Cannabis lawyer Whitney Abrams discusses New Brunswick's legalization plans and the rationale behind it.
New Brunswick’s Legalization Plans: Cannabis to be Supplied by Canopy Growth and Organigram
Originally published on Canada Cannabis Legal by Whitney Abrams on September 15, 2017.
A Crown corporation has been established to oversee the sales of recreational cannabis in New Brunswick when the market comes online. The Province has stated that they believe that this model “aims to ensure that the government maintains full control of the sale of non-medical cannabis.”
The Crown corporation entered into agreements with two Canadian Licensed Producers, Canopy Growth Corp. (“Canopy”) and Organigram, that will supply cannabis to the Province.
In a press release this morning announcing the Memorandum of Understanding (“MOU”) that the Province signed with Canopy, President Mark Zekulin, stated that Canopy is “excited to bring high quality brands like Tweed, Leafs By Snoop, DNA Genetics, as well as a number of the best independent craft grow cannabis producers across Canada to the people of New Brunswick through this arrangement.”
Canopy has agreed to a two-year deal. In the first year alone, Canopy will supply four million grams of dried cannabis and cannabis derivatives.
New Brunswick’s own Organigram, a licensed producer based out of Moncton, also entered an MOU with the Province. Through its agreement, Organigram will allocate a quarter of its production, or a minimum of five million grams per year, to the Province for legal recreational sales.
Details of the retail model have not yet been released, although the legislature committee recommended sales through government-operated stores. The Province released a statement that the newly established Crown corporation will not directly be in charge of retail, but rather, that it will partner with other entities to provide the retail framework. The Province has stated that plans for retail will be finalized and released after the Province considers the final reports and recommendations of both its select committee on cannabis and the provincial working group.