IntroductionWith the emergence of a new industry in Canada and legislation still unfolding across all levels of government, how are commercial property landlords supposed to effectively vet and select recreational-cannabis retail tenants for their properties?

The general reception of this wholesale change in the legal status of cannabis has been positive. Conversations taking place around the legal framework and legislation have been well-informed. Various provincial and territorial engagement studies have found that most consumers prefer to purchase cannabis through a safe, legal and publicly regulated channel, but only if the price is not significantly above that offered on the black market. Current black-market retail prices are roughly $7 to $12 per gram, depending on the quality of the product and the quantity purchased.1

Landlords have already begun to navigate the leasing of retail space that is focused on the private sale of recreational-cannabis. A guiding framework for the tenant-selection process will enable a landlord to safely and effectively identify prospective quality cannabis-retailers for their properties. This paper will explain the various legal and regulatory frameworks that have been put in place in Canada so far, as well as how to understand what business/operational aspects should be in place in order to select those retail tenants with the greatest likelihood of success.

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An Avison Young Topical ReportJUNE 2018

Canadian Cannabis Legislation and the Commercial Real Estate Industry: How Can Landlords Qualify Prospective Retail Tenants?

(Note: For the purpose of this report, the terms “recreational-cannabis retailers” and “retail-cannabis” are used interchangeably.)

1

Advertising and packaging

Age limit

Business Licenses (permits)

Criminal offences

Education

Home cultivation

Impaired driving legislation

Land use/zoning

Medical cannabis

Personal possession limits

Production (cultivation and processing)

Provide legal tools for law enforcement

Public consumption

Public health

Regulatory compliance

Retail locations and rules

Retail model(s) to be utilized

Seed-to-sale tracking system

Taxation

Wholesale distribution framework

Workplace safety

Activity Federal Provincial[Territorial] Municipal

Provinces or territories and municipalities have the ability to strengthen or add to federal legislation for these areas.

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Federal ResponsibilitiesOn April 13, 2017, the federal government introduced An Act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts (Bill C-45)2 to legalize the production, distribution and sale of cannabis for recreational purposes, and to update driving-related legislation An Act to amend the Criminal Code (offences relating to conveyances) and to make consequential amendments to other Acts (Bill C-46).3 Bill C-45 was passed in the House of Commons on November 27, 2017 and in the Senate on June 19, 2018, and received royal assent from the government on June 21, 2018. Bill C-46 was passed in the House of Commons on October 31, 2017 and was then introduced in the Senate.

The target launch date for the bills will take place after a minimum eight-to-12-week transition period, following royal assent.4 Now that Bill C-45 has received royal assent, cannabis use for recreational purposes will be legalized, but subject to strict regulatory oversight. The regulations for medical marijuana will not change.

Canada is now the first G20 country and second nation in the world (after Uruguay) to fully legalize cannabis for recreational consumption.6 This is an unprecedented opportunity for Canada to be a global leader in the cannabis space and to shape the regulatory framework for recreational-cannabis legalization around the world. Now that the Canadian Cannabis Act has been

implemented by the federal governmnent, the production, distribution and sale of cannabis will be legal in Canada.

The federal government believes that a legal, national, strictly regulated cannabis production, distribution and sales system will: better protect the health and enhance the public safety of Canadians; make cannabis less profitable for illicit drug dealers and growers; and make pot less accessible to young people.7

The federal government is responsible for setting legislation around:

• Advertising and packaging

• Age limit

• Criminal offences

• Education

• Home cultivation

• Impaired-driving legislation

• Medical cannabis

• Personal possession limits

• Production (cultivation and processing)

• Legal tools for law enforcement

• Public health

• Regulatory compliance

• Seed-to-sale tracking system

• Taxation8

Following Bill C-45’s introduction in the Senate on November 28, 2017, almost four dozen amendments were recommended before the bill was passed on June 7, 2018 and returned to the House of Commons.9 While some of these amendments recommended some substantive changes, ultimately the Senate agreed to permit home cultivation of cannabis in all provinces and territories, which had been one of the major sticking points for the legislation. On June 18, 2018 the House of Commons voted to pass Bill C-45, with all but 13 of the Senate’s amendments approved, and move the bill back to the Senate, which approved the bill with no further amendments on June 19, 2018. The bill, now passed by both chambers, in identical form received royal assent on June 21, 2018 and will become law.10 The federal government has set the date for legal recreational-cannabis sales to begin on October 17, 2018.11 Bill C-46 followed closely behind, passing third reading in the Senate on June 14, 2018. Both the House of Commons and the Senate agreed to amendments on June 20, 2018, and the bill received royal assent on June 21, 2018.

The Government of Canada’s decision to legalize and regulate

was driven by three core objectives:5

1. Dismantle the illicit market

2. Restrict youth access

3. Ensure public health and safety

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Provincial and Territorial ResponsibilitiesIn order to establish a full and responsible recreational-cannabis program, all of the provinces and territories have undertaken extensive public engagement programs with residents, stakeholders and partners in order to determine the frameworks that will best suit their individual needs. In conjunction with existing liquor and tobacco laws, each province and territory is setting up a framework unique to its needs.

