Cannabis Prospect Magazine - September '23 - Issue 28

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Curating Retail

As the legal cannabis industry continues to evolve, retailers must not only stay attuned to trends and new product offerings but also establish elevated benchmarks for excellence.

Illuminating the Path

Despite its growing acceptance and popularity, the cannabis industry lacks scientific, objective and independent data regarding the effects of these products.

The Global Cannabis Gap

Global cannabis markets have clearly had a rough 12 months, and certainly not as robustly as politicians in countries like Mexico and Germany promised.

Cannabis Prospect Magazine

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LEGACY TO LEGAL

IN OUR SEPTEMBER FEATURE WE CATCH UP WITH DYLAN KING FROM PISTOL & PARIS, NEW COMPANY DEVELOPMENTS

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ISSUE
SEPTEMBER 2023
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AS WELL AS NEW PRODUCTS COMING DOWN THE PIPELINE SEE PAGE 14

As the legal cannabis industry continues to evolve, retailers must not only stay attuned to trends and new product offerings but also establish elevated benchmarks for excellence.

In our September feature, we catch up with Dylan King from Pistol & Paris, new company developments as well as new products coming down the pipeline.

Global cannabis markets have clearly had a rough 12 months, with several overlyhyped international markets progressing more slowly than hoped, and certainly not as robustly as politicians in countries like Mexico and Germany promised.

The legalization and commercialization of cannabis in Canada has brought about a flourishing market for cannabis products, however, the industry lacks scientific, objective and independent data regarding the effects of these products.

Celebrate 5 Years with Cannabis Prospect!

This October, Cannabis Prospect Magazine will be putting out a special issue celebrating five years into cannabis legization in Canada.

If you’re a licensed producer, cannabis company or wish to support the magazine with this special milestone please email media@cannabisproonline. com for more information.

September 2023 | Cannabis Prospect Magazine 3 Table of Contents/September 2023
REGULARS ELEVATING RETAIL 4 From the Editor 6 Events 8 News 22 Product Showcase 25 Product Spotlight 28 Provinical Updates 30 List of Advertisers 12
18
ZENTRELA’S NEW TECH
14
PISTOL & PARIS PROFILE
16
THE GLOBAL CANNABIS GAP

Five Years In...

Next month will mark the fifth anniversary of federal legalization of recreational cannabis in Canada. For many of us, it feels a lot longer than that. Some have worked for years in one capacity or another in the pre-legalization market, whether that was in medical-use ACMPRM cannabis and the handful of then-licenced producers operating in this space since as early as 2012. Others, like myself, seeing the writing on the wall when it came to cannabis legalization back in 2018, not quite knowing when Bill C-15 (better known as The Cannabis Act) would be royally ascended in the Senate let alone passed in the House Commons, began operating in that short breadth of time when it felt like that sea change was going to happen sooner rather than later (the Act was officially passed by the Senate in June 2018).

Thinking back to when we first incorporated, my parent company, Straight Dope Media Inc., back in February 2018 up until what would become our first print issue in February 2019 the following year, we were essentially selling advertising and designing a publication for a market that wasn’t yet technically legal. Even more astounding was that we had no idea if or when recreational cannabis would become federally legalized if/when our first issue were to go to press. Thankfully, through some miracle, as mentioned previously, under Trudeau’s Liberal government, Bill C-15 ascended in June and officially became law on October 17, 2018 (though a three-month period for cannabis testing was required so officially product didn’t hit cannabis retailers until January 2019).

So where does Canada stand now, five years after legalization?

If we’re talking pure numbers, they are admittedly impressive. At the time of this writing, there are nearly 1000 federally-issued licenses for cultivation, processing and farm-gate selling at LP facilities. According to ADCANN, there were 3,740 cannabis retailers, though this number is likely

higher and tends to flucutate. According to Brightfield Group, the Canadian cannabis industry is expected to bring in $6.4 billion, with the biggest markets in Alberta and Ontario. According to Statistics Canada, in 2022, cannabis sales brought in $5.42 billion, growing more than 17% from the previous year inclusive, with the biggest markets being Ontario and Alberta. According to Statistica, it’s also projected that from 2023-2027 the industry is projected to grow by another 16% to more than $7 billion.

On paper, this all looks impressive but for anyone that actually works in cannabis firsthand will tell you the perception of revenue sales doesn’t always match the actual reality outside of news headlines. For starters, many markets are seeing the great contraction in the form of retailers and licensed producers alike either shutting down stores and facilities, respectively, or being gobbled up by larger players in the markets. Similarly, as the price of cannabis per gram goes down the percent of duties levied has been going up, eating profits and making it hard for craft- and medium-sized cannabis companies to compete.

While we have a glut of products to choose from (the Ontario Cannabis Stores [OCS] estimates that more than 300 SKUs are added to its website alone each quarter), restrictive packaging and promotion laws make it difficult for derivative products to compete on both a small and large scale. While we’re certainly making strides in the industry the government and the industry as a whole have to do better if the industry is meant to survive longterm.

President / CEO, Straight Dope Media Inc.

4 Cannabis Prospect Magazine | September 2023
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Cannabis Prospect Magazine assumes no responsibility for any claims or representations contained in the magazine or in any advertisement. All materials contained are for educational purposes and intended for the legal marijuana business. Cannabis Prospect does not encourage the illegal use of any of the products contained within. ISSN 2562-1033. CANADIAN PUBLICATIONS MAIL PRODUCT AND SALES AGREEMENT NO. 43596516

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CONFERENCES & EVENTS

Canopy Growth Enters into an Agreement for the Sale of Hershey Drive Facility in Smiths Falls

Canopy Growth Corporation has entered into an agreement to sell its Hershey Drive facility in Smiths Falls, Ontario, as part of the company’s transformation to a simplified, asset-light operating model. Canopy Growth will retain its Smiths Falls-based post-harvest manufacturing facility. Pursuant to the terms of the agreement, the facility will be sold to Hershey Canada, Inc. for cash consideration of approximately $53 million (the “Transaction”). The completion of the Transaction is subject to customary closing conditions. Upon the completion of the Transaction, Canopy Growth will have sold a total of seven properties for an aggregate gross amount of approximately $155 million since April 1, 2023. Net proceeds received from the sale of the facility will be used primarily to pay down the company’s senior secured credit facility. The sale of the facility follows the centralization of postharvest manufacturing at the company’s former beverage facility in Smiths Falls, as well as the consolidation of all flower cultivation in the company’s purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia.

Leafly and Greenline Join Forces, Delivering Value to Cannabis Operators Across Canada

Leafly Holdings, Inc. and GetGreenline ULC, a BLAZE ® company, the leading Canadiancompliant cannabis retail point-of-sale (POS) software, announced an expanded partnership that will drive operational efficiencies for cannabis operators across Canada. Greenline operates exclusively in Canada to help Canadian cannabis retailers stay compliant, get ahead of competitors, and thrive in the industry with easy-to-use inventory control tools and a compliance-focused marketplace of apps. Known as the informed way to shop for

Tilray Brands Announces Acquisition of Truss Beverage Co.™

Tilray Brands, Inc., a leading global cannabis-lifestyle and consumer packaged goods company, announced the acquisition of the remaining 57.5% equity ownership of Truss Beverage Co.™ (Truss) from Molson Coors Canada. Blair MacNeil, President, Tilray Canada, said, “In addition to acquiring full and direct ownership of a stable of high-growth brands, this acquisition further strengthens Tilray’s #1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector. We are excited to build upon our leading portfolio of beloved cannabis brands and to further diversify our product offerings while broadening our consumer reach and enhancing consumer’s lives.” With a combined pro-forma market share of approximately ~36% (+33.2%), Tilray substantially broadens its consumer base and leading market share position. Tilray’s expanded cannabis portfolio now includes the fastest-growing beverage brands, including XMG, Mollo, House of Terpenes, and Little Victory.

cannabis, Leafly is a three-sided, content-first marketplace that connects cannabis shoppers to local licensed retailers and brands in the U.S. and Canada. In 2022, the platform averaged eight million monthly active users. With this new integration, retailers can eliminate the need to manage multiple dashboards. Leafly pickup and delivery orders will now seamlessly sync to the Greenline POS system, saving time and increasing operational efficiency.

