Newfoundland and Labrador Secures Cannabis Supply and Revenue

Newfoundland and Labrador Secures Cannabis Supply and Revenue

The Government of Newfoundland and Labrador has obtained access to a steady and secure supply of cannabis. In a deal announced last week with Canopy Growth Corporation, a world-leading diversified cannabis company, Government has secured a supply of 8,000 kg of cannabis and cannabis-related product annually. This supply is crucial given the federally mandated July 2018 legalization date and the fact that there are currently no licensed producers of cannabis in Newfoundland and Labrador. This agreement does not preclude the province from purchasing cannabis from other licence holders as they begin operations.

New Production Facility for NL

The agreement with Canopy Growth Corporation will also result in job creation for Newfoundland and Labrador. Canopy will construct the first cannabis production facility in the province. The company will invest upwards of $40 million in constructing the new facility that will produce 12,000 kg of cannabis annually and create 145 new jobs. The facility will operate in Newfoundland and Labrador for a minimum of 20 years.

cannabis

Photo: www.canopygrowth.com

Getting Our Fair Share

The province scored another win over this week during a meeting with the Federal Government. It was announced that the provinces will receive 75% of tax revenue on the sale of cannabis and cannabis-related product. This is a 25% increase in what was originally proposed. The agreement will be revisited in two years.

Challenged by Tight Timelines

Premier Ball acknowledged the difficulties faced by the province in dealing with the tight timelines dictated by the Federal Government. While meeting with his counterparts in the Atlantic provinces, Premier Ball said that securing a steady and safe supply by the July 1st deadline meant the province had to act quickly. Premier Ball has urged the Federal Government to speed up the processing of licences. He said his government is committed to “encouraging as many production facilities as we can to be operating in Newfoundland and Labrador.”

cannabis legalization

Meeting of the Atlantic premiers.

Eliminating the Black Market

If the legislation is to succeed in diminishing and eventually eliminating the cannabis black market it is necessary to have supply meet demand and a retail model that is consumer friendly. Private retailers interested in selling cannabis are encouraged to ready themselves for Request for Proposals that will soon be issued by the Newfoundland Liquor Corporation. The Province is empowering private business operators to handle the sale of cannabis in Newfoundland and Labrador.

Business Friendly

This province remains open for business, and will use the Canopy deal as a framework for other agreements related to cannabis supply and production. The vision is for an industry which leads to production, job creation, supply chain development and research and development in this province.