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Ontario Announces Plan to Restrict Cannabis Producers to One Retail Store

Ontario Announces Plan to Restrict Cannabis Producers to One Retail StoreIn the last week of September, the Ontario government revealed its latest, unfinalized rules regarding private retailing of cannabis. This plan will not restrict the overall number of retail locations in Ontario, but will restrict licensed producers to just one retail store each in the province.

Ontario originally planned a government monopoly on retail. In July, they announced a plan that relies heavily on private retailers.

For licensed producers, the latest proposal could be a major setback. In it, licensed producers will be largely shut out of the retail market in Ontario. Given how large a market Ontario is, producers will certainly explore loopholes.

Major producers already own subsidiaries with retail presence. For example, Aurora owns 25% of Alcanna (OTC: LQSIF) and Canopy owns Hiku (OTC: DJACF).

Source Ontario press release

Ontario Announces Plan to Restrict Cannabis Producers to One Retail Store

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