Delta 9 to Supply Cannabis to Northwest Territories

DELTA 9 CANNABIS INC. has been approved to supply recreational-use cannabis products to Northwest Territories Liquor and Cannabis Commission for sale in Northwest Territories. “This marks Delta 9’s eighth Canadian provincial and territorial supply approval after, Manitoba, Saskatchewan, Alberta, British Columbia, Ontario, Newfoundland and Labrador, and Yukon Territory,” said Alexa Goertzen, Vice President of Cannabis Sales, “We continue to expand our market access domestically and look forward to supplying retail stores and consumers in the Northwest Territories with Delta 9’s premium branded cannabis products.” The company plans to make its first shipment of cannabis for retail sale in the Northwest Territories in the third quarter of 2023. Delta 9 is in continued discussions with other provinces, territories and private retail outlets and plans to secure additional cannabis supply agreements over the balance of 2023.

Germany’s Cabinet Approves a Plan to Liberalize Rules on Cannabis Possession and Sale

Germany’s Cabinet on Wednesday approved a plan to liberalize rules on cannabis, setting the scene for the European Union’s most populous member to decriminalize possession of limited amounts and allow members of “cannabis

clubs” to buy the substance for recreational purposes. The legislation is billed as the first step in a two-part plan and still needs approval by parliament. But the government’s approval is a stride forward for a prominent reform project of Chancellor Olaf Scholz’s socially liberal coalition, though significantly short of its original ambitions. The bill, which the government hopes will take effect at the end of this year, foresees legalizing possession of up to 25 grams (nearly one ounce) of cannabis for recreational purposes and allowing individuals to grow up to three plants on their own.

German residents who are 18 and older would be allowed to join nonprofit “cannabis clubs” with a maximum 500 members each. The clubs would be allowed to grow cannabis for members’ personal consumption. Individuals would be allowed to buy up to 25 grams per day, or a maximum 50 grams per month — a figure limited to 30 grams for under-21s. Membership in multiple clubs would not be allowed. The clubs’ costs would be covered by membership fees, which would be staggered according to how much cannabis members use.

MTL Cannabis Corp. Commences Trading on CSE Under the Symbol MTLC

MTL Cannabis Corp. has received final approval to list its common shares on the Canadian Securities Exchange (CSE) under the trading symbol “MTLC” and to commence trading at the opening on Monday, August 21, 2023. “Successfully completing a listing on the CSE is a significant milestone and the last step in the business combination between Canada House Cannabis Group Inc. and Montréal Medical Cannabis Inc. Our team has put forward an incredible effort to get us to this point and we are incredibly excited to continue to integrate the businesses and position the Company as a top performer in the Canadian cannabis industry,” Michael Perron, CEO of MTL Cannabis.

8 Cannabis Prospect Magazine | September 2023
NEWS

LEEF Brands Strengthens Supply Chain with Strategic Partnership

LEEF Brands, Inc., a leading vertical cannabis operator, announced a strategic partnership with Farming First Holdings, LLC, a prominent player in the cannabis cultivation industry. This collaboration marks a significant milestone for LEEF as it solidifies its supply chain for the upcoming winter season. Under the terms of the agreement, Farming First will cultivate 27 acres of biomass cannabis material exclusively for LEEF. This partnership ensures a steady and reliable source of high-quality biomass material, contributing to LEEF’s commitment to providing exceptional concentrate products to its customers. The planting of the cannabis crops is expected to commence over the summer, with an anticipated fall harvest. LEEF anticipates that this collaboration will yield approximately 65,000 lbs. of biomass material, further establishing the company’s position as a leading concentrate provider in the California cannabis industry. By securing this robust supply, LEEF is well-positioned to meet the demands of the winter season and maintain a competitive edge.

Avicanna Subsidiary SMGH Exports Aureus Branded CBD and CBG Into Paraguay

Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing and commercialisation of plant-derived cannabinoid-based products announced that through its majority owned subsididery Santa Marta Golden Hemp the company has completed the commercial export of Aureus-branded products into Paraguay. The commercial export included Aureus branded purified cannabidiol (CBD) and cannabigerol (CBG) which is a part of the company’s portfolio of cannabinoid active pharmaceutical ingredients. This transaction also marks the 17th international market for Aureus branded

BZAM Ltd. Completes Sale of Galaxie

BZAM Ltd., a leading Canadian cannabis producer, is pleased to announce that, as planned following the Company’s recent merger in November 2022, it has now completed the disposal of Galaxie Brands Corporation via a share purchase agreement (the “Transaction”) whereby it will sell all of the issued and outstanding shares in the capital of Galaxie to a third party for $556,522 less usual post closing adjustments. This is materially consistent with the valuation of Galaxie assets and liabilities that were deemed “Held for Sale” in the Company’s most recent interim unaudited financial statements. BZAM Ltd. is a leading Canadian cannabis producer with a focus on branded consumer goods, innovation, quality, consistency, integrity and transparency. The BZAM family includes core brands BZAM™, TGOD™, ness™, Highly Dutch Organic™, TABLE TOP™, and partner brands Dunn Cannabis, FRESH and Wyld. BZAM operates facilities in BC, Alberta, Ontario and Quebec, as well as retail stores in Winnipeg, Manitoba, and Regina, Saskatchewan. For more information on BZAM Ltd., please visit www.bzam.com.

products and 20th market for all Avicanna products which further demonstrates the company’s capabilities in navigating complex regulatory processes for its commercialization efforts internationally.

Lifeist Wellness Closes on Zest Acquisition

Lifeist Wellness Inc., a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, is pleased to announce that further to the company’s news release of June 1, 2023, it has acquired 100% of 1000501971 Ontario Inc. (“Zest”) for $3,411,707.90 (the “Acquisition”) in an all-stock transaction. The Acquisition will enhance the competitive position of Lifeist and CannMart in the cannabis industry by adding a complementary portfolio of hydrocarbon vape, infused pre-rolls and flower SKUs to the current product assortment of cannabis concentrates offered by in-house brand Roilty.

New OCS Public Education Campaign Clears Up Confusion and Encourages Ontarians to Make Informed Decisions About Cannabis

The Ontario Cannabis Store (OCS) launched a multi-channel awareness campaign aimed at expanding cannabis literacy among Ontarians through the Cannabis Made Clear online education hub. Cannabis Made Clear provides easy access to unbiased, fact-based and current resources to support cannabis consumers and canna-curious Ontarians in making informed, responsible choices about cannabis. Throughout the summer and again toward the end of 2023, Ontarians can expect to encounter Cannabis Made Clear campaign motion graphics, broadcast spots, digital out-of-home placements and audio segments in some of their most frequented online and public spaces including Yonge and Dundas

Square in Toronto. Cannabis Made Clear officially launched in October 2022 as a key pillar of the OCS’s mandate to champion a socially responsible cannabis industry through advancing knowledge and promoting responsible consumption.

Cannabis Producer Tantalus Labs Restructures, Lays Off Workers

British Columbia-based Tantalus Labs confirmed it has filed a Notice of Intent for Restructuring in Canadian federal court. “This filing comes with the difficult reality of laying off the substantial majority of our team, retaining only a few key employees to navigate the complexity of this restructuring process,” CEO Dan Sutton said in the email. Sutton said the company is initiating “the process of restructuring with the mission to find a path forward for our brand and winning products to continue to deliver value to customers and distributors nationwide.” Tantalus Labs becomes the latest casualty in the Canadian cannabis space. Toronto-based retailer Fire & Flower Holdings recently received an order for creditor protection from a Canadian court, putting approximately 1,400 full- and part-time workers in limbo. Before that, Vaughan, Ontario-based cannabis producer Phoena Group was granted creditor protection and is winding down its operations. “Despite continued market success by firms like Tantalus,” he added, “the regulatory and taxation environment is persistently so burdensome that even today, five years into recreational legalization, free cash flow in the Canadian cannabis industry remains systemically challenged.”

