CALGARY—Two major Alberta-based cannabis companies are already scouting locations for stores in Ontario by next April, when the government expects to launch its newly-announced private brick-and-mortar cannabis sales regime.

Spiritleaf CEO Darren Bondar said his company will formally announce its intentions to enter the province on Wednesday, two days after Ontario Minister of Finance Vic Fedeli told reporters their government “will not be in the business of running physical cannabis stores.” He said Spiritleaf is looking at 123 potential “territories” for stores spread throughout the province.

“We’re looking to do a full-court press in Ontario,” he said.

Under former premier Kathleen Wynne, Ontario had intended to allow cannabis sales through the Ontario Cannabis Store, a publicly owned model similar to alcohol sales through the Liquor Control Board of Ontario. But after the election of current Premier Doug Ford last June, the government changed tack, promising to have brick-and-mortar retail operations ready by April 1, 2019.

In the meantime, users will be able to buy online through the Ontario Cannabis Store’s website starting on Oct. 17, when cannabis is legalized in Canada. The Ontario government will remain the only legal cannabis distributor in the province.

Read more:

Ontario will rely on private sector to sell recreational cannabis

Late switch to private sector pot sales could be a scramble, experts say

Legalization promises a boom in cannabis testing and research for Alberta labs

Bondar said Spiritleaf put some of its pre-sales in Ontario on hold when Wynne’s government made their initial policy announcement.

“And then when the Ford government came in, we saw the opportunity, and our primary focus is retail,” Bondar said.

As part of their expansion plans, Spiritleaf has been looking into how many storefronts they might expect to open in each of their territories. Ottawa, for instance, might support eight storefronts, Bondar said, while the company expects Toronto could take around 34. But these locations won’t open up all at once.

“Do I think we’ll open 123 immediately? No, it’ll take time. But that’s what we’ve identified as potential markets where we could open,” he said.

Another Alberta cannabis company, Aurora, has also jumped on the Ontario bandwagon. It applauded Ontario for implementing a private cannabis system in a statement on Tuesday, noting that Alcanna — the Western Canadian liquor store chain — had already scouted “over 100” potential locations in Ontario. Under a recently announced license agreement, Alcanna will be allowed to open cannabis stores using Aurora’s brand name.

“Through Alcanna, the nation’s largest private retailer of a controlled substance, we will leverage long-standing relationships with landlords, regulators and other stakeholders, and through superior capitalization, we will rapidly establish a significant presence in the province,” said Aurora CEO Terry Booth in the statement.

Cannabis producers, retailers, and advocacy groups have all applauded the Ontario government’s decision. What remains unclear is whether the province will be able to implement a private retail system by April 1, 2019. Unlike Alberta, Ontario does not have extensive experience in selling controlled recreational substances — such as alcohol and, soon, cannabis — privately.

Nonetheless, Bondar said the government’s timeline is realistic, given the amount of work that needs to be done by both regulators and cannabis stores themselves.

Loading... Loading... Loading... Loading... Loading... Loading...

“I think to open a retail store ... is a four- to six-month process at the best of times,” Bondar said. “I think the extra time is needed, and it’s just realistic.”

With files from Rob Ferguson and Mitch Potter

Read more about: