This was no April fool’s joke. Cannabis businesses in Ontario that were not open for business on April 1st are now feeling a financial burden. There were 25 dispensaries across Ontario in line to open their doors for April 1st.
All of these businesses initially had to receive approval and also put up a $50,000 letter of credit. Within the conditions of participation, it was stated that all locations must be open by April 1st or a portion of their $50,000 letter of credit would be removed.
Fined For Not Opening Doors To Sell Cannabis
In this case, 12 cannabis dispensaries had $12,500 removed from their letter of credit for not having their doors ready to open on April 1st. Additionally, if these locations are still not open by the end of this month, they will ultimately lose the entire $50,000 credit.
Prior to April 1st, residents in Ontario could only legally purchase cannabis online, but it isn’t surprising that many Canadians do not like to purchase cannabis online. Excessive packaging, long wait times and not having the option to walk into a brick-and-mortar store are just some of the reasons why the people of Ontario were waiting for April to come around.
Fine Or Condition Of Participating?
Is it fair these businesses are fined? Is it really a fine if you knew that it was going to happen but failed to keep up with a promise you made to avoid it? Some people are saying these stores are facing fines, but as Canada’s Alcohol and Gaming Commission states, “This is not a fine, it was a condition of participating.” Hopefully, the stores that have failed to open their doors will resolve whatever issues necessary to start serving the public demand.