10 Cannabis Prospect Magazine | September 2023
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Elevate Your Cannabis Retail Experience: Curating an Endless Cannabis Journey

Welcome to the dynamic realm of regulated cannabis retail, where creativity, innovation, customer experience and strategic planning reign supreme. As the legal cannabis industry continues to evolve, retailers must not only stay attuned to trends and new product offerings but also establish elevated benchmarks for excellence. In this edition, we embark on an exploration into the art of regulated cannabis product sales, delving into impactful merchandising techniques, the finesse of the upselling craft, and a customer-centric retail approach that leaves an indelible imprint on patrons, keeping them coming back for more.

Crafting Captivating Experiences Through the Art of Merchandising

Imagine stepping into a cannabis retail space that not only showcases products but also ignites curiosity and enthusiasm. Merchandising has evolved beyond simple product arrangement, turning into a captivating journey through creative engagement. This is particularly significant in regulated environments where direct product interaction is restricted.

Strategic product placement emerges as a potent tool in your merchandising repertoire. Placing bestsellers and high-margin items at eye level entices customers to explore and discover. Planogramming your store with featured items, best sellers and grouping related products fosters seamless cross-selling opportunities. Moreover, the allure of complementary accessories should not be underestimated—presenting products as bundles invites patrons to partake in a comprehensive and innovative experience, while also creating new opportunities to share new ways to holistically experience cannabis today.

Brands also play a pivotal role in enhancing the visual narrative of your space. Collaborating with brands to utilize sales-enabling assets can convey compelling stories, tempting patrons to not only purchase but also visually indulge in potential acquisitions, creating the experience before consumption.

Do not overlook the potential of strategically positioned displays along the path to the checkout counter. These displays can trigger impulse purchases, showcasing trial-size accessories, cleaning products and new additions that complement cannabis offerings, innovative on-the-go solutions and small tokens that inspire patrons to grab and go.

The Art of Upselling: Crafting the Experience

Upselling transcends mere transactions; it entails harmonizing customers' needs with product offerings in a manner that enhances their experience while driving sales. Sales staff are your first customers. Their knowledge, preferences, experience and enthusiasm are vital aspects of creating connections, building trust and effectively selling products that meet the consumers’ needs and desires. Empower your team with comprehensive product knowledge. When customers sense the passion and experience radiating from your staff, trust naturally blossoms. Bundle offers, featuring product combinations at appealing prices, infuse excitement and stimulate exploration. By tailoring recommendations to individual preferences, authentic connections with customers are forged.

Time-sensitive deals introduce urgency, compelling patrons to embrace a more comprehensive shopping journey. Upselling isn't about imposing products; it's about comprehending desires and suggesting items that genuinely enhance the cannabis voyage. Whether suggesting a strain aligning with their tastes or

In our September issue and throughout 2023 Great White North Growers will be collaborating with Cannabis Prospect Magazine turning a spotlight on current issues and challenges facing the Canadian cannabis industry today.

introducing a novel consumption method, the art of upselling transforms shopping into a personalized odyssey.

Encouraging Sales Within Legal Boundaries

A consideration paramount to retailers is encouraging sales within legal confines. By furnishing customers with education and guidance regarding legal purchase thresholds, you facilitate informed decisions that align with regulations while optimizing the cannabis encounter. Clear signage and amicable staff interactions ensure patrons are well-informed and poised to navigate their acquisitions confidently, optimizing robust basket sizes to legal limits.

Exploring New Consumption Methods

Introducing patrons to innovative consumption methods can be a captivating expedition. Enlighten them about diverse ways to experience cannabis, ranging from conventional smoking to contemporary vaping options, concentrates, edibles, beverages and topicals. Dispensing product information and insights on creating a holistic cannabis experience arouses interest and broadens horizons, culminating in a more enriching journey.

Leveraging Technology

In the era of technology, your retail operations stand to gain substantially from efficient software solutions. Inventory management systems, customer relationship management tools and point-of-sale software streamline processes, enabling staff to focus on customer interactions and upselling strategies. Share this information with your patrons. Highlight top-selling products, social proof and favoured product combinations based on customer sales.

Harnessing Customer Insights Through Data

Data proves a potent ally in deciphering customer behaviour. Analyzing purchasing patterns, preferences and demographics empowers tailoring of offerings and marketing endeavours. Personalized suggestions rooted in data-driven insights foster customer contentment and allegiance.

Optimizing Display Media

Your display media, encompassing digital screens and sales enablement display materials, serve as potent marketing conduits. Accentuating limitedtime offers, new arrivals and special bundles through captivating visuals and persuasive copy captures attention. Utilize these platforms to infuse excitement and immediacy into specific deals, fresh drops, available purchase windows and discontinuations.

Cultivating a Holistic Customer Experience

As previously explored, customer experience encompasses not just service but also the utilization of tools such as data analytics, customer feedback surveys and in-store programs to comprehend all facets of the customer journey within the retail sphere. How does your store distinguish itself in cultivating customer experience over mere service? Become the favoured brand for purchases—an embodiment of a truly enjoyable experience!

In the evolving legal cannabis space, triumph hinges on a fusion of innovation, customer centrality, and adaptability. By harmonizing effective merchandising techniques, the art of upselling, and a retail ethos placing customers at the core, you create experiences resonating with every visit.

As you navigate this ever-evolving industry, remember that regulated cannabis retail is not confined to products; it's about forging bonds, sparking curiosity and guiding patrons on exploratory odysseys. By embracing these strategies, you convert cannabis product sales into a retail experience, where transactions transform into lasting connections.

This exhilarating era of regulated cannabis retail extends an invitation to transcend the conventional shopping experience, becoming the leader of indelible interactions. Through the curation of merchandising mastery and the finesse of upselling, retailers compose a retail voyage harmonizing beautifully with patrons, etching an enduring impression upon their cannabis exploration. So, as you step into your retail domain, recall that you're not solely vending products; you're crafting an encounter resonating long after the purchase.

September 2023 | Cannabis Prospect Magazine 13
Strategic product placement emerges as a potent tool in your merchandising repertoire. Placing bestsellers and high-margin items at eye level entices customers to explore and discover.

Pistol and Paris: From Legacy to Legal - A BC-Based Cannabis Brand to Watch and Feature

In the ever-evolving landscape of the cannabis industry, few brands have managed to bridge the gap between legacy and legal as seamlessly and dedicated as Pistol and Paris. Originating as a legacy brand deeply rooted in British Columbia’s cannabis culture, Pistol and Paris has not only emerged a as standout player in the market but have also successfully embraced and transitioned into the legal cannabis framework. Its journey is a testament to the potential for strategic growth, fostering strong relationships and responsible practices within the cannabis industry.

Focused on Procuring the Best B.C. Bud

At the heart of the Pistol and Paris brand lies an unwavering dedication to sourcing the finest cannabis from the picturesque landscapes of British Columbia. This dedication is reflected in its commitment to procuring high-end, gassy, gooey cannabis from specialized small producers, in contrast to the mass-produced yields of commercial size grows. With deep legacy roots in the BC cannabis culture, Pistol and Paris is on a relentless quest for the perfect product, one that embodies the passion and expertise of experienced growers.

Legacy-inspired and quality-driven, the brand’s team goes the extra mile with hands-on and personal commitment in every aspect of its cannabis journey. This meticulous process involves traveling across the diverse regions of British Columbia in search of top-tier craft quality. By doing so, Pistol and Paris ensures that every product carrying its brand name lives up to the memories and expectations of its consumers. When customers choose Pistol and Paris, they’re choosing an experience steeped in the rich tradition of B.C. cannabis craftsmanship.

Proudly Legal: Embracing Regulation for Safer Consumption

With cannabis legalization on the horizon in Canada, Pistol and Paris faced a pivotal moment.

