CBC News has learned that the Opaskwayak Cree Nation in Manitoba has taken a major stake in a medical marijuana company, with an eye to becoming a big player in the sale of pot once it becomes legal.
The First Nation, located approximately 530 kilometres northwest of Winnipeg, has purchased $3 million worth — approximately 10 per cent — of shares in National Access Cannabis. The privately held company will be traded publicly for the first time Friday on the TSX Venture Exchange.
OCN Onekanew (Chief) Christian Sinclair said the investment represents a shift in thinking. Where marijuana was once part of the war on drugs, the plant will be now be part of the war on poverty in his community, Sinclair said.
"The fact of the matter is [the sale of marijuana] is happening before our eyes and the only people who are profiting is the black market, so this will bring us to the forefront very quickly."
National Access Cannabis currently operates 10 medical marijuana clinics in cities across Canada.
OCN and other investors in the company are counting on provincial governments allowing the private sector to sell pot to customers, instead of setting up provincially run distributors.
The company will not get into the production of pot, instead relying on federally licensed producers for its supply. Sinclair said the production side of the business carried too many pitfalls.
"We found that to be very high-risk and cash-intensive to get it started," Sinclair said.
On top of that, he said, Health Canada may or may not approve a facility to grow the plants. Sinclair said further study of the industry identified the retail side of the business as having the lowest risk and the potential for the highest return.
Sinclair said members of OCN's economic development team went to a presentation earlier this year by National Access Cannabis at the company's downtown Winnipeg location and were impressed by its business strategy and the expertise of its executive team, including president Derek Ogden.
Ogden had previously been a senior RCMP officer, at one time in charge of the Mounties' national drug enforcement program and acting as director general of the force's organized crime branch.
"That really intrigued us — a person of that stature working in this industry," Sinclair said.
Read Full Article at CBC.ca