Cannabis Prospect Magazine - February '23 - Issue 25

Page 16

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

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

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. VOLUME 5 ISSUE 1 FEBRUARY 2023

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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.

Women are increasingly creating experiences with a heavy focus on health, wellness, mindfulness and self-care. Why? Because women are innately connected to their own needs and the needs of others daring to lead under any circumstance for who and what they love.

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.

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”.

If you’re a retailer and would like a free subscription or are a licensed producer that would like to be included feel free to email me at media@cannabisproonline.com

February 2023 | Cannabis Prospect Magazine 5 Table of Contents/February 2023
REGULARS RISK
DISCONNECT 6 From the Editor 8 Events 10 News 20 Product Showcase 26 Provincial Updates 28 Product Spotlight 30 List of Advertisers 18 22 24 16 Cannabis Merchandiser is a monthly digital catalogue of cannabis sellsheets meant sent directly to retailers, meant to give voice to smaller- and medium-sized LPs as well as build awareness of growers and their brands.
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Making Amend(ment)s

While the NewYear is typically a time for making resolutions, lately the talk has been about making amendments with respect to the cannabis industry, specifically the Health Canada amendments to The Cannabis Act and its regulations concerning cannabis research and testing, and cannabis beverages that were approved and are now in force as of early December.

These amendments include (among others):

» An increase in the public possession limit for cannabis beverages to a level that is similar to other forms of cannabis, such as solid edible cannabis products (e.g. gummies or chocolate). Adults in Canada are now able to possess up to17.1 litres (equal to 48 cans of 355 ml each) of cannabis beverages in public for non-medical purposes, which is up from approximately 2.1 litres (equal to five cans of 355 ml each);

» Changes to how Health Canada regulates non-therapeutic cannabis research with human participants, helping make the process of conducting this research easier, while still maintaining appropriate public health and safety controls;

» Allowing analytical testing licence holders and federal and provincial government laboratories to produce, distribute and sell reference standards and test kits, to increase access to cannabis testing materials and thereby support access to a quality-controlled supply of cannabis; and

» Broaden the educational qualifications for the Head of Laboratory, a position that is required for an analytical testing licence and is responsible for all cannabis testing activities that occur at the licensed site.

Health Canada also notes that while there is no federal limit on the amount of cannabis that can be purchased or sold at a retail location, some provinces and territories have set purchase limits in their jurisdictions.

While these changes are certainly a welcome step in the right direction (at least at the federal level), there’s still a long road ahead when it comes to a more equitable industry as a whole. If we were to look at the current mandates of the Cannabis Council of Canada you’d notice its following aims:

» The setting of the excise tax rate at “the greater of $1/gram or 10% of the sale price of the product.”

» The creation of a Health Canada Annual regulatory fee at a rate of 2.3% of revenues.

» An Excise Tax Framework that holds licensed processors responsible for the collection and payment of excise duties.

» The setting of excessive provincial cannabis distributor mark-up rates (e.g. the Ontario Cannabis Store’s rate of 20-30% of the final sale price of cannabis products, depending on the product category), a regulatory regime that impedes the success of the public health and safety objectives of legalization

If we look at the consequences, these shortcomings as a whole have resulted in amenic profits for Canadian producers and processors, governments experiencing a 225% increase in defaults and arrears of cannabis excise duty payments, and half of all companies granted protection under the Companies’ Creditors Arrangement Act (CCAA) being Health Canada Licence Holders in 2022 as well as an estimated 3,000,000 individual Canadians who invested in cannabis companies, which have lost more than $131 billion. Let’s hope 2023 will be a step in the right direction.

6 Cannabis Prospect Magazine | February 2023
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8 Cannabis Prospect Magazine | February 2023
CONFERENCES & EVENTS

MediPharm Labs Corp. to Acquire VIVO Cannabis Inc.

MediPharm Labs Corp. and VIVO Cannabis Inc. have entered into a definitive arrangement agreement whereby MediPharm has agreed to acquire VIVO in an all-equity business combination transaction. The transaction is expected to combine two highly complementary businesses, creating a unique and market differentiating international medical cannabis leader. Upon the completion of the transaction, existing MediPharm shareholders are expected to own between 65% and 79% of the combined company resulting from the transaction (the “Combined Company”) and VIVO shareholders are expected to own between 35% and 21% of the Combined Company.

SNDL and Nova Cannabis Announce Transformational Strategic Partnership

SNDL Inc. and Nova Cannabis Inc. have entered into an agreement to implement a strategic partnership creating a well-capitalized cannabis retail platform in Canada under a vertical integration model with SNDL’s upstream capabilities. SNDL will vend into Nova’s cannabis retail business its existing 26 cannabis retail stores under the Spiritleaf and Superette banners located in Ontario and Alberta. Nova will also have a right of first refusal on SNDL’s Canadian cannabis retail pipeline. Similarly, the existing management and administrative services agreement between SNDL’s subsidiary, Alcanna Inc. and Nova is being amended and restated to refresh and maintain the arrangement with SNDL.

B.C. Indigenous Cannabis Business Fund Launched, Creating New Opportunities for First Nations in the Cannabis Industry

First Nations partners in British Columbia, alongside federal and provincial governments, announced the launch of the B.C. Indigenous

High Tide Enters New Vertical in the United States With Launch of Cannabis Seeds

High Tide Inc., a retail-focused cannabis company with brickand-mortar as well as global e-commerce assets, has begun selling cannabis seeds in the U.S., initially through its wholly owned subsidiaries Grasscity and Smoke Cartel. The company plans to expand seed sales to additional online retail platforms within its portfolio in 2023. This launch comes on the heels of the American Drug Enforcement Agency’s recent official determination that cannabis seeds fall under the legal definition of hemp and can therefore be sold openly in the U.S. “With our entry into this new and exciting complementary vertical, we continue to extend and strengthen our integrated value chain, providing our customers with a complete cannabis experience, in addition to the opportunity to further enhance our consolidated gross margin profile. This new business venture will greatly expand our U.S. customer base,” said Raj Grover, President and Chief Executive Officer of High Tide.

Cannabis Business Fund, helping to increase representation in the regulated cannabis industry. This new Indigenous-led fund was announced by Regional Chief Terry Teegee, BC Assembly of First Nations, the Task Group for the First Nations Summit, Jean-Yves Duclos, Federal Minister of Health, Patty Hajdu, Federal Minister of Indigenous Services, and Mike Farnworth, British Columbia Minister of Public Safety and Solicitor General. The B.C. Indigenous Cannabis Business Fund will support First Nations communities and Indigenous businesses in British Columbia that want to increase their participation in, or join, the regulated cannabis industry. The fund will provide business planning and advisory services, and help Indigenous businesses or First Nations cover the costs of licensing and permitting. It will also make available capital to support the launch or expansion of businesses.

