The Wild Rose Country has only received about 20 per cent of the cannabis it ordered because there seems to be a shortage of the herb. Since the legalization of marijuana on Oct. 17, many entrepreneurs have been wanting to get on the bandwagon to set up cannabis shops. But Alberta has put a stop to issuing store licences because there's nothing to sell, which is affecting commercial real estate transactions.
Cannabis sales are overseen in the province by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). The shortage is so profound, that the AGLC is going to be refunding the money to those who have paid for their licences and who are waiting in line for the green light to open up shop. Meanwhile, residents can still purchase product on line.
Alberta is not the only province in this predicament. Many other provinces like British Columbia and Ontario are experiencing similar shortages, which is driving up the prices for cannabis. Canopy Growth Corp., another licenced producer, said it is in touch with the provinces and territories with which it has partnerships and is working to meet the demand, while Aurora said it was able to fulfill most of its orders.
There are many issues that can affect real estate transactions in Alberta. Supply and demand has a definite effect on commercial and business real estate. When the waters look murky and there may be concerns over contractual obligations that could be unfulfilled in the case of leasing shops with no product with which to open them, consulting an experienced lawyer may be the first order or business.