According to the Alcohol and Gaming Commission of Ontario (AGCO), the regulatory body that oversees the cannabis retail system in the country's most populous province, it'll begin accepting operating license applications from prospective retailers on Jan. 6, 2020. Roughly two months later, on March 2, 2020, it'll then begin accepting store authorization applications. By sometime in April, store authorizations should commence, with roughly 20 stores a month getting the OK from AGCO. The expectation is that Ontario will end 2020 with 250 open dispensaries, representing about a tenfold increase from the existing retail footprint.
In addition to creating a licensing application process, Ontario is eliminating a number of pre-qualification requirements that excluded some retailers from applying during the lottery process. This included that applicants had to secure leases for retail locations, as well as a letter of credit from a reputable financial institution for a minimum of $250,000 Canadian in financing.
Furthermore, licensed producers are going to be able to participate by operating a single store at their cultivation facilities.
According to AGCO, the newly implemented regulations will cap the number of retail stores a single operator can own to 10. However, this limit will increase to 30 by September 2020, and 75 by September 2021, thereby allowing well-funded retail operators to establish a substantive retail presence in what should be Canada's most lucrative marijuana market.
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