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With the release of Ontario’s Bill 36, which outlines the new conservative governments alterations to Ontario’s cannabis regulations, many questions have arisen as to how the future of Ontario cannabis will look. 

In a new private system of retail cannabis sales, it came to the surprise of many that licensed producers will only be allowed to operate one retail store, and it must be at their production facility. Because of this law, many believe that most of these LPs will use a franchise model to find a way around the law, as there are no restrictions in Ontario for doing so. 

There is also another option that LPs are exploring, however its plausibility will have to be determined in the future months, as the provincial government clarifies further. 

The language used in Bill 36 states that the one-store-per-LP cap applies to the LP itself, as well as any affiliates. The issue however stems from the fact that the bill did not define the meaning of “affiliate.” Many believe it will apply to any other company the LP holds a majority and/or controlling stake in, and if that is the case it is most likely that the LP’s will aim to gather minority stakes in the retail market. 

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