No Increase in Cannabis Charges

Though Edmonton police reported last week the number of drivers they’ve charged with drug-impaired driving has increased since legalization, Calgary police chief Mark Neufeld said there’s been no increase in such charges in Calgary, or in other sorts of infractions. “I don’t think it’s had the impact that we thought it would,” Neufeld told the Calgary Herald. “A lot of people out there are being responsible with it.”
Calgary Herald

Quick Hits

  1. A Toronto condo board demanded condo-owners who planned to smoke cannabis in their units sign up for a registry maintained by the board. Residents say such a registry is an infringement on their privacy, while a real estate lawyer argued it wasn’t a practical solution to odour problems that create the most friction between residents.
    CBC Toronto
  2. Sales of home-cultivation equipment are booming.
    Globe and Mail
  3. Canadian LPs aren’t interested in the social and cultural context of cannabis in Jamaica when they go there looking for MED export deals. Locals worry Canadian and other foreign cannabis businesses will replicate the history of the colonial sugarcane industry on the island.
    Financial Post

Scheer Promises Cannabis Research if Elected

Federal Conservative leader Andrew Scheer reiterated his party will not recriminalize cannabis if they win the October federal election. (Polls suggest the Conservatives are in the lead to at least win a minority government, if not a majority.)
Kelowna Capital News

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  • “We want to make sure the federal government is not just a partner but is leading the way on that as we learn what the ramifications of what legalization will mean for our society going into the future,” Scheer said.

Quick Hits

  1. Cannabis and mental health scholars published an op-ed in the Globe arguing the debate about psychosis and cannabis is built on anecdotes rather than stable data and discounts the variety of other facts known to increase risk of mental illness, like poverty, trauma, abuse, and stress. “By ignoring these important contexts,” the authors argued, “we are framing the onset of mental-health issues as a result of someone’s personal choices, and thereby further perpetuating stigma around these conditions for individuals experiencing psychosis or with schizophrenia.
    Globe and Mail
  2. Employers and workers can’t agree on what constitutes cannabis impairment, and unions argue some aggressive policies (such as the Transport Canada policy that cabin crews and air-traffic controls not consume cannabis for 28 days before work) constitute a total ban on the substance.
    Globe and Mail
 

MED User Wins, Loses Right to Possess 1KG in Public

A judge found in favour of Allan Harris, a MED user prescribed 100 grams per day who complained the 150-gram public possession limit for MED users (the public possession limit for REC users is 30 grams) prevented him from being able to travel anywhere for more than a day. The next day the Federal Court of Appeal overturned the decision.

  • The initial decision would have granted MED patients the right to possess one kilogram of cannabis in public. Federal Court of Appeal Justice David Near said Harris should find other ways to find MED when he’s away from home, and that if Harris were granted a constitutional exemption, other MED users would have that as well, which he said could lead to theft, violence, or diversion.
    CBC Politics
  • NextLeaf Labs president “Canna Tom” Ulanowski suggested an alternate headline to stories stressing the 100-gram daily prescription: “Patient who uses arbitrary amount of cannabis granted right to possess a higher arbitrary amount of cannabis, relative to what is arbitrarily allowed.”
    Twitter
  • Lawyer Kirk Tousaw noted, “Prior to 2014 Harris could have possessed a 30 day supply or 3kg.” He added, “My goal is no personal possession limits. For REC or MED.”
    Twitter
  • Harris said he will continue to fight for the right to three kilograms. “There’s no other medication that’s based on amount,” he said. “Why am I able to get 30 days of any narcotic, but I can’t have 10 days or 30 days of my cannabis? I can smoke myself to death, I can eat myself to death or I can drink myself to death and the government doesn’t do anything about it. But when it comes to cannabis, then we’ve got to be protected.”

Quick Hits

  1. A 60-year-old BC woman said she’s given up three prescriptions since turning to MED and will file a complaint with the BC Human Rights Tribunal to challenge her condo development’s anti-cannabis bylaw.
    Canada.com
  2. Cronos Group CEO Mike Gorenstein said Health Canada’s regulations will prevent the emergence of global brands and MED patients decried Health Canada’s 10mg THC caps on edibles, while the Star editorial board argued protecting children from accidental consumption merits “a safe and stodgy strategy.”
    Bloomberg, Botaniq, The Star
  3. Producers of non-cannabis Natural Health Products (NHP) are using the trendiness of the endocannabinoid system to promote products like ginger, echinacea, and clove, believed to promote endocannabinoid function.
    Victoria Times Colonist

Alberta Expects 200 REC Retailers by Fall

Alberta, which has a population roughly a third of Ontario’s, is on track to open 200 REC retailers by the end of the summer.

