WeedWeek Canada 10/06/18: Cannabis Amnesty Bill; Supply Fears Grow

OCTOBER 6, 2018

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Here's the news.

POLITICS

The NDP introduced a bill to expunge the records of Canadians with simple-possession convictions. (The Star)

As a private member’s bill, the call for expungement will be a time-consuming process and difficult to pass. (iPolitics)
Cannabis Amnesty introduced the #RightingHistorysWrongs hashtag to promote the Bill. (Twitter)
The Trudeau government promised it would begin looking for “the best way to do” pardons after October 17. (Radio Canada—In French)
Black community organizers want legalization to attempt to atone for the harm of prohibition, but that may not happen. (NOW Magazine)

After October 17, Canadians will continue to go to prison for cannabis offences, including growing more than four plants. (The Leaf)

Legalization is two weeks away but worries about the border remain unresolved. (The Hill Times—Paywall)

The Canadian Border Security Agency will modify declaration cards to ask whether those entering Canada are carrying cannabis. (Twitter)

As of October 17, Canadians can fly domestically with up to 30 grams of cannabis, though Transport Minister Marc Garneau warned against carrying it out of the country. (Globe and Mail)

Ottawa will not challenge First Nations that ban cannabis from their territories, even though the Indian Act only provides them the right to ban alcohol. (CBC Indigenous)

Health Canada released its Approach to Cost Recovery for the Regulation of Cannabis.

The percentage of Ontarians over 50 who’ve used cannabis in the past year has tripled since 2008, and seniors may be a huge cannabis market after legalization. (London Free Press)

Canopy partnered with the Ontario Long Term Care Association to launch a MED pilot study for seniors. (NewsWire)

A Maclean’s article that relied largely on comments from the prohibition-leaning Canadian Centre on Substance Use and Addiction (which controversially claims cannabis as related to 800 Canadian deaths per year) argued alcohol appearing significantly more medically harmful than cannabis was a “hypothesis.” (Daily Hive, Maclean’s)

A study by researchers at the Université de Montréal and Montreal’s CHU Saint-Justine hospital found cannabis use in adolescence did greater damage on cognitive development than adolescent alcohol use.

Study lead Dr. Patricia Conrod said the results tended to support the “gateway” theory of cannabis by noting cannabis use had a lasting impact on “inhibitory control,” a risk-factor for other addictions. (Science Daily)

LPs have become some of the federal government’s biggest lobbyists. (BNN)

At the current rate, 400,000 users will be registered in the ACMPR MED program by the end of this year, rather than in 2023 as Health Canada originally projected. (New Cannabis Ventures)

Pharmacists want Canadians to be aware cannabis may conflict with some prescription medicines, particularly those that affect blood pressure. (680 News)

A black high-school student was suspended outside Toronto because the vice-principal believed she smelled cannabis on him. He contended he had never used cannabis and offered to let her search him, but she persisted in suspending him. (The Star)

· Activists and child-advocates have argued treating youth cannabis users as criminals contradicts the goals of legalization. (The Straight)

REC legalization has led some Canadian cities to consider loosening rules on alcohol in public parks. (Ottawa Citizen)

The University of Saskatchewan, in partnership with LP Sundial, began a three-year research project into cannabis treatment for dementia. (Global News)

BUSINESS

WeedWeek founder Alex Halperin’s Guardian article on who’s getting wealthy in cannabis profiled the industry’s increasingly corporate culture in both California and Vancouver .

In June, LP cannabis stockpiles hit a record 96,700 kilograms of dried flower and oil. (MJ Biz Daily)

BC, Nova Scotia, and Quebec’s provincial cannabis distributors warned LPs are delivering less REC than expected due to low crop yields, packaging material shortages, and supply-chain issues. (Globe and Mail—Paywall)

A study by the University of Waterloo and conservative think tank C.D. Howe institute said LPs would only be able to supply 210,000 kilograms to meet Canada’s 610,000 kilogram demand. (Bloomberg)

Economists note Canada has plenty of cannabis— it’s just the legal cannabis that will be in short supply. (CBC Business)

Lawyer Trina Fraser supplied a chart showing LPs and their provincial supply agreements. (Twitter)

Canadians for Fair Access to Medical Marijuana said they’d received reports that LPs were claiming MED shortages ahead of REC legalization, and MED users on Twitter said LP prices were rising, some LPs were routinely appearing to be stockpiling REC.

