Alberta’s cannabis regulator is walking back a recent rule change for cannabis sampling, saying some of the messaging in an industry memo was incorrect.
A memo that was sent out to cannabis companies on Friday, October 18, Alberta Gaming, Liquor and Cannabis (AGLC) that said cannabis sampling could only take place in retail cannabis stores. The agency now says that parts of that memo were not accurate and sampling activities can still be conducted in age gated settings like industry events, not only retail stores.
The previous memo, the provincial agency now says, was only intended to serve as a reminder of existing policy.
“There was an error in the memo that went out on October 18,” a media representative for AGLC said in an email to StratCann. “AGLC apologizes for the confusion and any frustration this may have caused. An updated letter was sent today to clarify that policy has not changed and update the information that was shared with cannabis licensees.”
“The previous letter incorrectly stated that samples may only be provided in retail cannabis stores. The updated letter clarifies that policy does allow cannabis representatives and retail cannabis store licensees to promote cannabis products and accessories in places where persons under the age of 18 are prohibited. This provision allows for cannabis representatives to provide cannabis licensees samples at locations where minors are prohibited such as an industry event. The intent of the letter was to remind cannabis licensees that samples cannot be provided or sold to the public.”
Responding to concerns expressed in a StratCann article earlier this week, a new memo to industry, AGLC also notes that a “cannabis licensee” who is authorized to receive a cannabis sample can include those representing and acting on behalf of a licensee, such as a store manager.
This is not the first time such messaging had to be walked back by the agency. In September 2023, the AGLC reversed course after a policy change to delist products containing CBN was said to be based on a misinterpretation of federal messaging.
(Globe Newswire) Vancouver – EnWave Corporation announced today that it has signed a license agreement, equipment purchase agreement and a referral agreement with CNTA, the Spanish National Centre for Food Technology and Safety. CNTA is a private non-profit association that aims to contribute towards improving the competitiveness and quality of the Spanish food sector.
The license grants the R&D rights to CNTA to use EnWave’s proprietary Radiant Energy Vacuum dehydration technology in collaboration with their many current and future clients. The Equipment Purchase made by CNTA is for a 10kW REV™ machine that will showcase their state-of-the-art facility with the value proposition of REV™ technology.
EnWave believes that this holistic relationship will help build its sales pipeline in Spain and surrounding European markets. The 10kW REV™ machinery is expected to be delivered to CNTA before 2025.
Post-traumatic stress disorder is a mental health disorder caused by an extremely terrifying or stressful event, either by an individual witnessing it or being a part of it. This disorder may last anywhere between months to years, with individuals experiencing intense physical and emotional reactions when the memories of trauma are unearthed by triggers.
Estimates show that in the United Kingdom, 1 in 10 individuals will experience post-traumatic stress disorder in their lifetime. Currently, roughly 30% of patients who suffer from severe mental health conditions find that traditional therapies aren’t effective for them.
Now a team of researchers in Cambridgeshire are carrying out trials looking into the potential benefits of psychedelics and empathogens in treating post-traumatic stress disorder (PTSD).
The researchers are considering psychedelic use because the drugs are known to alter how an individual perceives reality. These drugs, also referred to as hallucinogens, make an individual hear, feel, and see things that don’t exist. Additionally, psychedelics are known to target certain areas of the brain, changing their processing of sensory input.
The team is a collaboration between Cambridgeshire and Peterborough NHS Foundation Trust, the University of Cambridge, and Cambridge University Hospital’s NHS Foundation Trust. Those involved include research staff and clinicians from the NIHR Cambridge Clinical Research Facility and the Windsor Research Unit.
The researchers, whose initiative is focused on mental health treatment, has obtained a Home Office license to carry out the trials. Their objective is to help patients who’ve gained no benefit from conventional treatments like antidepressants and talk therapy.
Various studies have already shown that some psychoactive drugs, when administered by trained specialists in controlled environments, can enhance quality of life and aid in recovery.
