Cannabis retailers in Ontario can now operate up to 150 stores in the province after the government amended Ontario Regulation 468/18 under the Cannabis Licence Act of 2018 in a bid to combat illegal cannabis stores.
A previous cap of 75 stores had been implemented in 2021.
Alberta-based cannabis retailer High Tide Inc. (CSE:HITI) on Tuesday welcomed the move to double the store count cap.
The company said the change comes as some operators with a franchise model are already approaching or had already exceeded 75 stores in Ontario.
"The move will have a positive impact on Ontario's cannabis retail market as it brings the province closer to Alberta, Saskatchewan and Manitoba, which don't have a store cap and have demonstrated success at illicit market capture," High Tide CEO Raj Grover said in a statement.
"This change not only levels the retail playing field in Ontario but also creates a significant growth opportunity for High Tide and others that will help Ontario's legal cannabis industry better compete with an entrenched illicit market, creating new jobs for Ontarians and increasing tax revenue for the province."
High Tide's shares traded 8% higher at US$1.76 late morning on Tuesday.