For companies with celebrity stakeholders, the question is how to tie brands as closely as possible to figures without running afoul of marketing laws. (MJ Biz Daily)

What advertising is or isn’t acceptable to Health Canada remains hazy. (Financial Post)

Tilray’s director of government affairs Cameron Bishop argued LPs need more liberal branding and marketing rules if they want to compete with unlicensed sellers. (Policy Options)

Cannabis beverages could be a $600M industry by 2022—but first manufacturers will have to perfect cannabinoids that don’t taste like cannabis, and figure out how best to make them water-soluble. (Business In Vancouver)

Another company— Trait Biosciences—claimed it has developed water-soluble cannabinoids with an onset time similar to alcohol. (Vice)

A former Diageo Chief Marketing Officer joined Trait’s board. (Just Drinks)

American companies worry their Canadian counterparts—unfettered by federal prohibition—will dominate the industry. (Huffington Post)

Ontario’s new private-retail rules limit LPs to one store in the province at their production facilities—but also allow for LP’s “affiliates” to have one store. Since the bill does not define “affiliate,” the door remains open to LPs owning minority interests in franchises who sell on their behalf. (Financial Post)

Restaurants remain uncertain how their responsibilities to cut off impaired patrons will change after legalization. (Restaurants Canada)

Wu-Tang may be for the children, but they may not be suitable for partnership with a cannabis corporation. A free Wu-Tang Clan concert offered by Hexo has been criticized as possibly breaking Health Canada rules. (CBC Toronto)

Edmonton Journal profiled Antony Wile, who helped pioneer Canadian investments in cannabis in Colombia.

Colombia figures prominently in many projections of future international partnerships. (Forbes—Andre Bourque)

While some have made good money investing in the sector, the majority of investors will find cannabis stocks more akin to a lottery, in which most will win little, if at all. (CBC Radio)

DEALS

Hexo is expanding into Greece in a partnership with Greek MED producer Qannabos. (Ottawa Business Journal)

National Access Cannabis acquired Alberta REC grower The Green Company. (The Province)

Sun Pharm and Bevo Agro merged to become Zenabis, named after Sun Pharm’s brand, with $57M in secured financing on top of $72M secured previously. (New Cannabis Ventures)

COMPANY NEWS

Canopy was rumoured to have e xperienced total crop failure, representing 15 tonnes, at its BC Tweed Aldergrove production facility. Adding to the rumours was a video of a large grow-room full of dead plants. (PotNetwork)

Canopy responded the plants were destroyed due to a delay in receiving processing licenses. (Greencamp)
Late last week, Canopy withdrew its application to trademark a strain called “Chronic by Dre,” for which it did not have rapper Dr. Dre’s permission. The company apologized to Dre, whom they seemingly forgot about. (MarketWatch)

CannTrust is in discussion with potential partners in the beverage sector, and expects to ink “some major deal” in the next 60 days. (Bloomberg)

The company announced its CEO and co-founder Eric Paul stepped down, and they had recruited Scotiabank’s online Tangerine bank CEO Peter Aceto to replace him. (Financial Post)

Quebec’s massive credit union le Mouvement Desjardins signalled its willingness to invest in REC producers. (Le Devoir—In French)

Aleafia, whose chair is former anti-cannabis politician and Toronto police Chief Julian Fantino, has tripled the value of its shares in the last three weeks. (Seeking Alpha)

The company plans to list its common shares on NASDAQ. (MarketWatch)

Ontario MED LP Agrima Botanicals’ production and dealer licenses were suspended by Health Canada due to breaches of the ACMPR and Narcotic Control Regulations. The company said the suspension was brought on by recordkeeping and compliance errors.

WORKPLACE

81% of HR managers expect legalization will affect their workplaces, and many are worried about it will raise insurance costs and increase intoxication on the job. (Globe and Mail—Paywall)

Workplace experts debated Some workplaces will place guidelines on cannabis consumption. (Halifax Chronicle Herald)

The Police Association of Ontario wants an firm answer about whether police will be allowed to use cannabis, saying there has been no collaboration to develop policies across the province. (CBC Kitchener-Waterloo)

Quebec City police officers will not be allowed to use cannabis under any circumstances, though officers will not be tested and those who use cannabis will not be formally punished. (TVA Nouvelles—In French)

PROVINCIAL NEWS

ALBERTA

Only 17 REC stores will open in Alberta on October 17, including 2 in Calgary, 3 in Medicine Hat, and 7 in Edmonton. (Global News, Twitter)

Premier John Horgan called legalization “a new territory for everyone” and said the government would do its best to protect children while meeting REC retail demands. (CTV News)

Legalization needs to be understood as a work in progress, in which “We’re building the plane as we fly it,” said a University of Victoria substance-abuse scientist. (Vancouver Sun)

Longstanding Vancouver dispensaries are bracing for legalization. (National Post)

BC launched its “ Get Cannabis Clarity” educational program, with information about legal and health issues.

For years, Victoria cannabis activist Ted Smith raised money to fight Cannabis Buyers Club legal charges by selling “Cannabonds” for $25, worth one quarter ounce of BC Bud redeemable upon legalization. He’s about to have to cover $12,000 worth of cannabis. (Times Colonist)

Various cannabis celebrations are being planned around Vancouver for REC Day One. (The Straight)

ONTARIO

The Ford government’s new private retail model strips cities’ right to zone commercial properties as cannabis or non-cannabis. The province will decide who receives cannabis-retail licenses, and cities will have no say in where cannabis retailers will be located. (CBC Ottawa)

Ottawa police and councillors were upset about the development. (Ottawa Citizen)

The Star editorial board—traditionally sworn enemies of Doug Ford— praised the Ford government’s legalization plan.