The choice was to either adapt to the new legal landscape or risk becoming obsolete. The brand made the bold decision to not just comply with regulations, but to proudly embrace them. Pistol and Paris recognized that the shift toward legalization brought with it the opportunity to enhance the safety and products that reflect its legacy roots to serve legacy and new consumers. It welcomed Health Canada’s strict regulations, seeing them as a safeguard for cannabis consumers.

Investing in Growth and Relationships

The company’s unwavering commitment to legal cannabis is far from slowing down; in fact, it has propelled it to new heights. This commitment has enabled the brand to invest in its own facility, a testament to its dedication to quality and its desire to control every aspect of its production process. This move not only speaks volumes about its confidence in the future of legal cannabis but also its determination to provide consumers with the best possible experience.

However, despite its own facility, Pistol and Paris remains deeply connected to its roots. It continues to foster relationships with strong craft producers who have undoubtedly supported its growth. This collaboration not only enriches the brand’s product offerings but also strengthens the sense of community that lies at the heart of cannabis culture.

A Brand to Watch and Feature

Pistol and Paris’s journey from legacy to legal is a remarkable narrative that speaks to the resilience and adaptability of the cannabis industry. Its ability to maintain its legacy roots while embracing the legal framework is an inspiration for both consumers and fellow entrepreneurs.

In an industry that continues to redefine itself, Pistol and Paris is a leader in setting the benchmark for responsible practices, quality craftsmanship, and community engagement. Its story is a reminder that change can lead to pos-

itive outcomes, and that by choosing legal options, consumers are not just making a purchase but a statement - a statement for cleaner, safer, and more responsible cannabis consumption.

Dawning of a New Era: The Unstoppable Journey of Pistol and Paris

The dawn of a new era is unfolding for Pistol and Paris. Just months after receiving its Micro Processing license in December. 2023, they’ve been working relentlessly from its modest 400-sq.-ft. space. However, the real game-changer is its nearly completed 10,000 sq ft cutting-edge Micro Processing and Cultivation facility. Over the span of 10 detailed months, this new facility is a monumental leap forward, poised to be its operational hub from September 2023 onwards. Housing three expansive processing rooms and four luminous 36-light flower rooms, it is an epitome of growth and advancement. Yet, in its pursuit of self-sufficiency, collaborations with select micro-growers continue, reflecting its commitment to varied supply and quality. With a growing workforce of 15 and counting, the ascent of Pistol and Paris seems unstoppable, heralding a bright future ahead.

Pistol and Paris is not just a cannabis brand but a symbol of transformation and progress. Its commitment to quality, compliance, and community sets it apart as a brand to watch and feature. As the cannabis industry evolves, Pistol and Paris’s journey serves as a shining example of how legacy can evolve into legitimacy, without compromising on the values that matter most.

14 Cannabis Prospect Magazine | September 2023
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ARE GLOBAL CANNABIS MARKETS A NON-STARTER OR THE ANSWER TO MARKET STAGNATION?

Despite challenges to progress, pathways for highly viable business exist.

Global cannabis markets have clearly had a rough 12 months with several overlyhyped international markets progressing more slowly than hoped, and certainly not as robustly as politicians in countries like Mexico and Germany promised.

While we have seen pragmatic movements in Europe and other parts of Latin America, Canada continues to lead the way in missteps: its federal failure to update regulations and tax structures has left cannabis businesses struggling to make profits and grow. In the U.S., there’s a bi-coastal rush to the bottom as California and New York double down on taxing businesses into oblivion, with regulators somehow believing higher taxes will yield a thriving industry despite every instance in the cannabis marketplace and elsewhere proving otherwise.

As is often the case in the cannabis industry (and mainstream media), the tendency to go to extremes is falsely positioning the death of the industry. Yet what is clearly finished is the era of perceived success for those who choose to ignore fundamental business rules and choose to chase a quick buck. Similar to the reckoning that occurred with the Dotcom crash of 1999, next-generation cannabis companies are learning pragmatism and growing with a market built on solid research, targeted customer groups and due diligence.

Slowly but surely, finding small to midsize markets with relatively reasonable frameworks is bearing a successful harvest for the industry. And for this, examples abound.

In Peru, Futura Farms led by Jose Escalante, recently launched the first legal THC vape in the country within the legal medicinal framework. “The market here hit bottom and we are now seeing the upward trend,” said Escalante. “By introducing high demand products and finding wiggle room within the system, we are opening new pathways for consumers and finding great opportunities for success.” The advent

of new formulations and consumption methods is providing examples for other Latin American markets, and potentially others, to follow.

At the recent International Cannabis Business Conference (ICBC) trade show in Berlin, the federal New Zealand Trade and Enterprise office (NZTE) supported several companies that are actively cultivating and developing products within the New Zealand market and encouraging international trade. “I’m encouraged to see such collaboration between industry and governmental partners as we expand New Zealand’s cannabis industry,” said Tom Forrest of Puro New Zealand. New Zealand also makes federal grants available to cannabis businesses, recognizing the opportunities for economic development.

Governmental support in cannabis among international emerging markets shows that the cannabis industry is becoming mainstream as a commerciallyviable product affecting the global economy.

While the U.S. continues to anchor cannabis industry regulations in archaic policy established during the Nixon administration, allowing unchecked racist propaganda and favouring companies inclined to finance political campaigns, other parts of the world have moved forward in favour of reinforcing the growth that cannabis and hemp bring to modern medicine, wellness products, textiles, and in some cases, responsible adult use.

As countries like the Czech Republic and Poland indicate interest in picking up the ball that Germany seems to be dropping, we’re seeing new entrants successfully change the conversation from “legal/illegal” to identifying real market opportunity and what sectors are most likely to succeed in the long term.

Staying aware of global market movements through groups like the Global Cannabis Network Collective helps companies stay abreast of where the points of least resistance can occur as they launch

or expand. Businesses are looking past the propaganda and into purpose-driven economies.

Much like the popular business book, “Who Moved My Cheese?”, the common themes among the savvy business that are staying alive and growing during this moment include:

LESSON 1: AVOID ANALYSIS PARALYSIS – KEEP IT SIMPLE AND KEEP MOVING There’s a difference between monitoring change and obsessing over it. Due diligence in analyzing a choice is important but businesses need to find ways through regulatory and market complications and not get stalled out by them. In every market seeing success, developmental opportunities cannot be anchored solely in flower. Honing in on the needs of your key customers will allow you to stay relevant and useful.

LESSON 2: THERE ARE ALWAYS MULTIPLE PATHWAYS TO SUCCESS. Know what you’re good at delivering, work consistently with regulators, and keep innovating. This is where a network of leaders can provide you with multiple perspectives, in-market analysis and opportunities to collaborate to help inform your decisions as a leader about what moves to make next.

LESSON 3: CHANGE IS THE ONLY CONSTANT, ESPECIALLY IN CANNABIS, SO FIND WAYS TO EMBRACE IT. Even when your business is currently enjoying success, don’t fall victim to accepting the status quo. Markets are dynamic, so always be prepared for change. Always be learning from your network to look ahead and diversify.

Jill Reddish and Chris Day are co-founders of the Global Cannabis Network Collective. For more infomation contact the GCNC at chrisday@gps.global.

18 Cannabis Prospect Magazine | June 2021
INTERNATIONAL REPORT 16 Cannabis Prospect Magazine | September 2023
Jill Reddish & Chris Day, Co-founders, Global Cannabis Network Collective

Illuminating the Path: Empowering the Cannabis Industry’s Growth with Independent, Scientific Product Effect Data

The legalization and commercialization of cannabis in Canada has brought about a flourishing market for cannabis products. From therapeutic uses to recreational enjoyment, the growing demand is evident. However, despite its growing acceptance and popularity, the industry lacks scientific, objective and independent data regarding the effects of these products. This absence poses a threat to continued industry growth and represents significant challenges for cannabis producers, retailers, and consumers. Let’s examine why this lack of information is problematic.

