Among the first to sell legal cannabis in Canada, Thomas Clarke says he's closing his store - Action News
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Among the first to sell legal cannabis in Canada, Thomas Clarke says he's closing his store

Thomas Clarke sold cannabisillegally for 25 years andbecame one ofthe first people to sell itlegally inCanada after the drug was regulated in October2018.

Portugal Cove-St. Philip's business owner says he's had a tough time getting financing since the beginning

A man wearing a black hat and black t shirt standing inside a cannabis supply store.
Thomas Clarke says he's closing his independent cannabis shop in Portugal Cove-St. Philip's. (Peter Cowan/CBC)

Thomas Clarke sold cannabisillegally for 25 years andbecame one ofthe first people to sell itlegally inCanada after the drug was regulated in October2018.

But now he's faced withhavingto close up his independent shop in Portugal Cove-St. Philip's among the first in Newfoundland and Labrador for good.

"From the beginning, I've had a really hard time getting financing. I started this whole business with $250,000 that I had saved and borrowed from family members and I probably went through that money before 2019 was over," Clarke saidMonday.

Clarke threw open his doors at midnight on Oct. 17, 2018, to be the first to legally sell cannabis in Canada in a historic moment that saw the end ofprohibition across the country.

Other retailers and suppliers, such as Canopy Growth and its storefront Tweed, have also felt the sting of the young and still growingindustry.

Clarke said he couldn't open bank accounts to keep his business going, and in 2020 there was a shiftto having licensed retailers buy their product through the Newfoundland and Labrador Liquor Corporation the regulator of alcohol and cannabis in the province.

He said he had to use cash up front and accumulated debt in the hundreds of thousands of dollars.

"Starting around 2021 I started to have less stock because I never had enough money to buy cannabis to satisfy every customer," he said.

"From 2021 until now I've generally been having a very small menu and that's not serving the people of Portugal Cove-St. Philip's and everyone else who comes to my shop. So I lost a lot of customers."

A sign listing cannabis names and prices.
Clarke was among the first to legally sell cannabis in Canada. (Jeremy Eaton/CBC)

Clarke also pointedto the COVID-19 pandemic and competition moving in near his location as other reasons why he has faced detrimental losses and had to lay off his entire staff.

"I was doing $1.5 million in sales a year. Compared to last year, I only did half a million," he said.

"I'm to the point now where I'm completely out of money and have to close the doors."

Keeping the dream alive

In the NLC's2023 third-quarter report, the Crown corporation posted$18.7 million in cannabis sales, markingan increase of 31.9 per centover the third quarterof the previous year.

The NLC said a decision made inSeptember after a three-year review of the industry to approve cannabis vaporizersboosted the bottom line with$1.6 million in sales in the third quarter. That amountedto nine per centof total cannabis sales.

Cannabis N.L., the cannabis division of the NLC,also welcomed two new licensed retailers to the fold in the third quarter:Atlantic Cannabis in Torbay and Oceanic Cannabis in St. John's.

There are currently 41 licensed cannabis retailers in Newfoundland and Labrador, but Clarke says there may be more and his dream isn't quite over yet.

"I've been working with Oceanic and it looks like they're going to be opening a store here in April. I'm going to work here for them," Clarke said.

"I'll be able to still be in the industry, I'll be able to have a much better menu and I'll be better able to serve customers in the future."

LISTEN | Hearthe full interview with CBC Radio's St. John's Morning Show:

Read more from CBC Newfoundland and Labrador

With files from The St. John's Morning Show