Cannabis lawyers, traders and producers focused on signing agreements as time up to the Friday limit, as winners of the Ontario store lottery licenses were formally applied to open one of 25 stores of cannabis in the province this April.
"We are in panic mode," Frank Robinson, a member of Cassels Brock & Blackwell, a company that represents clients who are trying to tie up with the winners of the license, told BNN Bloomberg in a telephone interview.
"All the winners of the lottery are making great demands and trying to make the best offers they can. Meanwhile, players who are looking to fill their spaces with their brands are playing in the position."
The Alcohol and Games Commission of Ontario, which will regulate the retail cannabis retail outlets of the province, carried out a lottery last week to randomly select the 25 parties that could be asked for, officially open a shop in the province. Those selected through the lottery had until 5:00 p.m. on Friday to turn your requests along with a non-refundable $ 6,000 fee and a $ 50,000 credit card.
The winners of the lottery, several of which could not reach BNN Bloomberg, demanded up to $ 7 million to partner with a retailer or producer of hunting under a franchise agreement, according to lawyers familiar with the bidding process .
Debbie Weinstein, a lawyer based in Ottawa that represents winners of the lottery in Toronto and the GTA, said in an email shared with BNN Bloomberg that her clients favor offers that include a cash payment or advance payment "material ", an agreement of management services and management fee that represents up to 1.5 percent of the revenue. Weinstein refused to comment on BNN Bloomberg about the contents of his email.
"This is the final result. If you have won a license, for the most part, they do not want anything to do with the store," Robinson said. "They want all the money and they have no downside risk. These lottery winners will almost all get what they want."
"They want all the money and they have no downside risk. These lottery winners will almost all get what they want."
– Frank Robinson, member of Cassels Brock & Blackwell
Cannabis retailers and growers contacted by BNN Bloomberg said many lottery winners were waiting until the last minute before choosing the deal they would accept.
"There is a lot of chaos," said Alan Gertner, Chief of Retail Trade at Canopy Growth Corp., in a telephone interview with BNN Bloomberg. "There are several parties with different experiences and everyone is trying to figure out what to do to make their lives as valuable as possible. There are many calculations that are being done in no time."
Chad Finkelstein, partner of Dale & Lessmann LLP, who has signed agreements with lottery winners this week, said that some of its clients chose to depart from the collaboration with the winners of the selected list of # 39 ; AGCO after the tender was too high to be justifiable.
"This product has been banned for 90 years and has been legal for 90 days," Finkelstein told BNN Bloomberg in an email.
"This industry and our ability to be competitive in this is not going to live.[or]-Tell that you're open to Ontario nine months before anyone else. At some point, these price tags have just come silly. "