NIAGARA-ON-THE-LAKE — The president of a cannabis producer with major stakes in Niagara is pleased with the first steps the province is taking for the legalization of sales of marijuana.

Bruce Linton, chair and CEO of Canopy Growth — which runs Tweed Farms — says the initial plans announced by the provincial government last week are a positive first step. Provincial officials announced last Friday government-controlled outlets and a website will be the only place cannabis can be bought legally in Ontario when Ottawa legalizes sales on July 1. There will be 40 weed stores to start off.

“We are now going to have a provincial government distributing a product we produce under the governance of the federal government,” Linton said in an interview on Monday. “We think it’s a great fit. There are nuances we will have to work through with them but it’s almost exactly what we thought they would do. We’re very happy.”

The province announced sales would be restricted to 150 LCBO-run stores. In a move that will close scores of illegal “dispensaries” that now dot Ontario cities, the LCBO will get its product from the medical marijuana producers licensed by Health Canada, such as Tweed Farms. Finance Minister Charles Sousa, Attorney General Yasir Naqvi, and Health Minister Eric Hoskins unveiled the plan Friday at Queen’s Park after months of work from Ontario’s cannabis secretariat.

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“Super strong regulations already exist right now. It’s a very well-governed system,” said Linton of criticism over the province’s plans, including the concern over a government monopoly on the product. “Remember, this is a product that has had a lot of private sector already distributing it, called the black market. They are trying to get it under control so they can have proper regulation that over time can be opened up a bit more.”

Starting with a completely open system where anyone can grow or sell marijuana, said Linton, doesn’t necessarily help discourage illicit market activity.

“It’s the black market under a different banner,” he said, adding consumers will be able to ensure the product is not only well-regulated, but also consistent. “People expect the consistency when they’re buying a product from a regulated environment.”

Naqvi described the plan, which makes smoking weed illegal in any public space including parks, workplaces, and motorized vehicles, and allows only those 19 and older to purchase or posses marijuana, as a “safe and sensible” approach, adding it will “ensure we can keep our communities and roads safe, promote public health and harm reduction, and protect Ontario’s young people".

Linton said the legalization will have major impacts on producers like Tweed Farms, which just announced a massive expansion in Niagara-on-the-Lake with the market growth anticipated. He said there is “massive amounts” of growth potential, especially since the black market estimates are anywhere between $5 billion to $10 billion a year.

“We wont be able to supply or redirect all of that, but the potential is, whatever we produce, as long as it’s price-appropriate and in the right format, there should be a market for us for the first year and beyond for this program,” he said.