New pot regulations big benefit to local Sask. companies without a licence

Regina-based PrairieCann applied for licences all over Saskatchewan before recreational marijuana was legalized in October 2018. The organization was one of 1,500 applicants, but wasn't awarded one of the 51 available permits in the provincial lottery. 

The provincial government announced Tuesday that it was scrapping both the lottery system and the cap on the number of stores.

Applications for new stores will be accepted starting September next year, and PrairieCann's Jason Drummond will be one of the applicants.

"I thought it was actually pretty good news," he said.

"Just hearing that they're going to open it up and let everybody compete for their business and market share, I thought it was the right way to go."

'We'll make the most of it'

Drummond says he still wishes the lottery had worked out in PrairieCann's favour. It will cost less to apply this time around, but that isn't much benefit.

"Of course we would choose to be a lottery winner because those groups were afforded a couple of years to operate with limited competition," he said.

Missing out on the initial high value of stores was a missed opportunity for PrairieCann, which plans to eventually own shops in Regina and Saskatoon.

But, Drummond says, "we'll make the most of it."

He believes PrairieCann has a leg up in some ways. For one, they're local.

I don't think we're going to try to toss up 10 stores and hope somebody buys us out.- PrairieCann's Jason Drummond on future plans  in the face of changing regulations

"I think we're going to tailor to what we think our staff and our customers are going to want and so we think we'll be different," he said.

The next order of business for PrairieCann is planning and strategy. The application process is still 10 months away.

"I don't think we're going to try to toss up 10 stores and hope somebody buys us out. We want to have good quality stores with good quality people operating them."

Making legal pot attractive

Fire and Flower is big and powerful compared to the more locally focused PrairieCann. 

The company spent millions to acquire permits and stores, and bought four Jimmy's Cannabis stores in Saskatchewan. Fire and Flower now operates seven stores in the province.

The company's vice-president of product development and retail experience welcomes the possibility of a more even playing field.

"It's going to be a great opportunity for a lot of entrepreneurs in various communities who are passionate about cannabis to get into the space and, for us, we're definitely looking forward to this."

He sees the move as a possible step toward eliminating the black market.

"We've only really scratched the surface. Only 20 per cent of consumers are purchasing from the legal market. That's up to us and we have to take that on."

Watson thinks there will be an increased availability of "value priced " cannabis in addition to more expensive premium products.

"This is a really positive direction and we really hope that other provinces think about this as they're reviewing other regulations," he said.