Ontario Cannabis Lottery Results: 25 Licenses Launched From Nearly 17,000 Applications

Ontario Cannabis Lottery Results: 25 Licenses Granted From Nearly 17,000 Software

This was apparently the specific time on Friday the Alcohol and Gaming Commission of Ontario selected 25 lucky applicants throughout the state through an Expression of Interest choice lottery, as well as a further set of waiting lists for the East, West, GTA, Toronto, and North areas of the state that applicants could apply for.

Applicants wouldn’t know this, as they were left in the dark as to when the lottery was being held. Front-line employees answering the organization’s phone lines probably did not know : I called at 4 p.m. to find out if they could give some insight to when the draw was being held, along with the representative didn’t know what to tell me.

But then just a few hours later, at precisely 7 p.m., the AGCO tweeted out a link to the results of the lottery.

And the results were intriguing: there were 16,905 valid applications, which at $75 a pop appears to have grossed the AGCO just over $1.25 million dollars in program fees. Many of the applicants filed for more than 1 of the 5 permitted Ontario regions. In line with the agency, a whole 64% of applicants were sole proprietorships. A further 33% of the applicants were corporations, 3% were partnerships, and 1% applied as a limited partnership (we know, we know, that adds up to 101%)

Unsurprisingly, a large majority of those selected applicants were sole proprietorships. A handful of the selected applicants appeared to be registered corporations, and at least 2 appear to be partnerships.

Lawyer Trina Fraser pointed out at a tweet Friday night some of the dangers that the many sole proprietorships will face ahead. That includes personal assets being exposed, higher potential tax bills and restricted ability to issue funds.

Applicants that are on the selected list for each of those areas must now face a tight deadline to apply for and are expected open their shops by April 1, 2019. If they don’t, they risk having a $50,000 line of credit getting drawn from them. And that line of credit, as well as a $6,000 cheque and a completed Retail Operator License, must be filed within 5 business days of Friday.

If candidates are disqualified or otherwise can’t meet the requirements, the AGCO can then begin picking applicants who made it on to the consolation waiting list for each of the 5 areas, and invite them to apply to become among the 25 stores that can sell recreational cannabis legally in the state.

Published at Sat, 12 Jan 2019 14:06:17 +0000

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