The researchers’ initial study has been sponsored by Transcend Therapeutics and will focus on assessing the effects of a rapid-acting neuroplastogen dubbed TSND-201, on patients with PTSD. TSND-201 is a non-hallucinogenic formulation which the researchers hope could provide a new avenue of hope for patients who’ve not benefitted from traditional treatments.
Transcend Therapeutics is a neuroscience-focused clinical-stage firm focused on developing psychoactive drugs for neuropsychiatric illnesses.
Affiliated assistant professor at the University of Cambridge, Dr. Liliana Galindo, stated that she was optimistic about the potential of this study in addressing persistent mental conditions. Galindo, who’s also a consultant psychiatrist, added that they were excited to join the growing field of psychedelic research with this new collaboration and help to develop a new generation of neuropsychiatric therapies.
With many other entities, such as atai Life Sciences N.V. (NASDAQ: ATAI), engaged in studying the therapeutic potential of psychedelics, the likelihood that approved treatments made from these substances become available soon is high.
About PsychedelicNewsWire
PsychedelicNewsWire (“PNW”) is a specialized communications platform with a focus on all aspects of psychedelics and the latest developments and advances in the psychedelics sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, PNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, PNW brings its clients unparalleled recognition and brand awareness. PNW is where breaking news, insightful content and actionable information converge.
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Manitoba is extending its review of licences that allow some convenience stores to sell cannabis.
Earlier this year, Manitoba announced that it was pausing its “controlled access” licensing, which allowed cannabis sales in convenience stores, until October. In an announcement reported by the Canadian Press, the province is extending that moratorium for another 18 months, to December 31, 2025.
Such controlled access licences allow for cannabis to be sold in convenience stores and gas stations that carry other non-cannabis products. According to provincial rules, businesses holding a controlled-access licence may allow young persons to enter the store, but cannabis must not be visible or accessible.
“This is a very important issue, and the province wants to make sure we get this right,” said Glen Simard, the minister responsible for the Manitoba Liquor and Lotteries Corporation, in a written statement, as reported by the Canadian Press.
“That’s why we are extending the pause to continue our consultations.”
Some cannabis retailers in the province have, in the past, expressed concern about such licences. Melanie Bekevich, the owner of Mistik Cannabis in Winnipeg and a member of the Retail Cannabis Council of Manitoba (RCCMB), told StratCann in April that the organization had met with the Manitoba government to express their concerns with how these licences are being issued.
When the moratorium was first announced, Edwardo Famakin, a spokesperson for Manitoba cannabis producer WOWKPOW, told StratCann that he and his partners were “blindsided” by the announcement as they were in the final stages of receiving approval for an agreement with Manitoba retail/gas station Domo to supply the chain with their locally-produced cannabis products.
At the same time, Raj Grover, the CEO of High Tide Cannabis, which operates several Canna Cabana cannabis stores in the province, said he had concerns that the licences were being granted in ways that may not have fit with the intention of the rule.
“We applaud Manitoba’s new NDP government for confirming today that it will place a six-month moratorium on new controlled access cannabis retail licences,” said Grover in April. “These licences were intended to provide access to legal cannabis in rural communities without an established legal retail cannabis store; however, many of the controlled access licences were granted to convenience and grocery stores within downtown Winnipeg. We hope that the six-month review will help establish important guardrails to ensure that these licences are limited to underserviced communities only, as was originally intended.”
Since ‘hindsight is 20/20,’ what happened in 2020?
NikolayF.com from Pixabay” width=”300″ height=”200″>In 2020, the new, experimental mRNA injections rolled out as a premeditated response to Coronavirus. What was on the package inserts of the products?
Nothing.
The inserts were blank. This way, companies could not be held liable for any ill effects following injection. It’s called indemnity, an exemption from penalties.
Fast forward to 2024. Eureka! Suddenly scientists know what was in those Emergency Use Authorized (EUA), FDA-unapproved COVID injections!