Provinces and territories followed different timelines and processes for formalizing their respective frameworks. At the time of publication of this report, the legislatures of all ten provinces and three territories had completed the third and final reading and granted royal assent to their respective cannabis legislation. However, proclamation, the coming into force stage, is required to follow the proclamation date of the federal legislation — October 17, 2018.

Each province and territory is responsible for creating the regulatory framework for its:

• Age limit

• Business licenses

• Education

• Home cultivation

• Impaired-driving legislation

• Personal possession limits

• Tools for law enforcement

• Public consumption

• Public health

• Regulatory compliance

• Retail locations and rules

• Retail model(s) to be utilized

• Taxation

• Wholesale distribution framework

• Workplace safety12

The provinces and territories are creating frameworks that are in addition to federal legislation and reinforce the core objectives of the federal government. The goals for legalizing, regulating and restricting access to marijuana are to:

• Keep cannabis out of the hands of Canadian youth;

• Prevent organized crime from continuing to profit from the illegal sale of cannabis;

• Protect public health through strict product safety and quality requirements;

British Columbia Alberta Saskatchewan Manitoba Ontario Quebec Nova Scotia New Brunswick

Prince Edward Island

Newfounland and Labrador

Northwest Territories Yukon Nunavut

Production

Provincial (Territorial) Regulator

BC Liquor Distribution Branch

(LDB)

Alberta Gaming and Liquor

Commission (AGLC)

Saskatchewan Liquor and Gaming Authority (SLGA)

Manitoba Liquor and Gaming

Authority (MLGA)and

MBLL

Liquor Control Board Ontario

(LCBO)

Société Québécoise du Cannabis (SQC)

Nova Scotia Liquor Corp. (NSLC) NB Liquor (NBL)

PEI Liquor Control Commission

(PLCC)

Newfoundland Labrador Liquor

Corporation (NLC)

NWT Liquor Commission

(NWTLC)

Government of Yukon

Nunavut Liquor Commission

Minimum Age 19 18 TBD TBD 19 18 19 19 19 19 19 19 19

Wholesale Government / LDB Government / AGLC Private Sector Government /

MLGAGovernment /

LCBO Government / SQC

Want to buy from NS supplier. Only 2

NS producers licensed, 0 to sell.

Organigram & Canopy to partner

with provincial government

Canada's Island Garden,

Organigram & Canopy Growth

Government / NLC Government / NWT LC

Government of Yukon

Government of Nunavut

Distribution Government / LDB Government / AGLC Private Sector Government /

MLGAGovernment /

LCBO Government / SQC Government / NSLC Crown Corp. Government /

PLCC Government / NLC Government / NWT LC

Government of Yukon

Government of Nunavut

RetailMixed

public/private model

Private Sector Private Sector60 retail permits Private Sector

40 Government / LCBO run outlets

by July 2018 & 150 by 2020

Government / SQC

Government / NSLC

Through existing NSLC stores

Government / NBL (subsidiary) to

operate 20 stores in 15 communities

Government4 retail locations

2018

Private Sectorand/or Cannabis

NL to retail in areas when there are no other alternatives

in area

Government / NWT LC - control

(may have private retail - TBD)

Government of Yukon

(cannot sell with Alcohol)

Nunavut Liquor Commission(can appoint

outside agents)Online sales first, no physical stores

in 2018

Online Sales Government / LDB* Government / AGLC*

Private Retail Companies with

StorefrontPrivate Sector Government /

LCBO Government / SQC Government / NSLC Government / NBL Government with

next day delivery NLC

Government / NWT LC - control

(may have private retail - TBD)

TBD Nunavut Liquor Commission

Retail Licensing Process

Online application portal

Online application portal

2 phased process1) Financial &

Reporting Capable2) Lottery

RFP process N/A N/A N/A N/A N/A TBD N/A N/A N/A

Provincial (Territorial) Legislation

Bill 17Bill 30Bill 31

Bill 26Bill 29Bill 6

Bill 121Bill 11Bill 25

Additional TBDBill 174 Bill 157 Bill 108 Bills 16, 17, 18, 19,

& 20Bill 29Bill 31 Bill 23 Bill 6 Bill 15 Bill 3

Additional TBD

*Provincial government will give consideration to allowing private online sales in the future

Provincial and Territorial Cannabis Frameworks

Federally regulated by Health Canada Federally regulated by Health Canada

Sources: Government of British Columbia, Government of Alberta, Government of Saskatchewan, Government of Manitoba, Government of Ontario, Government of Quebec, Government of Nova Scotia, Government of New Brunswick, Government of Prince Edward Island, Government of Newfoundland and Labrador, Government of Northwest Territories, Government of Yukon, Government of Nunavut

provincial AND TERRITORIAL cannabis frameworks

Sources: Government of British Columbia, Government of Alberta, Government of Saskatchewan, Government of Manitoba, Government of Ontario, Government of Quebec, Government of Nova Scotia, Government of New Brunswick, Government of Prince Edward Island, Government of Newfoundland and Labrador, Government of Northwest Territories, Government of Yukon, Government of Nunavut

*Provincial government will give consideration to allowing private online sales in the future.