Quick Hits

  1. BC premier John Horgan said there was a “glitch in the system” causing the slow rollout of REC retail licenses. “I thought we had adequate time to get this up and running. Clearly the system is not moving at the pace the private sector needs,” Horgan said.
    Radio NL
  2. Grower Ryan Lee suggested the slow REC rollout might be deliberate on the part of the BC government, which recognizes how much of its provincial economy is tied up in the illicit cannabis industry. Lee noted, “Small town BC couldn’t exist without the Cannabis $ infusion. Everybody knows a grower, a trimmer, a broker.”
    Twitter
  3. Victoria City staff oppose a pilot project for cannabis consumption-sites (lounges). City clerk Chris Coates recommended the city not adopt the project because such sites are under provincial review, and allowing them might lead to conflict with the province or with Ottawa.
    Victoria News
  4. A Victoria restaurant plans to eventually serve infused food and drinks. Trees: Island Grown is operated by Trees Cannabis Company, which is operating illegally while it waits for licensing, and Tress CEO Alex Robb is optimistic that within a year to eighteen months, BC will begin allowing cannabis in restaurants.
    CBC Victoria

REC Retail a Challenge to First Nations

Ontario’s move to license eight REC stores in First Nations may the beginning of a broader attempt to limit unlicensed stores in those communities, though any aggressive move in that direction threatens complex jurisdictional challenges. First Nations have no governance relationship with provinces and some resist any intrusion from provincial governments, laws, and police.

  • A few First Nations leaders hailed the opportunity for legal REC on their land.
    CBC Thunder Bay
  • All REC retailers must buy provincially and federally taxed legal REC, but First Nations do not pay taxes and many refuse to collect taxes on behalf of any government except their own.
  • Last month, Ontario Chiefs voted to control all cannabis within First Nations. AFN Ontario Regional Chief RoseAnne Archibald said, “Limiting those number of stores is contrary to what we call community sovereignty.”
    Global

Quick Hits

  1. Out of 257 inspections of MED LP facilities in the fiscal year ending in March 2018, Health Canada gave “noncompliant” ratings to three producers, as well as two “critical observations,” and 63 “major observations.”
    MJ Biz Daily
  2. The Nova Scotia Liquor Corporation, which sells REC through its liquor stores (the only province to do so), requested $3M in additional funding to prepare its liquor stores for edibles. Last year the agency retrofitted 12 stores to sell RECbut this year they’ll be renovated to prepare for legalization 2.0 products.
    The Star
  3. Global News reporter Patrick Cain reported employees at a Sackville Cannabis NB store said they get border-crossing customers from Nova Scotia, where cannabis is sold through the NSLC. They “want to talk to people who work in a dedicated cannabis store, as opposed to people who are mostly liquor store clerks who now sometimes also sell weed,” Cain said.
    Twitter
 

50 New Ontario REC Stores plus Lottery, Round Two

The Ontario government announced it willthe Alcohol, Gaming and Gaming Commission of Ontario will hold a second lottery for 42 REC retail license, while the government itself will develop eight REC retailers in First Nations on a first-come, first-served basis. The combined 50 new REC retailers will begin opening in October. An infographic explains the timeline, while the rules are over here.
Ontario Gov, AGCO, National Post, The Star Twitter, AGCO

