National Access Cannabis’ (TSXV:META) stock is on the rise following hints from Canadian coffee retailer opening cannabis shops in Ontario.
The Second Cup (TSX:SCU), which signed a partnership with the cannabis company in April, announced on Thursday (August 16) its intentions to potentially transform existing retail locations into cannabis shops under the brand name Meta Cannabis Supply.
“Second Cup has exceptional quality real estate in locations throughout Ontario and we plan to leverage this to provide safe and responsible access to legal cannabis,” Mark Goliger, CEO of National Access Cannabis said in the release.
On Monday (August 13), the Ontario progressive-conservative government announced it would be scrapping the plan to open only government-run cannabis shops following adult-use legalization and instead it would open the retail space to private companies starting in April 2019.
Amid the reactions from various members of the industry, cannabis stocks took a hit following the province’s announcement, largely attributed to the delay in retail sales until next year.
The partnership between the companies is projecting to open between 50 and 70 retail cannabis stores through 2018 in Western Canada, including Manitoba, Alberta and B.C.
The two companies will have to obtain a retail license from provincial regulators in order to alter an existing coffee shop into a cannabis store. The duo will also need approval from the landlord or each respective store.
Goliger added the companies hope to join the conversation with Ontario as the province seeks input on the details of opening its adult-use retail cannabis market.
National Access Cannabis enjoyed a six percent rush to its stock during Thursday’s trading session. The stock finished the day at a price of C$1.06.
Second Cup also saw some momentum for its stock as it confirmed its interest for cannabis retail shops in Ontario. The coffee retailer gained a 5.15 percent increase and closed with a price of C$2.86.
Don’t forget to look for our coverage of MJBizCon INT’L, with show notes from the floor and exclusive interviews on INN. You can also follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
The post Second Cup to Seek License for Cannabis Shops in Ontario appeared first on Investing News Network.