That Alcohol and Gambling Commission of Ontario (AGCO)who is also responsible cannabis Businesses, warned licensed retailers against selling their inventory to “unlicensed third parties” after the store closes” reported MJBizDaily. The warning came “as a reaction to an offer from a company called Leafythings Canada to buy the cannabis inventory of the ailing stores.”

Who or what are Leafythings?

leafy thingsa “web platform, mobile application, and promotional medium” focused on events, advertising, and grassroots marketing showcased what appeared to be illegal cannabis businesses, delivery services, and brands.

The company in September started a”Dealer Support Program,” in the light of Ontario’s challenging retail cannabis market.

“With the emerging increase in cannabis store closures in the Ontario cannabis market, Leafythings has identified the lack of an efficient orderly closure program for struggling retailers and is proposing a retailer support program,” the company said in a press release.

The company “will begin its cannabis retail store support program by purchasing all available inventory from stores wishing to close in time,” it said Jeffrey NeilDirector of Community Engagement at Leafythings.

Cannabis in bulk from unlicensed third parties

However, according to the AGCO email sent Thursday to licensed cannabis dealers sourced by MJBizDaily, Leafythings’ program operates outside of regulated market.

“AGCO believes that this program involves requiring cannabis retailers to purchase cannabis in bulk from unlicensed third parties after the store is closed,” the regulator noted.

“Licensed retailers must comply with the law “to ensure legal cannabis products are not diverted to the illicit market. (…) Failure to properly dispose of stock before close of business may result in compliance action by AGCO or action by other laws…