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2.5 Change of Status (Sale, Assignment, Transfer or Closure)

Retail Cannabis Store Handbook

Policies

  1. A cannabis licensee cannot sell, assign or transfer a cannabis licence.
  2. A cannabis licence is automatically cancelled when:
    1. a licensee sells, assigns or transfers a portion of the business in which activities authorized by the cannabis licence are carried out; and
    2. the sale, assignment or transfer results in a change in control of the business.
  3. A proposed sale, assignment or transfer of a portion of a business:
    1. that is a sole proprietorship, a partnership or a corporation but not a distributing corporation, as defined in the Business Corporations Act; and
    2. in which the activities authorized by a cannabis licence are carried out;
      must be reported to, and approved by, AGLC prior to the effective date of the sale, assignment or transfer.
  4. A sale, assignment or transfer of 5% or more of a business:
    1. that is a distributing corporation as defined in the Business Corporations Act; and
    2. under which the activities authorized by a cannabis  licence are carried out;
      must be reported to AGLC within 10 business days of the effective date of the sale, assignment or transfer and approved by AGLC.
  5. AGLC may, with respect to a sale, assignment or transfer as per Sections 2.5.3 and 2.5.4:
    1. approve it without conditions;
    2. approve it with conditions;
    3. approve it with changes to or removal of existing conditions; or
    4. refuse to approve it.
  6. Where AGLC refuses to approve a sale, assignment or transfer, after the sale, assignment or transfer takes effect AGLC may treat the licensee as ineligible to hold a cannabis licence and:
    1. cancel or suspend the licence;
    2. require a person to dispose of an interest in the business under which the activities authorized by the licensee are carried out; and/or
    3. require a person to dispose of an interest in a licensed premises. 
  7. When a licensed premises must be closed due to significant damage by fire or other natural event, the licence is cancelled by AGLC.  However, the licensee may obtain a new licence if the premises is restored to an acceptable condition, complies with current policies and the licensee continues to qualify to hold a cannabis licence.
  8. Existing licences may remain in effect if a licensee is placed in receivership or bankruptcy.  The licence may continue for a period determined by the Board of AGLC and is subject to any conditions imposed on the licence by the Board.
  9. AGLC may refuse to grant a licence to a new owner when an Incident Report or disciplinary action is in progress against the existing licensee until such time as the Incident Report or disciplinary action has been dealt with by AGLC.
  10. A licence application fee will not be charged when:
    1. individual owners incorporate and a controlling interest in the business continues to be held by the original owners;
    2. the transfer or assignment of shares does not result in a transfer of control of the business; or
    3. only the name of the company or premises changes.
  11. The seller of a licensed premises may apply for a refund of the annual licence fee when:
    1. the premises have been sold; and
    2. the licence certificate has been returned.
  12. A refund will not be paid when:
    1. the premises are destroyed by fire;
    2. the premises are closed or licence surrendered;
    3. the licence has been cancelled by the Board;
    4. there is a change of licence class; or
  13. Refunds are based on the original annual licence fee less:
    1. the prorated portion during which the licence was in effect; and
    2. a $100 administration charge.
  14. (Deleted Mar 2020) 
  15. As outlined in Section 95.1(2) of the GLCA, if a cannabis licence is suspended or cancelled, and the AGLC does not approve of the licensee selling its remaining cannabis to another licensee, the cannabis is forfeited to AGLC.
     

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