Ontario announces tight controls to regulate cannabis market but questions remain

The Canadian province of Ontario announced today that a Crown corporation will tightly regulate the province’s private cannabis retail marketplace.

The Government of Ontario announced in August that marijuana will be sold online when recreational cannabis comes online on Oct. 17 and later through private retailers, not government-run stores as previously announced. That agency will also be the wholesaler to private retail stores.

According to Caroline Mulroney, attorney general and Vic Fedeli, finance minister, a bill should be introduced Thursday that will appoint the Alcohol and Gaming Commission of Ontario as regulator for the marketplace.

“As the federal government’s legalization of cannabis approaches, our government is determined to impose a strict licensing regime that will protect young people and effectively combat the criminal market,” said Mulroney.

This will give it the power to enforce the rules on cannabis sales in addition to granting and revoking licenses.

The proposed legislation would prohibit smoking cannabis in places where smoking tobacco and using e-cigarettes are prohibited, with maximum fines on conviction of  $1,000 for a first offence, and $5,000 for subsequent offences. 

But questions remain when it comes to availability, pricing, quality control and education in Ontario. 

READ: WeedMD signs deal to supply Ontario Cannabis Store

Several weeks ago, WeedMD (CVE:WMD) agreed with Ontario Cannabis Retail Corp (OCRC), operating as the Ontario Cannabis Store (OCS), to supply branded cannabis products to the adult-use market in the province.

In addition to Ontario, it has also signed agreements with the Alberta Gaming, Liquor & Cannabis Commission (AGLC), the British Columbia Liquor Distribution Branch (BC LDB), the Nova Scotia Liquor Corporation (NSLC) and Shoppers Drug Mart.

“As a leading Ontario licenced producer, we’re thrilled to announce that adult consumers in our home province will have access to our trusted, medical-grade cannabis strains and products this fall,” said Keith Merker, chief executive of WeedMD.

Story by ProactiveInvestors