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Cannabis Professional’s daily roundup of industry news. View archive here.

An illegal cannabis store in Toronto is offering $200,000 worth of free marijuana in an effort to highlight the challenges of aspiring Ontario pot retailers still awaiting licences. U.S. Congress is preparing to vote on legislation within the next two weeks that would allow cannabis businesses complying with relevant state law to access federally-regulated banking services.

– Jameson Berkow

Illicit Toronto cannabis stores offer free $100 marijuana vouchers

As the process of rolling out more legal cannabis stores across Canada’s largest province remains in frozen via court order, illegal operators are moving more aggressively to satisfy market demand.

Chris James, owner of Cannabis & Coffee as well as Weedora – two unlicenced cannabis retail locations in Toronto – starting offering $200,000 worth of free cannabis in the form of $100 vouchers for delivery services.

Mr. James told CBC News customers could sign up at the Front Street location of Cannabis & Coffee to have Weedora deliver organic craft-market strains of cannabis to their door and receive the free marijuana as an incentive.

“A dispensary is not the preferred model for the actual customer. The actual preferred model is a delivery service. People would rather have it delivered in 30 minutes or less like pizza," Mr. James said.

Last week, an Ontario judge froze the province’s cannabis store licensing process after several disqualified lottery winners requested a judicial review of the decision. The Ontario Cannabis Store, meanwhile, abandoned plans to offer same-day cannabis delivery in April.

More than 500 people have signed a petition as of early Monday started by Hotbox Cafe owner Abi Roach, who has operated a cannabis consumption longue in Toronto’s Kensington Market since 2000, calling on Ontario to end the lottery system and resume the open licencing system the province had originally planned.

Mr. James said he incurred huge losses because of Premier Doug Ford’s decision in late December of 2018 to cap the initial number of licences at 25. The now-frozen licencing process, once it can continue, will increase that number to 75 stores province-wide.

Alberta’s pace of new retail pot permits slows after AGLC clears licence freeze backlog

Alberta, meanwhile, a province with one third Ontario’s population, already has close to 300 legal cannabis stores authorized for sales.

– Jameson Berkow

U.S. Congress to vote on cannabis banking legislation this month

The Secure and Fair Enforcement (SAFE) Act will be the first-ever standalone cannabis bill to receive a full vote in the United States House of Representatives before the end of September.

House Majority Leader Steny Hoyer confirmed to multiple media outlets over the weekend that the SAFE Banking Act is in the process of being scheduled for a full floor vote. If the bill receives support from at least 290 members of the lower chamber - seen as fairly likely given it already has 206 co-sponsors, including 26 Republicans - it will advance to the Senate.

The SAFE Act would allow cannabis businesses operating within the boundaries of relevant state laws to access federally-regulated banking services. Most cannabis businesses operating in the United States today remain mostly cash-based businesses, requiring employees and even tax bills to be paid in cash.

If the SAFE Act does become law, experts believe that would pave the way for major credit card providers such as Visa and Mastercard to begin processing cannabis-related transactions in U.S. states with legal cannabis regimes.

- Jameson Berkow

Valens lands cannabis extracts supply deal with Shoppers Drug Mart

Canada’s largest pharmacy chain will soon be offering cannabis-based oils and tinctures to medical patients with the proper prescriptions.

Kelowna, British Columbia-based cannabis processor Valens GroWorks announced early Monday an agreement to supply Shoppers Drug Mart with cannabis extracts. Shoppers is the only pharmacy chain in Canada with a medical cannabis sales licence that allows the company to sell medical cannabis via an e-commerce portal.

“Under the agreement, Valens will immediately begin production of gel caps and tinctures with further expansion of product offerings to include vaporizer cartridges, topicals and other desired products as permitted for sale by Health Canada regulations,” Valens said in a release.

- Jameson Berkow

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