Health Canada Finalizes Amendments on Cannabis Research and Testing, and Cannabis Beverages

Health Canada announced that amendments to the Cannabis Act and its regulations concerning cannabis research and testing, and cannabis beverages have been approved and are now in force as of December 2, 2022. These amendments follow extensive engagement with stakeholders, universities, researchers, health authorities, cannabis industry associations, cannabis licence holders, provinces, territories, and the public. They aim to facilitate research and testing, and also amend the public possession limit for cannabis beverages to bring it in line with other cannabis products. Notably, these amendments (1) increase the public possession limit for cannabis beverages to a level that is similar to other forms of cannabis, (2) change how Health Canada regulates non-therapeutic cannabis research with human participants, (3) allow

analytical testing licence holders and federal and provincial government laboratories to produce, distribute and sell reference standards and test kits, to increase access to cannabis testing materials and thereby support access to a quality-controlled supply of cannabis; and (4) broaden the educational qualifications for the Head of Laboratory, a position that is required for an analytical testing licence and is responsible for all cannabis testing activities that occur at the licensed site.

Truss Beverage Co. Selects Protonify as Supplier for THC-Infused Beverages

Protonify Corporation, a global provider of high-purity cannabinoid ingredients, announced that Truss Beverage Co., a joint venture between affiliates of Molson Coors Canada and HEXO Corp., has selected Protonify as a supplier of high-purity THC for its cannabis-infused beverage lines. Protonify was approached by Truss to supply higher-purity THC for products in its cannabis beverage line. “As the leading cannabis beverage company in Canada, Truss has always been committed to delivering the highest quality and most consistent products for legal aged consumers,” said Vladimir Zhuravel, Head of Operations at Truss Beverage Co. “We believe purity is important for our consumers and Protonify’s high-purity THC was a step-change improvement for us.” Cannabis beverages sales in Canada continue to grow as consumers discover the benefits of ingestion over inhalation.

Atlas Global Brands Inc. Completes RTO with Atlas Growers Ltd., AgMedica Bioscience Inc., and Cambrosia Ltd.

Atlas Global Brands Inc. announced the successful completion of its previously announced business combination, pursuant to a reverse take-over transaction, with each of Atlas Biotechnologies Inc., AgMedica

10 Cannabis Prospect Magazine | February 2023
NEWS

FANSHAWE’S CENTRE FOR RESEARCH AND INNOVATION: EXPERTS IN CANNABIS

Fanshawe’s Centre for Research and Innovation (CRI) is a centre that specializes in ultra-high-purity cannabinoid extraction and cannabis-related food product research to support industry partners with their R&D projects.

Our expertise is in plant tissue culture, genetic alteration for pest resistance, extraction process development using various industry-accepted solvents, product formulation into oil and water-based matrices and the chemical and biosynthetic production and purification of cannabinoids.

MEET OUR RESEARCHERS

The CRI team has broad experience linking academic research and industrial R&D. CRI’s researchers have previously worked with cannabis industry leaders, and most of the group was part of the pioneering licenced producer, MedReleaf. With this connection of scientific research, process optimization and product development, the team’s focus has been on leading the development of innovations from proof-of-concept to tech-transfer for small to medium-sized enterprises.

Sahar (centre) is a specialist in proof-of-concept projects in process and product development. Sahar combines engineering and natural science expertise with a specialization in process design, bio-extraction, refinement and formulation of high value-added products. A particular focus has been on leading the development of innovative process sciences and linking it to bring bio-based products from concept to launch. Sahar supports CRI’s niche as a resource for food processors looking to develop the next food and beverage products incorporating cannabis.

Omar (left) is a specialist in the chemistry of pesticides, with additional research specialization in synthesis of some cannabinoid compounds (e.g., cannabinol [CBN] with 99.7% purity), purification of cannabinoid compounds using flash chromatography, analysis of cannabis potency by GCMS and UHPLC-DAD, analysis of heavy metals in cannabis products and determination of nutritional label components by different analytical instruments.

Istok (right) is a specialist in supercritical fluids and physical organic chemistry. He is a “realworld solutions” developer with expertise in technoeconomic analysis and technology development/transfer.

Haleh (not shown) is a specialist in plant and microbe biotechnology. Her research focus includes work on valuable plants, including crops and medicinal plants, and she has more than 15 years of experience as a professor teaching courses related to plant biotechnology and food biosafety. At CRI, Haleh is working on improving the “Farm to Fork” pathway through research.

To learn more about how CRI can support your cannabis R&D project (including funding of up to $100,000 for eligible projects), visit www.fanshawec.ca/research.

Istok Nahtigal - M.Sc., C.Chem LEARN MORE ABOUT CRI research@fanshawec.ca | 519-452-4430 x14586
Sahar Samimi - PhD Omar Zoaarob – M.Sc. Haleh Hashemi Sohi - PhD

Bioscience Inc., and Cambrosia Ltd., and the concurrent acquisition by Cambrosia of each of Tlalim Pappo Ltd., Pharmacy Baron Ltd., and R.J. Regavim Ventures Ltd., privately held operating cannabis pharmacies in Israel, all to form Atlas Global Brands Inc. The RTO transaction constitutes a “fundamental change” of Silver Phoenix pursuant to the policies of the Canadian Securities Exchange. The RTO transaction was completed pursuant to the terms of conditions of the amalgamation and share exchange agreement dated July 14, 2022, as amended, among Silver Phoenix, Atlas Biotech, AgMedica, Cambrosia, 2432998 Alberta Ltd. (“Subco 1”), 14060407 Canada Inc. (“Subco 2”) and the ordinary shareholders of Cambrosia (the “Amalgamation and Share Exchange Agreement”).

Aurora Cannabis Announces Sale of Polaris Facility

Aurora Cannabis Inc. has closed the sale of its Aurora Polaris facility for gross proceeds of approximately $15 million, previously announced to be closing under the company’s ongoing transformation program. Aurora’s balance sheet remains in a net cash position, with approximately $320 million of cash and cash equivalents (including approximately $63 million of restricted cash) inclusive of the transaction announced, and the company reiterates its expectation of achieving adjusted EBITDA profitability for the quarter ending December 31, 2022.

Delta 9 Announces Cost-Cutting Measures as a Part of 2023 Strategic Plan; Charts Path to Becoming Positive Cash Flow from Operations

Delta 9 Cannabis Inc. announced various costcutting measures as a part of the Company’s 2023 strategic plan with the goal of becoming positive cash flow from operations. As a part of the 2023 strategic plan, the company plans to

Southwestern Ontario’s Premier Cannabis Conference Returns to London Ontario for a Second Year Running

This year’s conference will attract a wide range of industry speakers, workshop facilitators, podcasters, journalists, retailers, budtenders, post-secondary cannabis educators, cannabis entrepreneurs, licensed producers, brands, influencers, regulatory leaders and more. Beyond the over-the-top education value from the thematic programming of the conference will be another action-packed exhibitor’s hall. Cannabis Wiki & The Western Fair District look to build on last year’s success by attracting even more diverse exhibitors representing the local, national and international cannabis industry. For further information about the conference, visit the conference website at www.expo.cannabis. wiki. Sponsorships, exhibitor and speaking opportunities are now available. Contact Cannabis Wiki to confirm your 2023 attendance.

streamline its cultivation operations and rightsize capacity at its Winnipeg-based cultivation facilities, as well as various other cost-cutting measures including reducing public company and investor relations costs. “We recognize that in the current market environment we need to make near-term strides to improve profitability across our operations. The Board of Directors and executive have also agreed to reduce compensation as part of their commitment to achieving positive cash flows from operations in the current fiscal year,” said Jim Lawson, CFO of Delta 9, “The cost savings are expected to reduce operating costs by $3 million to $4 million in 2023.” As a part of the plan, cultivation capacity at the company’s Winnipeg-based cultivation facilities will be cut by approximately 40%, which will include a temporary layoff of approximately 40 staff. The plan has been developed to ensure that there is no material impact on wholesale revenues or on shipments to the company’s wholesale and retail customers. Delta 9 is working closely with employees to reduce the impact of this decision including continuing to cover costs for company benefits and other transitional services. The company’s retail operations will not be affected as a part of this plan.