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• Promote safety on roads, in workplaces and in public spaces; and

• Provide adults with safe access to legal cannabis.

Consultations with stakeholders and public engagement sessions have significantly enhanced proposed and approved legislation.

Municipal ResponsibilitiesIndividual municipalities are responsible for setting local bylaws, policies, rules and regulations around cannabis for:

• Business permits

• Education

• Land use/zoning laws

• Legal tools for law enforcement

• Public consumption (over and above provincial or territorial regulations)

• Retail locations and rules

• Distance setbacks from other retail-cannabis outlets to prevent clustering

• Distance setbacks from sensitive uses (i.e. liquor stores, payday loan shops, daycares, schools, playgrounds)13

Due to the large number of major municipalities in Canada, this report does not cover the specific regulations of individual municipalities. Check with your municipality for more information about cannabis legalization in your community.

E-commerceThere are concerns that e-commerce will have a disruptive effect across the entire emerging recreational-cannabis retail sector. Unlike alcohol, cannabis can easily be shipped direct to the consumer via Canada Post or an alternate courier system. According to the most current data available from Health Canada, there were 269,502 registered medical-cannabis users in Canada as of December 2017, and these individuals are already accustomed to utilizing an online system to fill their prescriptions.14

Although e-commerce is a very powerful shopping experience, it still does not take the place of a brick-and-mortar experience. There will always be a consumer group that wants to see the product, inquire about it, and enjoy the experience of shopping in person. Accordingly, those retailers that focus on enhancing the shopping experience will make that model thrive by responding directly to the needs and wants of the customer.15

In those markets where private retailers are permitted to operate, different retail models will be implemented. Over time, consumers will determine which kinds of shopping experiences will satisfy their needs. Recreational-cannabis e-commerce and in-store shopping will be hot topics over the next few years as the market seeks to fulfil consumer needs, determine the current number and mix of stores, and calculate the resulting real estate demands. Consumers will choose to utilize the experience that best suits them – be it a high-end experiential store, a low-cost convenient location, or an online-shopping transaction. Private retailers will be focusing on their niche markets, avoiding a one-size-fits-all store model in order to draw in their target demographics.

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Request for QualificationsAvison Young has developed a request-for-qualifications (RFQ)framework for landlords. By developing a tenant-selection tool, landlords will be able to navigate the process of vetting and selecting prospective recreational-cannabis retailers as tenants. Just as federal, provincial (territorial) and municipal governments all have responsibilities, landlords do, too. Landlords’ responsibilities are financial (to themselves and investors) and social (to existing tenants renting their properties and the larger communities that they serve). The legal sale of recreational cannabis will offer a new and potentially stable tenant base, but landlords must be able to select future industry champions before there is any track record to evaluate them on.

An RFQ is a screening process to determine which potential recreational-cannabis retailer is the most suitable match for a landlord’s property. A landlord would ask potential retailers to provide fulsome disclosure on all material areas of management and operations for their organizations. The responses to the RFQ will provide an overview framework of the potential retailers’ general qualifications regarding a number of factors. The different factors can be assigned weighting, or points, based on importance to the specific landlord or property. Retailers that surpass the landlord’s minimum threshold on the RFQ can be considered as possible tenants.

For prospective retailers, the RFQ framework provides guidance on what information, protocols and experience they need to have in place to be considered.

Avison Young’s RFQ framework enables landlords to examine nine areas of a prospective recreational-cannabis tenant’s operations. A landlord needs to take each of the following items into consideration when evaluating whether to bring a recreational-cannabis retailer into a property. This framework will help identify which retail tenant is the best match for the property and the landlord’s operations, and which prospective tenant offers the strongest potential for a successful business relationship.

Leadership Team

Very few people in Canada have expertise selling recreational cannabis at this time. Some U.S.-based groups have come to Canada and partnered with Canadian businesses or individuals, sharing what has already been learned in the select U.S. jurisdictions that do permit recreational-cannabis sales.A strong prospective recreational-cannabis retail tenant should be able to provide an overview of the following aspects of its operations:

• Members of the leadership team

• Provide a brief bio for each.

• Corporate governance

• The mechanisms, processes and relations by which the company is administered and directed.

• Retail experience and diversity of expertise

• What retail operations experience does the company have?

• While a potential retailer may not have direct recreational-cannabis retail experience, many business models have transferrable skills (e.g. liquor stores, pharmaceuticals, tobacco, high-end jewelry).

• Industry knowledge

• Is the retailer aware of the current legislation and policy relevant to the Canadian retail-cannabis industry?

• Familiarity or established relationships with companies and individuals across the spectrum of the Canadian cannabis industry (producers, processors, distributors, complementary service providers, other retail tenants).

Hiring/Training Process In order to prevent criminal organizations from operating, associating or having a financial interest in recreational-cannabis retail sales, a series of background checks will be required for the retail-cannabis firm’s directors, shareholders and key employees. The company should provide an overview of its policies and requirements for:

• Employee screening

• Will background checks required by licensing bodies be included, or will a higher standard be implemented?

• Training

• What training will be provided to staff on an initial and ongoing basis?

