A national recreational marijuana shortage has delayed plans for retail cannabis stores in Innisfail and Penhold, possibly by up to a year and a half.
The province’s regulator of cannabis supply and distribution announced last week that’s its current supply of most products has run out a month into legalization, similar to other provinces'.
To help ration remaining product, Alberta Gaming Liquor Cannabis (AGLC) has temporarily suspended accepting new retail licence applications and issuing any new licences.
Four companies had already applied to AGLC for licensed locations in Innisfail and one for Penhold but none had been issued licences when the suspension came into effect.
“Those five were in the licensing process so they have been impacted,” said AGLC spokesperson Kaleigh Miller.
Licensing is expected to resume when supply is sufficient, she said, estimating six to 18 months.
“Problematic to this industry is (the product) has to grow,” she said.
AGLC ordered enough product to support up to 250 retail stores in the first six months of legalization, said ALGC president and CAO Alain Maisonneuve in a statement issued Nov. 21.
As of Nov. 17, he said AGLC had only received approximately 20 per cent of what it ordered.
“While some licensed producers have fulfilled their commitments, not all have. We continue to work with them to fill stock. Unfortunately, regardless of our efforts, we are seeing the supply of most products run out,” said Maisonneuve.
AGLC had issued 65 retail cannabis licences before the temporary suspension was put in place.
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 application process, AGLC confirmed.
Miller said she was unable to confirm whether any of the licence applications for Innisfail or Penhold had been withdrawn.
Of the four companies that applied for a provincial licence to operate stores in Innisfail, three had already received development permit approvals from the town’s Municipal Planning Commission (MPC).
A fourth was refused by MPC because it was located within the 100-metre setback distance from an approved retail outlet.
Alair Homes — agent of Cannabis Cowboys — appealed the refusal as well as the approval for Revive Cannabis’s store located within the separation distance to its proposed location at #101, 4911-50th St.
The town’s Subdivision and Development Appeal Board decided to lapse the setback and approved the Cannabis Cowboys application. It also upheld Revive’s original approval.
The Town of Penhold has received a change of use application for Unit 1A, 1370 Robinson Ave. to permit cannabis retail sales.
Retailers need both the provincial licence as well as municipal approvals to operate.
AGLC will continue to sell some stock through online sales but the majority of inventory is being allocated to existing approved private retailers, said Miller.