  • The new lottery will take place on August 20, but Expression of Interest applications must be submitted between August 7 and 8:00pm August 9.
    The Leaf
  • The application period for eight stores in First Nations stores begins earlier, on July 31, and requires the support of a Band Council resolution approving a REC store in the community. Aspiring REC retailers on Reserve would require no working capital or letter of credit.
  • Those who participated in the last lottery will not get priority, and will have to submit new applications and pay new fees.
    Twitter—Matt Columbro
  • Lottery applicants must show a bank letter stating they have access to $250,000, another bank letter showing they can get a $50,000 line of credit, and a letter securing retail space. They’ll also be vetted to make certain they’re ready to open a store. Vetting will take place between August 10 and 19, and the lottery will follow on August 20.
    Bloomberg
  • Vetting will not be merit-based.
    Globe and Mail
  • Brock University’s Michael J Armstrong said, “This time, the government’s rules will screen out most of the unprepared entries that seemed common in the first lottery. One side effect is that they’ll screen out ‘mom and pop’ entrepreneurs who have retail experience but little liquid cash; i.e. the classic small retailer.”
    Globe and Mail
  • Ontario has not yet finished opening its first 25 stores, which were all supposed to open on April 1. With news this week the Oshawa REC store previously known as Tripsetter, then as Fabulous Leaf, received a license to open as Tokyo Smoke Oshawa.
  • That brings Ontario’s total REC retailers to 23.

The lottery for 42 non–First Nations REC retail licences will be broken into five geographic segments.
AGCO

  • The AGCO notified existing REC retailers they’ll be able to sell their stores after December 13.
    Twitter—Matt Maurer
  • The Ontario government continues to stress it is limited in the number of stores it can open by what it calls “federal supply issues.” Reuters
  • Bill Blair argued there was plenty of REC available in the rest of the country. In a statement, Blair said, “With the notable exception of Ontario, the rest of the country has made steady progress in displacing the illicit market with licensed and regulated retail stores. While the rest of the country made progress, the Ford government made excuses. [… The Ontario government spent] months of blaming an inept approach on a non-existent supply shortage.”
    CBC News

Quick Hits

  1. Saskatchewan and Manitoba allow private REC retailers to operate online stores—which means those provinces will be the first to offer same-day REC delivery. Some services like Pineapple Express handle delivery directly, while others, like Super Anytime, connect retailers with such services.
    Financial Post
  2. In the years leading up to legalization, BC residents consumed far and away the most cannabis in Canada. Between 2013 and 2017, 23% of BC residents above the age of 15 reported using cannabis, versus the national average of 15%.
    604 Now
  3. Inuvik, NWT, passed a bylaw prohibiting REC retailers in its “downtown corridor,” which is what it’s calling the stretch of MacKenzie Road between the Inuvik Hospital and Ingamo Hall. The goal is to keep REC retailers away from youth heading to and from school.
    CBC North

Canopy Board Sacks Bruce Linton

On Wednesday, Canopy announced in a press release that founding co-CEO Bruce Linton was “stepping down.” Within hours, Linton clarified to CNBC that he was fired as co-CEO and member of the company’s board. He said in a statement, “The board decided today, and I agreed, my turn is over.”
Financial Post, CNBC

A Canaccord Genuity analyst suggested Constellation wants a CEO from a blue-chip company to replace Linton, while Toronto financial CEO Neil Selfe said, “The skillset that’s required to get a company off the ground is different than running a company in the long term.”
Bloomberg

Linton said he knew the Constellation deal might be the beginning of the end for him, “But we would have been fools not to bring in a $5-billion cash infusion just so we could keep our jobs.”

Quick Hits

  1. Globe columnist Barrie McKenna argued cannabis may never be a major profit-making industry in Canada, where the cannabis market is “small, highly regulated (as it must be) and vastly oversupplied.”
    Globe and Mail

  2. Industry people want the government to invest in educating the public about the coming slate of soon-to-be-legal cannabis products.
    Global News

  3. The C-45 Quality Association called for cultivators and regulatory people to join their quality/compliance organization, which is working to develop best practices and standards for the Canadian cannabis sector.
    C45 Association

Counterfeit Labels or Health Canada Compliance?

Licensed REC retailers in Saskatchewan complained of illicit cannabis being sold with Health Canada–compliant packaging and warning labels, though without Health Canada–compliant lot numbers and percentage of cannabinoids.

  • Retailers—and media—claimed this was “illegal cannabis disguised to look like the legitimate product.”

