The AGLC is not accepting new applications or issuing any more cannabis retail licences because of a supply shortage.

When cannabis became legal in Canada, the AGLC ordered enough product to supply up to 250 retail stores for six months.  However, the organization said it has only received about 20 percent of that order. 

“For the first few weeks, AGLC has taken steps to secure additional product, contacting all producers with federal licences to sell cannabis, but with no success due to the national shortage,” said AGLC President and CEO Alain Maisonneuve.

He said their priority is to supply private retailers in the province, with some online product for consumers who live in communities without retailers.

Until further notice, no new cannabis retail licences will be issued. “All applicants in various stages of the licensing process will receive a full refund of all licensing fees should they wish to withdraw from the licensing application process,” said Maisonneuve.

It’s a move one cannabis lawyer called disastrous. “It’s an indefinite period of time that you’re not exposing your business to the market and other applicants that have already gotten a licence are having an opportunity to establish market share to your exclusion,” said Trina Fraser with Brazeau Seller Law. 

Still she said it’s something that needed to be done. “If you’re just handing out licences to everyone who qualifies but there’s no product to stock the shelves and those businesses end up failing due to a lack of supply you know are we in any better situation than we are now. So I can’t say that I think it’s an unreasonable step to try and manage the number of licencees while we have this supply shortage.” she said.

Elevate cannabis retail store in Edmonton has a licence, but has yet to open.  “No product out yet. It’s been nearly three weeks since we got our licence to sell cannabis here in Alberta,” said Joshua Vera, Elevate owner.

He hopes to have enough product in order to open next week, but plans already in the works for a second shop are now on hold. “These are all things that as you prepare to open up a business you prepare for in advance so these are all things that we’ve considered in our business case leading up to the role out of elevate so we’ve got contingency plans set up so you know when issues like this happen you’ve got something to fall back on,” he said.

There are currently 65 licenced retailers in Alberta, the AGLC had hoped to allow 250 to open within the first six months of legislation.   

“We’ve heard timelines from 3 months to 18 months so we really don’t know and again those timelines are really going to depend very much on each licenced producer. So as the licenced producers are able to ramp up their production and get more product to us it could be shorter it could be longer. I don’t know, but it’s doubtful it’ll be before the new year at the very earliest,” said Maisonneuve.