Measures announced for province’s cannabis industry
The provincial government on Wednesday announced several measures related to the cannabis industry in the province as it prepares for the implementation of new products later this month.
A news release states the aim of the measures is to protect public health while also supporting local retailers.
The release states the government will not allow the introduction of cannabis vape products in Newfoundland and Labrador at this time with a commitment to review this decision in light of any relevant clinical evidence. There have been reports of severe lung diseases associated with vaping in both Canada and the United States. As the first year of legalized cannabis came to a close, the government held consultations with cannabis retailers about the challenges facing the industry and future growth opportunities
An analysis by experts in both countries has not been able to pinpoint the specific cause of the lung disease, but the majority of cases involve vaping cannabis.
According to Health Canada, as of Nov. 20, in Canada, there were 11 confirmed or probable cases of severe lung illness related to vaping. There are no confirmed or probable cases of severe lung illness in Newfoundland and Labrador.
As the first year of legalized cannabis came to a close, the government held consultations with cannabis retailers about the challenges facing the industry and future growth opportunities.
As a result of these discussions and to support retailers starting Jan. 1, 2020, Tier 1 Licensed Cannabis Retailers (LCRS) awarded through the Newfoundland and Labrador Liquor Corporation’s (NLC) RFP process will see changes to the commission structure. New rates will include:12 per cent commission on the first $1 million of sales per calendar year; 10 per cent commission on sales between $1 million and $1.5 million per calendar year; eight per cent commission on all sales above the $1.5 million.
Also, the NLC announced that in addition to producer agreements already in place, formal agreements have been reached with the following licensed producers, located throughout Canada: 7 ACRES; Auxly/doescann; FIGR; HEXO; Truss Beverages; Terrascend; and The Green Organic Dutchman.