PRODUCERS: NAVIGATING INNOVATION WITH OBJECTIVE DATA

Cannabis producers stand at the forefront of innovation, working tirelessly to craft novel products that captivate their customers through unique effects and benefits. Innovation is an expensive process however, and without objective, scientific effect data, producers lack an important tool to validate the efficacy of their new formulations to deliver the intended effects for their target consumers. Without empirical data upon which to base their product decisions, producers run the risk of incurring significant operational expenses commercializing an ineffective or “me too” product in an already crowded marketplace.

A product that fails to meet its claims or lacks a unique selling point can quickly fade into the background, eclipsed by more reliable offerings. For producers striving to thrive in this complex landscape, leveraging objective, scientific effect data is not just an advantage; it’s a necessity.

RETAILERS: FACILITATING CONSUMER CONFIDENCE AMIDST UNCERTAINTY

Retailers serve as a vital bridge connecting cannabis producers’ offerings to the discerning consumers seeking the perfect product fit. The inabil-

ity to offer customers objective product effect data places retailers in a challenging position, where their capability to guide consumers toward informed choices is compromised. Customers rely on retailers not only to access products but also to receive accurate and honest insights about each product’s effects, and benefits. In a context where transparency and honesty are paramount, the absence of such data undermines retailers’ ability to fulfill their responsibilities as information providers.

ZENTRELA’S CONTRIBUTION

After dedicating five years (2016-2021) to focused research and development, Zentrela, Inc., a neurotechnology company led by Israel Gasperin (an engineer, entrepreneur, and founder of Zentrela), along with Dr. Dan Bosnyak (a neuroscientist at McMaster University, Director of the neuroscience McMaster LIVELab, and CSO of Zentrela), has successfully developed the only scientifically proven method, called Cognalyzer®, for objectively quantifying the actual effects cannabis products have on the brain.

Its novelty and unprecedented accuracy derives from its utilization of machine learning within extensive EEG datasets. This approach enables the analysis of complex EEG patterns that were previously beyond human capabilities. It identifies specific EEG features directly linked to the effects of substances like THC on the brain.

The second novelty of this proprietary solution is a standardized method for recording EEG data and quantifying the presence of a substance effect. The drug effect quantification method consists of recording approximately two minutes of EEG data from eight different regions of the brain (right and left sides of the frontal, temporal, parietal and occipital lobes) using Zentrela’s EEG headset, then calculating the amount of time (within the two-minute recording) that a subject is experiencing EEG alterations. The amount of time is calculated by the number of EEG segments

SCIENCE & TECHNOLOGY 18 Cannabis Prospect Magazine | September 2022

that are classified by the company’s scientifically validated AI as “altered” by the THC effect.

The accuracy and objectivity of Cognalyzer® have been validated by KGK Science, Inc., an independent clinical research organization, as well as through peer-reviewed publications (https://tinyurl.com/zentrela1, https://tinyurl.com/ Zentrela2). Since 2021, Zentrela has been using its proprietary neurotechnology, among other research tools, to independently quantify the non-therapeutic cannabis effects of cannabis products (beverages, edibles and inhalables) and other key contributing factors like consumer information (demographics, psychographics, etc.) and product consumption patterns (consumption amount, method, duration, etc.).

After conducting observational studies with hundreds of consumers across various legal products since 2021, Zentrela has amassed the world’s largest database of scientifically derived cannabis effects data. This database provides valuable insights into the effects of cannabis products, contributing to a better understanding of their impact.

EMPOWERING INFORMED CHOICES: OUR VISION FOR CONSUMER EDUCATION

In the rapidly evolving landscape of the cannabis industry, the need for objective, scientific information about product effects is paramount. As cannabis gains wider accessibility, particularly among newcomers, the demand for reliable, science-backed insights into the effects of different products becomes more pressing than ever. The crucial goal is to empower consumers

to make choices that connect with their preferences and needs. Recognizing this imperative, Zentrela has pioneered a Consumer Education program, an initiative that takes the power of objective science and translates it into accessible, understandable information for consumers from all walks of life.

ACCESSIBLE ANYTIME, ANYWHERE

The Consumer Education program is designed to ensure that consumers can access accurate and reliable cannabis product effect data regardless of where they are on their cannabis journey. Whether they are conducting online research, perusing dispensary offerings or making real-time decisions at the

point of consumption, consumers can readily tap into the information they need to make informed choices that align with their desires. Zentrela’s program includes online scientific whitepapers such as this one on Three Fast Beverages (https://zentrela.com/three-fast-beverages) and consumer-friendly Instagram posts.

BUDTENDERS: INFORMATION AMBASSADORS

Budtenders and other frontline professionals stationed in cannabis retailers play a pivotal role in shaping consumer experiences. Recognizing this, Zentrela has also developed tools budtenders can use to bridge the gap between complex scientific data and consumer understanding. Armed with scientifically validated product effect information, budtenders can advance their work as trusted guides, offering accurate and unbiased insights to consumers about the diverse array of products and their respective effects.

In conclusion, the absence of scientific, objective, independent cannabis product effect data is not just a theoretical issue; it has practical implications that ripple across the industry. As cannabis continues its march towards global acceptance, it is essential for all stakeholders— producers, retailers, consumers and even regulators—to prioritize the acquisition and dissemination of independent, scientific product effect data. This will ensure that the industry grows in a manner that is safe, reliable, and beneficial for all involved.

“ “
SCIENCE & TECH
Armed with objective data, consumers can make informed choices that align precisely with their preferences, needs, and desired outcomes. This consumer-centric approach not only enhances user satisfaction but also positions consumers as advocates for well-being and personalized experiences.
20 Cannabis Prospect Magazine | September 2022

The Right to Disconnect

The COVID-19 pandemic drove remote work to unprecedented heights. But along with those arrangements comes the challenge of separating work and non-work time – and employee demands for a “right to disconnect”.

Retail Predictions

This year will be defined by companies that make it through this tough period of increased costs on inputs, lower margins, stiff competition and the ability to obtain additional capital. Here are the top four retail predictions for 2023 in Canada.

Risk Management

With any manufactured goods, there’s operational risk that must be managed. The pace at which the cannabis sector is growing effectively represents the growing operational risk most cannabis operators face today.

Cannabis Prospect Magazine

5 YEARS INTO CANNABIS LEGALIZATION

This October, Cannabis Prospect Magazine will be putting out a special issue celebrating five years into cannabis legization in Canada.

If you’re interested in supporting this issue with an ad please email media@cannabisproonline.com for more information

VOLUME 5 ISSUE 5 OCTOBER 2023
SEED-TO-SALE PUBLICATION FOR THE CANADIAN CANNABIS MARKETPLACE SPECIALISSUE
YOUR

Mango XL Vape (510 - 1.2g) –A truly XL vape experience, both in size and flavour, with nearly 1,000mg of THC per cart. Mango XL uses a proprietary premium resin blend enhanced with botanical terpenes for a broad-spectrum, full-flavour experience. Combine that with a super-sized 2mm aperture for huge clouds. Aurora Cannabis, the Canadian company opening the world to cannabis, is launching a fresh lineup of innovative products, available to patients on Aurora Medical and consumers, at retailers across the country. Learn more at www.auroramj.com

This hard-hitting hybrid delivers herbaceous aromas and a potent 22-28% THC. A unique MAC 1 and Gas Cake cross, Area 51 offers aromas of fresh herbs, black pepper and gas from dominant terpenes limonene, caryophyllene and myrcene. Grown in Pure Sunfarms sun-soaked greenhouse in Delta, BC, its tight green buds feature deep purple tips layered in sugary trichomes.