BLAZE Cannabis Retail Software Announces Acquisition of Tymber E-commerce Platform

BLAZE®, the industry-leading cannabis software suite and point-of-sale (POS) platform for cannabis dispensaries and delivery services, announced its acquisition of Tymber, a pure-play e-commerce provider for cannabis retailers. The acquisition will unlock powerful and seamless functionality in managing cannabis e-commerce. “BLAZE builds exceptional tools that serve the technology needs of successful dispensaries. Acquiring Tymber brings its unparalleled online shopping

experience into our ecosystem and allows us to meet cannabis retailers at any point along their journey,” said BLAZE CEO Chris Violas. “Tymber differentiates itself by enabling retailers to create a unique shopping experience that showcases their brand through a growing catalog of premium e-commerce themes and by empowering the retailer with automated SEO and control of their data.” To ensure consistent service and customer satisfaction, current users of Tymber and BLAZE will continue to enjoy the functionality and integrations that they know and love, while gaining access to additional capabilities and cannatech tools.

Lifeist’s CannMart to Expand Product Offering in Alberta

Lifeist Wellness Inc. announced that its wholly owned Canadian cannabis business unit CannMart Inc. is introducing seven new SKUs in Alberta for its award-winning in-house brand Roilty, including Roilty’s first-ever dried flower offering, as well as several complementary new products from Zest. This latest product line expansion, which is expected by April 2023, will solidify the Roilty brand name among provincial buyers and retailers as one of the highest-quality concentrates and vapes in the Canadian cannabis industry. The Roilty SKU expansion in Alberta includes two vape carts, two shatters in parchment, one live resin jar, one diamonds & terp sauce jar, as well as a dried flower SKU, Roilty Sunset Queen. Sunset Queen is Roilty’s first dried flower offering and launches the brand into the largest sales segment of the industry.

12 Cannabis Prospect Magazine | February 2023
NEWS Have a news release? Send it to us. Forward to media@cannabisproonline.com

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Vehicle Exposure for Cannabis Retailers

The last two years have been challenging for most businesses across the country. Businesses that thrived faced raw product price increases and delays in shipping. Others found alternate methods of delivering their goods to their customers. Scheduled pick-ups and home delivery saw significant increases in frequency. This included retail delivery of cannabis by the store itself. This provided a revenue stream to keep some locations solvent.

As the COVID situation is managed and things slowly return to normal some provinces are considering the idea of cannabis delivery by retailers to consumers directly. This would allow retail locations to provide home delivery in the same manner as pizza. This could be beneficial for retailers but does present risk management issues for owners or corporations to be aware of.

The main risk retailers face is auto liability claims caused by delivery vehicles. There are two types of vehicle liability exposures the business faces: owned vehicle and nonowned vehicle. Below are some examples of the risks a retail location faces when delivering cannabis.

OWNED VEHICLES

Any time a business uses a vehicle during the day-to-day operations, the business owner must take precautions around its use. Safety on the road is paramount. The law holds entrepreneurs to a different standard of liability and commercial vehicle claims are reflective of this principle. The exposure to risk is different when using an owned vehicle as opposed to non-owned vehicle.

An owned vehicle is one the owner or corporation holds title to, and it has control over the insurance coverage. To provide door-to-door service, an owned vehicle requires the correct insurance classification for cannabis delivery. If a vehicle is not insured correctly for its use, a claim would be denied after an accident due to non-disclosure. This could be devastating if the accident involves a fatality or serious injury. A discussion with

your broker can confirm the right coverage required.

Liability limits for the auto policy need to be carefully considered. Legal fees can easily erode the liability limit in advance of a judgement being awarded. Will $1,000,000 be enough? A $4,000,000 lawsuit can be underinsured for $3,000,000 with a $1,000,000 limit. To increase the coverage limits an umbrella or excess liability policy can be purchased.

In the case of a sole proprietorship, an uninsured claim could mean the store owner’s personal assets could come under attack. A corporation could also leave its board of directors exposed personally if the courts determine that it was a corporate mismanagement issue. If purchased, the Directors and Officers (D&O) insurance policy may respond if an auto exclusion isn’t included in wording.

An owned vehicle can have employee drivers. Drivers should provide a driver abstract, obtained from the Ministry of Transportation, along with a letter of experience from their previous insurance company. This will help determine the eligibility of the driver. An employee with tickets and accidents should be carefully handled by management to prevent any poor drivers from bringing the business into unnecessary lawsuits and increased insurance costs.

Providing training and a vehicle and drivers safety policy will help employees understand the expectations of the employer.

NON-OWNED VEHICLES

A non-owned vehicle is one the retail store does not own and is operated by someone else. This could be a third-party delivery company or employees using their car on behalf of the employer. A business owner has less control over the non-owned vehicle’s insurance and driver suitability. If the vehicle, under the direction of the business, gets into an accident, a portion of the lawsuit can be directed at the business owner for liability.

This exposure is non-owned auto liability. A non-owned vehicle being used for

deliveries falls into this category. If not insured correctly, a claim could be denied and could then fall to the business owner or corporation. A discussion, in person and through contract, can determine the expectation of the delivery company/person and insurance requirements. Commercial use of a vehicle can lead to higher insurance premiums for the company or employee driver. There are a number of employer-initiated programs to help the employee with increased costs of insurance, including tax options and mileage reimbursement costs.

The store owner and the employee both need to understand the symbiosis of having proper coverage. An accident can close the operations of the cannabis retailer leaving the employee unemployed.

Non-owned auto liability insurance is a coverage that is included on most commercial insurance policies. It covers hired vehicles and liability for rented vehicles by the insured along with non-owned vehicles operated by a third party or an employee picking up coffee or supplies or parts for example.

Most cannabis insurance policies cover non-owned auto liability but exclude coverage for any delivery operations. This is an exposure to a claim that some retail locations are not aware of. To discover that a liability claim is not covered can be devastating to the business owner. Even though the delivery operations are excluded by the business policy, a stand-alone non-owned auto liability can be purchased before deliveries begin. A quick discussion with your broker can solve this gap in coverage.

Delivering cannabis to their customers is a promising opportunity to retail locations but it’s not without its own risks. These risks can be mitigated by good management principles and the correct insurance coverage. The items discussed here are not a replacement from a discussion with your insurance broker. Your broker can provide the options and detailed information you need.

18 Cannabis Prospect Magazine | June 2021
Lars Rittmann is an account executive for BrokerLink.
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OPERATIONAL RISK IN THE CANNABIS SECTOR

The cannabis sector has various elements of pharma, agriculture and consumer packaged goods, especially food & beverage. However, there’s a common denominator to these sectors - they’re all regulated. With any manufactured goods, there’s operational risk (this can be production risk, marketing risk, regulatory risk, etc.) that must be managed. We will exclude financial, legal and other external risks from this analysis to focus strictly on operational risk. The pace at which the cannabis sector is growing effectively represents the growing operational risk most cannabis operators face today.

