As COVID-stricken provinces decided how much business to shut down, cannabis emerged as an essential item for which demand appears stable.
Globe and Mail, Bloomberg

Ontario, where 142 of 337 LPs are located, included REC retail and cannabis producers among its (long) list of essential services exempt from a provincial 14-day shutdown order. (The province is also temporarily loosening laws to support alcohol providers.)
MJ Biz Daily, BNN Bloomberg, the Star

• Lawyer Trina Fraser said the breadth of activities named "essential" in Ontario indicates the province expects it will be locked down a great deal longer than its initially stated 14 days.
  Twitter--@TrinaFraser
• Meanwhile, as demand has surged, the Ontario Cannabis Store is approaching its annual inventory review, and warned consumers orders received between Sunday and Wednesday of this week to expect delays.
  OCS

Quebec also designated alcohol, REC retail, and cannabis production  "priority enterprises" and kept stores open--though the province will begin closing many essential stores on Sundays for cleaning and to give staff a break.
MJ Biz Daily, CTV News

• The SQDC (as well as the SAQ) asked consumers to shop online when possible and respect physical distancing when shopping in physical stores.
  Global News
• The provincial agency plans to go ahead with its plans to open two new stores next week.

Cannabis was named an essential service in BC, in Alberta, in Manitoba. No provinces or territories have shut down REC retail due to COVID.
MJ Biz Daily

https://twitter.com/BuzzDankyear/status/1243579584995397632

In a sector already shaken by hundreds of layoffs, the COVID crisis has only exaccerbated the situation. In response, representatives from 74 regulated companies (LPs and REC retailers) signed a letter to finance minister Bill Morneau and industry minister Navdeep Bains calling for access to federal wage subsidies available to non-cannabis businesses through the Business Development Bank of Canada (BDC) and Export Development Canada.
Huffington Post, Twitter--@Ottawa_Cameron, BNN Bloomberg

• BDC assistant vice-president Shawn Salewski responded by reiterating $95B in loans, tax deferrals, and wage subsidies would only be open to "businesses that qualified for BDC financing prior to the downturn."
  Globe and Mail
• These do not include, per the BDC website, "businesses that are [...] inconsistent with generally accepted community standards of conduct and propriety."
• Businesses must also be at least two years old to qualify for BDC funding.

Response to the dismissal was swift and shocked.

• Tantalus Labs CEO Dan Sutton warned the BDC's intransigence risked creating supply shortages so massive they'll "take years to build back," and Organigram VP public affairs Cameron Bishop publicly shamed the bank.
  Twitter--@DSutton1986, @Ottawa_Cameron
  
• Eve & Co VP government relations Ivan Ross Vrána wondered how an industry declared an essential service by all provinces could be ineligible for federal stimulus.
  Twitter--@IvanRossVrana

https://twitter.com/CCC_Cannabis/status/1244599148516687872

The Canadian Chamber of Commerce's National Cannabis Working Group noted that stimulus funding was announced "nearly three weeks ago," and to date the BDC has answered calls from the sector by repeating that it was "exploring broadening our support" without doing anything more.
Twitter--@CCC_Cannabis

The rejection sparked the creation of Legal Tender, a new lobby group of industry figures, associations, and companies advocating "for equitable treatment by the Business Development Bank of Canada (BDC) and federal government."

• Legal Tender's first act was to launch a petition calling for equitable access to federal banking funds for the cannabis industry.
  Change.org

Outside the sector, Scott Reid, speechwriter to former prime minister Jean Chrétien--called for reevaluation of BDC eligibility criteria, if not a shift in policy.
Twitter--@_scottreid

On Monday evening, prime minister Justin Trudeau appeared to answer the appeals of industry when he announced the expansion of the initial COVID wage-subsidy program to all businesses large and small who've lost significant revenue due to COVID.
The Star

Early industry responses indicated great relief.
Twitter--@Ottawa_Cameron

Before they were asked, some cannabis businesses sprang into action last week, providing hospitals personal protection equipment (PPE) and other materiel from their inventories that could be used to fight COVID-19. Then Health Canada asked executives from licensed parties for access to laboratory space that could help ease the enormous backlog in COVID-19 testing.
BNN Bloomberg, MJ Biz Daily

• With that, lab space normally used for testing cannabinoid potency is being shifted into the COVID effort. But how quickly? LP executives complained they had space available but couldn't figure out how to let the government know.
  CBC Toronto
• A Health Canada representative said they'd been contacted by several labs and were assessing equipment, certifications, and other capabilities.
  MJ Biz Daily

Prior to the Health Canada request, aid was piling in from a variety of industry parties.