• Oversight

• What supervision of staff and operations will be in place?

Ongoing Oversight

A robust system of oversight, which provides structural checks and balances, is a crucial element for all companies. As experience is gained, laws governing the emerging retail-cannabis sector will continue to evolve. Potential recreational-cannabis retailers will need to provide responses to these questions:

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• How will increased knowledge and information be applied to the company going forward?

• How frequently will a prospective tenant’s training, procedures and corporate policy be reviewed to ensure that standards of quality and safety are ensured and the most up-to-date regulations are being followed?

Standard Operating Procedures/

Operating Plan

Cannabis store employees will need to carry out standard operations and handle unusual, but foreseeable, scenarios. Therefore, a set of step-by-step instructions that comply with a corporate manual, or plan, will be beneficial. A prospective retail-cannabis tenant should be able to provide details on these questions:

• How do the three core objectives of the federal government apply to the company’s operations?

• Is the company in compliance with all federal, provincial (territorial) and municipal government regulations?

• What is the daily business routine? Describe routine business operations.

• Describe a typical transaction.

• What emergency protocols are in place?

• How will the company achieve efficiency, quality, and consistency of performance while reducing miscommunication and ensuring ongoing compliance with regulations?

• Is the company able to accommodate some specific needs of the landlord or other tenants (e.g. hours of operation, esthetics, colours or styling utilized)?

Security & Product Tracking

Corporate security and product-tracking systems prevent theft, damage, and other threats. An overview of the cannabis company’s systems and loss-prevention protocols should be detailed and answer these questions:

• What inventory-monitoring and tracking systems will be utilized?

• Vaulting

• Will there be a secure shipping and receiving area included?

• How will product be stored on site?

• How much product will be on site?

• What kind of point-of-sale (POS) system will be utilized?

• What record-keeping method will be in place in order to comply with Health Canada’s seed-to-sale tracking requirements?

• What type of surveillance and alarm system will be in place?

• Information technology (IT)

• What systems will be in place?

• How will the IT systems be monitored and maintained?

• How will staff be trained initially and on an ongoing basis in regard to security?

Store Appearance

A store’s physical appearance matters. Each different retail model will find success based on how well it fits into different locations and shopping centre types. Shoppers will have different expectations of their desired retail experiences. It is critical to have a clear vision of what type of retail experience a potential recreational-cannabis store will provide.

Therefore, a key question will be: How does this retailer align with the shopping centre image that the landlord is projecting to shoppers?

Other questions related to a cannabis store’s appearance include:

• How would this retailer integrate with current tenants?

• Would this retail operation enhance the current tenant mix?

• What will the store’s exterior look like?

• What will the store’s interior look like?

• How will product be displayed and what security protocols will be followed?

• Is the store looking to provide a more experiential or low-cost model?

• What is the target audience for the store?

Current Funding

Given that the legal retail sale of recreational cannabis has not existed previously, there could be uncertainty around where the startup capital for this industry is coming from. Therefore, the landlord should ask:

• What is the current financial capability of the company?

• How long will the company be viable based on its current capital position?

• How are upfront and capital costs financed?

• How does this retail operation plan to cover operating expenses for the first year?

• What is the long-term viability of the company?

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Marketing, Sales, Working Capital Plan

The marketing and sales plan should provide a clear direction to the long-term viability of the business. At startup, there will be material capital outlays for inventory and associated working capital. Working capital is calculated as the difference between a company’s current assets and current liabilities. Businesses should be able to demonstrate viability from initial startup through a store sale and marketing plan outlining key items, including:

• Who is the target market and how is the vendor accessing them?

• What is the marketing budget? (Every store is a startup)

• How does the sales plan support the viability of the business?

• What is the company's financial backing?

• What financial arrangements does the company have in place or expect to have in place?

BU

SIN

ESS

PLA

N

REQUEST FOR QUALIFICATIONS (RFQ) INFORMATION REQUEST CATEGORIES

H u m a nR e s o u r c e s

LeadershipTeam

OngoingOversight

StandardOperating

Procedures/Operating

Plan

StoreAppearance

CurrentFunding

Hiring/Training Process

Security & Product Tracking

Marketing, Sales &

Working Capital

Financing & Future

Arrangements

O p e ra t i o n s

Fi n a n c i a l

• What is the plan should banks or other providers not extend financing on inventory?

• What is the detailed cashflow management plan?

Financing and Future Arrangements

The prospective tenant’s ability to provide a long-term company financial plan is vital. Therefore, the landlord should ask:

• Is this a corporate or franchise store?

• If this is a franchise model, what are the ongoing franchise fees?

• What is the company's growth plan? Where is capital for growth coming from (debt, equity, other)?

• What are the ongoing capital expenditures (CAPEX) and operating expenditures (OPEX)?

• Who are the long-term financial partners?

• Are there letters of commitment or comfort letters?

• Can the tenant provide understandable details about ongoing performance (forecasted and realized economics)?

