The Alcohol and Gaming Commission of Ontario held its cannabis license lottery on Friday and none of the big retail chains were lucky enough to win, as all licenses went to other applicants.
Ontario has the biggest cannabis market in Canada, which makes it extremely desirable for all those looking to sell cannabis in the province.
However, as you may know, The Alcohol and Gaming Commission of Ontario held the cannabis license lottery on Friday and all 25 licenses were awarded to private entities and citizens that hoped they would be selected and placed their name in the raffle.
Short time frame
The winners were notified by the Alcohol and Gaming Commission of Ontario via email. There were roughly 16,905 applicants and the winners were selected via a purpose-built lottery software.
Among the companies selected by the AGCO were Pure Alpha Holdings, Tripsetter, CGS Foods, and The Niagara Herbalist. You can see the full list of those that expressed interest here.
Around 64% of applicants were listed as sole proprietors, 33% as corporations, and 4% as partnerships or limited partnerships.
The winners of this lottery are now required to pay $10,000 in non-refundable fees for licensing and store permits.
Future weed store owners will also have to provide the AGCO with a $50,000 line of credit.
Municipalities still have another 7 days to decide whether they wish to opt-out of having cannabis stores on the municipal grounds.
After that, future owner will have the opportunity to select where they want their stores to operate once they open doors to the public.
In the Toronto region lottery winners are all private citizens:
- Heather Conlon
- Seyedarash Seyedameri
- Colin Campbell
- Dana Michele Kendal
- Hunny Gawri
The AGCO also selected a number of waitlisted applicants which will be selected in case that the original award winners don’t pass the AGCO background check.
The spokesperson for Ontario Attorney-General Caroline Mulroney, Jesse Robichaud, has said that the lottery system will be in place until Ontario can obtain a sufficient supply of legal cannabis from federally licensed producers to meet the demand.
Chain store owners are on the hunt
Chain store owners are now on the hunt for private citizens which were awarded the licenses, however, they are mostly interested in the winners of Toronto and GTA licenses.
One company that is looking to franchise the cannabis stores is already looking for deals.
Canna Cabana-parent High Tide is actively seeking out owners in hopes they’ll be able to buy them out.
“We are actively looking for lottery winners,” CEO of Canna Cabana Mr. Grover said, “and we can finance the whole store structure so it will be at no cost up front to the lottery winner.”
The winners have all the chips in their hands now, and many people are assuming that the value of these licenses will only drop as more are handed out.