• Most publicly traded REC retailers operating in Alberta are not yet profitable, as they continue to invest in opening new stores.
  Globe and Mail
• United Food and Commercial Workers Local 401 wants to organize Albertans employed by cannabis producers and processors.
  Calgary Herald

Quick Hits

1. The BC Independent Cannabis Association produced a white paper with six calls for changes to BC cannabis policy. Among them: legalizing both farm-gate sales and public consumption areas; moving from a central provincial warehouse to direct delivery for LPs; and BC municipalities harmonizing their cannabis zoning rules with provincial regulations. BCICA
2. There may be as many as 20,000 unlicensed craft producers in BC. So far, only one has received a micro license from Health Canada.
   Twitter—Patrick Brauckmann

• NB Liquor, parent to Cannabis NB, has recorded surging sales during summers, so it’s unclear how much of the Q2 increase reflected continuing or temporary increase in demand.
• At first Cannabis NB blamed losses on the supply shortage, though now they blame competition from illicit sellers.

Quick Hits

1. New Brunswick island Campobello is hard to access and gets mail delivered through the US, which means US Customs and Border Protection is making life miserable for everyone by increasing searches and seizures of mail in search of mail-order cannabis.
   Globe and Mail
2. Following a violent raid on a dispensary on the Six Nations reserve in Ontario, that community debuted the Six Nations People’s Cannabis Coalition “to regulate the production and sale” of cannabis inside the territory. A resident is also running for the community Band Council on a platform of ending cannabis raids and supporting the new SNPCC.
   Dispensing Freedom

• At present, the REC licenses are capped at 51 for the province of 1.2M, and are only allowed in municipalities larger than 2,500 people.
• The SLGA distributed the 51 REC retail licenses (all private) via lottery. REC stores exist in 32 communities.
  CBC Saskatchewan

• In April 2020, the SLGA will begin accepting license applications for communities of fewer than 2,500.
• In September 2020, the SLGA will scrap the 51-store limit in favour of “as many locations as the market will bear.”

Quick Hits

1. Organigram VP Public Affairs Cameron Bishop called on Justin Trudeau’s government to get serious about supporting and celebrating the economic gains from legalization, while former Hexo Chief Medical Officer–turned–losing Liberal candidate Terry Lake called for Trudeau to “take a ‘whole of government’ approach to this industry.” Twitter—Cameron Bishop, Terry Lake
2. Facing the threat of frost, 48North was forced to bring in a helicopter to hover over its outdoor crop and suck up cold air. Instagram—Devin Piche (48North Master Grower)

• In an open letter to the premier, CEOs from 10 major LPs said Ontario is “lagging far behind” on REC retail—outpaced even by government-monopoly retail in Nova Scotia, New Brunswick, PEI, and Quebec.
• “There is simply no longer a shortage,” the CEOs wrote. “There is no downside for allowing more private retail cannabis stores to be opened.”

Quick Hits

1. For those worried about losing Canada’s first-mover status, cannabiz accelerator Leaf Forward CEO Alex Blumenstein said Canadians in the sector should be focused on “deploying our intellectual property to global markets.”
   Globe and Mail

1. For those worried about losing Canada’s first-mover status, cannabiz accelerator Leaf Forward CEO said Canadians in the sector should be focused on “deploying our intellectual property to global markets.”
   Globe and Mail
2. Cannabis geneticist “Breeder Steve” (who developed cultivars like Shishkaberry) argued successful legal producers will require “distinct proprietary genetics, skilful biological cultivation, post-harvest handling, [and] novel derivatives.”
   Twitter—Breeder Steve

Quick Hits

1. Public REC consumption in “coffee shops” and cannabis lounges has proven effective in the Netherlands, and cannabis advisor Ivan Casselman argued Canada and the US would only benefit from allowing lounges and other public spaces for cannabis consumption.
   LinkedIn
2. Inside the Jar, a new and defiantly independent cannabis publication, announced its arrival with “letters” from co-founders Travis Lane, Amanda Siebert, and Piper Courtenay. They’re worth reading.
   Inside the Jar

• The beverages include Tweed-branded distilled “syrup” for combining with mixers, ready-to-drink low-calorie tonic, soda water, ginger ale and Houseplant- and Quatreau-branded flavoured sparkling waters.
• Six of the 16 products contain THC, and three contain the maximum-allowable 10mg of THC. Others contain CBD alone, or a blend of CBD and THC.

