The provincial government in Ontario, Canada is in the process of developing the regulatory framework for adult-use cannabis sales. The new proposal will give way to unlimited licenses for recreational cannabis retailers but limit large cultivators to one storefront per production site.
No Cap on Cannabis Retailers
Finance Minister Vic Fedeli and Attorney-General Caroline Mulroney stated that there would be no cap on the number of recreational cannabis retailers but federally licensed growers will only be allow to establish one retail dispensary per cultivation operation.
The proposed legislation also may include language that would limit the number of licenses that can be obtained by a single cannabis business but no number has been set as of yet. Minister Vic Fedeli noted that, “We want to open up the marketplace. This is an opportunity for small business to get involved. We want to have as many participants as possible be involved.”
One Retailer Per Producer
Of course Ontario is providing local municipalities the opportunity to decide whether they want to allow cannabis businesses in their city but they only have until January 22nd to decide. Under the new model licensed cannabis businesses will report directly to Vic Fedeli instead of going through the Liquor Control Board of Ontario.
Minister Fedeli went on to say, “These are all stand-alone, bricks-and-mortar facilities that will have a common look and feel, you can’t enter if you’re under the age of 19, you won’t be able to see inside. This is all about the safety of our youth, the safety of our roads and tackling the illegal marketplace.”
Despite the new proposal to issue an unrestricted number of licenses for recreational cannabis retailers, consumers in Ontario will not be able to purchase from a dispensary until well after October 17th. Online sales from the government will be the only means to purchase marijuana come opening day of sales.
While this news will be welcomed by many mom and pop entrepreneurs hoping to open recreational cannabis retailers, producers will be disappointed to learn that they will have limited retail opportunities. Municipal elections will be held late this month and whoever wins a seat as a city council member will be responsible for approving or rejecting local recreational cannabis retailers.
Now is the time for owners and investors to apply for a cannabis business license and take steps to build their business. Selecting the right dispensary software is one of the quickest way to get your retailer off the ground. Schedule a demo to learn more about IndicaOnline’s innovative point of sale software solution.