Nanotechnology Through a Needle
hakan german from Pixabay” width=”300″ height=”212″>According to an Argentinian study, scientists discovered 55 undeclared chemicals and metals not listed on package inserts. The study published last week in the International Journal of Vaccine Theory, Practice, and Research discloses:
Among the undeclared chemical elements were detected 11 of the 15 cytotoxic lanthanides used in electronic devices and optogenetics. In addition, among the undeclared elements were all 11 of the heavy metals: chromium was found in 100% of the samples; arsenic 82%; nickel 59%; cobalt and copper 47%; tin 35%; cadmium, lead and manganese in 18%; and mercury in 6%. A total of 55 undeclared chemical elements were found and quantified…
James Lyons-Weiler, Ph.D., a member of the journal’s editorial board said, “Individually, these chemicals are known to cause neurological, cardiovascular and immunological damage.”
No matter where the information is found in the media, whether in an article, social media, cinema,documentary, or hidden in a medical journal study, the architects who create toxic products must disclose the information somewhere, whether perceived positively or negatively. Of course how you perceive the information is up to you.
As long as the deed is visible, it has been exposed, even if it is after the fact. This is called implied consent.
No response is considered to be silent acquiescence. This means that by your non response, you have agreed to the methods used.
When hindsight is 20/20, it means “too little, too late.” The deed is done.
Biodigital Convergence
There is another purpose to the disclosing information after the fact; that is to misdirect an investigation. Four years later, mRNA is old information since, in the Information Age, old news happens yesterday, not four years ago.
bob matus from Pixabay” width=”184″ height=”300″>For at least two decades, scientists and governments have been paving the way toward Transhumanism, the merging of humans and machines. The way to Transhumanism is through Biodigital Convergence. Read more here.
In the coming years, biodigital technologies could be woven into our lives in the way that digital technologies are now. Biological and digital systems are converging, and could change the way we work, live, and even evolve as a species. More than a technological change, this biodigital convergence may transform the way we understand ourselves and cause us to redefine what we consider human or natural.
The positive side of Hindsight is Foresight. Instead of looking to the past, we can focus on what is unfolding now, and into the near future.
Biodigital Convergence leads to Smart cities, Cognitive(C40) cities, Blockchain, Reverse engineering, Digital Twin, Self-assembly nanotechnologies, the Internet of Bodies, and more… in the connected future of the Metaverse.
Micah from Pixabay” width=”300″ height=”182″>If Biodigital Convergence sound like a Virtual Reality, then you are one step closer to your Avatar. Will you become an Avatar in the Metaverse? Watch the feature film, Avatar for disclosure.
The architects of converging technologies want everyone to live a Metaverse of their construction.
The NNI recently celebrated its 20th birthday. This proves that mRNA nanotechnology is old news. It does not discriminate against gender, sex, race, or religion. This global initiative seeks to incorporate everyone, everywhere. They have our consent through silent acquiescence.
The concept of ‘vaccine status,’ along with related vaccine science and laws are mere propaganda and distraction. These are symptoms of past strategies that lead to future ‘connectivity.’ Unfortunately, focus on vaccines is exactly where architects want people to be.
Foresight might be fuzzy, but without it, we are left scrambling in the past.
A recent study published in the Cannabis Research Journal challenges the outdated stereotype that cannabis users, often labeled as “lazy stoners,” are less active. The research shows that medical cannabis promotes increased physical activity in individuals with chronic health issues, while recreational marijuana boosts physical activity even more, particularly in those without chronic conditions.
The study examined data from adults aged 18 and over across the United States between 2016 and 2022. The researchers analyzed information collected by the CDC’s Behavior Risk Factor Surveillance System, which conducts nationwide phone surveys focused on health-related behaviors, preventive health services, and chronic illnesses.
One of the key findings was that people who reported using cannabis were more physically active than those who didn’t, but this difference was most pronounced in areas where cannabis is legally available, either for medical or recreational use. The study did not find a strong link between medical marijuana use and increased physical activity. However, physical activity was a more common reason for recreational use.
The authors suggest that when people use cannabis to enhance physical activity, it might be because it helps them focus, boosts enjoyment, or strengthens the connection between the mind, body, and spirit. Cannabis may also aid in rehabilitation by enhancing sleep and lowering discomfort.
