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Ontario cannabis retail regulator warns stores against selling to illicit operators

The cannabis retail regulator in Ontario, Canada, is warning licensed retailers against selling their inventory to “unlicensed third parties upon the closure of the store.”

The Alcohol and Gaming Commission of Ontario (AGCO) warning came in response to an offer from a company called Leafythings Canada to buy struggling stores’ cannabis inventory.

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Leafythings describes itself as a “web platform, mobile application, and advertising medium” involved in events, advertising and “grassroots marketing.”

The company’s website showcases what appear to be illicit cannabis businesses and products, including illegal mail-order services, delivery services and brands.

Leafythings announced last month that it was launching what it called a “retailer support program,” in light of Ontario’s challenging cannabis retail market.

The company “will begin its retail cannabis store support program by buying all available inventory from stores who wish to wind down in a timely fashion,” Jeffrey Neil, Leafythings’ director of community engagement,

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