Last week, reports from Ontario government indicated that the province will allow private retailers to sell cannabis upon the opening of the recreational market on October 17, 2018. According to a recent CBC article, licensed producers in Ontario see this as a positive announcement that will benefits both cultivators and end-users alike.
The private sale of cannabis is expected to allow individual retailers “to decide which products to carry and respond to local trends and demands that a province-wide distributor might otherwise not interested in.” This would provide for a more dynamic marketplace that works to address the needs of consumers.
James E. Wagner Cultivation (TSXV:JWCA) CEO Nathan Woodworth was quoted in the article and provided his insight into why a government-led sales process might not be as effective. “When provinces step in and add in layers of control, it can almost become prohibitive for end users and that’s exactly what we want to avoid,” he said.
Along with a couple of other companies referenced in the article, James E. Wagner would consider expanding its business to sell cannabis products if the provincial government moves ahead with this plan.
The provincial government is expected to make an announcement regarding the proposed plan for allowing private retailers to own and operate cannabis shops within the next week.
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