BernieHana Butter won the hearts and minds of the cannabis community in 2022 with its extremely refined breeding that saw the crossing of multiple GSC genetics including: Jet Fuel Gelato, Guava, Blue Cookies, and Oreoz. With a THC range of 23-29%, it is highly potent and sure to please even the most discerning connoisseurs. Grown hydroponically by the experts at Noya using deep water culture technique. Available at fine retailers. For more information on this and other Cookies products, visit cookies.ca

Each box of SHRED Dartz contains ten 0.4g tubestyle pre-rolls and will be available in Tropic Thunder, Gnarberry and Funk Master, SHRED’s three best-selling blends. Reflecting the SHRED portfolio’s commitment to value, convenience, and bold flavour, SHRED Dartz will deliver on ‘SHRED Heads’ love of flavourful, colourful and convenient cannabis products with custom-coloured outer pouch, inner box and a branded filter for each unique blend. SHRED Dartz are rolled with 100% organic hemp paper, offering customers a more natural and elevated experience compared to the standard white rolling paper. Learn more by visiting www.shredcann.com

Daily
XL
Pure Sunpharms Area 51 PRODUCT SHOWCASE 1 2 2 3 4
Special Mango
Vape
SHRED Dartz
BernieHana Butter 3.5 3 4 1
22 Cannabis Prospect Magazine | September 2022

Lil’ Bits Sour Grape & Sour Watermelon, shown (10 x 1mg edibles) – These low dose edibles deliver delicious flavour in a snackable size, perfect for new users or for micro-dosing. Featuring nostalgic, crowd-pleasing flavours with minimal to no cannabis aftertaste. Available in recreational channel only. Learn more at www.auroramj.com

Daily Special Signature

Hash

Signature Hash (2g) – A revolutionary bubble hash blend that sets a new standard for malleability and burnability. Say goodbye to harsh and brittle dry sift hash with our unmatched potency at an affordable price. Learn more at www.auroramj.com

Super Toast Ground Flower (by PureSunpharms) will be available in sativa, hybrid and indica varieties, with in-your-face aromas, locked in with a humidity pack. Each yellow Super Toast bag is packed with 7g of fresh, fluffy weed, ground just right with 20-26% THC, no grinder needed: Sgt. Pineapple (Ground Flower): Super Toast’s Sgt. Pineapple offers 7g of potent bud, full of sweet and vibrant tropical aromas ground from whole hybrid flower. Citrus Abduction (Ground Flower): Super Toast’s Citrus Abduction is an intense mix of lemon, grapefruit and orange aromas. Available in 7g of powerful sativa, ground from whole flower. Triple Berry Supreme (Ground Flower): Super Toast’s Triple Berry Supreme is packed with berry aromas in a 7g bag of potent indica, ground from whole flower. For more information visit http://supertoast.world

Holy Smokes offers legendary, strain-specific pre-rolls with an imaginative and regal design that speaks to its unique and creative consumer. Each box contains ten 0.4g tube-style pre-rolls with three different single-strain SKUs including MAC-1, I.C.C. and GMO Tropical Reign. Holy Smokes features a reflective gold logo and halo design on the branded filter in addition to a custom-coloured outer pouch and inner box. Holy Smokes are rolled with 100% organic hemp paper, offering customers a more natural and elevated experience compared with the standard white rolling paper. Holy Smokes is already available in the market for purchase. Learn more by following along on our Twitter page @HolyMtnCannabis or visit our website at www. holymountaincannabis.ca.

THC Manna Maple Sugar

Manna’s THC Maple Sugar is full spectrum and made without animal products or gluten. Made with simple, Canadian ingredients. Manna highlights two classic Canadian plants in a timeless flavour pairing: maple and cannabis. Add to any beverage of choice or use as an innovative ingredient. Each sachet contains 10 mg of THC. Visit MannaDays.com for more information.

Daily Special Lil’ Bits Sours Super Toast PRODUCT SHOWCASE 5 5 6 6 7 7
8
8 September 2023 | Cannabis Prospect Magazine 23
Holy Smokes Pre-Rolls

PRODUCT SELECTION FOR SMALL CANNABIS STORES

CANNABIS XPRESS is a chain of cannabis retail stores with 14 locations in Ontario and one location in New Brunswick (two additional stores opening in New Brunswick in 2023), which will make it the largest private retailer in New Brunswick. It is in the top 5% of retailers based on store count, and in the top 1% of licensed cannabis companies that are profitable in Canada. CANNABIS XPRESS prides itself on offering our customers a quick, easy, hassle-free cannabis shopping experience.

Selecting the best product assortment for a small cannabis retail store with limited floor space requires careful consideration to maximize revenue and customer satisfaction. In this article, we will look at several strategies that can be employed to your cannabis store:

TARGET AUDIENCE AND LOCAL DEMAND

Understand your target audience and the preferences of your local customer base. Consider factors such as age, lifestyle and demographics to tailor your product assortment accordingly.

PRODUCT DIFFERENTIATION AND FOCUS

With limited space, focus on products that differentiate your store from competitors and resonate with your target audience. Consider carrying unique or locally-sourced products that customers can’t easily find elsewhere. This exclusivity can attract customers even in a smaller space. Focus on offering popular and trending cannabis products that have a high demand in the market. Stay updated on the latest industry trends and adjust your assortment accordingly.

PRODUCT DIVERSITY

Offer a diverse range of products to cater to different preferences. Include a mix of flower, pre-rolls, vapes, extracts, concentrates, edibles, topicals, beverages and accessories to appeal to a wider customer base. Prioritize products that are high in quality and have a consistent demand.

Concentrate on best-selling cannabis strains, popular edible brands and well-regarded accessories. These items are more likely to yield better sales within your confined space. Introduce seasonal products or limited-time offers to create a sense of urgency and excitement among customers. This can also help rotate your assortment and keep it fresh.

LIMITED-SPACE CONSIDERATION

With limited floor space, prioritize products that offer high turnover rates. Avoid overstocking items that might take a long time to sell, as they could tie up valuable shelf space. Embrace a limited stock approach with frequent product rotation. Regularly introduce new products and retire slower-moving items. This approach keeps your assortment fresh and encourages repeat visits from curious customers looking for the latest offerings.

QUALITY AND REPUTATION

Partner with reputable and established cannabis brands known for their quality. Positive brand reputation can drive customer trust and repeat business.

CUSTOMER EDUCATION

Choose products that are easy to understand and have clear dosing instructions. Customer education is essential, especially for first-time cannabis users, and even for knowledgeable ones as well, since there is always something new to learn.

PRICING STRATEGY

Set competitive prices based on market research and your target audience’s will-

ingness to pay. Consider offering different price points to accommodate various budgets.

FEEDBACK AND DATA ANALYSIS

Pay attention to customer feedback and track sales data. This information can help you identify which products are performing well and which might need to be replaced or adjusted. Leverage sales data to guide your product selection. Analyze which items are selling well within your limited space and which may not be meeting expectations. This data-driven approach helps you make informed decisions about what to keep, what to introduce, and what to remove.

MULTI-USE PRODUCTS

Opt for products that serve multiple purposes or have broad appeal. For instance, CBD products have a diverse customer base due to their non-psychoactive nature. This allows you to cater to both experienced users and those new to cannabis.

Remember, the key is to strike a balance between offering variety and managing limited space. Regularly evaluate your product assortment’s performance and be willing to adapt based on customer preferences and market trends. Ultimately, the key to success in a small cannabis retail store lies in curating a carefully selected assortment that aligns with your store’s unique identity and customer preferences. Regularly assess and adjust your product mix to maintain a dynamic and appealing shopping experience.

INVENTORY
24 Cannabis Prospect Magazine | September 2023

Water Leak Detection Sensors GMP Solutions, Cannabis Processing Equipment Cleaner

To help personnel catch leaks before they become emergencies, Sensaphone offers cost-effective water detection sensors designed for use with its remote monitoring systems. When the sensor detects water, the system sends alerts via phone call, text or email to designated staff, so they can take fast corrective action. The Sensaphone Zone Water Detection Sensor detects the widespread presence of water in areas like floors or drop ceilings. Users receive an alert when the sensor comes into contact with water. The sensor includes 10 feet of water rope to cover a large area. Operators can connect up to 10 water ropes to a single sensor for up to 100 feet of coverage. This sensor operates on two AA batteries. When the batteries become depleted, the sensor will automatically send out an alert, so users can replace the batteries when no water is present. For more information, call 877-373-2700, email contact@sensaphone.com or visit www.sensaphone.com.