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ConclusionThe rapid emergence of the new recreational-cannabis industry in Canada is providing ample opportunity for business creation and growth. As the legal retail sale of recreational cannabis becomes a reality, landlords are endeavouring to determine whether this new line of retailers is a good fit for their properties – and who among the prospective tenants are the best options. Finalized federal, provincial (territorial) and municipal frameworks, legislation and rules are not yet in place, posing unique challenges to the set-up process of new businesses. The legal sale of recreational-cannabis, across Canada, will commence on October 17, 2018. Given that most landlords have already made decisions about retail-cannabis tenants with limited and imperfect information, the market will rebalance as the industry matures. A detailed RFQ process will enable landlords to weigh prospective retail-cannabis tenants against a ranked list of criteria important to properties and their owners.*

*While all efforts have been made to include the most current information and regulations available as of the publication date of this report, some aspects of this legislative framework may have changed as legislation is still being considered. Please check all relevant federal, provincial (territorial) and municipal regulations for the most current information.

Going GlobalThe world is watching how legal recreational-cannabis use evolves. Canada is now the first G20 country to fully legalize cannabis for recreational consumption at a national level.16

The success of various government decisions, frameworks and legislation will be judged on a global stage. As Canada moves closer to legalization, its reputation as a global leader in the cannabis industry is being solidified.17 This is an unprecedented opportunity for the country to be the global leader in the cannabis industry.

The 12-to-24-month period following the rollout of legal recreational cannabis will allow Canada to shape regulatory frameworks for cannabis around the world and to spur innovation and economic productivity. Canada can be the model for recreational-cannabis regulation and implementation globally. Because both public and private models are being implemented, Canadians will be able to witness and compare the effectiveness and reception of each system. There is also potential to open up sale and distribution to international markets, as other countries considering legalization are not as well-developed in terms of production or distribution.

Cannabis has the potential to become a substantial Canadian export. Diversification and growth of creative, knowledge-based industries are critical to Canada’s future. International cannabis business growth, worldwide sales and distribution of product, and global consulting based on our knowledge and experience could provide an economic boon.

As Canada becomes a world leader in recreational-cannabis legalization, the country’s real estate sector has an opportunity to stand out globally for the way it expands the retail-cannabis property sector.

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Endnotes1. Canada. Statistics Canada. Table 18-10-0211-01. Cannabis consumer prices. Last modified June 21, 2018. Accessed: June 21, 2018. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810021101

2. Canada. Parliament. House of Commons. Bill C-45: An Act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts. 42nd Parliament, 1st Session. November 27, 2017. Ottawa: 2017. Assented to June 21, 2018. Accessed: June 12, 2018. Retrieved from: http://www.parl.ca/DocumentViewer/en/42-1/bill/C-45/third-reading

3. Canada. Parliament. House of Commons. Bill C-46: An Act to amend the Criminal Code (offences relating to conveyances) and to make consequential amendments to other Acts. 42nd Parliament, 1st Session. October 31, 2017. Ottawa: 2017. Accessed: June 12, 2018. Retrieved from: http://www.parl.ca/DocumentViewer/en/42-1/bill/C-46/third-reading

4. “Introduction of the Cannabis Act: Questions and Answers.” Canada. Health Canada. March 9, 2018. Web. Accessed: May 3, 2018. Retrieved from: https://www.canada.ca/en/services/health/campaigns/introduction-cannabis-act-questions-answers.html

5. “Cannabis in Canada” [online database]. Canada. Health Canada. May 16, 2018. Web. Accessed: May 29, 2018. Retrieved from: https://www.canada.ca/en/services/health/campaigns/cannabis.html

6. Kirsten Weisenburger. “Oh, Cannabis! The marijuana cans and can’ts in countries around the world.” C2 Montreal. February 26, 2018. Web. Accessed: April 26, 2018. Retrieved from: https://www.c2montreal.com/post/o-cannabis/

7. “Legalizing and strictly regulating cannabis: the facts.” Canada. Health Canada. Government of Canada, March 13, 2018. Web. Accessed: May 4, 2018. Retrieved from: https://www.canada.ca/en/services/health/campaigns/legalizing-strictly-regulating-cannabis-facts.html

8. “Introduction of the Cannabis Act: Questions and Answers.” Canada. Health Canada. Government of Canada, March 9, 2018. Web. Accessed: May 3, 2018. Retrieved from: https://www.canada.ca/en/services/health/campaigns/introduction-cannabis-act-questions-answers.html

9. Canada. Senate. Order Paper and Notices. 42nd Parliament, 1st Session. Volume 150, Issue 217 (June 7, 2018) Accessed: June 12, 2018. Retrieved from: https://sencanada.ca/en/content/sen/chamber/421/debates/217db_2018-06-07-e?language=e

10. “The Cannabis Act in the Senate.” Canada. Parliament. Senate. Web. Modified June 21, 2018. Accessed: June 21, 2018. Retrieved from: https://sencanada.ca/en/sencaplus/news/cannabis-act/

11. Monique Scotti. “Marijuana to be legal in Canada starting October 17, Trudeau confirms” Global News. Corus Entertainment Inc. June 20, 2018. Web. Accessed: June 20, 2018. Retrieved from: https://globalnews.ca/news/4285946/marijuana-legal-date-october-17-canada-trudeau-confirms/?utm_source=notification/

