Albertans continue to wrestle with questions on cannabis legalization

Entrepreneurs say policy delays mean more capital outlay without returns

Albertans interested in buying a stake in the province’s fledgling cannabis industry are brimming with questions, from whether cannabis lounges will pop up on street corners to how a mom-and-pop retailer would fare in the market.

“There’s a whole next phase of policy questions, primarily around cafes, lounges and edible products that are still yet to come,” said Kim Capstick, executive director of engagement and outreach for the Alberta Cannabis Secretariat, in an interview.

She spoke at a Cannabis Con panel Friday along with federal and city officials at Edmonton’s Shaw Conference Centre. Questions from the public ranged from licensing rules to how entrepreneurs can get a head start on the expected edibles industry.

“There are a whole lot of questions unanswered,” Capstick said.

But Albertans hoping to see legalization on Canada Day will be sorely disappointed, she said.

“Based on the date of the Senate vote it’s likely going to be pushed into August or September,” she said. “Our guess is going to be as good as anybody else’s at this point.”

It all depends on the hefty piece of federal legislation, Bill C-45, which will regulate the production, distribution and sale of cannabis. The bill passed its second reading in the Senate and is now being reviewed at committee.

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As legalization approaches and policies start to take effect, investors are dealing with regulatory uncertainty, said Lindsay Blackett, president of the Canadian Cannabis Chamber, in an interview Friday.

“When will the legislation allow for cannabis to actually be sold?” he asked. “When are edibles, which is 75 per cent of the market place in Colorado, going to be allowed?”

He’s concerned that illegal edibles will spring up in the market place if there’s too much of a delay, he added. Federal legislation outlines a one-year deadline to start selling edible products.

“It’s just more time, I’m spending money without getting revenue,” Blackett said.

In Budget 2018, Alberta projected a loss of $90 million to the provincial government over two years while the cannabis industry is established. In 2020-21, the province estimates a net income of $37 million to government coffers.

The Alberta Gaming and Liquor Commission, the agency that will oversee cannabis distribution, is actively reviewing retail applications, Capstick said.

In May, applications will be available for those who want to become qualified cannabis workers. Successful applicants need a criminal record check and to complete the AGLC’s Sell Safe certification.