As of September 1, 2020, Ontario cannabis retail operators are
permitted to hold up to 30 retail store authorizations
("RSAs"), permitting them to open up to
30 separate locations. The previous limit was 10 RSAs. This is
great news for retail operators that have been expanding
aggressively and had reached or were close to reaching the previous
10 RSA cap. It will allow larger brands and chain retailers to
continue their expansion and footprint in the Ontario market. This
cap will be further increased to and capped at 75 separate stores
after September 1, 2021.
In conjunction with this increase, the Alcohol and Gaming
Commission of Ontario ("AGCO") announced
yesterday that it would be doubling the rate at which it is
processing and granting RSAs, which was previously capped at 20
stores per month and has led to a huge backlog in the queue to have
the AGCO process and approve the opening of new stores.
