RSS Marijuana Investing News
  • Marijuana News Is Moving December 19, 2018
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    Nicolas Juarez
  • Rights Groups, Unions Call for Ending Marijuana Prohibition December 14, 2018
    A coalition of major civil rights organizations, labor unions and other groups is calling on Congress to completely remove marijuana from the Controlled Substances Act and divert revenue to communities that have been harmed by the enforcement of cannabis prohibition.   “Pass legislation de-scheduling marijuana with racial equity and justice reform components,” reads one recommendation […]
    Marijuana Moment
  • How Trump Government Shutdown Threat Could Affect Marijuana December 13, 2018
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    Marijuana Moment
  • Elon Musk Confesses: ‘I Have No Idea How To Smoke Pot’ December 12, 2018
    Elon Musk got himself into a bit of trouble after smoking marijuana during an appearance on Joe Rogan’s podcast in September 2018. The move reportedly led to NASA launching an investigation into his company SpaceX’s “workplace safety” and “adherence to a drug-free environment.” But now, in a new interview 60 Minutes, the Tesla founder indicated […]
    Marijuana Moment
  • Cannabis May Qualify for Study Grants as ‘Natural Product’ December 11, 2018
    Federally funded research into marijuana seems to be escalating, with one government agency recently posting a roundup of current “cannabinoid-related funding opportunities” for studies investigating the plant’s therapeutic potential. The National Center for Complementary and Integrative Health (NCCIH) on Dec. 8, 2018, shared a list of four research grant opportunities for studies on “natural products” […]
    Marijuana Moment
  • Surgeon General: Schedule I Hinders Researching Marijuana December 7, 2018
    U.S. Surgeon General Jerome Adams said the federal government should rethink how it classifies drugs like marijuana Dec. 6, 2018, voicing concern that the plant’s current status as a strictly controlled Schedule I substance inhibits research. Adams, who’s previously expressed interest in expanding research into the use of cannabinoids for therapeutic purposes, made the comment […]
    Marijuana Moment
  • Colorado County Considers Canceling Cannabis Convictions December 6, 2018
    BOULDER, Colo. (AP) — Prosecutors in a Colorado county are preparing to dismiss and seal thousands of marijuana possession convictions after state voters legalized the use and sale of cannabis in 2012. The Boulder Daily Camera reported that the Boulder County District Attorney’s Office as part of a “Moving on from Marijuana” program has identified […]
    Associated Press
  • GOP House Leader Calling for Legal Marijuana in Rhode Island December 5, 2018
    The Republican leader in Rhode Island’s House of Representatives thinks the state should fully legalize marijuana. But while that news would typically bode well for reform efforts in state legislatures, the problem is that the Democratic speaker isn’t quite on board — and the House is dominantly controlled by Democrats. In an interview with Rhode […]
    Marijuana Moment
  • ‘Compromise’ Medical Marijuana Bill is Made Into Law in Utah December 4, 2018
    Utah lawmakers approved a controversial medical marijuana bill in a special session Dec. 3, 2018. There’s your final vote on the medical marijuana “compromise.” #utpol pic.twitter.com/w9Ip3KQE8E — Robert Gehrke (@RobertGehrke) December 3, 2018 During the Nov. 6, 2018, election, Utah voters passed a separate medical cannabis initiative, Proposition 2, that would allow patients with certain […]
    Marijuana Moment
  • Study: Vaporizing Flower Produces A More Intense High Than Traditional Smoking Methods December 4, 2018
    Vaping marijuana flower gets you higher than smoking it, according to a new study published in an American Medical Association journal. To test the difference, researchers started by recruiting 17 people who’d consumed cannabis in the past year but had abstained for at least one month. Each individual participated in six sessions that lasted 8 1/2 […]
    Marijuana Moment
mentor36 April 12, 2019

The Ontario Cannabis Store (OCS) is expecting to lose 25 million Canadian dollars ($18.7 million) in the first full year of the country’s new adult-use market, even though it had a monopoly on sales for the first six months of legalization and retains permanent control over all online transactions.

That’s on top of the CA$6.8 million net loss the OCS reported for the period of Dec. 12, 2017, to March 31, 2018.

Ontario expects the government-owned cannabis store to turn a small profit of CA$10 million in 2019-20.

The budget projects profits to rise to CA$25 million in 2020-21 and CA$40 million the following year.

“The OCS net income forecast reflects initial costs for the development of its wholesale distribution channel,” according to the budget.

One year ago, the Ontario Cannabis Retail Corporation (OCRC) entered into a hefty CA$150 million loan agreement with the Ontario Financing Authority to fund a plan to establish 40 government owned- and-operated cannabis stores in the first year of legalization.

The OCRC now operates as the OCS.

The loan covers OCS expenses only through Dec. 31, 2019, so a significant top-up would have been needed for the government to grow its network of cannabis stores from 40 to 150 by 2020 – the previous government’s plan.

The new government pulled the plug on that plan in favor of a privately owned network of adult-use marijuana stores, but neither the Finance Ministry nor the OCS responded to queries from Marijuana Business Daily about whether the CA$150 million loan agreement was still active.

By March 31, 2018, the OCS had drawn CA$25 million from the loan.

Meanwhile, the OCS entered into arrangements to lease premises for four of the first government-run stores on five-year terms.

Those stores will never open.

The “minimum lease payments” started at CA$207,000 in fiscal 2019, rising to CA$355,000 in fiscal 2023.

Financial commitments to Ontario’s “cannabis warehouse” lease as of March 2018 were $364,177 (fiscal 2019), $569,051 (2020) and $588,730 (2021).

The OCS maintains a monopoly over adult-use cannabis wholesale in the province, and the warehouse is used as a key hub for online orders.

Ontario’s adult-use cannabis sales have been abysmal thus far – owing mostly to the fact that the first brick-and-mortar stores didn’t open until April 1, 5½ months after legalization.

The OCS struggled to get a handle on its business in the weeks after legalization, resulting in lengthy shipping delays and thousands of customer complaints.

Ontario was the only province in Canada to see lower month-over-month sales of adult-use cannabis from October to December – although sales did improve slightly to nearly CA$9 million in January.

The hobbled rollout of retail stores in Ontario and British Columbia resulted in many publicly traded cannabis companies reporting disappointing quarterly earnings.

The Bank of Montreal warned investors that adult-use cannabis revenues across Canada may come in lower than expected because of the slow build-out of retail stores, flat nationwide retail sales and inventory depletion.

Nearly two dozen OCS employees agreed to unionize last month, making them the first union members in the province’s cannabis industry.  

Matt Lamers can be reached at [email protected]

© 2018 Highline Media Group