Cannabis Retail Roadblocks Coming Down in Ontario, US
Positive Indications on Both Sides of the Border Send Stocks Upwards – LPC
It seems that Ontario may finally do away with the lottery licence system. Many licensed producers (LPs), analysts, and policy groups have blamed cannabis retail roadblocks for disappointing cannabis sales. Ontario in particular has been blamed – a province with just 24 stores open for a population of 14 million.
Ontario Premier Doug Ford said that bringing down cannabis retail roadblocks was always the eventual goal of the current PC government.
“That’s eventually what the goal is: to open it up to the market and let the market dictate,” Ford said. “It’s like any business. Some people will be successful and some won’t.”
He said the government’s been “blazing a new trail” and that eventually they would “get it down pat”.
Alberta cannabis retailers are seen as the gold standard in Canada with almost 300 stores. Saskatchewan recently announced removing its cannabis retail roadblocks with a similar open market cannabis model.
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US Takes Steps Towards Decriminalization and Removing Cannabis Retail Roadblocks – LPC
Meanwhile, south of the border, the United States have taken steps to take down some of its own cannabis retail roadblocks. A congressional committee voted to decriminalize cannabis.
The bill would also allow the US federal government to charge 5 per cent tax on cannabis sales and imports, and give individual states the power to pardon past federal convictions.
Thomas Reuters reported that this sent stocks higher including Aphria, Canopy Growth, Tilray, and Aurora Cannabis. However, there is no mention of Doug Ford’s announcement, which may have had a bigger impact. The same Thomas Reuters report quotes one analyst as saying the congressional vote is a long way from bringing down cannabis retail roadblocks. (Please see link to full article below.)
Alan Brochstein, managing partner at New Cannabis Ventures, said it’s a first step in a long process. “There are no near-term implications for cannabis stocks,” he said. “The Senate isn’t likely to approve it, even if the House were to do so.”
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