Ontario cannabis retail rules present confusion for industry players

Click to play video: 'PC government to table bill on pot legalization' PC government to table bill on pot legalization
WATCH ABOVE: The bill will appoint the Alcohol and Gaming Commission of Ontario as regulator for the market place, the province adding it will not put a cap on pot shops when it begins its licensing process. Kamil Karamali explains – Sep 26, 2018

TORONTO – Ontario‘s decision to not cap the number of privately-operated cannabis shops was welcomed by industry players, but market share restrictions on licensed producers and the lack of clarity on where marijuana stores can be located may pose headwinds for the sector.

The provincial government yesterday shed more light on its framework for Ontario’s private cannabis retail marketplace, and it is poised to introduce related legislation today.

READ MORE: If cannabis stores must be far from city schools, where do we find room for them?

Ontario officials say they won’t put a limit on the number of pot shops once recreational cannabis is legal across the country on Oct. 17, but indicated that licensed producers would be able to have one retail location located at a production facility.

Ottawa lawyer Trina Fraser says the restriction is positive for smaller retailers who won’t get squeezed out, but worrisome for licensed producers as it is unclear to what degree they can be affiliated with retail shops that do get the green light.

Story continues below advertisement

WATCH: Cannabis activist Jodie Emery speaks out on new pot regulations. Travis Dhanraj has more.

Click to play video: 'Activist Jodie Emery speaks out on new pot regulations' Activist Jodie Emery speaks out on new pot regulations
Activist Jodie Emery speaks out on new pot regulations – Sep 28, 2018

READ MORE: Ontario government says recreational cannabis can be smoked wherever tobacco smoking allowed

Canaccord Genuity analyst Matt Bottomley says the restriction on licensed producers represents an “overall headwind” for the sector.

Canopy Growth’s chief executive Bruce Linton said an unlimited number of cannabis shops, whether or not they have its company branding, is positive because it represents more retail points for its products than under the previous government.

Sponsored content