Although medical cannabis users did not list physical activity as a primary reason for use, the researchers proposed that cannabis might indirectly help those with chronic illnesses stay more active by alleviating some of their symptoms.
Paul Armentano, Deputy Director of NORML, commented on the study, highlighting how it goes against long-standing assumptions about cannabis users. He noted that the results challenge the false stereotype that marijuana consumers are unmotivated or lazy. He also expressed disappointment that these misconceptions have often shaped public health messages and have contributed to stigmatizing responsible marijuana use.
The study’s conclusions align with some previous research on the relationship between physical activity and cannabis use. For instance, a similar study conducted in Canada this year found that adults aged 18 to 50 who used cannabis were neither more inactive nor more intensely active than non-users.
However, the research did note a slight increase in light physical activity following marijuana use. The authors of that study argued that their findings contradicted concerns that marijuana use promotes a sedentary lifestyle. They emphasized that the traditional “lazy stoner” image fails to account for the many ways people use marijuana today.
According to another study published in February, people who use cannabis walk more often than non-users or e-cigarette users. The same study also discovered that cannabis users had the same likelihood of engaging in fundamental physical activities like strength training as non-users did.
Additionally, 2019 research suggested that people who use marijuana before or after exercise experience better workouts and recover more effectively. Overall, the growing body of research challenges traditional assumptions about marijuana users, showing that many incorporate it into an active and health-conscious lifestyle.
The entire cannabis industry, including leading companies like Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY), may be pleased that yet another misconception about marijuana use has fallen apart in the face of rigorous studies conducted to understand the true effects of the substance.
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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(CNW) Montreal – The Good Shroom Co Inc. (TSXV: MUSH), an emerging cannabis company, announces the launch of DYP’s, an innovative THC-infused pouch product, in Alberta, Canada’s second-largest cannabis market. The Good Shroom Co operates a portfolio of brands in Quebec, where it sells a wide range of products. The introduction of DYP’s is a key component of the company’s national expansion strategy.
DYP’s are discreet, easy-to-use pouches designed to be placed between the lip and gum, delivering 10mg of THC per pouch, the maximum legal dose. This product is the first of its kind in Canada, offering consumers a smoke-free, affordable, and convenient way to consume THC. The product is arriving in Alberta this week, with distribution scheduled to begin next week.
The decision to launch DYP’s is driven by three key factors:
Discreet and Familiar: DYP’s resemble popular nicotine pouches like Zyn and Zonnic which are well established in Canada, making them a familiar option for consumers. The format is discreet and easy to use, offering an alternative to more traditional cannabis consumption methods.
Competitive Pricing: At a retail price of approximately $20 per unit (10 pouches per unit), DYP’s offer consumers an affordable way to consume THC, with each 10mg dose priced around $2.
First-to-Market Advantage: DYP’s are the first THC-infused pouches available in Canada, positioning The Good Shroom Co at the forefront of this new category in the cannabis market.
The pouches will initially be available in two flavors, Wintergreen and Honeydew, with additional flavors planned for Ontario in early 2025. As new opportunities arise in other provinces, the company plans to expand distribution nationwide.
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“We are thrilled to bring DYP’s to market in Alberta,” said Eric Ronsse, CEO of The Good Shroom Co Inc. “This product launch represents an important milestone for our company and for the Canadian cannabis market. DYP’s offer consumers a convenient, affordable, and familiar way to consume THC, and we believe the strong feedback from our sales team demonstrates the potential of this new category.”
The Good Shroom Co’s sales team has been actively engaging retailers to create awareness around the product, and initial feedback has been overwhelmingly positive.
Product Highlights:
Discreet THC-infused pouches, placed between the lip and gum
10mg of THC per pouch, the maximum legal dose
Available in Wintergreen and Honeydew flavors
Retail price: ~ $20 per unit (10 pouches per unit)
Launching in Alberta with plans for expansion into Ontario in 2025
The Good Shroom Co Inc. operates primarily in Quebec, where it manages a portfolio of brands that offer a range of cannabis products. DYP’s are the company’s first major expansion outside Quebec, forming a key part of its national growth strategy.
