CALGARY—Alberta’s cannabis market is lit.

That’s what fuelled National Access Cannabis’s (NAC) acquisition of The Green Company Ltd., which operates the Calgary-based NewLeaf retail cannabis brand.

“The reality is that Alberta clearly seems like they’re the furthest along with their processes and policies,” said Matt Ryan, vice-president of marketing with National Access Cannabis.

A total of 25 stores were proposed for Alberta, NAC and NewLeaf officials say.

NewLeaf is currently proceeding with 17 cannabis retail locations, all on track for an Oct. 17 opening date, subject to regulatory approvals. Nine of the 17 shops are proposed for Calgary.

“Now that we’ve acquired NewLeaf, we’re happy to say that those stores will be ours on Day 1,” Ryan said. “We’re also attempting to open our own stores and we’re waiting on licences to be able to do that with our Meta stores.”

NAC, which runs the Meta Cannabis Supply Co. brand, announced the acquisition on Monday, stating regional management teams at NewLeaf will remain intact. The company spent over $23 million in escrow shares and over $5 million in cash to acquire NewLeaf.

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NewLeaf has promised NAC 25 stores in eight different municipalities, including Calgary, Airdrie, Lethbridge and Edmonton.

But juggling each city’s distinct bylaws hasn’t been easy for the two companies.

Angus Taylor, chief administrative officer with NewLeaf, said keeping track of unique regulations in each municipality “has been one of our big challenges.”

Every municipality must adhere to federal and provincial cannabis guidelines, however, many cities and towns have also created their own rules.

“Calgary is arguably a little tougher than some municipalities,” Taylor said, because the city has implemented numerous guidelines that dictate where cannabis retailers can operate.

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The City of Calgary’s rules include minimum distances between cannabis retailers and schools, daycares, liquor stores, hospitals — and other cannabis stores. As a result, legal cannabis retailers that want to set up shop near a competitor may struggle to get a development permit.

The city denied Taylor permits for two tentative NewLeaf stores because other retailers had beat him to his desired location.

“In Calgary, it was a first-come, first-serve development permit process, so with a couple of applications, we weren’t the first to put the pin on the map,” Taylor said.

“We’re appealing those decisions and hope that in both cases, (the city) will consider that they’re in higher-density areas … with a greater concentration of cannabis customers,” he said.

Getting permits in smaller municipalities is decidedly simpler, he said. Airdrie, for example, opted to treat cannabis retailers just like liquor stores.

“In smaller communities, it’s easier to get through the bylaw process,” Taylor said. “These aren’t municipalities that have the resources to draft new bylaws.”

As for a proposed NewLeaf store in Red Deer, Taylor isn’t sure it will open.

“Again a nuance to the local bylaw,” he said. “They decided to have all of their cannabis stores located in particular areas of the community, and our store was located quite close to residential areas.”

NAC will operate all NewLeaf locations alongside its Meta stores in Alberta, Manitoba, Saskatchewan, British Columbia and Ontario, assuming all locations will be approved by their respective municipalities.

“The challenge is that municipalities are doing things differently,” said Ryan. “How we’re handling it is the same (way) NewLeaf would have handled it: you chase your real estate, you get a lease and then you follow the rest of the provincial and municipal regulations to get your licence.”

“NewLeaf is very far along with their plan to open 17 stores on Oct. 17,” he added. “It’s huge.”

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