Ontario Cracks Down On Illegal Cannabis Landlords
In our latest Trade To Black presented by Flowhub, hosts Shadd Dales and Anthony Varrell cover two stories that highlight the cannabis industry facing big changes. Omar Khan Chief Communications & Public Affairs Officer from High Tide (NASDAQ: HITI) joins the show to discuss discuss Ontario rules that now hold landlords accountable if they knowingly lease commercial properties to illegal cannabis operators. Then, in our weekly Vantage Standard segment presented by Vantage, attorney John Malone from J. Malone PC joins the show to talk about what happens after cannabis rescheduling.
In the headlines: Dr. Bertha Madras has been pushing back on social media over how her courtroom comments were characterized. Dales and Varrell disagreed with her framing, and they’ll explain why.
In segment one, Omar Khan from High Tide walks us through the Ontario government’s changes to landlords leasing to illegal cannabis operators. Khan clarifies that the $250,000 fine for cannabis landlords isn’t new — it has existed since 2018 — but the July 1 change creates an administrative mechanism letting police issue those fines without a court order. Ontario’s illicit market is still around 20-30% of total sales (though that’s down from roughly 80% at legalization). A British Columbia-style Community Safety Unit that could give regulators direct enforcement power against illicit dispensaries, something Ontario currently lacks.
Malone discusses 280E tax relief with the team, the murky overlap between new DEA registration requirements and existing state license systems, and the risk that dispensaries could lose access to suppliers who aren’t DEA-registered. He also discusses why flower is unlikely to ever meet FDA pharmaceutical standards. Extracts and formulated cannabinoids, he argues, are a more realistic path. California’s built-in cultivation will have an advantage if interstate commerce opens up, and the lengthy EU-GMP certification process facing companies eyeing export markets.
As the industry prepares for potential federal changes, one question continues to surface: is the regulatory framework ready for what comes next? Hear their full conversation.