Interest in psychedelics has increased these last few years after numerous studies found that the drugs may possess therapeutic benefits. For instance, studies have found that ketamine could help reduce symptoms of depression and post-traumatic stress disorder while managing suicidal ideation.
Studies also found that psilocybin could help manage symptoms of anxiety and depression, as well as post-traumatic stress disorder.
Now new research has investigated the role that psychedelic trips play in healing, with a focus on psilocybin and ketamine. These drugs often induce profound subjective experiences when consumed, with scientists positing that these experiences may contribute to their therapeutic effects.
To explore the link between therapeutic outcomes and the subjective effects of psychedelics, the investigators carried out a systematic review and meta-analysis involving data obtained from electronic databases like EMBASE, Web of Science, and PubMed.
They focused on studies involving the use of psilocybin and ketamine in treating substance use disorder and depression. In total, the investigators reviewed twenty-three studies, eight of which focused on psilocybin.
The subjective effects of the psychedelics used in these studies were measured using different tools, including the Clinician-Administered Dissociative States Scale, which centered on ketamine’s effects.
Their meta-analysis revealed that subjective effects had a limited influence on therapeutic improvements in disorders like substance use and depression, with psilocybin’s impact being a bit stronger than that of ketamine. Based on this, the investigators suggested that the subjective effects induced by psilocybin could be more directly associated with its therapeutic benefits as compared to ketamine’s dissociative effects.
They also observed differences between the conditions being treated, noting that in both psilocybin and ketamine studies, the correlation between therapeutic outcomes and subjective effects was stronger for substance use disorder than for depression.
In substance use disorder treatments, the subjective effects accounted for 60% therapeutic improvement for psilocybin and 54% for ketamine. This suggests that the perceptual and psychological changes caused by these drugs play a more substantial role in treating substance use disorder, in comparison to depression.
In their report, they suggested that these psychedelic experiences may play a modest but not insignificant role in the effectiveness of psychedelic therapies.
The investigators also discussed some limitations in their study, which included the fact that their analysis was based on a small number of studies. This, they explained, limited generalizability of their findings. They also collated correlated coefficients, which made it hard to determine causality.
The investigators reported their findings in npj Mental Health Research. Authors of the study included Albert Dahan, Tijmen Bostoen, David Dadiomov, and Jack D. C. Dahan.
As further information becomes available from psychedelic industry entities like Mind Medicine Inc. (NASDAQ: MNMD) (NEO: MMED) (DE: MMQ) in the course of conducting their R&D activities, the role that psychedelic trips play in healing is likely to become clearer.
About PsychedelicNewsWire
PsychedelicNewsWire (“PNW”) is a specialized communications platform with a focus on all aspects of psychedelics and the latest developments and advances in the psychedelics sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, PNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, PNW brings its clients unparalleled recognition and brand awareness. PNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from PsychedelicNewsWire, text “Groovy” to 888-902-4192 (U.S. Mobile Phones Only)
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Vancouver-born Margaret Brodie, CEO of Rubicon Organics, recalls scrubbing the farmhouse on site of their Delta, B.C. property, two kilometers from the Pacific Ocean, prior to a Health Canada visit. The property purchased, previously a pepper farm, is now home to a global brand leader in organic cannabis. “I’m a big believer in living where your business is,” says Brodie, noting the nearby wildlife and blueberry farms.
After receiving their license in 2019, Rubicon Organics launched the Simply Bare brand, unaware of the uphill battle that Covid – the stressors and uncertainties – would bring. “It’s been one foot in front of the other,” says Brodie, “do something, do it well, and focus in your lane.”
Their three flagship bands Simply Bare Organic, 1964 Supply Co. and Wildflower helmed by the VP of marketing and new business, Mathieu Aubin, in conjunction with an all-female c-suite, satisfy consumer needs by focusing on premium cannabis flower certified by the Fraser Valley Organic Producers Association (FVOPA) along with vapes, edibles and topicals under their brands.
Over the past year, the Rubicon team has invested in building their intellectual property database, with data collection from their scaled living soil operation, ensuring they are global leaders in premium organic cultivator, “using the power of the sun,” says Brodie.