GMP Solutions will provide a comprehensive line of cleaning products specifically designed for cannabis processing equipment, catering to small, large, and commercial-scale facilities that operate under Good Manufacturing Practices (GMP) workflows. GMP Solutions products are non-toxic, biodegradable, and food-safe. At the core of the lineup is Step 1 Cleaner, which is formulated with a buffering agent that allows it to act as gently as a pH-neutral solution and can be safely and effectively used on virtually all surfaces. The cleaning solution emulsifies, absorbs, and floats away greases, resins, organics, and oils. It penetrates dyes and gums which are otherwise unaffected by caustics and dangerous solvents that are found in other cleaners. With no heavy fumes or odors, the cleaner is safe for manufacturing and processing facilities and completely rinses away from surfaces. For more, info contact info@eteros.com.

ALIEN Hydroponics Signs Exclusive Distribution Deal

Black Dog Horticulture Technologies & Consulting Inc. Black Dog), a renowned leader in advanced horticultural lighting solutions, is pleased to announce their new partnership with ALIEN Hydroponics, a global pioneer in hydroponic growing systems. Black Dog has been appointed as the exclusive distributor of ALIEN Hydroponics products for the North American market. By joining forces with ALIEN Hydroponics, Black Dog expands its product portfolio to offer customers an even broader selection of premium solutions for indoor growing. The collaboration between these two industry leaders will provide growers in North America with access to state-ofthe-art hydroponic systems that combine superior technology, durability, and ease of use. “ALIEN is excited to partner with Black Dog and bring our hydroponic innovations to North America. We have spent the last decade overcoming issues with existing systems and can’t wait for the North American market to enjoy what hydroponic growing can be.”, says Ryan Chappell, founder of ALIEN Hydroponics.

UniMax Floor Mounted (Walk-In) Fume Hoods

The UniMax series of hoods has been expanded to include a wide selection of models that feature fire suppression systems to meet California requirements. Standard models range from 6 feet to 24 feet wide, 4 feet to 8 feet deep, and 7 feet to 16 feet high. Tall apparatus / distillation processes, roll-in reactors, or long integrated instrumentation systems can be easily accommodated in these hoods. UniMax Floor Mount Hoods are constructed of chemical resistant, non-conductive modular panels featuring composite resin surface material. This modular design allows for onsite assembly and the ability to disassemble at a later date, move and reassemble. Custom sizes and designs can also be designed and built to exact specifications. Call 816-796-2900 or visit https://www.hemcocorp.com/ unimax.html.

PRODUCT SPOTLIGHT 1 1 2 2 4 3 4
3 September 2023 | Cannabis Prospect Magazine 25

10 Key Do’s & Don’ts of Hiring & Firing

Employment hiring and termination are equally important stages of the employment relationship, and both are full of legal minefields. To help you avoid them, follow these 10 key do’s and don’ts.

1. DO: Require An Employment Application

Require applicants to complete your form of application even if they submit a resume. This allows you to gather the specific information you want, but remember there’s some information to which you’re not entitled. It can also be a way to obtain the applicant’s binding acknowledgement that the information on the application is accurate, valuable if you later discover the applicant wasn’t truthful.

2. DO: Check References

Asking for references is also useful to obtain applicant information. But only ask if you’re going to check them; if you miss learning something that might have prevented an incident, you could be held liable. Keep a record of the references you contacted and what they said; you might need it to justify why you did or didn’t hire the applicant.

3. DON'T: Ask Questions that Violate Human Rights Laws

Take care not to seek information related to any of the personal characteristics protected under human rights laws, even inadvertently. The characteristics human rights laws protect varies depending on the applicable law, but typically include sex, mental and physical disability, gender expression, sexual orientation, religion and family status.

4. Do: Be Careful Using Social Media to Screen Applicants

Social media is a rich source of information but there are real risks to using it to screen applicants. Privacy laws could require consent to go on an applicant’s social media, even if it’s public and not protected with privacy settings. It’s safest to get the applicant’s express consent on the application or at an interview. Even with consent, collecting personal information from

social media accounts must be reasonable. Consider carefully whether it’s truly reasonable and necessary, and even if reasonable, the collection must be lawful. Check the social media platform’s terms of use to ensure it’s not an invalid use.

Don’t ask for applicants’ social media passwords. It’s highly invasive of their privacy rights, likely actionable by them and violates the social media platform’s terms of use. Privacy law issues aside, the information might be inaccurate or about the wrong person. It could also reveal the applicant falls within a group protected under human rights laws, risking allegations it tainted the hiring decision with discrimination. Consider whether to do a social media screening in-house or outsource it.

5. DO: Use A Written Employment Contract –Before Agreeing On The Employment Terms

Clear employment terms help avoid disputes as well as the costs and time to resolve them. However, courts are extremely protective of employees and scrutinize contracts closely, so legal counsel in drafting the contract is valuable. It’s also important to set the employment terms at the time of hiring/start of employment: once the employment offer is made and accepted, it’s binding and you can’t unilaterally withdraw it or impose new employment conditions that fundamentally change the relationship without giving the employee sufficient prior notice or something of value in exchange. Make sure offer letters are carefully drafted and don’t finalize the contract terms until you put it in writing.

6. Do: Pick the Right (Legal) Reason for the Employment Termination

The decision whether to terminate the employment relationship for cause or without cause has legal ramifications. Carefully considering and choosing the right one can significantly affect your liability exposure.

» If you terminate an employee’s employment for just cause, he/she isn't entitled to notice of termination or pay in lieu of that notice, but the threshold for just cause is high. In

every case, whether particular misconduct amounts to just cause for termination depends on all of the circumstances. Too often, the employer discharges the employee, then seeks to justify it. This is often too late and can be expensive. It’s impossible to be 100% certain, but don’t terminate for just cause unless reasonably confident the employee’s misconduct meets the threshold. If an employee simply isn’t working out but you can’t meet the just cause threshold, you can choose to terminate the employment relationship without cause.

» You can terminate an employee’s employment without just cause but must give the employee the appropriate period of notice of the employment termination or pay in lieu of that notice.

7. DO: Ascertain Notice and Prepare the Separation Package in Advance When It’s a Without Cause Termination

The decision to terminate an employee’s employment has serious consequences for both employee and employer. Take the time to properly prepare to implement it:

» Determine ahead of time the notice of termination to which the employee is entitled. There are three places to look. First, every employee is entitled to the minimum notice under the applicable employment or labour standards legislation. Second, the employment contract could include a termination clause setting the notice period (though courts scrutinize these clauses especially closely so they must be well-drafted to hold up). Third, if it’s an indefinite term employee and there’s no enforceable contractual termination clause, the employee is entitled to “reasonable notice”, a measure that varies depending on all the circumstances; if it’s a fixed-term employee and there’s no enforceable contractual termination clause, the employee is entitled to payment for the remaining balance of the term.

» Sometimes you can ask the employee to sign a release in exchange for pay in lieu of notice, but you can’t ask for one if all you’re offering is the statutory notice; the employee is entitled to this no matter what. Also, consider other terms that might be welcome, often at minimal expense, like outplacement counselling.

» The termination letter is the document the employee takes away, reflects upon, takes to legal counsel and, if there’s litigation, puts into evidence. Prepare it carefully and seek legal counsel on it, and remember some employment standards legislation requires you to state the termination reasons in writing.

8. DO: Plan Ahead for the Employment Termination

Generally, it’s a good idea to hold a meeting to advise the employee of the termination of their employment. To do it right, this requires advance planning. Meet privately and ideally in a “neutral” location and think about having an

extra witness attend. Consider arranging and offering the employee transportation home and whether on-site security is appropriate. Give the employee the pre-prepared written termination letter and any other key documents like benefits transition forms and the Record of Employment at the meeting.

9. DON’T: Violate Employment Standards Legislation

Always comply with all your obligations under the applicable employment (or labour) standards legislation. Non-compliance exposes you to an employment standards complaint and/or legal action for wrongful dismissal. Compliance typically includes:

» Paying all accrued wages and accumulated vacation pay.

» If it’s a without-cause termination, paying the employee the minimum amount to which he/she isn’t entitled under the employment standards legislation.

