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Home 🌿 Medical Cannabis News 🌿 Supply constraints could mean no more cannabis stores licences for up to 18 months: AGLC 🌿Supply constraints could mean no more cannabis stores licences for up to 18 months: AGLC

While Alberta Gaming, Liquor and Cannabis is hoping more permits will be granted well before that, it’s a possibility it could take that long before the current number of licensed pot shops grows beyond the current 65, said commission spokeswoman Kaleigh Miller.
“We could get a huge amount of supply in six months, or it could be 18 months — it’s a huge flux time,” she said.
“Hopefully in the middle of that time, we’ll see a more normalized industry and supply … it’s out of our hands.”
Cannabis shortages remain in the wake of changes to the province’s supply system, said the AGLC and marijuana retailers.
A week ago, the AGLC announced a moratorium on new store licences and a vow to equally distribute pot to 65 already-approved stores.
When the drug became recreationally legalized last month, the AGLC said it was possible there could be 250 stores open in the province a year from now.
But logistics issues, cannabis shortages and high demand have meant those expectations aren’t being met, said Miller.
And the AGLC won’t take more store applications or issue more licences until the supply is significantly firmed up, she said.
“We need to have a full warehouse and confidence that our supply is at a steady level,” she said, noting pressures on that supply will grow exponentially when Ontario retail stores open in April.
While 20 Calgary store locations have been granted AGLC permits, another 104 in the city have gained city approval but await clearance from the province, which has received a total of 733 applications.
Many of those in Calgary have been held up by a clogged appeals system, while applicants lease expensive store space.
Possibly lengthy delays in acquiring an AGLC permit only adds to that financial stress, said one independent operator who hopes to open a location in the city’s northeast.
“It’s just a domino effect from one thing to the next … it’s tantamount to shutting down businesses,” said the man, who doesn’t want his name used.
“I want to keep on with this but I don’t know how long it’ll be before my money runs out.”
He said after a few years of lead-up to legalization, governments should have been better prepared to head off regulatory and supply problems.
“It is causing the black market to thrive and grow — it defeats the government’s whole purpose in this,” he said.
The AGLC licence moratorium came as a surprise and its possible duration could pose an impediment to business, said Matt Ryan, marketing vice-president for National Access Cannabis, which owns NewLeaf stores.
“If it’s extended, we’ll certainly have some issues, we’ve got stores and staff ready to go,” said Ryan, whose chain has opened 13 stores in Alberta but still hopes to have a total of 37.
“Pausing licences isn’t something we’ve seen in other provinces.”
But he said Alberta is further ahead with its retail process and has more stores than any other province, which heightens the supply challenges.
“We’ll deal with it in a positive way, you had to adapt and adjust,” said Ryan.
“We’ve just got to be optimistic the licensed (cannabis) producers are able to fulfil the Alberta market.”
He said the company has “no clear view” of when the supply situation will stabilize.
In a statement, a group that represents Alberta retailers said while a pause in licensing is understandable, a lengthy one would torpedo fledgling businesses and benefit Ontario, which is set to begin similar sales in April.
“A halt on new licences would essentially leapfrog Ontario ahead of us from an investment perspective as they will start issuing retail licenses starting April,” said the Alberta Cannabis Collective.
“This means that investment dollars, jobs, and tax revenue we expected to see in Alberta will be diverted to Ontario.”
It’s not so much a lack of supply as it is hiccups in the logistics chain among growers and distributors, said Allan Rewak, executive director of the Cannabis Council of Canada, which represents growers.
But he said that system will operate more smoothly in the coming months, though reaching complete stability and normalcy may “take a few years … it’s a process and we have to build out an entirely new supply chain.”
The AGLC’s Miller noted fewer than 100 of Canada’s nearly 140 licensed producers have been granted sales permits by the federal government.
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