Canadian CANNAINVESTOR Magazine Canadian Publicly Traded April / May 2019 | Page 23

23

launchpad with designs on establishing more stores across the country in the future. With 12 going it alone and 12 partnering with a brand, we will look to Kyle Hildebrand, who won his spot in the lottery after the disqualification of Gary Hatt, to break the tie.

Given the allocation of stores across the province, one can safely assume that all 25 stores will do well in 2019. However, the real question is what will happen in 2020 when the provincial government is slated to open up the licensing system. Will any of the existing retailers, and in particular those with brand partnerships, be able to generate a level of brand loyalty over the course of 2019 that can be used to successfully launch additional locations? Will operational and customer preference learnings gathered in 2019 give these first 25 retailers a meaningful advantage over the wave of retailers who will follow in 2020? Will brands and retailers who were completely shut out of the initial round of stores be at a competitive disadvantage, or will the experience gained in other provinces and territories allow them to competitively jump right into Ontario when the opportunity presents itself? The answers to all of these important questions will have to wait until 2020. For now, we can just enjoy the fact that we finally have bricks and mortar retail stores in Ontario.

The announcement of a lottery system altered the retail landscape.