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However, the CEO describes organic as a feature rather than a benefit. “So the weed has to be great,” she says. “Our view is that the organic living soil makes the terpenes and flavour experiencesbetter, but is has to be premium cannabis, not just organic, to sell at premium prices.” This speaks to the company’s reputation with consistent quality products. Otherwise, they don’t go to market.
At times, “we’ve had to make really difficult decisions,” says Aubin. “We have not put some crops out there; we’ve had to cancel POs. We’ve had moments of taking financial hits in order to never compromise on quality standards and our brand promises.”
What’s most important?
Earlier this year, Rubicon Organics launched a line of full spectrum extract vapes. “That was a big deal for us,” says Brodie. “And we sat around the table and said, ‘what is the most important thing? Is it the lowest cost input or is it putting the best quality product out there to show people how good the product can be from great flower inputs and capture consumer love and loyalty?’ That’s been our approach.”
Having a financially prudent team also lends itself to a stronger company as people have better job security. “I don’t have an executive assistant,” she says. They spend the extra time, do the work themselves, and ensure that their resources stay focused on the business. “We like to say we’re a business that’s in cannabis, not a cannabis business.” The data-driven CPG company stays true to principles like taking time and being best in market rather than first to market.
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Proudly a cannabis company, Brodie explores the marriage of legality and respecting the legacy. “You know,” she says, “my first day with [founder] Jesse McConnell, I said something about the black market, and he just turned to me and said, ‘let’s be clear on what got us here.’ It was such a powerful thing for me.” To work at Rubicon, employees do not need to consume cannabis, but they do need to love and respect the standard of work being done there.
Rubicon Organics has three flagship brands: Simply Bare Organic, 1964 Supply Co. and Wildflower. They also provide the cannabis market with product offerings such as full spectrum resin vapes, edibles and topicals under their brands.
House of brands
Simply Bare and 1964 Supply (the year Professor Mechoulam discovered the THC molecule, and the Beatles first came to North America) make up their strong flower brands.
Simply Bare, with its delightful new Fruit Loopz flower, focuses on new genetics in a more premium offering, while 1964 is their “legacy recruiter,” bringing known legacy genetic into the legal market. “We strongly believe genetics is the way of the future in the cannabis business,” says Aubin. “You need to have strong, consistent genetics.An outstanding genetics library is critical to success.”
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Brodie frequents the facility herself, and once a week, the leadership positions and the quality team also take a “crop walk,” evaluating the plants as well as safety hazards or maintenance risks. “We make sure everyone’s on the same page because we’re an agriculture business, and we grow rainbow crops.”
From a risk perspective, the fluctuating elements’ impact on the crop growing multiple strains in a single area requires a keen eye and a cohesive management team. The unusual rainbow cropping greenhouse style, stacked with living soil cultivation, signals highly unique IP in a successfully institutionalized and scaled operation. “It means that we’ve got the strength in business overall, and we’re creating scaled premium and organic IP in Canada that we’re really proud of.”
Growing for people who love cannabis, Rubicon opted for full spectrum extract resin vapes in order to illicit a “true flower experience.” All of their main cultivars ¬ Comatose, Blue Dream, Gelato #41 – are all now available in 510 vape format; “the taste is very similar to the flower experience,” says Aubin.
Growing with CPG portfolio management
Aside from keeping the company in the best possible financial position, by refinancing debt that will prepare the business for the upcoming years, Brodie and her team look to expand their enterprise in conjunction with other excellent operators.
Margaret Brodie has worked in the cannabis industry for nine years, having received numerous awards for her talent & leadership skills.
Brand expansion will occur with “great growers, great contract manufacturers, and great partnerships,” she says. “We want to actually help build our partners’ businesses as well so that we’re building a great industry in Canada.” From an investor and company management side, it’s called “the three-legged stool,” including suppliers, customers and then franchises – a concept their board of directors understands well.
Rubicon is close with other producers akin to their mission statement as it is their collective purpose to grow the premium segment of the market. “The more premium growers succeed, the bigger that piece of the pie will become. The industry is still too young for us to be real competitors,” says Aubin, citing the industry’s sustainability and longevity incentive.
