Coffee Time Plans To Convert Their Ontario Cafes Into Cannabis Stores In An Attempt To Stay Relevant
A major pharmaceutical company is investing over $1 million to turn several Coffee Time locations in Ontario into cannabis retailers next year. FSD Pharma has invested the money into a company called Huge Shops which is currently working on a deal to acquire at least 10 Coffee Time locations in Ontario and convert them into legal cannabis retailers over the next year.
The stores would be branded and run completely separately from Coffee Time, meaning there would be no correlation between the somewhat forgotten chain and the new cannabis retailers that would take their place.
The investment, however, is dependent on one thing. FSD Pharma will on put forward the $1.3 million if Huge Shops is able to secure approval from the Ontario Government, which may be hard to do.
Huge Shops has so far proposed turning 10 Ontario Coffee Time locations into cannabis retailers. However, in order to limit the demand on the legal cannabis supply in Ontario, the Ford Government has decided to only issues 25 legal licenses to start with.
That means that come April 2019, when physical retail stores are due to open in Ontario, there will only be 25 stores in all of Ontario and the chances of one company operating almost half of them are super slim.
While Coffee Time is going to remain a separate brand from whichever cannabis retailer could potentially open up in their spaces, their parent company is still excited about the opportunity. The company said this new deal will maximize their retail potential.
Source: Financial Post