• Follow us

Economy

Toronto's Queen St. May Become 'Cannabis Row' After New Pot Licences

Cannabis educator Jonathan Hirsh smokes a joint he purchased outside the Hunny Pot Cannabis Co. store...

Andrew Francis Wallace via Getty ImagesCannabis educator Jonathan Hirsh smokes a joint he purchased outside the Hunny Pot Cannabis Co. store on Toronto's Queen St. West, April 1.

TORONTO ― Ontario has selected 42 operators who can apply to run the next wave of cannabis shops in the province but some analysts say the new stores still won’t be enough to combat pot sold on the black market.

The Alcohol and Gaming Commission of Ontario ― which regulates the sector ― held the province’s second cannabis store lottery Tuesday and announced the results Wednesday. The new stores, when approved, will more than double the number of marijuana outlets in the province.

“The AGCO will only licence applicants and authorize stores that meet all legal and regulatory requirements,″ the agency said in a statement, noting that the aim was to have new stores open in October.

Video: Check out this cannabis bonsai tree. Story continues below.

Unlike the first lottery for 25 stores, applicants in the latest draw had to show they had secured retail space that could be used as a store if they were selected, and that they had enough capital ― $250,000 on-hand ― to open it.

Those selected now have until Aug. 28 to pay licensing fees, and provide a letter of credit for an additional $50,000 to the regulator.

Another eight stores will be located on First Nations reserves and are being approved through a separate process. Applicants for those licences were selected last month and are currently being greenlit, the AGCO said.

Still too few locations, experts say

The latest lottery and the on-reserve stores mean the number of pot shops in Ontario will eventually rise to 75, but some observers said that still wasn’t enough.

“Fifty more licences is a good step, but it’s nowhere near what they need to do to actually deal with the illicit market,″ said Omar Khan, a vice president at strategy firm Hill+Knowlton who advises cannabis sector clients.

“What that means is that the small business person who’s taken out a line of credit and put money down for the lease is facing some stiff competition from those who aren’t necessarily following the legal framework. To me, that’s quite unfair.″

David Phillips, a principal at consulting firm Navigator who is a former executive at the Ontario Cannabis Retail Corporation, also said the black market continued to be an issue.

“Every additional store in Ontario will help towards eliminating the illicit market, but the province still has a long way to go,″ he said.

The latest lottery winners appear to be a mix of sole proprietors and numbered companies that could turn out to be part of larger entities, Phillips noted. Small business owners who were selected will likely have to partner with companies who have experience in the field, he said.

“That suggests we’re likely setting ourselves up for another feeding frenzy where these lottery winners will be out seeking partnerships with well-known commercial enterprises and essentially auctioning off their golden ticket to the highest bidder,″ he said.

The small business person ... is facing some stiff competition from those who aren’t necessarily following the legal framework. To me, that’s quite unfair.Omar Khan, Hill+Knowlton

AGCO rules prevent a lottery winner from actually selling their store outright but do not prevent limited ownership stakes and consulting contracts with larger companies, Khan said.

The 42 new stores will be distributed regionally, with 13 in the city of Toronto, six going to the Greater Toronto Area, 11 in the west region, seven going to the east region, and in the north, one each in Kenora, North Bay, Sault Ste. Marie, Thunder Bay and Timmins.

Pot shop locations ‘left to chance’

Phillips said the random nature of the lottery may create problems for communities when it comes to the location of their pot shops. For example, three applicants won licences to apply to locate stores on the same street in Innisfil, Ont.

In Toronto, five of the lottery winners have leased shop space on Queen Street, where two pot shops already operate, he said.

“That suggests that Queen Street in Toronto is going to quickly turn into cannabis row,″ he said. “That’s a consequence of them setting up a system where essentially the applicants could decide where the store location was going to be and then ― because it’s subject to a draw ― you’re essentially leaving it to chance.″

Read More



Leave A Comment

More News

TORONTO STAR | BUSINESS

Jennifer Wells: Why Ottawa should buy the Oshawa 2019-09-17 15:07:55The UAW strike would be an opportune moment for Canadian politicians to lay out a plan for our auto sector, writes Jennifer Wells.

