Province promises hands-off approach to cannabis retailers after announcing 4 groups that will operate stores

Manitoba's Progressive Conservative government, which has been cool to Ottawa's plan to legalize cannabis, is now espousing enthusiasm for an unfettered marijuana retail experience.

After announcing thefour private companies or consortiums that will retail cannabisin the province, Growth, Enterprise and Trade Minister Blaine Pedersen pledged to take a hands-off approach to pot sales in an effort to combat the black market for marijuana and compete with more restrictive cannabis regimes in other provinces.

"We don't want to get too proscriptive into how you set up your store because this is private enterprise. This is the whole idea," Pedersen said Friday outside his office at the Manitoba legislative building.

"You've seen other provinces [with]government stores setting up and that's good for them. We believe this is a better model."

Pedersen's comments followed Manitoba's selection of four entitiesallowed to operate retaillocations forrecreational cannabis. The province says it has conditionally accepted proposals from:

• A consortium of Delta 9 Cannabis Inc. and Canopy Growth Corporation Delta 9 operates an 80,000-square-foot production facility in Winnipeg and expects to hire approximately 100 people for production and retail in the first year, and an additional 100 the following year.Canopy Growth is headquartered in Smiths Falls, Ont., and operates numerous production facilities across Canada and around the world with over 700,000 square feetof production licensed under Canada's medical cannabis framework.
• National Access Cannabis Operates medical cannabis care centres across Canada. The organization has partnered with several Manitoba First Nations:Brokenhead Ojibway Nation, OpaskwayakCree Nation, Long Plain First Nation, Nisichawayasihk Cree Nation and PeguisFirst Nation.
• Tokyo Smoke Awholly owned subsidiary of Hiku Brands Company, in partnership with BOBHQ, a Manitoba-based head shop that operates several retail locations.
• 10552763 Canada Corporation The corporation is a new entity featuring Avana Canada Inc. of Ontario, Fisher River Cree Nation of Manitoba, Chippewas of the Thames of Ontario, MediPharm Labs of Ontario, and U.S.-based retailer Native Roots Dispensary.

The number of stores and locations where each groupwill be allowedto operate must still be worked out.

"Our primary concern from the start has been public safety, and this will continue to be paramount,"Pedersen said.

"We've worked quickly and diligently, and we're confident that we're on track to have retail locations begin operating in Manitoba as early as July 2."

Ifthe federal government delays the legalization of cannabis until August, that just means the province will have extra time to work out any wrinkles, the minister added.

Manitoba has declared the winners of a kind of legal cannabis contest

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Four companies have won the right to open recreational marijuana shops in the province later this year, but questions remain about Manitoba's cannabis plan.

JohnArbuthnot, CEO of Delta 9 Cannabis, says he is aiming for big things with a large retail presence in the province.

I really can't understate the importance of this development.- JohnArbuthnot, CEO of Delta 9

"I would love to see a chain of dozens of Delta 9 Lifestyle Cannabis stores open in the next few years, but [we're] working with the province to see exactly what they're looking for and exactly what we will be allowed to do under this licence," he said.

Ultimately, he said, he would like "upwards of 90-100 stores just in the Greater Winnipeg area."

Delta 9 expects to add200 jobs in Manitoba for both production and retail over the first 24 months following legalization.

"I really can't understate the importance of this development," Arbuthnot said.

He said Delta 9's retail stores would be something akin to an Apple store in esthetic but would not be as free-wheeling as a Colorado weed dispensary, where large canisters of cannabis line the walls.

Conditions must be met

The Manitoba governmentasked for proposals in early November and"following a thorough evaluation process, it has been determined that these four proposals best meet the criteria outlined in the RFP[request for proposals],"Pedersen said.

However, he added, the acceptance of the proposals is conditional upon several factors, including reaching all of the necessary agreements and providing the required documents as outlined in the RFP.

The Manitoba Liquor, Gaming and Cannabis Authority will now conduct background checks on the companies to make sure there is no criminal element involved in the history of the companies,in the physical makeup of the store orhow the product will beset out and sold, Pedersen said.

No final approval to any potential licensee will be given until that has been completed.

After that, the province will examine further ways to "engage with Indigenous communities regarding on-reserve cannabis retail opportunities and with the Association of Manitoba Municipalities on promoting access to retail throughout the province," Pedersen said.

Jim Bear, chief of the Brokenhead Ojibway Nation, called the approval of theNational Access Cannabis bid "fantastic news."

"First Nations, we're always in dire need of businesses, and this certainly gives us another opportunity," he said.

The partners in National Access Cannabis operation will educate people in the communitiesabout cannabis and the differencebetween what is legal and what is not, as well as the differences in the quality of the cannabis.

"This will not only be done in a safe environment, but will not have the additional additives that one faces in the black market," he said about the pot that will be produced.

Cannabis questionsremain

Many questions, however, remain about cannabis legalization in Manitoba.

Pedersen said he does not know how many stores will open in the province this year, though the long-term goal is to ensure consumers can buy cannabis products just as easily as they can purchase alcohol right now.

Municipalities, including the City of Winnipeg, have yet to develop land-use rules that will determine where cannabis retail stores can go. For example, zoning regulations could be amended to set a minimum distance between cannabis retailers and schools or between two cannabis retailers.

It also is not clear what other products retailers will be able to sell. Pipes and papers will likely be allowed.It's less clear whether stores would be able to sellDoritosand other munchies, as municipal regulations have yet to be drawn up.

MtisFederation angry

One of the groups whose proposal was not approved, the Manitoba Metis Federation, responded angrily to Friday's announcement from the province.

"Once again Manitoba has forgotten the Mtisnation,"the MMF said in a news release. "The decision to ignore theMtisnation further diminishes an already strained relationship and demonstrates Manitoba's adversarial views toward theMtisnation."

In the release,Jack Park, the federation'sminister responsible for energy and infrastructure,said he hopes that one day there will be a provincial government that respects the Mtisandthe contributions they make to Manitoba's economic engine.

"Manitoba's Mtiscitizens are entrepreneurs and the founders of the province of Manitoba it was built upon our hard work, determination and grit," Park said in the release.

"Manitoba has no Mtis-specific economic development strategy, which leaves the MMF responsible to create opportunities for our citizens. It was the MMF's hope that our cannabis proposal would be accepted, creating hundreds of jobs in Mtiscommunities which are struggling with incredibly high unemployment rates."

The owner of a Brandon business whose proposal was also denied said he fears the four companies who were successful will prevent other market entrants, once they're established.

"It's going to hurt all the small people that the government said it was going to help get into this business and there's going to be a Phase 2. There's no Phase 2," said Rick Macl, president of Growers n' Smokers.

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