Contact

Email: info[@]canndelta.com
Address: 179 John Street, Suite 400
Toronto, ON M5T 1X4
Phone: 1-416-613-8569
Toll free: 1-877-274-6777

CBC News (ICI Ontario)

The conquest of the cannabis market continues in Ontario. Many traders are still trying to find their place, but with more than 1,000 competitors, do they have a chance? Zacharie Routhier reports on her findings, and interviews Lucas McCann of CannDelta Inc. for his thoughts.

 

Multiplication des magasins de cannabis en Ontario

La conquête du marché cannabis se poursuit en Ontario. De nombreux commerçant tentent encore d’y trouver leur place. Mais avec plus de milles compétiteurs, ont-ils leur chance? Le reportage de Zacharie Routhier.

Published on Business of Cannabis

On this episode of BofC Live, we connect with David Wasserman of CannDelta – the Official Regulatory Advisory of Business of Cannabis. Wasserman has been assisting cannabis retailers with licensing throughout Canada and joins us to discuss how retailers are identifying retail locations amid the rapid increase in cannabis retail density, specifically in Ontario.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Dana Baranovsky of the CannDelta team. CannDelta is the Official Regulatory Advisory of Business of Cannabis. In this segment, Baranovsky talks about how Canadian cannabis companies could and should be thinking about adding functional ingredients into their edibles and beverages. Specifically, how utilizing well-known food products within edible ingredients could help differentiate products on cannabis retailer shelves – and the regulatory framework that enables companies to do just that.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Ellen Wang from CannDelta. Wang shares her previous experience in both pharma and cannabis and how she brings that expertise to the psychedelics industry as well. During this BofC Live she shares insight into how to choose a testing lab for psychedelics companies.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Sherry Boodram, PhD from CannDelta. CannDelta is the Official Regulatory Advisory of Business of Cannabis and we wanted to connect with Boodram to talk about the type of licensing companies must acquire in order to workin the psychedelics sector in Canada. Boodram is a former Health Canada inspector and has deep knowledge of the regulatory components of both the cannabis and psychedelics sector.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Sherry Boodram, PhD from CannDelta. CannDelta is the Official Regulatory Advisory of Business of Cannabis and we wanted to connect with Boodram again to talk about the type of licensing companies must acquire in order to workin the psychedelics sector in Canada. Specifically, Boodram shares her expertise as a former Health Canada inspector and what that experience has taught her about dealers licensing under Health Canada. In this conversation, Boodram discusses what Health Canada considers for the dealers license application, activities people are applying for currently, substances that are popular right now, licensing timelines and psychedelics inspections.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Denis Gertler of CannDelta Inc. CannDelta is the Official Regulatory Advisory of Business of Cannabis. In this segment, Gertler will talk about what to expect from cannabis retail compliance in Ontario, including what he anticipates in terms of frequency of inspections, what the process for retail license approvals may look like in the future and where enforcement issues may fall between Provincial regulators and Health Canada with regard to advertising, promotion and inducements.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Published on Business of Cannabis

On this episode of BofC Live, we connect with Callan Evans of CannDelta. CannDelta is a Canadian-based regulatory and scientific cannabis consulting firm and is the Official Regulatory Advisory of Business of Cannabis. Evans joins BofC Live to talk about Research Licenses open to cannabis companies and the important role these licenses should and could play for companies to test the sensory elements of cannabis products, including taste, smell and flavour.

BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

Join Sherry Boodram, CEO and co-founder of CannDelta, in Episode 4 of The Buzz, a corporate cannabis talk show hosted by Kelsey Cannabis. Boodram discusses the process of adapting a regulatory framework for Medical Cannabis.

By David George-Cosh | Published on BNN Bloomberg

Like many entrepreneurs, Michael Motala was eager to take part in Canada’s newly legal — and hopefully, lucrative — cannabis industry. But after less than a year of running a cannabis store on Toronto’s fashionable Queen West neighbourhood, mounting competition and over-regulation are leading him to consider selling his business. 

“It was an interesting experience as we were building a new business,” said Motala, who operates High Street Cannabis Retail with his parents. “But the space is highly restrictive and regulated to the point where it is a comedy of the absurd, if you will, with advertising and the like.”

Motala has listed his retail store, which he opened in October 2020, for just under $2 million. Selling cannabis during a pandemic while adhering to a lengthy list of regulations and amid an influx of neighbouring pot stores has whittled down High Street’s bottom line.

“A lot of people probably got into this thinking that it would be a gold mine, but unfortunately we’re finding out that’s not the case,” he said. “Even on our street [near the Queen St. West and Bathurst intersection], there’s three stores across from us and when we talk some tell me they make five or ten transactions a day. That’s pretty much impossible to survive on.” 

While Ontario took a relatively cautious approach in the early days of legal cannabis stores with two lottery processes that allowed for the opening of 75 pot shops in the first year of legalization, the province has since ramped up its licensing to permit 80 stores a month. It’s also taken a hands-off approach and let the free market to determine which retailers will be successful, a process which has unwittingly created clusters of pot stores in many Toronto neighbourhoods. 

There are 859 cannabis stores open in Ontario today, 163 of which are located in downtown Toronto according to the Alcohol and Gaming Commission of Ontario, the regulatory body that oversees legal pot shops in the province. If you include some of Toronto’s boroughs outside of the downtown core such as East York and Etobicoke, there are 267 legal and licensed pot shops open in Canada’s biggest city.

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Lucas McCann, chief scientific officer at CannDelta Inc., a cannabis consultancy that has helped open about 80 stores in Ontario, said retailers in the province are facing heavy competition not only from neighbouring shops, but also from the provincially-owned Ontario Cannabis Store, which also operates the wholesale business that supplies their stores. He added some stores may be up for due to owners who got into cannabis retail to flip their outlets for a quick buck. 

“There’s a sense that it’s better to throw in the towel now rather than wait down the road and not get what they presumed to be under market value for their store,” McCann said in a phone interview. 

Kiaro Brands Inc. Chief Executive Daniel Petrov told BNN Bloomberg that he observed the Ontario market for a few years before acquiring seven Hemisphere Cannabis stores from former Second Cup operator Aegis Brands Inc. for just under $10 million in a stock deal. Petrov said the asking price for some of the first pot stores in Toronto was as high as $8 million per store and that he decided to wait on the sidelines after seeing how valuations in other mature markets like Colorado plummeted following the first few years of operation. 

“We’ve said this internally for a long time, but once the haze wears off people are going to realize that you’re running a retail business and it’s very competitive, especially on a large scale,” Petrov said. “We took our time to get in Ontario but it’s going to be a bloodbath here so you have to operate on traditional metrics.” 

While it is unclear how many cannabis stores are up for sale, public listings on Realtor.ca show six shops in Toronto, two in Alberta, and another six in B.C. are on the block. However, the vast majority of retailer transactions are handled privately according to High Tide Inc. Chief Executive Officer Raj Grover. 

“Sometimes I get [inquiries] daily, sometimes I get five requests a week, and these are all inbound. I don’t have to go out and prospect for acquisitions,” Grover said. 

“But we don’t want to just buy stores or buy companies for the sake of it. We want to buy them because they’re financially strong businesses and we can improve them.”

Motala still isn’t fully sure if his family will sell High Street, but wants his parents to retire comfortably when they still can. If he sells, he wants to sell the store to another independently-minded operator, stating that the market is primed for larger retailers with deeper pockets that can weather future financial storms. 

“My worry is that it’s going to turn into the Beer Store model, where you have two or three dominant retail chains and that’s it,” he said. “I don’t think the government put enough protection in there for the little guys.”

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