Canadian manufacturers keeping close eye on GM strike 2019-09-17 14:49:06

Canopy to hire new CEO by end of 2019-09-17 14:00:34

Report finds immigrant wage gap costing Canada $50 2019-09-17 13:16:45

Former Canopy CEO and co-founder envisions big opportunity 2019-09-17 13:09:53Recently ousted Bruce Linton says he will be a director at Mind Medicine, Australian firm seeking to establish psychedelic-assisted treatments for men

You can pay your property taxes with Bitcoin 2019-09-17 12:40:40

Outspoken Imperial Oil CEO Rich Kruger stepping down 2019-09-17 12:29:27

For third year in a row feds post 2019-09-17 11:36:00The $14B deficit for 2018-19 is smaller than projected, but election foes lay out their plans to attack budgetary shortfall

Toronto stock market in record territory again, U.S. 2019-09-17 11:30:00Canada's main stock index pushes into record territory in early trading for another day, fuelled by gains in the materials sector offset by retreat o

Apple pushes back against EU in court fight 2019-09-17 11:16:50The iPhone maker said it’s the world’s biggest taxpayer, urging EU judges to overturn a 2016 order by the European Commission to hand over

Companies tighten climate goals as scientific outlook darkens 2019-09-17 11:07:50The Science-Based Targets Initiative translates global benchmarks into industry- and company-specific targets. To date, more than 630 companies from 4

When companies improve their gender diversity, stock prices 2019-09-17 11:00:53New research suggests investors are paying attention to the workforce diversity of the business world, and that when a company’s diversity goes

: Money

How quickly should you pay off your student 2019-09-12 13:54:05Sometimes, longer is better.

Canada’s big cities push political parties for policies 2019-09-11 07:41:07The issues are likely to draw more attention from politicians than in the past.

‘Limited’ data stalling Canadian policy-making on gig economy, 2019-09-09 10:20:40"Something's happening, we just don't know how to measure it properly," said one economist.

Retail giant takes over former Sears in Canada’s 2019-09-08 16:36:20A little over a year after retail giant Sears closed its doors for good in Canada, another major retailer is expressing confidence in the ongoing viab

The bank of mom and dad will lend 2019-09-07 07:00:36So-called family home loans are relatively common in the U.S. Canada's version of the arrangement is also becoming more popular, according to one B.C

By the numbers: How to reduce your debt 2019-09-07 06:00:40There are three main options: here's how they work.

Canada sees jobs surge in August with 81K 2019-09-06 08:54:17The gains were mostly in part-time jobs held by 15 to 24 year olds, while overall wage growth slowed.

Worsening of trade war would deliver a ‘complex 2019-09-05 12:30:53Economic growth has been accelerating, but uncertainty over trade is already taking a toll, Bank of Canada deputy governor Lawrence Schembri said.

Bank of Canada holds rates at 1.75% with 2019-09-04 10:21:37Canada's central bank said the economic damage from the U.S.-China trade war is worse than expected but did not mention the possibility of a future r

Air Canada files challenge with federal regulator over 2019-09-03 19:23:36Air Canada is challenging WestJet Airlines Ltd.'s $3.5-billion acquisition by Onex Corp., arguing in a filing to the country's transportation regula

RCMP, FBI two of four agencies investigating former 2019-08-29 09:46:34Ernst and Young, the accounting firm overseeing the Quadriga bankruptcy, is now asking for the proceedings to be moved from Halifax to Toronto.

Bill C-69 enters into law, and Alberta’s UCP 2019-08-29 00:48:07The federal government's contentious bill to set up a new authority to assess industrial projects like pipelines, mines and inter-provincial highways

Canada Business - The

Trudeau Pitches Tax On Foreign Buyers To Cool 2019-09-12 13:24:32VICTORIA — Justin Trudeau says a re-elected Liberal government would impose a national one per cent tax on properties owned by non-Canadians and

Apple TV Plus Announces Canadian Launch Date 2019-09-10 18:27:17TORONTO — As if there wasn’t enough to watch on TV already, Apple is throwing its hat into the streaming wars this fall, with a roster of

Mortgage Fraud May Be A Problem Among Canada's 2019-09-09 06:30:16Rising house prices and intense social pressure to own a home may be damaging young Canadians’ moral fibre, convincing them that it’s OK t

Canadian Real Estate Near Bottom Of Global Rankings, 2019-09-08 13:45:40A global housing slowdown is taking place, and Canada is nearing the very bottom of it.Canada placed 49th out of 56 national housing markets included

Chick-fil-A's Toronto Grand Opening Met With Protest From 2019-09-06 18:47:08Protesters crashed the grand opening of Chick-fil-A’s only Canadian location, sending a loud message that the company’s anti-LGBTQ history

Calgary Realtor Daniel Weiner Turns To Hockey Shootout 2019-09-06 18:44:40What started off as a standoff over $3,000 for a Calgary semi-detached home ended with a one-on-one hockey shootout.

