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Province receives over 1,500 submissions for retail pot permits

Apr 21, 2018 | 10:39 AM

There is high interest in the province for Saskatchewan’s 51 cannabis retail permits.

On Friday, the Saskatchewan Liquor and Gaming Authority (SLGA) announced they received 1,502 submissions from those interested in legally selling marijuana in the province once the drug becomes legal later this year.

Meadow Lake had 31 submissions for its single available permits. Saskatoon, with seven permits on offer, had 177 applicants. The small community of La Loche had 19 interested parties for the single permit in the community, which has a population of roughly 2,600.

A $1,000 non-refundable fee was required for each submission, which the government said will mainly be used to cover administration costs.

 

 

SLGA Minister Gene Makowsky said he wasn’t overly surprised with the high volume of applicants, given the unknowns around the possible size of the market. He said the government took a “cautious approach” to come up with the number of permits on offer.

“I think there is a lot of interest, obviously, but again, the resulting market once sales start is unknown,” he told reporters Friday. “We will see how it goes and take a look at it and, if necessary, issue other permits in the same centres.”

Makowsky did not confirm, however, if another request for proposal would be issued down the road should the demand for more retail stores grow.

“There is a lot of excitement but it might not pan out,” he added. “There is a lot of unknowns.”

The government has previously said Saskatchewan-based applicants will not be given priority over those from out-of-province. Makowsky maintained this position Friday.

It is expected the initial screening process will marginally whittle down the number of interested parties. Applicants will undergo screening for financial capacity and their ability to track and report inventory and sales. They will also undergo character references, which will involve checks for any past criminal convictions or activity. Those not disqualified for these or other reasons will be entered into the lottery draw. Makowsky said there are no plans for a public lottery but noted, “an independent third party will be part of the entire process to make sure it is done transparently and fairly.”

No one applicant — be it an individual, corporation, First Nation or combination of the three — will be awarded more than one retail permit in any community. After legalization, no one will be allowed to own more than half of the stores in any community.

Retail cannabis locations will be allowed to operate between 8 a.m. and 3 a.m. unless further restrictions are put in place by a municipality. Storefronts will be required to operate for a minimum of six hours per day, five days a week. Online sales will be allowed as part of the retail sales permit, and retailers will also be allowed to deliver up to 30 grams of dried cannabis to customers at home. Marijuana sales will not be permitted at outdoor festivals or other events. 

The SLGA opened applications for wholesale cannabis permits in the province Friday. Wholesalers must operate in the province, and federally-licensed producers will need to register with the SLGA to sell cannabis in Saskatchewan. There is no limit to the number of wholesale permits in the province and no deadline to apply.

Wholesalers will be required to meet similar criteria to retailers. The fee for a wholesale permit is $5,000, broken down into a $2,000 non-refundable application fee and a $3,000 annual permit fee.  Makowsky said the government avoided a cap on wholesalers as they will not deal directly with consumers.

The selection process is expected to take approximately 10 weeks from the release of the RFP documents to the announcement of the results. Successful applicants must be ready to operate within 12 months of legalization.

 

tyler.marr@jpbg.ca

On Twitter: @JournoMarr