The Financial Post reports in its Friday edition that several weed retailers backed by major licensed producers have entered into agreements with winners of Ontario's retail lottery.
The Post's Vanmala Subramaniam writes that the nature of those agreements and whether they will survive regulatory scrutiny remains unclear.
The Alcohol and Gaming Commission of Ontario has laid out strict ownership rules that bar the 25 individual lottery winners from entering into any kind of revenue-sharing agreements with outside entities.
Yet, the "vast majority" of lottery winners have already entered into some kind of commercial agreement with an existing cannabis operator.
High Tide, a cannabis retail chain backed by Aurora Cannabis, has entered into two separate agreements with lottery winners in Ontario.
Last December Aurora invested $10-million in High Tide. Another licensed producer, FSD Pharma, also has a minority interest in High Tide. Under AGCO rules, licensed producers are barred from the retail system.
Denton lawyer Eric Foster says: "I have honestly never seen anything so silly in my entire legal career. I have a challenge understanding why some arrangements are acceptable to the AGCO and why some aren't."
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