Last 2 Zellers Stores In Canada Are Shutting 2019-09-06 14:44:57TORONTO ― Hudson’s Bay Co. says it will close the last two Zellers locations at the start of next year.A spokeswoman for the retailer says

Canada's Only Chick-fil-A Opens To Wave Of LGBTQ 2019-09-06 13:34:24TORONTO - Protesters crashed the grand opening of Chick-fil-A’s only Canadian location Friday, sending a loud message that the company&rsqu

Trade War Could 'Deliver A Complex Shock' To 2019-09-06 10:59:10The Canadian economy has shaken off the weakness seen at the start of the year, but escalating trade conflicts and related uncertainty are taking a to

Canada's Unemployment Rate Steady As Country Adds 81,000 2019-09-06 09:51:04OTTAWA ― Canada’s economy posted a job surge last month of 81,100 net new positions, the bulk of which were part time, in the services sec

Real Estate In Toronto, Vancouver Sees Another Month 2019-09-05 10:30:15Canada’s priciest housing markets, Toronto and Vancouver, continued their sales rebound in August, but while Toronto is seeing a return to moder

Doug Ford Government's Stickers Violate Free Speech, Lawsuit 2019-09-04 17:17:48TORONTO — An Ontario law forcing gas stations to display stickers showing the cost of federal carbon pricing is illegal and should be thrown out

CBC | Business News

Alberta's 'Gas City' to shut down 2,000 wells, 2019-09-17 13:43:53The southern Alberta community of Medicine Hat — known as "The Gas City" — is permanently shuttering 2,000 of its active natural ga

Canopy Growth to hire new CEO by end 2019-09-17 13:01:08Canopy Growth Corp.'s chairman says it expects to complete its search for a new chief executive officer by the end of the year. The comments came at

Saudi energy minister says oil production will be 2019-09-17 11:16:51Saudi Arabia's new energy minister Prince Abdulaziz bin Salman said Tuesday that his country's oil market will be fully back online by the

Outspoken Imperial Oil CEO Rich Kruger to step 2019-09-17 10:12:30Imperial Oil Ltd. says chairman and chief executive Rich Kruger is retiring at the end of this year.

Statistics Canada reports manufacturing sales fell 1.3% in 2019-09-17 10:06:49Statistics Canada says manufacturing sales fell 1.3 per cent to $57.2 billion in July as sales in the primary metal and motor vehicle industries moved

In some battleground ridings, renters spend 50% or 2019-09-17 10:00:00Housing affordability is poised to be a major ballot box issue in the upcoming federal election, with a sizeable portion of renters in some of th

Talks resume as UAW strike against GM enters 2019-09-17 09:09:52Talks are set to resume Tuesday after a pause overnight, but there was no end to the strike against General Motors. The walkout by upward of 49,000 Un

Liberals pledge to boost Canada Child Benefit, extend 2019-09-17 08:48:11The Liberals are promising a suite of family-friendly benefits, including a boost to the Canada Child Benefit for babies and a 15-week leave program f

GE removes asbestos from Peterborough, Ont., homes — 2019-09-17 04:00:31A CBC News/Toronto Star investigation has found that from the 1940s until the mid-1970s, General Electric sold off leftover asbestos material from its

What the attack on Saudi oil facilities could 2019-09-17 04:00:00The secure supply of Canadian oil to the United States could recapture the attention of American decision-makers following the recent&n

Montreal man has $800 in rolled change, but 2019-09-16 16:00:00Julien Perrotte stood in front of the representative at his local bank last week, unsure he properly understood what she was telling him. 

TSX in record territory as energy stocks see 2019-09-16 15:33:58Higher oil prices spurred by an attack on Saudi Arabian oil facilities boosted the Canadian energy sector on Monday but are expected to result in high

Christian Science Monitor |

Agricultural companies look to enter growing fake-meat market 2019-09-09 14:30:01Traditional agricultural companies are investing in the surging fake meat market, which some predict will triple in size over the next decade.

Volkswagen invests on new electric model. Will consumers 2019-09-09 12:16:38Carbon regulations are pushing EU auto companies to invest in electric vehicles, but so far only customers in wealthy countries are interested.

Why Albertsons says guns and grocery shopping don't 2019-09-09 05:45:46Supermarket operator Albertsons Companies joined Walmart, Kroger, and other retailers asking customers not to openly carry firearms while shopping.

China and industrial theft: What U.S. history says 2019-09-04 16:50:00The U.S.-China trade war ratcheted up Sept. 1 with new tariffs. Lessons from the U.S.’s commercial rivalry with Britain 200 years ago still reso

Capitalism under pressure: Why CEOs rethink corporate purpose 2019-09-03 16:16:00When 181 CEOs at the Business Roundtable’s revised their view of a corporation’s purpose, it reflected social changes since the Great Rece

Why carmakers are revving for regulation 2019-08-27 16:27:33A Trump proposal to scale back fuel efficiency standards has several key automakers siding with environmentalists in California.

The other economic trajectory: Global poverty in decline 2019-08-26 17:15:00Often the media focus on economic challenges, such as inequality and poverty. That’s important, but so is taking note of real progress.

As China trade war escalates, Iowa soybean country 2019-08-23 16:40:10For soybean farmers, weather is “an uncontrollable.” Now President Trump’s fight with China is, too.


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.