Canadian CANNAINVESTOR Magazine November 2018 | Page 35

legislation specifically provides that an applicant will not be prevented from obtaining such a licence if he or she had been convicted of a prescribed offence under the federal Controlled Drugs and Substances Act in relation to cannabis, which is in keeping with the policy of the Cannabis Act to bring certain illicit participants into the legal and regulated system.

Sale of cannabis in retail stores

The Retail Licence Act sets out a few key provisions pertaining to cannabis sales at a retail level. First, retail stores will only be permitted to sell cannabis purchased directly from the Ontario Cannabis Retail Corporation (“OCRC”) and when sold to the public, are required to sell the cannabis in the same packaging in which it was received from the OCRC. Second, all cannabis must be sold using a tracking/inventory management system to record sales. Third, all ordering and payments must be completed at the store and no online sales will be permitted. This is not necessarily a surprise given that the ability to process online orders may have the potential to interfere or compete with the provincial government’s online cannabis monopoly.

What Is Still Unknown?

The Retail Licence Act has brought some clarity as to licensing requirements for private retail, but much of the mystery remains as to what information applicants will be required to provide in their applications. However, given that a number of other provinces including Alberta, Manitoba, British Columbia and Newfoundland and Labrador have implemented privately-owned retail cannabis models, we have considered the existing retail licence requirements in those jurisdictions to gain a sense of what one could expect to see for those interested in applying for licence(s) or a retail store authorization in Ontario.

What Information is Likely to be Required?

Based on the guidance offered by reviewing application requirements in the jurisdictions listed above, we expect the applications will include, at a minimum, the following categories:

1. Location and store requirements;

2. Financial disclosure;

3. Background checks; and

4. Business plans.

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