Ontario scraps pot retail lottery for more open system

Doug Ford’s Ontario government announced plans Thursday evening to remove its existing cap on the number of private cannabis stores and abandon a lottery system that led to a shortfall of legal pot shops in the province and headaches for producers. The move wasn’t a surprise, considering BNN Bloomberg’s scoop last month. An open application system will take effect in January that will initially result in 20 new store authorizations per month, and ultimately allow licensees to operate up to 75 stores.

Tilray completes merger with largest shareholder

Nanaimo, B.C.-based Tilray Inc. announced Friday it has completed its merger with U.S. private equity firm Privateer Holdings, Inc. Under the terms of the agreement, Tilray will acquire Privateer along with its 75 million shares, or a 77 per-cent stake, the private-equity firm holds in the cannabis company. In exchange, Tilray will issue an equal number of shares to Privateer’s shareholders. The company previously disclosed these new shares will be subject to a two-year period lock-up, during which they may only be sold under certain circumstances. Tilray said it did not pay any cash consideration in connection with the merger.

Organigram licensed for new space to make chocolate

Organigram just got the go-ahead to exercise its sweet tooth. The company received a licence from Health Canada on Friday to expand its Moncton, N.B. facility to include space to produce and package chocolate, according to a release. Organigram CEO Greg Engel called the expansion a “ambitious response to this new opportunity“ as the company begins its rollout of edible and extract products. The company expects to have these products available for sale in the first quarter of 2020.

MLB removes pot from banned substances list

Major League Baseball is easing up on how it treats players’ use of cannabis. The league and its players’ association announced on Thursday that natural cannabinoids such as CBD and THC will be removed from the league’s banned substances list next season. In a release, both sides announced that pot-related conduct will be treated the same way as alcohol usage is under the league’s drug abuse provisions. Previously, MLB players would be handed a 15-to-30 day suspension and/or a fine of up to US$10,000 the first time a drug test revealed cannabinoid levels above a certain threshold. Subsequent failures would result in higher fines and suspension, with a third offence carrying a minimum one-year suspension without pay.

DAILY BUZZ

“This is the ultimate test for whether legalization of cannabis is actually viable as a commercial enterprise”
-- Chad Finkelstein, partner at Dale & Lessmann LLP, on Ontario’s decision to remove its cap on retail licences in the province next year.

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