WeedMD (TSXV:WMD) announced it will absorb the cost of the excise tax on medical cannabis imposed by the Canadian government.
As quoted in the press release:
Given the recent government announcements to impose an excise tax of $1 per gram (or 10 [percent] of the sale price) on cannabis (the “Excise Tax”), WeedMD is pleased to announce it will further support its medical-use customers by continuing to offer competitive pricing on its premium, medical-grade cannabis and that it will absorb the increased cost as a result of the Excise Tax. Scheduled to come into effect on October 17, 2018, the Excise Tax is applicable for both the recreational and the medical market on all cannabis products containing [tetrahydrocannabinol] THC.
Additionally, effective immediately, the Company will be offering free standard shipping on all medical cannabis orders with no minimums and no restrictions. WeedMD also remains committed to its compassionate pricing program which supports patients that require financial assistance.
“Despite the fact that almost all prescription drugs are tax free in Canada, medical cannabis patients are being forced to pay the Excise Tax on their medicine. WeedMD is proud to demonstrate support for our patients by implementing these cost-relief initiatives and putting our patients first,” said Keith Merker, CEO of WeedMD. “The reality is that many patients do not have the cost of their medicine covered by insurance and often struggle to afford their prescriptions. Adding an additional tax could put their treatment further out of reach.”