Owner of Cannabis & Coffee suing the Ontario government for $1.1 million in damages he claims he incurred over abrupt decision to cap licenses
“We were told something by the Ford government, and then there was this complete 180 degree turn from qualified applicants to random applicants. It was kind of ridiculous,” said Chris James, owner of Cannabis & Coffee.
“The retail license lottery engaged in by the Defendants is arbitrary and thus unlawful, and has deprived the Plaintiff of a reasonable opportunity to acquire a license it has suffered tremendous financial harm preparing for the acquisition of,” the statement of claim read. James has been involved in the cannabis space for over a decade, operating an unlicensed online dispensary in Toronto called Weedora. He says that he shut down the dispensary in advance of legalization, complying with the rules laid out by both the federal government and the province in the hope that he would be able to participate in the legal market.
Now we have a crazy system where people who know nothing about the business are being the front for these giant companiesWhat ensued, in the days following the lottery, was an industry-wide scramble involving existing cannabis businesses, licensed producers, consultants and lawyers to craft deals with the 25 lottery winners that would still be in compliance of AGCO rules preventing the winners from ceding control of their business.
“Is this lottery system designed to really help small business owners, like Ford said, or is it really a front to just let big companies take over the reins of some inexperienced business owners?” asked James. “All I really want is a fair system, and not this backroom dealing we are seeing.”
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