12. “Introduction of the Cannabis Act: Questions and Answers.” Canada. Health Canada. March 9, 2018. Web. Accessed: May 3, 2018. Retrieved from: https://www.canada.ca/en/services/health/campaigns/introduction-cannabis-act-questions-answers.html

13. Ibid.

14. “Market Data” [online database]. Canada. Health Canada. Last modified June 21, 2018. Web. Accessed: June 21, 2018. Retrieved from: https://www.canada.ca/en/health-canada/services/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html

15. Maria Sicola. “The Rise of Experiential Retail.” Development Magazine. NAIOP, Summer 2016. Web. Accessed: May 29, 2018. Retrieved from: https://www.naiop.org/en/Magazine/2016/Summer-2016/Business-Trends/The-Rise-of-Experiential-Retail.aspx

16. Weisenburger.

17. Maricann Group. “Canada’s ‘world-class template’ has set the stage for European countries.” [Advertisement] Financial Post. April 18, 2018. Web. Accessed April 26, 2018. Retrieved from: http://business.financialpost.com/sponsored/business-sponsored/canadas-world-class-template-has-set-the-stage-for-european-countries

Statistics Canada advises that it collects cannabis price information from licensed producers but cannot directly collect prices from unlicensed ones. Prices listed in this report and table cited here were obtained by Statistics Canada from various websites where individuals were asked to anonymously report the price they paid for their latest purchase of cannabis.

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“Alberta cannabis framework and legislation” [online database]. In Alberta’s approach to cannabis legalization. Alberta. Accessed: April 20, 2018. Web. Retrieved from: https://www.alberta.ca/cannabis-framework.aspx

The Alberta Gazette. Part I. Vol. 114, No. 06 (March 31, 2018). Accessed: May 7, 2018. Retrieved from: http://www.qp.alberta.ca/1266.cfm?page=2017ch26_unpr.cfm&leg_type=Acts&isbncln=9780779802272

Alberta. Legislature. Bill 26: An Act to Control and Regulate Cannabis. 29th Legislature, 3rd Session. No. 66. Edmonton: Queen’s Printer, 2017. Assented to December 15, 2017. Accessed: May 7, 2018. Retrieved from: http://www.qp.alberta.ca/1266.cfm?page=2017ch21_unpr.cfm&leg_type=Acts&isbncln=9780779800407

Alberta. Legislature. Bill 6: Gaming and Liquor Statutes Amendment Act, 2018. 29th Legislature, 4th Session. No. 67. (April 9, 2018). Edmonton: Alberta Queen’s Printer, 2018. Assented to June 11, 2018. Accessed: June 21, 2018. Retrieved from: http://www.assembly.ab.ca/ISYS/LADDAR_files/docs/bills/bill/legislature_29/session_4/20180308_bill-006.pdf

British Columbia. Cannabis Retail Licensing Guide Applications and Operations. Victoria: February 5, 2018. Accessed April 24, 2018. Retrieved from: https://news.gov.bc.ca/files/Cannabis_Private_Retail_Licensing_Guide.pdf

British Columbia. Legislature. Bill 17: Motor Vehicle Amendment Act, 2018. 41st Parliament, 3rd Session. Victoria: B.C. Queen’s Printer, 2018. Assented to May 17, 2018. Accessed: June 7, 2018. Retrieved from: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/3rd-session/bills/third-reading/gov17-3

British Columbia. Legislature. Bill 30: Cannabis Control and Licensing Act. 41st Parliament, 3rd Session. (April 26, 2018). Victoria: B.C. Queen’s Printer, 2018. Assented to May 17, 2018. Accessed: June 7, 2018. Retrieved from: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/3rd-session/bills/progress-of-bills

British Columbia. Legislature. Bill 31: Cannabis Distribution Act. 41st Parliament, 3rd Session. (April 26, 2018). Victoria: B.C. Queen’s Printer, 2018. Assented to: Accessed: June 7, 2018. Retrieved from: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/3rd-session/bills/third-reading/gov31-3

“Cannabis [online database].” Northwest Territories. Executive and Indigenous Affairs. Accessed: April 23, 2018. Web. Retrieved from: https://www.eia.gov.nt.ca/en/cannabis-legislation

“Cannabis” [online database]. Nunavut. Accessed: April 23, 2018. Web. Retrieved from: https://www.gov.nu.ca/finance/information/cannabis

“Cannabis” [online database]. Prince Edward Island. Department of Finance. Accessed: April 23, 2018. Web. Retrieved from: https://www.princeedwardisland.ca/en/topic/cannabis

“Cannabis” [online database].” British Columbia. Ministry of Public Safety & Solicitor General. Accessed: April 26, 2018. Web. Retrieved from: https://www2.gov.bc.ca/gov/content/safety/public-safety/cannabis

“Cannabis and the LGA.” Manitoba. Liquor and Gaming Authority of Manitoba. Web. Accessed: April 23, 2018. Retrieved from: http://lgamanitoba.ca/cannabis-and-the-lga/

“Cannabis in Saskatchewan” [online database]. Saskatchewan. Accessed: April 23, 2018. Web. Retrieved from: https://www.saskatchewan.ca/government/cannabis-in-saskatchewan

