Ontario’s legal cannabis market now includes Mississauga as the city has opted in after an 8-4 vote in council following a report that suggested the illegal market disproportionately served residents.

For many, expansion in a city with nearly 800,000 people is a new opportunity after almost five years on the sidelines. But for Black-owned retailers, a large portion of them independent-owned, some foresee significant barriers.

Dwight Clarke, owner of Mota Toke in Toronto, at the corner of Greenwood Ave. and Gerrard St. E., told Black Dollar Magazine he fears high rent prices will put most Black entrepreneurs out of reach.

“I feel for any mom-and-pop shops out there because a lot of corporate companies are going to go and get those locations,” Clarke said. “I’m sure a lot of them will think about it, but those landlords are going to want a premium for those locations, and unless you’re a corporate company with deep pockets, most of us are going to end up getting (largely) priced out.”

While it’s unclear if the city has declared diversity targets for small business owners or Black entrepreneurs at the time of writing, the opportunity to participate could allow them to cash in on a piece of the $13.3 billion cannabis contributes to Ontario’s GDP.

A 2020 study from the Centre on Drug Policy Evaluation and the University of Toronto based on responses from 700 executives and directors at 222 cannabis companies found 73 per cent were white men, 12 per cent were white women, 14 per cent were racialized men and two per cent were racialized women, according to the Toronto Star.

Licensing, financing, and security are still among major hurdles. Criminal background checks also prevent Black and Indigenous groups, according to policy brief released Oct. 14 by the Centre on Drug Policy Evaluation and the University of Toronto.

For Clarke, who opened in 2020, building a loyal base of customers and not being surrounded by corporate stores has positioned Mota Toke in good standing compared to its peers. But that might not be the case in Mississauga, where he said corporate stores are likely to reign and more competition could impact sales.

And Clarke’s concerns were evident shortly after the vote passed. Cannabis retailer High Tide Inc., a company with more than 150 locations in Canada, quickly expressed a desire to set up shop in Mississauga, according to Global News.

“Being Ontario’s third largest city, the Mississauga market presents us with a lucrative revenue and growth opportunity for both High Tide and our Canna Cabana brand,” president and CEO Raj Grover said in a statement.

Ontario Cannabis Store president David Lobo also applauded the move.