Pubdate: Fri, 12 Aug 2016
Source: Windsor Star (CN ON)
Copyright: 2016 The Windsor Star
Contact:  http://www.canada.com/windsorstar/
Details: http://www.mapinc.org/media/501
Author: Peter Koven
Page: B8

NEW HOME-GROW POT RULES CREATE UNCERTAINTY FOR LICENSED PRODUCERS

The federal government said Thursday that it will allow medical
marijuana patients to grow their own pot, a move viewed as a band-aid
solution before broader legislation is introduced next year.

The decision creates uncertainty for Canada's licensed medical
marijuana producers, who are currently the only legal source of
medical pot. However, it is not viewed as a game-changer for them, and
some even see it as a business opportunity. Most stock prices in the
pot sector declined on Thursday, but only modestly.

Health Canada announced that beginning Aug. 24, patients will be
allowed to produce a "limited amount" of cannabis for their own
purposes, or designate someone to grow it for them.

It is highly unlikely that Ottawa wanted to go down this path, as it
will make the sector much tougher to regulate. However, it had no
choice. In February, a federal court ruled that the current medical
marijuana regulations restrict access to cannabis, and patients should
have the right to grow their own. The court gave the government six
months to adjust the rules.

"Health Canada is confident that these new regulations provide
reasonable access to cannabis for medical purposes and address the
issues identified by the federal court," Jacqueline Bogden, assistant
deputy minister for cannabis legalization and regulation, said on a
conference call.

In the spring of 2017, the federal government plans to introduce its
defining marijuana legislation, in which it wants to legalize and
control access to recreational pot. The regulations announced Thursday
provide a temporary solution for the industry until the new rules come
into place.

"I don't think (authorities) like or support this system, but they're
enduring it for the next eight or nine months," Bruce Linton, the
chief executive of medical pot producer Canopy Growth Corp., said in
an interview.

Health Canada also reiterated it is completely opposed to illegal
dispensaries, which continue to operate despite a recent police
crackdown in Toronto.

The new regulations could encourage some medical marijuana patients to
switch from the licensed producers to home growing. But Linton
predicted there would be virtually no impact on his business. He said
customers like getting a cheap, reliable product in the mail and noted
that the people who prefer home growing are probably doing it already.

"The 'grow it yourself ' thing has a historic attachment to a smallish
group," he said.

Regardless, the pot companies are already looking at ways to take
advantage of the new rules. Canopy announced it will help customers
grow pot at company-owned facilities. Aurora Cannabis Inc. plans to
provide kits to help people grow at home.

"We've always supported home-grow," said Cam Battley, senior
vice-president at Aurora. "We're all in favour of increasing access
(to medical marijuana)."
- ---
MAP posted-by: Matt