Brodie is also a board member of the Cannabis Council of Canada (C3), and works closely with other neighbouring organizations in cannabis, investing again in the cannabis community, and “having impact that is authentic to our values,” without, of course, confusing kindness for weakness.
Having spent nine years in the industry, Brodie knows the struggle, “and some days I think I should have taken the job with the pretty office looking out over the water,” she says. “You know, we started out at my kitchen table, and now we have 185 full-time employees and 75 contractors that come through the facility almost daily.” Brodie thrives by returning economic development to the city and the country at large, while helping to grow the global industry.
The international advantage in Canada is not lost. Without limiting Canadian cultivation licenses like they do in Europe, it is, in a sense, fair game – fierce competition. And the result “forces the good businesses to be better much more quickly,” she says, “and that’s one thing Canada hasn’t realized: what a good industry we’re going to end up with.”
Regulatory optimism
While the encouragement felt post-Gazette recommendations was reassuring, the issue of excise tax in Canada continues to be the number one inhibitor for cannabis product businesses. “Even though we pay our excise taxes, if we could drop the price for the consumer, we could actually sell more of our premium flower,” says Brodie. The sale ofinventory at low costs as a result of paying over 40 per cent in taxes was apparent last year, to the market’s detriment. And while Canada may be on the rebound, still in this sector, “our biggest competition is the grocery store bill,” she says, notnecessarily the other cannabis companies.
On top of excise, the LP is also paying an excessive 2.3 per cent fee to Health Canada on their top line revenue. Another key challenge in the cannabis industry is the disparity in regulations compared to other sectors, where more harmful products are not subject to the same strict oversight.
“And look,” says Brodie, “I’m a chartered accountant; I’m an officer of the company. But we’re playing the long game. We’ll compete in any market, whatever rules are put in front of us, and we’ll play fair.”
While on the campaign trail way back in January 2014, Justin Trudeau spoke about his plan to legalize cannabis and added some reasons why, including this one:
“We are funnelling millions upon millions of dollars each year into organized crime and criminal gangs. We do not need to be funding those organizations.”
Now, as Canada witnesses the sixth anniversary of its historic end to cannabis prohibition, it is evident that the legal industry is, at best, co-existing with a thriving black market. At worst, there is a clear indication that illicit cannabis has a choke-hold on cultivators, manufacturers, and retailers, who are trying to follow a laundry list of regulations, taxes, and incredibly slim margins.
A perfect example of a sector in need of immediate assistance is our retailers. In theory, the presence of legal cannabis stores in neighbourhoods across the country should be a deterrent for unlicensed brick-and-mortar locations because trained eyes, such as law enforcement, can tell the difference between them. For some provinces, however, the illegal stores are not only in plain sight and openly advertised, they are eating the legal retailers’ lunch by stealing many of their customers.
“It appears the number of [illegal] stores is on the rise,” said Paul McGovern, President of Vertie Cannabis, a licensed retailer at 180 Carlton Street in Toronto.
McGovern was not quick to point the finger at anyone in particular and added that this is a complex issue. He also said that the level of organization and enforcement is seemingly different from province to province.
“Some provinces have given a lot of thought to the matter and are doing things to try and keep a lid on the unlicensed market. I would say there are others, like Ontario, that are not.” He added that it seems enforcement of this problem has taken a back seat in his market, but he does not blame the police.
“The level of police resources today are strapped [as it is] with so many other public realms,” he said. “It’s important to be fair to them. It’s not easy, and as this thing snowballs and gets worse and worse we’re looking at a really big problem.”
What’s the plan?
McGovern said one of the culprits that triggered this proliferation of illegal stores was a lack of planning from a higher level than law enforcement. “The only funding, to my knowledge, is a mere $33 million over 3 years for the OPP to do some very minimal targeted enforcement.”
