Ontario: second draw for cannabis sales licences

The second wave of cannabis retail licensing in Ontario began Tuesday, after the province announced it would soon announce the results of a second lottery awarding 42 additional licenses to open stores later this year. The first wave took place at the beginning of January 2019, Ontario was the most populous province in Canada, with 25 licenses at stake. Ontario being Canada's most populous province, it seemed clear that they would have to start a licensing process all over again.

To enter the lottery, applicants had to meet certain pre-qualification requirements, including a CAD 50,000 letter of credit, possess a bank letter confirming access to 250,000$ in cash, and prove that they had already found retail space. After the draw, the Alcohol and Gaming Commission will then select the 42 companies eligible to apply for a license. The results are expected to be made public today. Those selected will have until August 28 to pay the license fee, and provide a $50,000 letter of credit to the regulator.

Unlike the first lottery held earlier this year, candidates in the second draw had to prove that they had already found a sales space that could be used as a store if they were selected, and that they had sufficient capital to open it. These requirements were added because last January, many of the winners were unable to open their stores as planned, due to a lack of funds.

The 42 new stores will be distributed regionally, with 13 in Toronto, six in the Greater Toronto Area, 11 in the West, seven in the East and North, one each in Kenora and North Bay. The remaining stores will be located in Sault Ste. Marie, Thunder Bay and Timmins. A further eight stores will be located on First Nations reserves, according to a separate allocation process. Results of the lottery are expected to be announced today, according to a spokesperson for the Alcohol and Gaming Commission of Ontario.