I was happy until I read this.Cannabis Companies Strike Supply Agreements In Ontario: What Does It Mean?
2:19 pm ET August 21, 2018 (Benzinga) Print
With an imminent cannabis legalization date of Oct. 17, Canada has passed laws and restrictions to prepare for the transfigured market this fall. On Monday, legislation was passed that will greatly alter the timeline and nature of cannabis suppliers in the province of Ontario.
What Happened
The Ontario Cannabis Store, the province’s sole legal provider of cannabis, announced a partnership with 26 licensed producers for its online retail platform. The "420 Investor" Alan Brochstein commented on this announcement during an appearance on Benzinga's PreMarket Prep trading show.
“Ontario is the largest province by far in Canada and there was a distribution system that was set up initially that was going to be very challenging," Brochstein said Tuesday morning. "A single entity, the government, was going to be selling all of the cannabis, which is never a very good idea. So there was a political change in the province and they decided to open it up to private retailers."
Why It’s Important
Now, not only will the OCS sell a variety of products online, it will also establish a wholesale distribution system to supply products in private stores.
“The downside to the plan is that it will delay physical stores until April 1. So from Oct. 17 to approximately April 1, the only place where people in Ontario will be able to buy cannabis is through the online store operated by the government,” Brochstein said.
What’s Next
In light of the new legislation, numerous cannabis companies announced supply agreements with Ontario Cannabis Stores.
Aurora Cannabis Inc. (OTC: ACBFF) and MedReleaf confirmed the agreement by announcing plans to supply a broad range of dried flower and higher-margin products