• CEO Mark Zekulin claimed the beverages essentially replicate the speed of onset and duration of alcohol.
  CTV News

• Health Canada’s regulations capping THC for edibles at 10mg has frustrated MED patients who say edibles are the most effective method of delivery, but require far higher doses than 10mg. They’re left to make edibles of their own.
  CBC Windsor

• Aurora also listed a standard 510-thread CBD vape cartridge at $99.25 for 0.5ml—significantly more expensive than illicit vape carts.
  Twitter—Hart Stanfield

• VP marketing Megan McCrae said Aphria “picked vapes as one of the things to hang our hat on” because the popularity of edibles and beverages remains unknown, while vape pens have strong market share in the US.
• A BC Centre for Disease Control public health MD speculated Canada may have avoided the VAPI crisis because it legalized REC.
  Vice

• Bill 2 also increased municipal powers to ban public cannabis smoking and vaping.
• Analyst Chris Damas estimated the age change will reduce legal REC sales by roughly 10%, or $20M.
  HuffPost
• The bill was assailed by researchers, analysts, public health professionals, and the REC industry.
  Twitter—Rebecca Haines-Saah and Steve Rolles, La Presse—In French, NewsWire

• Health minister Lionel Carmant said the law is scheduled to be reviewed in the future.
  The Leaf

• Health minister Lionel Carmant argued raising the age to 21 will protect those younger than 18 from accessing cannabis.
  La Presse—In French
• Quebeckers may still buy tobacco and alcohol at 18.

Quick Hits

1. Toronto got its first Cannabis Wedding Expo.
   CBC Toronto

• The company’s revenue was $15.4M (up 19% quarter over quarter).
  Financial Post
• Taking an inventory writedown, the company cut the value of its inventory by $17M, which BMO analyst Tamy Chen said was “an unsettling development” considering how much unfinished inventory LPs have.
• Hexo announced it would suspend cultivation in the Niagara facility it acquired as part of its $263M Newstrike acquisition this spring. 100 employees were laid off at that Beamsville, Ontario facility.
  Toronto.com

• Analysts John Zamparo and Krishna Ruthnum wrote in a client note, “Whether or not this is the right move is debatable, but without the [Quebec supply agreement], Hexo is relatively undifferentiated versus peers.”
  MarketWatch
• The company retains 33% market share in Quebec, down from 60% at legalization.
• CBC Hamilton interviewed me about Hexo’s cuts, as well as other challenges to cannabis retail in Ontario.
  CBC Hamilton

Quick Hits

1. The Green Organic Dutchman co-founder turned recently departed 48North co-CEO Jeanette VanderMarel emerged as CEO of Ontario LP Beleave, and she has plans to consolidate the number of stocks the LP has issued by a ratio of 10:1.
   MJ Biz Daily
2. A licensed Ontario hemp grower accused TD bank of racially profiling him when they froze his accounts and accused him of breaking the law after he asked them to transfer $35,000 to a vendor.
   CBC Toronto

Quick Hits

1. Somebody needs to tell Saint John chicken restaurant the Coop that adding CBD oil to their chicken wings is illegal unless they have a Health Canada license. (By now, someone probably has.) CBC New Brunswick
2. Would you be liable if you fed a friend an edible and he later drove impaired? Insurers worry you might be.
   Insurance Business

• Many noted the company could open the roof to the sun and become a greenhouse, while EY Cannabis Strategy and Risk Advisor Ashley Chiu wondered simply, “couldn’t they have built the solar panels somewhere OTHER than the roof? Makes sense for the panels to be supplementary to the SUN.”
  Twitter—Ryan Lee, Dan Sutton, Ashley Chiu

Quick Hits

• Smaller LPs are leading the way on developing sustainable, recyclable, non-plastic packaging. The first year of legalization generated an estimated 10,000 tons of packaging waste.
  MJ Biz Daily
• Designated growers were a huge part of the MED landscape for many years, growing MED on behalf of those who couldn’t grow their own. Today there are 363,000 registered MED users, and only 0.2% employ a designated grower.
  NOW! Magazine