Half of Ontario drivers who use cannabis have driven stoned. (CTV Toronto)

The president of the Ontario Public Service Employees’ Union warned the Ontario Securities Commission that businesspeople connected to the Conservative party profited through insider knowledge of the Ford Government’s plan for REC retail. (NewsWire)

The Alcohol and Gaming Commission of Ontario will oversee cannabis in the province. (Financial Post)

Tyendinaga Mohawk Territory has no intention of closing dispensaries in their community, with many dispensary owners saying provincial law does not apply to them and threatening a constitutional challenge if Ontario attempts to impose provincial law on Tyendinaga. (APTN)

QUEBEC

As expected, the conservative (and severely anti-cannabis) party Coalition Avenir Québec won Monday’s election with a majority government.

Industry people called the CAQ win “clearly bad news,” though Phil Dépault of Maitrileaf pointed out it will be cannabis consumers, rather than producers, who will suffer the most as a result of the CAQ’s promises to raise the consumption age to 21, lower pre-residence possession limits by 90%, and ban public cannabis use. (Journal de Montreal—In French, CityNews)
Due to lack of time, those between 18 and 21 will have a few weeks—at the very least—when they’re legally allowed to purchase and consume cannabis. (CBC Montreal, Le Devoir—In French, Montreal Gazette)
The federal government said it would not challenge the Quebec government if they raise the age of cannabis consumption to 21. (CTV News)

Many retailers are planning to sue the province over the section of Cannabis law Bill 157 that bans the sale of items bearing cannabis leaves or otherwise “directly or indirectly” encouraging cannabis use. (La Presse—In French)

Five of Montreal’s boroughs (none close to the centre of the city) will ban public cannabis use. (La Presse—In French)

Quebec City will ban public cannabis use, as well as cannabis use at festivals. (CBC Montreal)

Some students at Sherbrooke College (CEGEP) are angry their student association will be supplying cannabis to its adult members at parties this school year. The association already supplies alcohol to adult members. (Journal de Montréal—In French)

Quebec cannatourism entrepreneurs worry severe laws will crush the industry before it can get off the ground. (TVA Nouvelles—In French)

MARITIMES

A Twitter user spotted the Nova Scotia Liquor Corporation’s installing signage for its NSLC Cannabis storefronts.

Only one location will be a standalone cannabis store, while the rest will be part of NSLC liquor stores. (Global News)

Existing Nova Scotia MED dispensaries worry they’ll be shut down after October 17, but patients want them to stay open. (CBC Nova Scotia)

Workers at New Brunswick’s Cannabis NB will not receive the same benefits as NB Liquor employees, since Cannabis NB workers are not part of the Canadian Union of Public Employees. (CBC New Brunswick)

The University of New Brunswick and St. Thomas University have had difficulty finding candidates for their cannabis research chair positions. (Globe and Mail)

PRAIRIES

Manitoba released PSAs against unlicensed cannabis that Vice described as “corny.”

Manitoba cannabis-store employees are getting trained on skills like refusing to serve already intoxicated customers. (Winnipeg Free Press)

At least 13 of Saskatchewan’s 51 REC retail stores will not be ready to open on October 17. (CBC Saskatoon)

THE NORTH

Nunavut is days away from securing its first supply agreement for REC in the territory. (Nunatsiaq News)

Yukon’s Cannabis Licensing Board will be established early next year and will begin accepting private-retail applications in the spring. Until then, the Yukon Liquor Commission will operate a temporary store in Whitehorse and sell cannabis online. (Yukon Government)

Want to reach a devoted audience of top cannabis professionals? Advertise in WeedWeek or WeedWeek Canada. Contact Adrienne Nascimento at weedweekads@gmail.com for details.

Bye,

Jesse

Advertising policy: Advertisers, sponsors and contributors through Patreon have no influence on WeedWeek's editorial content or on the content of articles Alex Halperin and other WeedWeek contributors write for other publications. In an effort to replicate the separation of business and editorial operations practiced at reputable news organizations, a WeedWeek salesperson will be responsible for all sales-related contact with advertisers and sponsors. All advertising and sponsorship queries sent to editorial staff will be referred to a salesperson. In all WeedWeek material, all ads and other forms of paid content are clearly distinguishable as such. WeedWeek editorial staff does not approach potential advertisers to solicit business, and reserves the right to reject ads if they present a conflict of interest, the appearance of a conflict of interest or for any other reason. Due to our small size, editorial staff may read ads on the podcast or provide editorial input on ads after they have been purchased.

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