“Cannabis legalization” [online database]. Nova Scotia. Accessed: April 23, 2018. Web. Retrieved from: https://novascotia.ca/cannabis/

“Cannabis legalization” [online database]. Ontario. Ministry of the Attorney General. Accessed: April 23, 2018. Web. Retrieved from: https://www.ontario.ca/page/cannabis-legalization

“Cannabis legalization in Yukon” [online database]. Yukon. Department of Health and Social Services. Accessed: May 17, 2018. Web. Retrieved from: http://www.hss.gov.yk.ca/cannabis/

“Cannabis Newfoundland Labrador.” [online database]. Newfoundland Labrador Liquor Corporation. Cannabis NL. Accessed: April 23, 2018. Web. Retrieved from: http://www.shopcannabisnl.com/

Canada. Health Canada. Proposed approach to the regulation of cannabis: Summary of comments received during the public consultation. Ottawa: March 19, 2018. Accessed: April 24, 2018. Retrieved from: https://www.canada.ca/content/dam/hc-sc/documents/services/publications/drugs-health-products/summary-comments-public-consultation-regulation-cannabis/summary-comments-public-consultation-regulation-cannabis.pdf

Canada. Parliament. House of Commons. Bill C-45: An Act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts. 42nd Parliament, 1st Session. November 27, 2017. Ottawa: 2017. Assented to June 21, 2018. Accessed: June 12, 2018. Retrieved from: http://www.parl.ca/DocumentViewer/en/42-1/bill/C-45/third-reading

Canada. Parliament. House of Commons. Bill C-46: An Act to amend the Criminal Code (offences relating to conveyances) and to make consequential amendments to other Acts. 42nd Parliament, 1st Session. October 31, 2017. Ottawa: 2017. Accessed: June 12, 2018. Retrieved from: http://www.parl.ca/DocumentViewer/en/42-1/bill/C-46/third-reading

Manitoba. Legislature. Bill 11: The Safe and Responsible Retailing of Cannabis Act. 41st Legislature, 3rd Session. No. 66. Winnipeg: Queen’s Printer, 2018. Assented to June 4, 2018. Accessed: June 7, 2018. Retrieved from: http://web2.gov.mb.ca/bills/41-3/b011e.php

Bibliography

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An Avison Young Topical Report

Manitoba. Legislature. Bill 25: The Cannabis Harm Prevention Act. 41st Legislature, 2nd Session. No. 66. Winnipeg: Queen’s Printer, 2017. Assented to June 4, 2017. Accessed: June 7, 2018. Retrieved from: http://web2.gov.mb.ca/bills/41-2/b025e.php

Navigator. “Cannabis in Canada.” February 2017. Accessed: April 24, 2018. Retrieved from: https://www.navltd.com/wp-content/uploads/2017/02/Cannabis-in-Canada_02_2017.pdf

Navigator. Cannabis in Canada. March 2018. Accessed: April 24, 2018. Retrieved from: http://www.navltd.com/wp-content/uploads/2018/03/Cannabis-In-Canada_03_2018.pdf

New Brunswick. Legislature. Bill 16: Cannabis Control Act. 58th Legislature, 4th Session. Fredericton: New Brunswick Queen’s Printer, 2018. Assented to March 16, 2018. Accessed: June 21, 2018.Retrieved from: http://www.gnb.ca/legis/bill/pdf/58/4/Bill-16.pdf

New Brunswick. Legislature. Bill 17: Cannabis Management Corporation Act. 58th Legislature, 4th Session. Fredericton: New Brunswick Queen’s Printer, 2018. Assented to March 16, 2018. Accessed: June 21, 2018. Retrieved from: http://www.gnb.ca/legis/bill/pdf/58/4/Bill-17.pdf

New Brunswick. Legislature. Bill 18: Cannabis Education and Awareness Fund Act. 58th Legislature, 4th Session. Fredericton: New Brunswick Queen’s Printer, 2018. Assented to March 16, 2018. Accessed: June 21, 2018. Retrieved from: http://www.gnb.ca/legis/bill/pdf/58/4/Bill-18.pdf

New Brunswick. Legislature. Bill 19: An Act to Amend the Motor Vehicle Act. 58th Legislature, 4th Session. Fredericton: New Brunswick Queen’s Printer, 2017. Assented to December 20, 2017. Accessed: June 21, 2018. Retrieved from: http://www.gnb.ca/legis/bill/pdf/58/4/Bill-19.pdf

New Brunswick. Legislature. Bill 20: An Act to Amend the New Brunswick Liquor Corporation Act. 58th Legislature, 4th Session. Fredericton: New Brunswick Queen’s Printer, 2018. Assented to March 16, 2018. Accessed: June 21, 2018. Retrieved from: http://www.gnb.ca/legis/bill/pdf/58/4/Bill-20.pdf

Newfoundland and Labrador. Communications and Public Engagement Branch. Public Engagement Division. Legalization of Cannabis: Report on public and stakeholder engagement. 2017. Accessed: April 24, 2018. Retrieved from: http://www.justice.gov.nl.ca/just/publications/Legalization_Cannabis_Report_Public_Stakeholder_Engagement.pdf

