Company launched by London-area pot producer opening first retail store

A new company launched by a Southwestern Ontario pot producer and a Canadian fast-food chain is making its debut in Ontario’s storefront cannabis retail industry.

WeedMD, a licensed marijuana producer with operations in Strathroy and Aylmer, and Pita Pit Canada, a franchise with more than 600 locations worldwide, teamed up to form Pioneer Cannabis in January.

Pioneer has struck a deal with one of Ontario’s 25 pot lottery winners to open its premier location in Burlington, the company announced Wednesday.

“It’s tremendously exciting for us to be able to execute on our plan and deliver for stakeholders on our promise . . . to develop a retail brand and offering to prospective and hopeful Canadian retailers,” WeedMD chief executive Keith Merker said.

Lottery winner Guruveer Sangha, a Brampton-based lawyer, signed a retail and licensing deal to open Pioneer Cannabis in a commercial plaza at 1200 Brant St. in Burlington.

“With the flagship store, we finally are able to deliver on this promise and we look forward to continuing to do so as Pioneer rolls out its brand and strategy going forward.”

Pioneer helps clients open and operate marijuana retail stores through services such as identifying locations, applying for the necessary licences, advising on security procedures, point-of-sale merchandising, payment systems, marketing and training.

“He’s in business for himself, but not by himself,” Pioneer chief executive Alex Liszka said of Sangha.

Customers at the first Pioneer location – the second cannabis retail store in Burlington – can expect “a positive, welcoming, educational experience,” Liszka said.

“We believe it’s critical that the customers and consumers are guided. This is a new industry . . .  there’s a lot to learn.”

Projected to open in the late spring, Pioneer will be one of the last of the initial batch of 25 brick-and-mortar cannabis stores to open – a delay that could cost Sangha $50,000.

The Alcohol and Gaming Commission of Ontario (AGCO), the province’s pot regulator, penalized 12 store owners, including Sangha, $12,500 each for missing its April 1 deadline to open.

Outlets may forfeit an additional $12,500 for still not being in business by mid-month, while those not open by April 30 could face the maximum $50,000 penalty.

But Liszka played down the penalty, saying Sangha doesn’t want to rush to open his doors.

“We share his vision of doing things right, as opposed to doing things quickly to open,” Liszka said.

Pioneer is exploring opening retail stores in other provinces, drawing on the network of contacts Pita Pit has forged, Liszka said. Founded in 1995 in Kingston, the fast-food chain has more than 225 locations across Canada, including three in London.

“We have excellent relationships with landlords across the province, and indeed across Canada, through our colleagues at Pita Pit,” Liszka said.

WeedMD will own a 9.9 per cent stake of Pioneer Cannabis stores in Ontario — one of six provinces to allow private retailers — where licensed producers are restricted to owning less than 10 per cent of the brick-and-mortar operations.

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