Alberta signs supply agreements for cannabis, details of retail stores remain unresolved

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We can better see how recreational cannabis will be sold in Alberta, which takes a different approach to the retail sales of other major provinces.

On Thursday, Alberta announced that it was planning to buy marijuana from 13 legal growers. will carry everyone's products in its online store when the recreational use of the drug will become legal on October 17th. He will also offer these items to brick and mortar sets that, unlike Ontario and Quebec, will be private property and will have to buy the cannabis that they sell to the government.

Alberta's private retail model is closely monitored. While other provinces, such as Manitoba and Saskatchewan, plan to establish similar sales structures, Alberta is the largest market to do so. The governments of Ontario and Quebec will control sales directly, while British Columbia has a hybrid system.

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The Alberta Gaming and Alcohol Commission claims to have received 684 applications to open a store of retail sale of cannabis in the cities of the province, Monday. Of these, 141 were in Edmonton and 216 in Calgary. These companies must be approved at the municipal and provincial levels. The AGLC has not yet issued a retail permit, but expects that there are 250 stores in the province during the first year of recreational sales .

But the number of stores opened on October 17th remains uncertain. will own them and where they will be located – let alone what brands and products they will choose to store on their shelves.

"Very honestly, I would like to know what the shelf will look like, too, I do not know yet," said Niaz Nejad, chief operating officer and vice president of gambling and cannabis at the AGLC.

"I can tell you that I plan to buy up to 250 stores and volume I imagine on the e-commerce channel, but I can not tell you for sure how many stores will actually be open on October 17. It's impossible for us to know. "

Nejad added that Alberta will sell more than 300 items from 13 producers to private retailers and consumers who buy online. This figure will fluctuate according to demand.

AGLC has signed supply contracts that affect a certain amount of cannabis that can be purchased by the province. This includes six-month contracts with Aurora Cannabis Inc. for 25,000 kilograms, Canopy Growth Corp for 15,000 kilograms and Maricann Group Inc. for 3,375 kilograms, according to news releases. Aphria Inc. stated that it obtained an initial order for 870 kg of product. The other nine firms did not disclose the quantities.

"All we were able to provide, they wanted to take and then some," said Keith Merker, chief financial officer at WeedMD Inc., one of 13 signatory producers with Alberta [19659012] History Continues Under Advertising

"If we had more product, we would have moved more product.People wanted more products than us were able to allocate, it's hard to say no, but I had to do it. "

In May, Weed® entered into an agreement to be acquired by Hiku Brands Company Ltd., which continues to a retail strategy across the country, and filed applications to open retail stores in Calgary and Edmonton

Cannabis will be sold in Alberta in various forms, such as dried flowers , capsules, oils, pre-rolled joints and seeds. The flower stumps will be available in packages of 1 or 3.5 grams, and sometimes in both. Private stores buy the product at the AGLC at a wholesale price and then set their own retail price. The government online store can sell these products at a lower price, more or the same price.

million. Nejad said that each of the 13 producers allocated a certain amount of inventory to Alberta for the first six months of sales, but that the province could actually buy more or less. He has placed orders for three months of product.

Ms. Nejad pointed out that only one of 13 producers is based in Alberta: Aurora. She said it was because it was the only local producer with a sales license when the government started this process.

"We are going to add more Alberta producers," she said. "They are certainly our priority after October 17.

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Cam Battley, Chief Executive Officer at Aurora, who also pursues a retail strategy through his investment in Alcanna Inc., pointed out that agreements with the provinces set aside for these different markets, but they are not guaranteed sales.

"Products must be of high quality and popular with customers", a- he said. "This is an important caveat, and it is there that we shine."

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