Pot shortage affects opening of new shops

AGLCC announces licence freeze

There’s good news for some, trouble for others. Five of the seven marijuana marts licensed for Lethbridge should be stocked and open by Friday. But the future is less certain for others, including a number of locations with “opening soon” signs downtown and across the city.

Citing its ongoing supply problem, the Alberta Gaming, Liquor and Cannabis Commission announced a freeze Wednesday on all other licence applications across the province. Officials indicated the freeze could last weeks, maybe months.

That means local business operators’ plans to open stores in communities like Taber and Pincher Creek will be delayed indefinitely. And those who have signed leases for locations in Lethbridge or across the region will be paying rent but bringing in no revenue.

About 430 applications are affected by the freeze, a spokesperson said. Some are for multiple locations, bringing the number of outlets in doubt to about 700 across Alberta. Earlier, government officials said they anticipated about 250 stores would open within a year.

Sixty-five had been approved before the freeze.

Businesses who don’t have the resources to sit out an indefinite hold may cancel their application, officials said, and apply for a refund of AGLCC fees — about $4,100. Rent or lease cancellation fees would not be covered.

Alain Maisonneuve, the government agency’s president, blamed a nation-wide shortage of marijuana in announcing the freeze. Earlier this year, he said, the organization ordered enough product to supply as many as 250 stores for at least six months.

But “we have only received approximately 20 per cent of what we had ordered,” he said.

“While some licensed producers have fulfilled their commitments, not all have.”

It’s become an issue across Canada, he indicated,

“We continue to work with them to fill stock,” Maisonneuve said in a news release.

“Unfortunately, regardless of our efforts we are seeing the supply of most products sold out.”

News of the licence freeze came as several Lethbridge retailers were ready to open. Shipments were scheduled to arrive today, they reported.

Other local outlets, opened over the last week, were hoping for new shipments as well.

AGLCC officials in St. Albert could not say if orders from recently opened stores would continue to be shipped in full.

All going well, Lethbridge locations open for business now or by Friday will include SpiritLeaf on 5 Street South downtown as well as four along Mayor Magrath Drive South — Twenty Four Karat at 5 Avenue, NewLeaf in the Pacific Pallisade strip mall, Bridge Bud Supply in the former Blarney Stone building and Canna Cabana at Southgate Boulevard.

The Calgary-based NewLeaf group has received licences for two westside locations as well, one in Sunridge and the other next to the Tommy Gunn barber shop in West Highlands. Company spokesperson Angus Taylor said Wednesday he hoped to see them opening soon, though a firm date hadn’t been set.

Taylor, on his way to a Medicine Hat location ready for its final inspection, said the freeze will interrupt his company’s plans to open 25 stores across Alberta.

“There are a lot of construction costs,” he said — and now, uncertainty about when those expenses can be amortized. And about staff recruited and trained to operate those stores. “We’re very concerned.” A Lethbridge entrepreneur shares those concerns. Blaine Emelson, at Bridge Bud Supply, said his company has also applied for licences to open in Taber, Claresholm and Pincher Creek.

Those applications are still awaiting final approval, he said. Now he has no idea how long that could take.

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