An unlikely duo just formed Canada’s newest retail pot company.
Licensed marijuana grower WeedMD Inc. joined forces with food franchise Pita Pit Canada to launch joint venture Pioneer Cannabis Corp., the companies said, marking the latest synergy in the recreational pot retail space.
Pioneer Cannabis stores will not replace Pita Pit venues but will be new outlets throughout Canada, said Keith Merker, chief executive of WeedMD.
The partnership targets entrepreneurs who want to own and operate their own cannabis retail stores in provinces where it is allowed.
“We may be a franchise going forward where allowed by local regulations. We don’t intend to be an operator per se of retail establishments,” Mr. Merker said, adding there is no supply agreement with WeedMD attached to the JV “at this point.”
“We are a 9.9 per cent participant in the joint venture. We also have the option to own more of this venture in those jurisdictions where we are allowed.”
Ontario regulations state LPs cannot own more than 9.9 per cent of cannabis retailers.
Pita Pit provides an extensive network related to retail development and operation, Mr. Merker said.