» If it’s a for-cause termination, disclosing in writing the reasons for the termination if the employment standards legislation requires it.

10. DO: Always Terminate With Dignity

Employers have a legal duty not to treat employees unfairly, dishonestly or insensitively in the manner in which they terminate their employment. No matter the reason for or the circumstances of the termination, always be respectful and professional throughout the termination process. Never engage in unfair, dishonest or insensitive conduct. Breaching this duty exposes you to liability (“Wallace” damages) if there’s subsequent litigation around the termination.

Dominique Fontaine is a fully bilingual Labour & Employment Lawyer at McInnes Cooper.

This article is information only; it is not legal advice. McInnes Cooper excludes all liability for anything contained in or any use of this article. © McInnes Cooper, 2017. All rights reserved.

Asking for references is also useful to obtain applicant information. But only ask if you’re going to check them; if you miss learning something that might have prevented an incident, you could be held liable.
September 2023 | Cannabis Prospect Magazine 27

Ontario Quebec

The Ontario Cannabis Store (OCS) launched a multi-channel awareness campaign aimed at expanding cannabis literacy among Ontarians through the Cannabis Made Clear online education hub. Cannabis Made Clear provides easy access to unbiased, fact-based and current resources to support cannabis consumers and canna-curious Ontarians in making informed, responsible choices about cannabis.

The Board of Directors of the Alcohol and Gaming Commission of Ontario (AGCO) announced the appointment of Dr. Karin Schnarr as Chief Executive Officer and Registrar. She will assume the role on September 18, 2023.

Manitoba

Manitoba Liquor & Lotteries’ Cannabis Operations team says it has a plan in place to ensure a strike action from the Manitoba Government and General Employees’ Union does not affect cannabis producers’ ability to send products to suppliers and retailers in the province. In a memo sent to cannabis producers on July 21, Manitoba Liquor & Lotteries (MBLL) says that while it is “severely impacted” by the work stoppage from the Manitoba Government and General Employees Union (MGEU), it has developed a contingency plan in advance to mitigate any industry concerns.

For its fiscal year ended March 25, 2023, the Société québécoise du cannabis (SQDC) posted total sales of $601.9 million, compared with $600.5 million for the preceding fiscal year. The company reported net income of $94.9 million versus $75.7 million in fiscal 2021-2022. To this can be added the government revenues generated by its operation in the form of consumer and excise taxes, estimated at $193.8 million, with $137.8 million going to Québec and $56.0 million to the federal government. The SQDC’s total contribution to the Québec treasury is therefore $232.7 million. From both a volume and a dollar standpoint, the company’s sales remained stable in comparison to the preceding fiscal year, this despite the addition of 10 new stores, bringing the number of points of sale in operation to 98 as of June.

Saskatchewan

In late July, Miyo Askiy Cannabis Co. became the first cannabis retailer owned by Piapot First Nation and governed by its own regulations. Located at 1101 Angus Street, the site is considered Piapot Urban Reserve land in the city. There are plans to construct a permanent building in the near future. The store is licensed to operate under the Piapot First Nation Cannabis Act, and will comply with the Piapot First Nation Cannabis Regulations, which meet or exceed provincial and federal cannabis regulations.

Alberta British Columbia

Aurora Cannabis has closed the sale of its Medicine Hat, Alberta facility to Bevo Farms, a subsidiary of Bevo Agtech Inc. The facility, dubbed Aurora Sun, was to be a 1.63-million-square-foot cannabis greenhouse, but construction was suspended in late 2019. Aurora said it would only build approximately 238,000 square feet of the 1.63M-squarefoot facility by 2020, with the rest completed when market conditions improved The Aurora Sun facility was sold via Bevo Farms’ acquisition of one of Aurora’s wholly-owned subsidiaries. Aurora has a controlling interest in Bevo as of 2022. Founded in 1986, Bevo operates 63 acres of greenhouse in British Columbia.

Surrey City Council may soon consider allowing cannabis stores in BC’s second-largest city. Surrey initially banned cannabis stores entirely. In March, Mayor Brenda Locke said the city is developing a plan to potentially consider applications. The city’s Planning & Development Department and the Engineering Department posted a staff report, to be considered at the next council meeting on July 24.

28 Cannabis Prospect Magazine | September 2023 Provincial Updates/

The province of Prince Edward Island reported the largest month-overmonth increase in retail sales of legal recreational cannabis, decreasing 36% from April to May to $1.2 million.

Nova Scotia

The NSLC released its year-end financial results (April 1, 2022 – March 31, 2023) with cannabis sales of $111.1 million. Cannabis sales increased by 9.3%. The NSLC’s commitment to combatting illicit cannabis sales continued with the introduction of 11 additional cannabis locations this year, bringing the total to 48 stores. Currently, 77% of Nova Scotians live within 10 kilometres of a safe supply of cannabis. The NSLC continues to invest in the retail network across the province, investing $10.8 million this year with two new stores, 11 new cannabis locations and seven store renovations. An additional $5.4M million was invested in key initiatives, which included upgrading point-of-sale hardware and other IT systems to support retail operations.

Prince Edward Island Newfoundland & Labrador New Brunswick

The province of Newfoundland & Labrador reported the largest monthover-month increase in retail sales of legal recreational cannabis, growing 4.1% from April to May to $6.3 million.

In early August, The Honourable Siobhan Coady, Deputy Premier, Minister of Finance and Minister Responsible for the Newfoundland and Labrador Liquor Corporation, announced the appointments of a new chair and vice-chair to the Newfoundland and Labrador Liquor Corporation (NLC) Board of Directors.Glenn Mifflin has been reappointed to the board for a three-year term, and will take over the role of board chair, while Lynn Zurel will take over the role of vice-chair. Current chair Fraser Edison and vice-chair Victoria Belbin, are retiring from the board at the end of their terms.

Yukon / Northwest Territories / Nunavut

CANNABIS XPRESS, an Ontario-based retail chain, began operating in midJune in Grand Bay-Westfield, New Brunswick’s first privately run cannabis store. In the fall of 2022, Cannabis NB ended a process to approve private cannabis retail locations in “under served” communities. Under the new retail model, private cannabis retailers will be required to source all supplies from Cannabis NB. Cannabis NB confirmed private retail locations would soon open in Blackville and Bouctouche (Cost Cannabis), and Chipman (Green Timber Cannabis).

Delta 9 Cannabis Inc. announced that it has been approved to supply recreational-use cannabis products to Northwest Territories Liquor and Cannabis Commission for sale in Northwest Territories. / According to the Nunavut News, the Northwest Territories racked up approximately $916.5 million in retail trade in 2022, outpacing 2021’s $888.8 million in retail sales by 3.1 per cent. In Nunavut, the $583.3 million rang up at cash registers across the territory in 2022 was 5.1 per cent stronger than the $555 million recorded in 2021. The first quarter of 2023 showed continued strength in retail sales in the NWT with January bringing in $79.1 million, February seeing commerce hit $79.4 million and March valued at $75 million, with the latter being a preliminary figure. Nunavut also got out of the gate with a flourish in 2023 with $50.3 million in retail sales in January, $51 million in February and, preliminarily, $50 million in March.

September 2023 | Cannabis Prospect Magazine 29
Airmed....................................................................................................................15 Cannabis Council of Canada..................................................................................31 Great White North Growers...................................................................................12 Greenline POS.........................................................................................................5 Greentank Technologies..........................................................................................7 Grow Up Conference ............................................................................................11 High North Labs......................................................................................................2 MFG Trays..............................................................................................................17 Merrco Payments....................................................................................................17 One2One.................................................................................................................19 Origine Nature..........................................................................................................9 Pistol & Paris............................................................................................................1 Sister Merci.............................................................................................................32 Advertiser Index 30 Cannabis Prospect Magazine | September 2023 Follow us on @cannabispromag The Canadian cannabis industry is everchanging. Cannabis Prospect Magazine is proud to offer multiple platforms to keep you up to date in this constantly evolving industry. Stay informed and grow with us! Cannabis Prospect Magazine

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