Indiva, London’s first medical-cannabis producer, has been granted a federal licence and is already looking ahead to opening a retail store in the city.

In anticipation of receiving its licence from Health Canada, Indiva began construction of a major expansion of its plant in an industrial park in south London.

Indiva, London’s first medical-cannabis producer, has been granted a federal licence and is already looking ahead to opening a retail store in the city.

In anticipation of receiving its licence from Health Canada, Indiva began construction of a major expansion of its plant in an industrial park in south London.

ndiva CEO Niel Marotta said the company should be sending out it first orders to patients through its website later this year.

But the political landscape has changed since Indiva began construction in June.

The new Ford government in Queen’s Park has signaled it will allow cannabis sales by private vendors and Marotta says that opens up opportunities for a retail outlet either at the Indiva plant or in a storefront operation.

“We would love to do that . . . As a licenced producer, having our own store would be a natural extension. It would be a chance to showcase our products and educate consumers,” he said.

Premier Doug Ford announced his government would partner with private retail operators to sell cannabis, overturning the previous model in which the LCBO would have a monopoly.

The government disclosed few details of the plan other than to say the private retailers would be “tightly regulated.”

Marotta said London would be an obvious place for Indiva to set up a retail operation, but the company would also likely expand to the big Toronto-area market.

Allan Rewak executive director of the Cannabis Council of Canada, which represents 80 per cent of Canada’s cannabis producers, said the retail stores operated by local craft breweries and wineries could serve as model for the cannabis industry. He said Ontario already has the majority of cannabis producers and they are well-equipped for “farm-gate” sales.

“It makes sense . . . Our facilities are secure and overseen by Health Canada. It’s the ideal place for retail sales because the infrastructure is in place,” said Rewak.

The government has promised public consultation on the retail market for cannabis.

Some large retail chains such as Shoppers Drug Mart are planning a move into the cannabis market. but Rewak said Ontario should take its cue from from systems being set up Alberta and Manitoba .

“They have tried to balance the market so it is not dominated by one or two companies. We want a diversified market,” said Rewak.

Indiva has already hired about 30 people and Marotta said that number will double by the end of the year.

He said the company may build a second production site that may be located outdoors, if that type of production is made legal.

“We know there is a history of tobacco farming in this area and we are evaluating whether it makes sense to do an outdoor grow,” said Marotta.

Indiva already has had a small grow room in operation since last fall and is building a supply of dried cannabis.

Eight more grow rooms will soon be ready for production and the plant should be in full production next year.

But Marotta said it will take a few more months to build supply to serve the medical marijuana market.

“On the recreational side, weed is weed, but on the medical side someone is relying on a particular strain through a prescription. We need to build adequate inventories.”

Indiva is also installing equipment to extract cannabis oil for a variety of edibles such as chewing gum and sugar, when the federal government makes those products legal.

By this fall, London will have two cannabis-processing facilities.

High Park on Sovereign Road is a new cannabis-processing plant that will process recreational marijuana leaf-vaping products and eventually, a variety of edibles. The company could not reached for information on plans for a retail operation.

The federal government has indicated that recreational marijuana will become legal in October and Marotta said producers of medical marijuana will be able to produce for the recreational market without the need for further licencing.

Sylvain Charlebois, the dean of the Business School at Dalhousie University said its hard to know how Ontario’s retail cannabis market will evolve because Canada is headed into “uncharted waters.”