He added that in BC, as an example, there is a dedicated enforcement team, the Community Safety Unit (CSU), which comprises a group of special constables. These officers were not taken from police resources and they operate with the help of retired investigators and others who understand the laws and how to enforce them. They have had a successful response and
McGovern is well aware of that. “If we had even a fraction of that in Ontario, we wouldn’t be talking about the problem we are today.”
Another retail operator, Sativa Bliss, with stores in various Ontario cities, has also had direct experience with this problem. “One of my locations, in St. Catherines, was a victim of an illegal cannabis store,” said Jazz Sarma, Owner of the chain. “Thankfully, we were able to work with the city there and get it shut down.”
Sarma said that he and other local retailers in St. Catherines came together, approached the mayor, and got the job done. “They haven’t come back. They say they only do delivery now.”
The store was almost directly across the street from Sarma’s, and it most certainly affected his business, which he said dropped by as much as 50 percent.
It’s not me, it’s you
A few years ago, when legalization was basically at the toddler stage, it was easy to say that the customers didn’t know the difference between legal and illegal stores, but we’re six years old now.
“Some people may tell you they don’t know if it’s legal or not, but it’s kind of obvious once you start shopping at a legal store and then you go to an illegal one,” said Sarma. He added the reason people go to illicit stores is cheaper products, no taxes, and, in some cases, they sell other illegal drugs as well.
This illicit activity is not just relegated to brick-and-mortar either: delivery services have also been affected.
Mike Dunn is the co-owner of 1922 Cannabis, a retail store and delivery service at 120 Sherbourne St. in Toronto. He was so busy trying to compete with illegal delivery services that he was almost unaware of the sheer amount of unlicensed stores cropping up. What he did notice is that retail cannabis customers were seemingly vanishing from his particular area, and he later found out it was because illegal stores were taking them.
Dunn went through the numbers based on his experience and estimated that some of these stores could be making over $150,000 per month. “They’re doing it through high-volume, low-quality transactions.”
To the city’s credit, Dunn said that recently, seven stores that he is aware of were raided, the products seized, and the locks changed on the doors. He feels the real test of the system will be how fast they re-open. “My hypothesis is that within the next three or four days, they will be back open,” he said. “Right now they are closed but I have seen people in both of them and yesterday I saw someone drilling at the locks at one location.”
The good news is for now, with these stores closed, business has improved for 1922. “We’ve had a huge increase in foot traffic. We’re probably up about 30 percent. I’d say everyone in the area that’s got a legal door has probably seen an increase.”
What does the city say?
StratCann reached out to representatives at the City of Toronto, and their response revealed a need for the province to review the Cannabis Control Act, which has not been updated since before legalization.
“In March, 2024 Toronto City Council requested the Province of Ontario undertake a comprehensive review of the Cannabis Control Act, 2017, in consultation with municipalities, including roles and responsibilities, funding, and enforcement, and addressing unlicensed cannabis establishments,” said Shane Gerard, Senior Communications Coordinator. “The Cannabis Control Act, 2017 has not undergone a comprehensive review since it was introduced seven years ago.”
He added that the province is responsible for licensing and regulating private cannabis retail stores through the AGCO, who in-turn enforce the regulations. Further, Gerard said that the city does, in fact, go after property owners.
“The City can, and does, file charges against property owners who are in contravention of the Cannabis Control Act. Individuals charged can face fines of up to $250,000 and face imprisonment of two years (minus one day).”
The city also pointed out that the current Cannabis Control Act provides limited authority to municipal by-law officers.
“These officers do not have arrest powers and are not permitted or trained to use force while carrying out enforcement activities. This makes the enforcement of unlicensed cannabis dispensaries challenging and presents health and safety risks to officers.”
Whatever the reasoning, be it inefficient funding for police resources, lack of planning, less diversity and advertising for legal products, or other factors, it’s clear the legal cannabis industry is struggling to be the choice for Canadians.
Although no timeline was given by Mr. Trudeau back in 2014 when he said he wanted to stop illegal profits from cannabis, there is a sea of people from coast to coast working hard in the legal sector who hope this happens much sooner than later.
~This is the second in a series StratCann has published on the illicit cannabis market in Canada. The first is on the online illicit cannabis market.
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