• Canopy reported donating "thousands" of masks, gloves, and Tyvek suits from its shuttered greenhouses in BC.
  WeedWeek
• Organigram gave 500 litres of ethanol for hand-sanitizer production.
  Twitter--@organigram
• Supreme, Aurora, and Hexo each gave hundreds of N95 facemasks to health service providers in their local areas. WeedMD and Starseed gave tens of thousands of gloves and facemasks to Ontario hospitals. Other LPs told BNN Bloomberg they were tallying the materiel they had available.
  Twitter--@itsdgc, @TheSupremeFIRE, @WeedMD, BNN Bloomberg
• Highlife Cannabis REC franchise in Sudbury sourced a huge supply of toilet paper and gave it out to community members, six rolls per person.
  GrowthOp
• Tilray joined Canadians for Fair Access to Medical Marijuana, the Arthritis Society, and the Canadian AIDS Society in petitioning federal Health Minister Patty Hajdu to designate MED an essential service, in order to protect patients from mail-service
  Twitter--@tilray

The shift is happening across US industry as well, as American producers pivot to producing supplies for the pandemic. Others across the Canadian sector called on LPs that haven't yet donated to do their bit for the cause, and for those who have to keep up their work.
MJ Biz Daily, OHS Canada

Health Canada announced that in spite of the pandemic, it is continuing to review license applications as well as security clearances. The regulator (which warned last week of "limited inspections") said the processes will likely be delayed.
MJ Biz Daily

• Health Canada emailed license holders a 19-page FAQ of information about how the regulator is changing its enforcement of the Cannabis Act and regulations during the COVID crisis.
  Dropbox
• Security expert David Hyde broke down the changes in a Twitter thread summarized here. Inside the Jar also went through the changes in close detail.
  Twitter--@DavidHyde2, Inside the Jar
  
• Trina Fraser explained how halts to sales inspections will work.
  Twitter--@TrinaFraser

Though cannabis sales have been up across North America, analysts projected COVID won't change sales very much. Consumers have been buying larger formats, implying hoarding, and there's no reason to believe sales will remain this high indefinitely.
Financial Post, GrowthOp

https://twitter.com/SarahSeale18/status/1244083357807513602

Jobs don't feel stable across a sector already having a bad year.
Global News

• Last week, I lost the freelance gig I'd held for several years writing Canadian news for Leafly when that company laid off 91 employees (40% of its workforce) with one week of severance pay.
  Twitter--@badlin,
• Among that 91 was everyone I'd worked with in Canadian news. The company blamed COVID, though the layoffs follow an initial 18% cut to Leafly's workforce (54 jobs) in January.
  Business Insider, MJ Biz Daily

Are you one of those who lost work in the sector because of the pandemic? Cannabis at Work wants to help you: they've assembled a Canadian Cannabis Talent Help List to which you can add yourself if you've been laid off and are seeking new work in the sector.

Quick Hits

1. After years of demands from advocates, the COVID crisis has forced the city of Vancouver—with permission from the federal government—to introduce a safe supply of opioids, stimulants, and benzodiazepines for drug consumers on the Downtown East Side.
   Twitter--@angelasterritt, CBC Vancouver

https://twitter.com/DSutton1986/status/1243974865306054656

Last week, the Green Organic Dutchman joined several other large LPs in announcing layoffs and closure plans. In TGOD's case, they will freeze a "largely completed" 1.3M square feet greenhouse in Valleyfield, Quebec, and lay off 30 employees from a total staff of 260.
MJ Biz Daily

• The company spent $229M building the paused greenhouse facility, initially intended to produce 185,000 kg of product annurally, a number TGOD dramatically downgraded to 10,000 kg. Representatives said reaching the 185,000 kg target would require another $110M in investment.
  BNN Bloomberg
• Jeffries analyst Owen Bennett called the refusal to get the facility running "a gross misallocation of capital."

This week, Hexo finally posted its delayed Q2 earnings, including a $298.2M net loss, nearly quintupling the $62.4M net loss the company reported last quarter.
Globe Newswire, Twitter--@MJBizDailyCAN

• The company reported an impairment loss of $138.3M on the Niagara Falls production facility it acquired along with Newstrike Cannabis last May, plus an additional $111.9M goodwill writedown on reevaluated assets.
  MJ Biz Daily
• Hexo's revenues were up to $17M, from $14.5M last quarter, though MED revenue shrank 20% quarter over quarter to $695,000.
  BNN Bloomberg

BNN Bloomberg's David George-Cosh's reported seasonally adjusted cannabis industry contribution to Canada's GDP actually peaked in September (at $7.29B, up from $6.29B last February) and has been slowly declining ever since. 
Twitter--@itsdgc

CannTrust was granted protection under the Companies' Creditors Arrangement Act (CCAA), the filing of which will cause the company's stocks to be delisted from both the TSX and NYSE.
BNN Bloomberg

• Insiders wondered how the company could be eligible for the CCAA given its deliberate attempts to mislead regulators about its illegal growing practices.
  Twitter--@AaronWAnderson
• The scandal-plagued LP announced that due to COVID-19, Health Canada couldn't make its licensing inspections on CannTrust facilities.
  Newswire, MJ Biz Daily

Cronos reported Q4 2019 and full-year earnings, increasing its gross loss to USD$20.4M from (a restated) USD$14.8M last quarter. The company posted a (restated) gross loss of $17.9M for all of 2019, down from $6.2M gross profits in 2018.
MJ Biz Daily

