Legal & Finance Update December 14, 2018
THIS WEEK’S UPDATE
This week we learned that the ACGO announced changes to the allocation of cannabis retail licensing.
As the government has indicated it believes there will be a shortage of legal cannabis supply from federally licensed producers. As a result, it has changed the approach to how the AGCO will allocate licenses for private retail stores. Due to this limited supply, the government will allow private cannabis retail stores to open in phases, by providing authority for the AGCO to license up to 25 stores in the initial phase.
Instead of accepting and reviewing all new applications as they come in, the government has made a new lottery system to determine who will be able to apply for one of the 25 initial stores. The AGCO will run the lottery and it will be overseen by a third-party fairness monitor. Since Province Brands wishes to participate in the lottery we will submit an Expression of Interest through the AGCO online portal by January 9, 2019. Because of this new lottery system, the AGCO will not begin accepting applications for cannabis retail licenses and authorizations on December 17, as we had been previously preparing for.
As a next step, the AGCO will be moving ahead to retain the services of a third-party fairness monitor and will provide them with the rules of the lottery.
We are looking forward to hearing back from our security team – the completing the security plan represents the last hurdle/milestone for our licenses. We are also looking forward to submitting our cultivation license in Greece on the 21st!
THINGS WE NEED HELP WITH
We need a bit of help with finding financing options for our more expensive equipment pieces. This is not urgent yet but it is something we would like to plan for in advance. We are trying to set up meetings with government officials in Nunavut and Grimbsy. If you have any contacts in these regional governmental offices please let us know.
We are working to prepare our retail license application for recreational sales. If you have any insight or experience with this process please let us know.
We are in need of leadership training programs for our management team. If you know of any helpful classes in this area that you can recommend please let us know.
The founders are developing a list of priorities for 2019. We would love your feedback on things you would like to see added to the list. We plan to have licenses (retail sales, processing, and research) submitted buy EoY and we plan to have our first run of alcoholic beverages in stores by Q1, but we are continuing to hone in the list of other priorities. Clearly I can’t list all of the others here, but if you have ideas that you think might not be on our radar, please feel free to reach out.