Newfoundland and Labrador. House of Assembly. Bill 23: An Act to Amend the Liquor Corporation Act. 48th General Assembly, 2nd Session. St. John’s: Newfoundland and Labrador Queen’s Printer, 2017. Assented to December 7, 2017. Accessed: June 21, 2018. Retrieved from: http://www.assembly.nl.ca/HouseBusiness/Bills/ga48session2/bill1723.htm

Northwest Territories. Legislature. Bill 6: Cannabis Legalization and Regulation Implementation Act. 18th Legislative Assembly, 3rd Session. (February 28, 2018). Yellowknife: Northwest Territories Queen’s Printer, 2018. (Reprint. No. 2.) Assented to June 1, 2018. Accessed: June 21, 2018. Retrieved from http://www.assembly.gov.nt.ca/sites/default/files/reprint_2_-_bill_6_-_cannabis.pdf

Nova Scotia. Legislature. Bill 108: Cannabis Control Act. 63rd Assembly, 1st Session. Halifax: Nova Scotia Queen’s Printer, 2018. Assented to April 18, 2018. Accessed: June 21, 2018. Retrieved from: https://nslegislature.ca/legc/bills/63rd_1st/1st_read/b108.htm

Nunavut. Legislature. Bill 3: Cannabis Statutes Amendment Act. 5th Legislature, 2nd Session. (March 20, 2018). Iqaluit: Nunavut Queen’s Printer, 2018. Assented to: June 13, 2018. Accessed: April 24, 2018. Retrieved from: http://www.assembly.nu.ca/sites/default/files/Bill-3-Cannabis-Statutes-Amendment-Act-EN-FR.pdf

Ontario. Legislature. Bill 174: Cannabis, Smoke-Free Ontario and Road Safety Statute Law Amendment Act, 2017. 41st Legislature, 2nd Session. No. 66. Toronto: Ontario Queen’s Printer, 2017. Assented to December 12, 2017. Accessed: April 24, 2018. Retrieved from: http://www.ola.org/sites/default/files/node-files/bill/document/pdf/2017/2017-12/bill---text-41-2-en-b174ra_e.pdf

Prince Edward Island. Legislature. Bill 29: An Act to Respond to the Legalization of Cannabis. 65th General Assembly, 3rd Session. (April 10, 2018). Charlottetown: Prince Edward Island Queen’s Printer, 2018. Assented to June 12, 2018. Accessed: June 21, 2018. Retrieved from: http://www.assembly.pe.ca/bills/pdf_chapter/65/3/chapter-20.pdf

Prince Edward Island. Legislature. Bill 31: Cannabis Taxation Agreement Act. 65th General Assembly, 3rd Session. (April 20, 2018). Charlottetown: Queen’s Printer, 2018. Assented to June 12, 2018. Accessed: June 21, 2018. Retrieved from: http://www.assembly.pe.ca/bills/pdf_chapter/65/3/chapter-23.pdf

PWC. Navigating risks on the road to cannabis legalization. PWC, September 19, 2017. Accessed: April 20, 2018. Retrieved from: https://www.pwc.com/ca/en/risk-opportunity/publications/navigating-risks-on-the-road-to-cannabis-legalization.pdf

Québec. Legislature. Bill 157: An Act to constitute the Société québécoise du cannabis, to enact the Cannabis Regulation Act and to amend various highway safety-related provisions. 41st Legislature, 1st Session. Québec City: Légis Québec, 2017. Assented to June 12, 2018. Accessed: June 12, 2018. Retrieved from: http://www.assnat.qc.ca/en/travaux-parlementaires/projets-loi/projet-loi-157-41-1.html

“Regulation of cannabis in Quebec” [online database]. Quebec. Accessed: April 23, 2018. Web. Retrieved from: https://encadrementcannabis.gouv.qc.ca/en/

“Saskatchewan’s cannabis framework: framework and survey results.” Saskatchewan. March 13, 2018. Accessed: April 24, 2018. Retrieved from: http://publications.gov.sk.ca/documents/13/106026-SK-Cannabis-Framework.pdf

Saskatchewan. Legislature. Bill 121: An Act to Control the Sale, Possession, Consumption, Distribution and Transportation of Cannabis and to Make Consequential Amendments to Other Acts. 28th Legislature, 2nd Session. Regina: Saskatchewan Queen’s Printer, 2018. Assented to May 30, 2018. Accessed: June 7, 2018. Retrieved from: http://www.legassembly.sk.ca/legislative-business/bills/

Yukon. Legislature. Bill 15: Cannabis Control and Regulation Act., 34th Legislature, 2nd Session. Whitehorse: Yukon Queen’s Printer, 2018. Assented to April 24, 2018. Accessed: May 7, 2018. Retrieved from: http://www.legassembly.gov.yk.ca/house/pob.html

© 2018 Avison Young Real Estate Alberta Inc. All rights reserved. E. & O.E.: The information contained herein was obtained from sources that we deem reliable and, while thought to be correct, is not guaranteed by Avison Young (Canada) Inc.

This report does not constitute legal, tax or investment advice and readers should consult their own advisors.

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