The Cost of Quality (CoQ), which is especially high in cannabis, is arguably the biggest economic drag on the sector and is typically an insufficient product for managing risk. CoQ can be defined as the sum of Poor Costs of Quality + Good Costs of Quality. Examples of good costs are things like training, validation, calibration of equipment, internal audits, etc. Think of it as the ‘prep’ to avoid mistakes. Examples of poor costs are things like customer complaints, labelling errors, recalls, product destruction, failing Certificate of Analysis (‘COA’), investigations (into quality events like deviations or non-conformances), supplier-related issues, etc.

The CoQ is often overlooked by producers, primarily because it’s not a pure accounting measurement like Cost of Goods Sold (COGS). Rather, the CoQ is often embedded throughout many operational costs and expenses and can even represent the opportunity cost of lost sales due to quality issues. In fact, the CoQ in cannabis typically amounts to 25-35% of top-line revenues. This is approximately 10-15% higher than other established, regulated sectors like the auto, medical device and even pharma sectors (according to The American Society for Quality). Certainly, the maturity of each sector is a factor, but we’re also going to look at three important operational levers cannabis operators can pull to minimize their operational risk and reduce their CoQ: people, process and technology.

Put simply, the best cannabis companies are the ones that enable a genuine culture of quality. To do that, meaningful investment and rigour must be applied to all three levers: people, process and technology.

People → When it comes to building your Quality Assurance and Regulatory/Compliance teams look for professionals with experience in other regulated manufactured goods sectors. More specifically, look at heavily-regulated sectors, like pharma. Make no mistake, cannabis is one of the most regulated products today from both a production AND marketing perspective. Having professionals on your team that are used to this level

of regulatory scrutiny and pressure is a massive, intangible asset. There’s also an inherent conflict of interest between production and quality assurance in that the former’s objective is to release as many batches as quickly as possible whereas the latter must ensure every batch isn’t just safe but upholds the company’s internal quality standards. Lack of coordination and ‘silo’ behaviour between these departments or even worse – prioritizing production at the expense of quality – will lead to increased operational risk and CoQ.

Process → Having specific, clear, and well-written Standard Operating Procedures (SOPs) is crucial in the cannabis sector. Not just because every cannabis operation relies on them or because regulators require them, rather, they’re integral because employee turnover is incredibly high in the cannabis sector!

There are many reasons for turnover in the sector, but rather than speculate as to why that is, we recommend having bullet-proof processes specifically to address this operational problem. With effective SOPs AND training programs, new staff can get up to speed quickly and facilitate production with minimal deviations and interruptions.

Technology → Technology is the great enabler. It’s what enables the people and reinforces the process. In cannabis today, the typical tech stack consists of Customer Relationship Management (CRM + Inventory Tracking System (Seed to Sale or Manufacturing Execution System), Enterprise Resource Planning (ERP or accounting) + Quality Management Solution (QMS).

Seed to Sale and ERP platforms fall under the production system category while QMS would fall under a quality system and represents the other half of an end-to-end compliance IT solution. eQMS platforms are, unsurprisingly, widely adopted in other regulated manufactured goods sectors like pharma, CPG, etc. While production systems directly address the inventory and costs associated, eQMS is very much a ‘process’ driven tool that is used to:

» Store and manage SOPs (edits/reviews/ approvals)

» Build and administer training programs/ curricula

» Execute production-related investigations (e.g. complaints, deviations, supplier issues, corrective actions, out-of-specifications, etc.)

» Calibrate equipment

» Schedule facility maintenance/sanitation

» Analyze COAs

» Release batches

Without technology to teach and reinforce the process, the burden of compliance and record-keeping falls on people; not only does manual record-keeping introduce obvious inefficiencies into the operation, but it also needlessly introduces increased compliance risk into the operation. Placing this burden on your staff will not only make them less effective at their day job, but it will also increase their anxiety levels too, most likely resulting in more turnover – a vicious circle! Stakeholders cannot rely on insurance, as all known and unknown risks aren’t fully insurable, or the exclusions are broad, to cover the costs of unmitigated and unmanaged risks.

In sum, the Cost of Quality is a massive economic drag on the cannabis sector, and the best, most-profitable companies have established a genuine culture of quality. The only way to truly build such a culture is to invest wisely in your people, processes and technology. Over-reliance on either one or two out of three will either leave your operation open to unnecessary risk, leave profit on the table, or both.

16 Cannabis Prospect Magazine | February 2023
RISK MANAGEMENT
Did You Know that... ...Cannabis Prospect Magazine now mails to 2000 cannabis retailers! www.cannabisproonline.com Beginning in 2022 Cannabis Prospect Magazine will be mailed to over 2000 cannabis retailers across Canada in hard-copy format as well as offered for free digitally on our website. Cannabis Prospect Magazine

IN PARTNERSHIP WITH

Women in Cannabis Creating Experiences

Women continue to make extraordinary moves in the cannabis industry, blazing trails with thought leadership, innovation and courage to forever change how cannabis is perceived and consumed for years to come. Increasingly women are creating experiences with a heavy focus on health, wellness, mindfulness and self-care. Why? Because women are innately connected to their own needs and the needs of others daring to lead under any circumstance for who and what they love.

Now more than ever it’s important to celebrate women in cannabis forging ahead with absolute fire. Now more than ever women should be recognized. Now more than ever women should be respected. Now more than ever we should be promoting women in cannabis and their impactful contribution to the cannabis industry.

Starting with Serena Donovan, who opened Mary Jane Manor on April 20, 2022, Canada’s first legal cannabis-themed hotel. A formidable force in the industry, Serena sets the bar high as founder, owner and operator of Because You Cann, a licensed micro producer receiving its licence at the onset of a global pandemic. However, this did not deter Donavan. When the opportunity arose to purchase a local hotel, nothing got in the way of her vision and dream. The first order of business was to engage each level of government to ensure she did not miss a beat and checked every box needed to open a compliant hotel. With every tick of provincial boxes and a cannabis-positive municipality supporting Donavan (having also written cannabis production and consumption bylaws while on city council), she was optimistic and confident to win approval from Alberta Health Services. AHS advised her that when somebody pays to stay in the room, it becomes their private residence. Consumption could be allowed in each individual room and thus was allowed in common spaces. Mary Jane Manor provides a completely immersive experience, with cannabis education thoughtfully placed throughout the rooms and lounge.

Leveling up again, in 2022, Serena was able to licence a small space in the hotel for cannabis retail, making Mary Jane Manor a full circle hotel where you can buy your cannabis on site, with some products produced by the sister micro facility, then head off to your room for an enjoyable experience.

“In our hotel, you could purchase a bath bomb and a pack of pre-rolls, head up to your hotel room to have an infused bath while smoking your joint, which you can't do in traditional hotels. There's the opportunity of being able to have those experiences in the unique setting of the Mary Jane Manor,” explains Donavan.

A great cannabis experience is subjective and can vary greatly depending on the individual and the desired effects. Generally, a great experience is characterized by a pleasant and relaxed state of mind, an enhanced sense of well-being, and a heightened appreciation of sensory

Beginning with our February 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.

experiences such as music or food. The right strain, dosage and consumption method can also play a significant role in achieving a great cannabis experience. Additionally, using cannabis in a safe and comfortable environment, with trusted companions, can also contribute to a positive experience. These are things folks learn over time. Spaces like Mary Jane Manor, provide a safe comfortable environment with a knowledgeable host!

