Hexo published a Friday-afternoon press release acknowledging growing took place in unlicensed rooms at its Niagara Falls production site.
Expect this story to dominate next week.
Zekulin said, "The inability of the Ontario government to license retail stores, right off the bat, has resulted in half of the expected market in Canada simply not existing."
Canopy CFO Mike Lee said the company assumes Ontario will begin licensing 40 new stores per month beginning in January.
Canopy took "a restructuring charge of $32.7M for returns, return provisions, and pricing allowances primarily related to its softgel & oil portfolio"—two products unpopular with consumers.
Inventory writedowns could become more widespread as wholesale prices decline and LPs that estimated the value of their "biological assets" at far greater than the present selling price are forced to adjust.
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Organigram issued Q4 guidance predicting net revenue of $16.3M, a significant step down from last quarter's $24.8M revenue, as well as from analyst predictions of $27M.
New Cannabis Ventures, MJ Biz Daily
Licensed processor and white-label producer MediPharm Labs posted optimistic quarterly results. CEO Pat McCutcheon said sector oversupply "bodes extremely well" for the company, as it will drive down the price of cannabis biomass.
Globe and Mail
New entrant to Canadian licensed REC production, Drake, took aim at an enemy most would rather avoid: Health Canada.
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The Cannabis Council of Canada is adamant: Members want the Ontario government to immediately begin issuing more REC retail licenses. But Ontario municipalities have the final say about where those retail stores might go.
CBC Ottawa, Twitter—C3
In Windsor, city councillors who voted to opt into REC retail are at odds with city administrators, to whom they delegated REC retail.
Last December, Toronto suburb Mississauga—Canada's sixth largest municipality—opted out of REC retail. A year later, it's rethinking that decision.
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Calgary Alberta has 66 licensed REC stores open and production sites for three LPs, as well as 154 approved new REC locations in varying degrees of readiness. The city says that explains why Calgary's cannabis-related costs have exceeded $10.3M. The combined $6.7M in policing costs and $3.5M in other costs more than exceeds the one-time $3.84M payment the city received from the Alberta Municipal Cannabis Transition Program.
The Canadian Securities Administrators, representing 13 provincial and territorial regulators, released a notice providing guidance in which they warned publicly traded LPs against withholding conflicts of financial interest in companies they acquire and sell.
Financial Post, MJ Biz Daily
British Columbia's provincial Community Safety Unit raided the Victoria Cannabis Buyers Club, a compassion club for MED patients in operation since 1996. The raid was immediately enormously unpopular.
CBC British Columbia, Facebook Video, Twitter—Mark Hauk, Kirk Tousaw, Buzz Dankyear, BC Independent Cannabis Association, Travis Lane.
Legacy critics argued the Cannabis Council of Canada crossed a line in urging the federal government to increase enforcement against illicit markets, and asking provincial and federal governments to "prioritize the closure and removal of both illegal brick and mortar stores" and illicit online dispensaries.
Twitter—Travis Lane, Dan Goulet, Ryan Lee, Lisa Campbell
In Quebec, investigations have revealed a burgeoning illicit trade in selling MED prescriptions, people associated with the Hell's Angels operating an apparently illicit MED consultation clinic, and other biker-affiliated characters growing MED (and selling it).
La Presse, Journal de Montréal—Both in French
New Brunswick finance minister Ernie Steeves announced after serious losses by Crown REC corporation Cannabis NB, the government is now looking for private operators to bid to take over selling and distributing REC throughout New Brunswick. Bids will be open until January 10.
CBC New Brunswick, MJ Biz Daily
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