary beneficiaries of this system that we’re setting up right now are probably going to be the licensed producers,” Childs said.

In addition to the 1,502 permit applications, Childs likened that to a gold rush. Many people will try to stake a claim in a new market, but only a few will see real rewards.