When it comes to self-care, women take the lead and Jill Provencal of Blunt Botanicals is undoubtedly a leader in formulation creating infused topicals that take self-care to a new level. From legacy to legal, Jill is tirelessly resurrecting each of her cannabis-infused topicals she is known for. Her newest release is Jointment; a cannabisinfused massage butter formulated to melt away your aches and sooth your joints.

“I think cannabis topicals are one of the most important products in the cannabis space because you don't feel any of the psychoactive effects of the THC and because of the number of receptors in your skin, you will actually feel and notice effects in your body.”

The skin is our body’s largest organ and therefore deserves unparcelled care.

Combining a buttery topical with self or partner massage provides a beautiful opportunity to connect and relax. Jointment doesn’t just make you feel good physically, you can also feel good knowing it’s made with a positive social impact.

“We source some of our ingredients from a women's collective in Ghana, we're intentionally choosing where our Fairtrade ingredients come from. They are organic and eco-certified when possible. We don’t use any stabilizers, preservatives, silicone, synthetics, parabens, phthalates, artificial fragrances and none of the ingredients are ever tested on animals, so it's cruelty free.”

Now more than ever you should visit Mary Jane Manor and treat yourself to Blunt Botanicals. Experience what a woman knows.

Follow @theentourageco for more women in cannabis features. And don’t forget to celebrate, recognize, and respect women. Mark your calendars: International Women’s Day, March 8, 2023.

Imagine a gender-equal world. A world free of bias, stereotypes and discrimination. A world that's diverse, equitable and inclusive. A world where difference is valued and celebrated. Together we can forge women's equality. Collectively we can all #EmbraceEquity

February 2023 | Cannabis Prospect Magazine 19
Women continue to make extraordinary moves in the cannabis industry, blazing trails with thought leadership, innovation and courage to forever change how cannabis is perceived and consumed for years to come. Women are increasingly creating experiences with a heavy focus on health, wellness, mindfulness and self-care.
WOMEN IN CANNABIS Photos shown of Jill Provencal (below) and Serena Donovan (left).

Hexo’s TnT Cannabis Strains

HEXO Corp. launched its new TnT Cannabis strains under the Redecan and Original Stash Brands labels across Canada. Available on retailer shelves now, the launch includes three new products from HEXO’s popular Redecan line (Sex Panther, Violet Fog and Animal Rntz) and two new strains under the Original Stash Brand (Atomik Sour Haze and Ghost Gelato). Redecan’s hangdried and handtrimmed cannabis features a trailblazing THC range of 23 to 35% and high terpene profiles tailored for creativity, excitement and to help unwind. The new TnT cannabis strains from Redecan will feature extremely dense buds covered in trichomes: Sex Panther (flower), an Indica hybrid strain, has a powerful effervescent cake flavour. Violet Fog (flower, shown), a purple reign Indica strain, from the Grape Gasoline and Khalifa Mints Strains features robust fruity and sour notes. Animal Rntz (flower, shown), a combination of Canada’s popular Animal Cookie and California’s RNTZ strains, has a fruity tartness along with a sweet and sour aroma, highlighted by astounding levels of limonene and caryophyllene terpenes.

Solei Slims Pre-Rolls

Solei ‘Slims’, an elevated approach to pre-rolls, are available in two single-strain classics, ‘Free’ and ‘Balance’. The brand’s sungrown whole-flower pre-rolls are thoughtfully curated so you can complement your desired mood with ease. These perfectly-packed Slims are the first of its kind for Solei’s portfolio; smooth burning, and convenient.

Free - Mellow and uplifting, sativadominant ‘Free’ is formulated with high CBD and low THC content featuring 1:15 THC:CBD content. With an earthy and herbal aroma, it sets the mood for an elevated daytime experience.

Balance - Gentle and calming, Balance is harvested at just the right moment. With a lowTHC indica dominant strain and elevated CBD content (1:1 THC:CBD), it features an earthy bouquet with notes of sweet, citrus, spice, and musk.

Solei ‘Slims’ are now available in 10-packs of 0.4g pre-rolls. For more information on Solei, visit www.Solei.ca and follow along our journey @soleicanada on Instagram.

Roilty Shatter Pack

CannMart made its multi-pack entrance into Ontario with the Roilty Shatter Pack: Catacomb Kush 0.5G & The Mountain Kush 0.5G, featuring two best-selling shatters from Roilty in one package. As the first shatter product from Roilty in the province, the multipack has pushed Roilty into the seventh best-selling brand in the category and the tenth best-selling product (approx. 95 live products in the category). This penetration is especially gratifying given that the average SKU count from the well-established competitors in the category is 3.5 compared with Roilty’s launch with one single SKU (Source: Headset Data, last two months, Ontario, Canada, shatter segment). This placement in the Top 10 accounts for a quick capture of 3% market share for the single SKU, with the top two brands accounting for 63% of the market (each having five to six SKUs), leaving room for significant growth and penetration as Roilty plans to expand SKUs in the segment. Information on Lifeist and its businesses can be accessed through the links below: www.lifeist.com

Solei CBD:CBN Softgels

Solei ‘Softgels’ new innovation, the new ‘Rest’, CBD:CBN softgels are joining the family and are carefully crafted for a more natural winddown ritual.

Rest CBN Softgels - With this harmonious blend of full spectrum CBD accompanied by CBN, the Rest Softgels come in a familiar, easy-to-consume format of 2:1, CBD:CBN content that can seamlessly fit into your schedule, no matter what your rituals may be. Along with their convenience, they’re discreet and consistent and are made without the intoxicating effects of cannabinoids like THC. Clear your mind and get ready to meet your new evening sidekick.

Solei ‘Softgels’ are available in 30-capsule bottles in select markets and retailers across Canada. For more information on Solei, visit www.Solei.ca and follow along our journey @soleicanada on Instagram.

20 Cannabis Prospect Magazine | February 2023
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CANADIAN CANNABIS RETAIL PREDICTIONS FOR 2023

CANNABIS XPRESS is a chain of cannabis retail stores with 14 locations in Ontario and three locations opening in New Brunswick, making it the largest private retailer in the province. 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, priding itself on offering its customers a quick, easy, hassle-free cannabis shopping experience. It is built a unique quick-service retail store that gets customers in and out in no time, without sacrificing quality in the products it offers or the education it provides.

The cannabis industry in Canada looks grim for everyone across the value chain, including cultivators, manufacturers, retailers and other service providers. We are in a country with way too much capacity to grow cannabis and supply on hand for the total size of the market. For retail, there is an oversaturation of stores in major cities and even smaller towns. Service providers are aggressively competing to steal market share from one another by undercutting prices and taking a loss just to sign up a new customer. I have been in the industry for more than seven years across all aspects of the value chain and have seen the rise and fall of many companies. 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 my top four retail predictions for 2023 in Canada:

CONSOLIDATION

There are still companies around who have enough cash to make purchases or have stock to use if they are publicly-traded companies. There will continue to be more mergers and acquisitions with cannabis cultivators because the total number of licences issued to them in Canada compared with other licence categories (retail, etc.). Access to capital slowed down last year mainly due to inflation. This year I believe interest rate increases will eventually hold at a rate that gives investors more confidence to raise capital and acquire companies. If you are a public or private company that can show profit or a near-term path to profitability, you will become a much more appealing target for an acquisition by a larger company near the end of 2023.

