Saskatoon-based Cannimed Therapeutics is signalling its approval of the province’s plan to issue about 60 retail permits for the sale of cannabis.

The company will partner with Ontario’s Up Cannabis to apply for a retail permit, its CEO, Brent Zettl, confirmed to CTV News on Tuesday.

"I think the key thing is going to be how they're actually setting up the regulations, and the regulations surrounding that, from protecting youth and inventory, and making sure they're running legitimate businesses,” Zettl said.

The Saskatchewan Liquor and Gaming Authority and an independent third party are to choose retailers through the two-phase process. Following a screening of applicants’ finances and other requirements, those remaining are to go into a random lottery.

Clay Sparks, the founder of Flower Power Cannabis Pharms, was mostly optimistic about the blueprint, but said the lottery aspect of the selection process makes it difficult to plan.

“Do I like it? No,” Sparks said. “I'd love to be able to have some, I guess, certainty that if we're able to sort of be the right crew, put the whole financing package together and meet that bar, it would be nice to have some certainty.”

Previous research had suggested a greater number permits — more than the province’s approximate 60 — would be necessary to prevent shifting demand to illegal sources, according to Jerome Konecsni, who is an executive in residence at the Johnson-Shoyama Graduate School of Public Policy.

Further details on the province’s application criteria for would-be marijuana retailers are expected in the coming weeks.