• The report also restated financial results for the preceding three quarters.
  Twitter--@jefflagerquist
• The Cannalysts noted the company's inventory writedown eclipsed fiscal 2019 sales.
  Twitter--@thecannalysts

Organigram also reported it expected layoffs would result from the pandemic.
MJ Biz Daily

https://twitter.com/chiushley/status/1242551041473662976

The number of REC stores nationally continues to grow, reaching 840 last week. In Ontario, 50 stores will soon become 123. BC already had 175 stores with 43 more "coming soon," and of course Alberta had 433.
Twitter--@itsdgc

• The show must go on, retailers say. In spite of the pandemic, new REC stores are opening in Windsor, Ottawa, Toronto, and more. (The AGCO continues to fast-track REC store licensing in Ontario.)
  Global News, CBC Windsor, Newswire, Twitter--OCS, Twitter--@MattPMaurer

Some retailers aren't messing around with the pandemic: one store in Barrie closed temporarily to wait out COVID-19. But for those staying open, the safety of staff and customers is a key concern.
CTV News

• Some stores like Tyendinaga's Legacy 420 and Chestermere, Alberta's Lake City Cannabis are installing plexiglass dividers at counters.
  Twitter--@Legacy420Store, @LakeCityCanna
• Lawyers Torkin Manes published a roundup of different REC stores' COVID safety measures.
  Blog

New Brunswick crown REC monopoly Cannabis NB escalated from closing Sundays and reducing its hours a week and a half ago to actively screening customers for COVID-19 with questionnaires about symptoms and recent travel histories before entering stores.
Growth Op

To reduce COVID transmission, BC updated its REC retail system to allow click-and-collect, meaning customers can reserve products online or over the phone and collect them later. Products still need to be picked up in stores, however--the policy directive sent to retailers underlined the province was not going to allow REC to be sold online.
MJ Biz Daily, The Straight

• That left many wondering: what about delivery? The vast majority of Canadians cannot order legal REC for same-day delivery to their homes. Only Saskatchewan and Manitoba presently allow it, while Ontario and Quebec have been experimenting with same-day delivery programs in Toronto and Montreal. Customers and retailers want the service, and it could help with COVID.
  MJ Biz Daily, GrowthOp
• REC retailers and advocates are appealing to provincial governments to reconsider.
  Twitter--@LakeCityCanna
• In Ontario, Trina Fraser noted the ON Cannabis Retail Corporation Act, 2017 gives the government the right to introduce delivery by changing regulations, and with the OCS admitting it's overwhelmed by demand, now may be the time. The same may be true of restrictions on in-store distribution only. "Extraordinary times," Fraser said.
  Twitter--@trinafraser

Quick Hits

1. Nearly 40 Ontario government employees in the cannabis sector are on the Sunshine List of public servants who make more than $100,000 annually.
   Twitter--@itsdgc
2. WeedMD's production staff could be the first in the sector to unionize.
   London Free Press

Toronto company Cannalogue became a lightning rod for anger when it submitted an application to Health Canada to study the effects of cannabis on COVID-19, a move that appeared to some an attempt to profit from a crisis there's no suggestion cannabis can help. (The International Association of Cannabinoid Medicines issued a statement underlining the lack of evidence "that individual cannabinoids [...] or cannabis preparations protect against infection with the SARS-CoV2 or could be used to treat COVID-19.")
Twitter--RebeccaSaah, @ErinProsk, @IACM_Bulletin

https://twitter.com/ErinProsk/status/1243539908335226881

The distinction between an submission and approval didn't stop multiple news sources from reporting on the story without interviewing anyone critical of the move.
GrowthOp, Toronto Sun, Cannabis Retailer

Quick Hits

1. After years of demands from advocates, the COVID crisis has forced the city of Vancouver—with permission from the federal government—to introduce a safe supply of opioids, stimulants, and benzodiazepines for drug consumers on the Downtown East Side.
   Twitter--@angelasterritt, CBC Vancouver

The most widely shared REC product reviews are often the outliers--the hilariously (or painfully) bad reviews, or the surprisingly good ones. But most legal REC products are neither very good nor very bad. As LPs try to figure out how to continue improve product quality while staying compliant, consumers have spent the year trying to review the new array of legal products.

Brad "PancakeNap 420" Martin remains the country's foremost reviewer, with entries both on the GrowthOp and on his own website. He's been joined by other recognizeable voices like the husband-and-wife review team WhatsMyPot, and new voices like CannabisSensei.

• Last week WhatsMyPot celebrated smaller, newer reviewers in a Twitter thread. They're worth following.
  Twitter--@WhatsMyPot

Quality remains a huge variable in legal flower, but reviewers represent the front lines of documenting and improving it.

Quick Hits

1. Researchers at University of Saskatchewan's College of Agriculture mapped the cannabis genome, with an eye on making crops more resilient.
   Yorkton This Week
2. There are fewer cannabis nurseries in Canada than you'd think—at the moment, only two companies offer seeds for sale, and one company offers clones (in Newfoundland only). Though there are still fewer than ten, two new nurseries were licensed to produce plants and seeds, which may indicate a move toward providing genetics for home growers.
   Twitter--@TrinaFraser