STORE CLOSURES & BANKRUPTCY

Both large and small retailers are struggling with falling prices for recreational cannabis products. This is affecting every business in the industry because of an oversupply of goods, which leads to falling prices and increased competition between peers to get LPs and their brands onto retail store shelves. When certain licence types opened for application over the last few years, it was thought that once you build it, you would automatically start generating a profit. In reality, the licences came but the extreme level of competition wasn’t foreseen. These companies were able to raise large sums of money which led many to overspend with almost zero fiscal oversight. Across Ontario, there are more store closures than openings, and that trend will continue throughout the year, as well as in other provinces such as Alberta and Manitoba. Unless new cities opt in to allow for cannabis stores, there will be a steady decline throughout 2023 in the total number of stores in the country, mainly in the larger markets.

NEW AREAS OPENING UP

There are certain provinces that have expanded their licensing system to allow for new applicants to apply and open stores. CANNABIS XPRESS was recently awarded several licences in New Brunswick; prior to that the province only had government-owned cannabis retail stores. Similarly, other provinces have a hybrid framework where they allow for both public and private stores, and will likely expand licensing to allow for new stores to open in smaller cities and towns to compete against the illicit market. In Ontario, there are many cities that have opted out of having cannabis retail stores, and will likely look to vote to

have them allowed this year, which will lead to new job creation, opportunities for new retailers to open and a decrease in sales of illegal and unlicensed products.

PRODUCT DEVELOPMENT & CONSUMER PREFERENCES

Cannabis consumers are becoming more sophisticated as they shop in retail stores and get educated by the people working in them. I believe that we are still two to four years away from customers specifically asking for a certain brand over another, but they are now segmenting into new product categories that they have never tried before, such as concentrates and infused pre-rolls. There will continue to be a strong demand for the highest THC products, but customers are learning that the cannabinoid content and terpenes are just as, if not more important than, how much THC is in a product. The flower product category is losing market share to newer products such as vapes, edibles, concentrates and beverages. Product development is driving growth in the industry, for example, live resin is becoming a more popular choice as opposed to distillate.

The Canadian cannabis industry still has a lot of opportunity for growth, even though it will be the most challenging year to date. In order to not only survive, but to thrive, companies need to continue to cut costs and try to find additional ways to earn revenue. Businesses that can show a profit will rise to the top and outshine others who are burning cash every month, which will provide them with the opportunity to buy others or be bought themselves. This year will be the most important one yet for the industry, and will truly show the winners from the losers.

Chris Jones is the Founder and President of CANNABIS XPRESS. For more information conatct Chris Jones at Christopher.lloyd.jones1@gmail.com or visit https://cannabis-xpress.com

18 Cannabis Prospect Magazine | June 2021
RETAIL 22 Cannabis Prospect Magazine | February 2023

Growing Influence

C3 is the national voice of the Canadian cannabis industry.

Working with our Members we are pushing for urgent change to ensure the financial viabilty of our sector. Learn more about our current priorities or apply to join at cannabis-council.ca.

PLUGGING INTO THE RIGHT TO DISCONNECT: 5 FAQs

The COVID-19 pandemic drove remote work to unprecedented heights.

Employee calls for greater flexibility and cost savings for employers, like rent and overhead, have resulted in remote work arrangements remaining in place. But along with those arrangements comes the challenge of separating work and non-work time, and employee demands for a “right to disconnect”. To help all employers stay plugged in, here are the answers to five key questions about the right to disconnect.

1. What is the “right to disconnect”?

Generally, it’s about employees disconnecting from work and not engaging in work-related communications, like emails, outside of working hours. Numerous European countries have adopted disconnecting from work legislation, and in December 2021, the European Parliament adopted a resolution calling for a European Union law on the right to disconnect. Calls for right-to-disconnect legislation are now being heard in Canada.

2. Have any Canadian jurisdictions legislated a “right to disconnect”?

No. Ontario has however legislated in the area of disconnecting from work. Effective January 1, 2022, the Ontario Employment Standards Act, 2000 requires certain employers to have a written policy on “disconnecting from work”. To date, Ontario is the only Canadian jurisdiction with “disconnecting from work” legislation. Importantly, however, the Ontario legislation does not create any rights for employees to disconnect from work.

3. Why is it important for all Canadian employers – not just Ontario employers – to be plugged into the “right to disconnect”?

There are several reasons why all Canadian employers are wise to stay plugged into the right to disconnect:

Future Legislation. Indications are that other Canadian jurisdictions are currently considering right-to-disconnect legislation, and more could follow; it’s important that employers be ready for what could be coming. For example:

» Prince Edward Island’s September 2022 interim report published in connection with its ongoing comprehensive review of the Employment Standards Act includes a discussion about “Telework and the Right to Disconnect”, suggesting a legislated right to disconnect could be coming down the pike in Prince Edward Island.

» Quebec’s December 2021 Bill 799, Right to Disconnect Act, if passed, would require employers to develop a clear disconnection policy. While Quebec has had right to disconnect legislation on the table in prior years, none of which passed, this might be the right time for it.

» The federal government’s February 2022 Final Report of the Right to Disconnect Advisory Committee concluded, “[a] legislative right to disconnect is the only way to effectively move forward with addressing the negative impacts of hyper-connectivity in the workplace and to effectively manage the use of workplace communications devices”, suggesting the federal government could bring forward a plan to include a right to disconnect policy for federally-regulated employees (such as those in the banking and the telecommunications sectors, for example).

Ontario Employees. Employers must typically comply with the laws of the jurisdiction in which an employee works. If an employer in another province or territory has employees who physically work in Ontario, it’s likely they must comply with Ontario’s disconnecting from work legislation in relation to those employees – though the employer can, if it wishes, only do so in relation to its Ontario employees.

Retain & Recruit. A voluntary “disconnecting from work” policy – one the employer chooses to implement, even though it’s not required to do so – could be an effective employee retention and recruitment tool. As a result of COVID-19, many employers have transitioned to a remote work or hybrid model, blurring the line between home life and work life. When competition for talent is high, a voluntary “disconnecting-from-work” policy signals to both current and prospective employees that an employer is

willing to assist employees with balancing their home and work lives. Indeed, more workers of all ages are placing increased value on work-life balance when selecting an employer.

4. What might employers expect to see in “right-to-disconnect” legislation?

Ontario’s “disconnecting from work” legislation offers a useful indicator of what employers might be able to expect in similar legislation elsewhere in Canada, at least initially.

Mandatory Policy. All provincially-regulated employers with 25 or more “employees” must adopt a written policy on “disconnecting from work” and provide all employees with a copy. The legislation doesn’t, however, require the employer to have the same policy for all employees; while it can, the policy can also dictate different terms for different groups of employees.

Definition. The Ontario legislation defines “disconnecting from work” as “not engaging in work-related communications, including emails, telephone calls, video calls or sending or reviewing other messages, so as to be free from the performance of work.” It’s important to note, however, that what the Ontario legislation doesn’t do is create any new rights for employees to “disconnect from work”. In particular, it doesn’t:

» Prohibit employers from communicating with employees after working hours.