Quick Hits

  1. Prohibition may ironically lead to increased cannabis consumption—and legalization may force consumption down.
    The Street
  2. The Liberal government passed its record-suspension legislation last week—but since most people with criminal records have more than a single cannabis possession charge, experts don’t expect there will be much demand for pardons under the new law.
    CBC Politics
  3. Quebec was never as lenient toward illicit dispensaries as Ontario or BC, quickly cracking down on dispensaries as soon as it became aware of them. In 2017, I wrote about the high profile raid that took place at Quebec City’s Cannoisseur, the third MED dispensary in the city to open and quickly get raided in 2017. Its owners pled guilty this week to trafficking and possession with intent to traffic.
    Leafly, Journal de Montreal—In French
  4. In an opinion piece bemoaning Health Canada’s legalization 2.0 regulations, Dalhousie University cannabis food distribution professor Sylvain Charlebois described Canadian legalization as offering the equivalent of “some dingy bingo hall playing lousy music.”
    Chronicle Herald

Edmonton Police: Drug- Impaired Driving Stable Everywhere But Here

Edmonton police reported an increase in drug-impaired drivers—as police elsewhere in the country continue to report impaired driving isn’t going up in their areas.

  • Of the 53 drug-impaired drivers they caught following cannabis legalization, 19 (36%) were believed to be impaired by cannabis. Over the same time period a year earlier, there were only three arrests for drug-impaired driving.
    The Star
  • The numbers were in a report by the Edmonton Police Commission which Police Chief Dale McFee says will not be used as an argument for additional funding, though it will likely present an argument for keeping its new funding (as of May 2018).
  • The report argues it takes far more longer to process suspected drug-impaired drivers and costs more money.
  • The report argues without evidence that “As the supply [of legal REC] increases, these numbers will rise.”
  • Edmonton Councillor Scott McKeen expressed skepticism at the numbers and the argument that legalization created an increase in impaired driving, saying he suspected they have increased only because police have gone looking for cannabis-impaired drivers, adding the number of cannabis users hasn’t changed dramatically since legalization.
  • Police chief McFee said the increase was the product of both increased use following legalization and increased police attention.

Quick Hits

  1. Between 2011 and 2017, Canadian cannabis use by those aged 15 and up increased 62%, according to the UN Office on Drugs and Crime’s 2019 World Drug Report.
    Business In Vancouver
  2. Cannabis activist Dana Larsen is pushing for the legalization of psychedelic mushrooms, and has opened an online mushroom dispensary selling psychedelic mushrooms only in micro-doses. Vancouver police said they’re aware of the business, but “Magic mushrooms and other psychedelic drugs are not typically an enforcement priority for the VPD, given the ongoing opioid epidemic, unless there are aggravating factors such as trafficking to children, or near schools and playgrounds.”
    Vice, CTV News
  3. Vancouver updated its zoning laws to allow for REC sales in the impoverished Downtown East Side.
    The Straight
  4. Leafly announced it would bring its Pickup service to Alberta and Saskatchewan, allowing consumers to reserve products online and pick them up the same day from local retailers.
    Globe and Mail
 

Namaste Shifts from Retail to Middleman

 
 

Namaste announced major changes to its web-based model. Previously, the company bought wholesale stock from LPs and resold their product, competing with them. Now, they will charge a fee to LPs who will now be able to sell their products directly through Namaste’s CannMart MED e-platform. The goal of the program will be to encourage repeat purchases.

  • Interim CEO Meni Morim declined to say how many companies had agreed to work with Namaste.
  • “The change in model from wholesale to consignment has been quite recent. There’s been a lot of fear and doubt about Namaste since February,” Morim told the Globe.

Quick Hits

  1. Supreme Cannabis launched London, UK–based Supreme Heights, an investment platform aimed to service the UK and European CBD boom. It also partnered with Wiz Khalifa and Khalifa Kush Enterprises Canada to launch a line of high-THC REC oils. This marks Khalifa and Khalifa Kush’s entry into the Canadian market.
    NewsWire, Press Release, The Straight
  2. Organigram, which does not plan to develop its own infused ingestibles, is looking for a beverage-production partner with a global distribution footprint.
    MJ Biz Daily
  3. Cannahorse, “Created for horse people, by horse people,” billed itself on its launch as “the world’s first-ever legal cannabis brand dedicated to horse health.” Quality horse puns followed on twitter, as did someone who remembered, “Purity Hemp in Mt Pleasant, Ontario has been doing hemp based equine products since 1999. ‘CannaHorse’ is not the first to market.”