» Specify that it’s a right of employees to disconnect from work or be free from the obligation to engage in work-related communications completely after a certain time or after typical “work” hours.

“Employees” Covered. The policy applies to all of the employer’s “employees” covered by the Ontario Employment Standards Act, 2000. The Act defines “employees” to include those who are part-time, full-time, flex-time, casual, fixedterm, on leave, on layoff, suspended, probationary and on strike/lockout, and some trainees and some students. Management, executives, and

The COVID-19 pandemic drove remote work to unprecedented heights. Employee calls for greater flexibility, and cost savings for employers, like rent and overhead, have resulted in remote work arrangements remaining in place. But along with those arrangements comes the challenge of separating work and nonwork time, and employee demands for a “right to disconnect”.

shareholders are also included if they otherwise meet the definition of “employee”. Independent contractors are excluded.

Policy Contents. The Ontario legislation only specifies that the employer must include the date the policy was prepared and the date it made any changes to the policy. Beyond this, the legislation doesn’t dictate what the employer must include in the policy. It does leave open the possibility that the province can prescribe that the policy contain specified information, presumably by regulation.

5. What should a “disconnecting-from-work” policy look like?

A “disconnecting-from-work” policy can be a standalone document, or the employer can incorporate it into another of its policies. When drafting the policy, employers must ensure it complies with the applicable employment standards legislation, such as rules limiting hours of work. In addition to the basics that every good policy should include, a “disconnecting from work”

policy could (and should, for some employers) generally address these topics:

After Hours Work. What are the employer’s expectations, if any, of employees to read or reply to work-related emails or answer work-related phone calls after hours?

Response Times. What are the required response times, and how might they change for different times of day, subject matter of the communication, sender, and so on? For example, are response times different for communications:

» Relating to urgent vs. non-urgent matters?

» Received from a colleague, a supervisor or a customer/client?

Application. To which employees does the policy apply, in the case of a voluntary policy, and what expectations apply to which employees? For example, since in Ontario managerial employees are generally exempt from the hours of work rules under its Employment Standards Act, 2000, an employer might want to establish greater obligations for managers to respond to after-hours communications than for non-managerial employees. Also, with more companies permitting flexible work hours, an employer might allow some employees to choose when they work, provided they complete their tasks. Different rights and obligations under the policy could be appropriate for these employees.

OOO Notifications. Are employees expected to activate appropriate out-of-office notifications, such as email messages and voicemails, during times when the employee isn’t responding to communications?

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, 2022. All rights reserved.

“ “
Anne Amos-Stewart & Maddy Sequeira are Labour & Employment Lawyers at McInnes Cooper.
February 2023 | Cannabis Prospect Magazine 25

Ontario Quebec

The Mississauga Board of Trade (MBOT) is calling on the new council to revisit previous decisions by local elected officials to prohibit cannabis retailers in the community, a matter that’s been reviewed and voted on twice, resulting in the absense of such storefronts in Mississauga. The most recent rejection came in June 2021 with a majority of council voting against the stores, 8-4.

With respect to the current labour dispute, as of late December, the SQDC had 92 branches, more than half of which are non-unionized, and 68 were open according to the regular schedule. The current labour dispute affects only 24 of the 26 branches represented by CUPE. To date, the main point in dispute with CUPE remains that of salary, since all the normative elements have been settled for a few months. In addition, since last December 20, the employees of seven of the 17 branches represented by the Confederation of National Trade Unions (CSN) will enter the second year of their collective agreement and their hourly rate will increase to $19.39/h at Starter. The employees of the 59 other branches will also gradually reach an hourly rate of $19.39/h on entry over the next few months.

Manitoba Saskatchewan

Delta 9 Cannabis announced it is temporarily laying off about 40 employees in a push to bolster its struggling cultivation and wholesale outfits. The company said in a news release in mid-January the move is part of a plan to streamline cultivation operations and capacity at its Winnipeg facilities, as well as reduce company and investor costs.

OEG Retail Cannabis (OEGRC) has completed its acquisition of 23 Tweed and Tokyo Smoke stores from Canopy Growth Corporation (CGC) in Manitoba, Saskatchewan, and Newfoundland and Labrador. In addition to the retail locations, OEGRC has also acquired the Tokyo Smoke brand from Canopy Growth. OEGRC is now the sole owner of the Tokyo Smoke brand and trademark.

Alberta British Columbia

Alberta Gaming, Liquor, and Cannabis (AGLC) recently launched the Find Your Moderation program as part of its ongoing CannabisSense campaign, with two videos intended to highlight that cannabis can affect consumers differently. The AGLC’s CannabisSense launched in January 2022 with the goal of providing Albertans with information and resources related to non-medical cannabis.

Canada’s largest private-sector liquor and cannabis retailer has completed a deal to acquire The Valens Company, a B.C.-based developer and manufacturer of cannabinoid-based products. First announced in August 2022, the transaction includes $138 million in SNDL shares and the assumption of Valens’ $60 million non-revolving term loan facility, Alberta-based SNDL noted in a press release.

In mid-January, the government of British Columbia found overall support for adult-use marijuana consumption spaces among cannabis users and businesses in a 2022 public consultation, while non-users and “some public health and safety organizations (and) local governments” expressed opposition. The B.C. government “is now considering whether cannabis consumption spaces should be permitted,” according to a report released Tuesday. Among random phone survey respondents interviewed in April and May 2022, 61% supported consumption spaces. Of the 730 telephone survey respondents, 35% had used cannabis at least once in the past year.

26 Cannabis Prospect Magazine | February 2023 Provincial Updates/

Cann Bliss Beverages Inc. became one of a handful of recipients of PEI’s Ignition Fund, a $25,000 for businesses operating in the province. Cann Bliss Beverages Inc. has created the first ever cannabis-infused non-alcoholic wine products in Canada that are enjoyable and of precise dosage. The beverages are produced in both red and white flavors and at various THC and CBD levels. The wine beverages provide the right amount of THC and CBD to offer a sensible and satisfying substitute for people seeking alcohol-free products. The Ignition Fund program has funded 80 companies since it launched in 2014.

Nova Scotia

Creso Pharma Ltd. says its wholly-owned Canadian subsidiary Mernova Medicinal Inc. will list seven new products in Nova Scotia to be sold through the Nova Scotia Liquor Corporation (NSLC). This doubles Mernova’s total listings in the province from seven stock-keeping units (SKU) to 14 SKUs and demonstrates the company’s ability to further penetrate the company’s largest market from a revenue perspective (based on Q1 to Q3 2022).

Prince Edward Island Newfoundland & Labrador New Brunswick

According to a recent CBC article, a production facility in the White Hills area that was built for Canopy Growth has been sitting idle for two years. The 230,000-square-foot cannabis production facility was built in 2017, in anticipation of the legalization of recreational marijuana in Canada, the Ontario-based company promised to produce 8,000 kilograms of cannabis annually in the east end of St. John’s. But in 2020, Canopy announced its plans had changed. The almost 150 jobs the facility was expected to create in Newfoundland vanished.

New Brunswick finance minister Ernie Steeves announced after serious losses by Crown REC corporation Cannabis NB, the government is now looking for private operators to bid to take over selling and distributing REC throughout New Brunswick. Official bids for the private cannabis stores opened until January 10. As per The Financial Post, the Conservative government does not want to break the Cannabis NB monopoly up and sell each of the provincial stores to a different operator. Instead, it is looking for a single operator to take over the whole organization.

Yukon / Northwest Territories / Nunavut

As of late October, the Yukon’s cannabis licensees now operate all retail locations, online sales and delivery. As of today, the Yukon Liquor Corporation’s Cannabis Yukon website will no longer sell cannabis products to Yukoners, leaving cannabis e-commerce to private licensees. There are currently six licensed cannabis retailers open in the Yukon and one federally licensed producer. / January saw National Non-Smoking Week. The annual event provides education and information to prevent youth and young adults from starting to use tobacco products and helps existing tobacco consumers to quit or limit their intake.

February 2023 | Cannabis Prospect Magazine 27

For those who prefer ‘em a little bit taller, this original collection all-star is one of our best sellers. It’s designed for the experienced consumer who also happens to enjoy showing off their impressive lung capacity. Purchase today at redeyetek.ca. Wholesale available at westcoast.gifts.

From our original collection of modern day miracles, this gorgeous, tall drink of bong water (don’t) is ready for your finest flower. We predict that it will become your favourite so quickly you’ll think it’s surgically attached to your mouth. Purchase today at redeyetek.ca. Wholesale available at westcoast.gifts.

Specifically designed for isolating hazardous materials, the HAZMAX Containment Work Area is engineered to isolate applications including large equipment distillation procedures, pilot plant requirements, and sampling/ weighing/dispensing operations. Protection from hazardous fumes is ensured by the varaflow baffle system and by-pass inlets, to safely vent vapours, odors and powders for maximum work safety. The ventilated work area is constructed of corrosion resistant composite resin surface panels. Tempered glass horizontal sliding door panels provide convenient access to the work area. Vapour proof or explosion proof lighting is provided. A secondary containment basin, constructed of seamless composite polyresin, has coved corners and a sloped bottom to facilitate draining and cleaning of any accidental spillage. A raised fiberglass grate deck floor allows spillage to flow through. Specific requirements can be met through a variety of safety and service accessories, also available HEMCO. Call (800) 7794362 or visit www.HEMCOcorp. comm/unimax.html

TetraBase™ from Hydra Unlimited® is the last hydroponic media growers will ever need. Clean and reusable, the new professional-grade product is engineered for exceptional highyield performance in deep water culture systems such as Hydra Unlimited’s pioneering HydraMax™. And now, the innovative media is offered in a smaller, more affordable one-litre bag. Unlike traditional clay media, advanced TetraBase won’t introduce dust and debris into a system that can clog fittings and jam pumps. Non-porous and pHneutral, it doesn’t attract and harbor pests or promote bacterial growth. Non-abrasive, it can be handled without gloves and is far easier to move than water-soaked clay media. The clay used in traditional hydroponic culture is typically mined. Eco-friendly TetraBase is made from 100% recycled materials. Ideal for a trial run of a single 5-1/2″ to 6″ net pot, a one-liter bag of Hydra Unlimited TetraBase costs $15.99 US; a six-litre bag covers six net pots and is $89.

TriPlaneTM luminaire LED Grow Lighting

As the first luminaire in the ParFX™ product family, the TriPlane leverages the best features of LED and HID technologies—high light output, controlled distribution, optimized efficiencies, and exceptional thermal management. With a light output of 2100 μmol/s and an efficacy of 3.2 μmol/J, the TriPlane sets a new standard for LED horticultural lighting as a true 1-for-1 replacement of the 1000W HID luminaire. Designed for maximum flexibility, the TriPlane’s LED modules can be adjusted independently in precise increments in either direction— allowing for highly customed light distribution, depending on the application. Delivering optimum color efficiencies, the TriPlane is available in two spectral recipes, which can be used in standalone LED applications, or in combination with HID luminaires for hybrid applications. A standard horticultural power connector and intuitive mounting brackets allow for a true plug-and-play retrofit of existing HID lighting installations.

28 Cannabis Prospect Magazine | February 2023
18” Metallic Terminator Finish Hex Tube (Left)
PRODUCT SPOTLIGHT 1 1 2 2
The HAZMAX Containment Work Area
3 4 3 4
15” Metallic Terminator Finish Hex Straight Tube (Right) 25209 Hydra Unlimited - TetraBase Hydroponic Media
Free to Canadian cannabis retailers and free for Canadian LPs/brands to be included! Don’t Miss Out on the Latest Issue! INCLUDED: » Dozens of Cannabis SKUs » Plenty of licensed producers and brands featured » Dried Flower, Beverages, Edibles, Concentrates and More If you’d like a free monthly subscription please email media@cannabisproonline.com
Ayurcann...................................................................................................................2 Brokerlink...............................................................................................................17 Budbrain.................................................................................................................15 Cannabis Council of Canada..................................................................................23 Fanshawe College...................................................................................................11 Great White North Growers...................................................................................18 Greenline POS.........................................................................................................4 Greentank Technologies..........................................................................................7 High North Labs......................................................................................................3 HighDeal Solutions.................................................................................................9 Lift & Co................................................................................................................13 MJBiz.....................................................................................................................21 Sister Merci.............................................................................................................32 Advertiser Index 30 Cannabis Prospect Magazine | February 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

Margaret Brodie was appointed Interim CEO of Rubicon Organics in early January. Ms. Brodie has been CFO of Rubicon since inception in 2015 and been an active member of the management team and board through growth of the organization. Margaret Brodie began her career at KPMG and spent the majority of her 10 years with KPMG in London, UK focused on global mining and drinks companies. Before joining Rubicon Organics, she was CFO for several publicly listed mining companies. Ms Brodie was recognized as a finalist by BC Business in 2020 for its Entrepreneurial Leader of the Year. She has been involved with several not-for-profit organizations and the Status of Women Canada. Ms. Brodie holds a B. Comm. from UBC, holds the CPA, CA designation and is a member of the Institute of Corporate Directors.

In early January Fire & Flower Holdings Corp., a leading cannabis consumer retail and technology platform announced that it has appointed John Chou as the Chief Financial Officer of the Company. The appointment of Mr. Chou as the permanent Chief Financial Officer follows his appointment as interim Chief Financial Officer on November 21, 2022. Prior to joining Fire & Flower management as Chief Financial Officer, Mr. Chou held the position of Chief Financial Officer of The Flowr Corporation, Chief Financial Officer of Terrace Global, Vice President Finance of Gran Colombia Gold Corp. and Vice President Finance of Frontera Energy Corp.

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APPOINTMENTS
February 2023 | Cannabis Prospect Magazine 31

MARKETING AGENCY OF THE YEAR -CANADA

IT’S AN HONOUR TO BE RECOGNIZED BY OUR INDUSTRY AS YOUR GO-TO AGENCY FOR CANNABIS MARKETING AND BEYOND. THANKS TO ALL OUR CLIENTS WHO KEEP US LEADING, CREATING, AND GROWING EVERY DAY.

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STRATEGY + PLANNING. DESIGN + BRANDING. ADVERTISING + GO-TO-MARKET. PR + INFLUENCER RELATIONS.

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