Tweed is closing 2 of its N.L. stores. Here's what's happening behind the scenes

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Two Tweed locations in Newfoundland are closing after Cannabis NL — the recreational marijuana regulator of the Newfoundland and Labrador Liquor Corporation — optioned their expiring licences to competing company Atlantic Cultivation. 

The two affected locations are the shops on Water Street in St. John's and Broadway in Corner Brook. 

The NLC told CBC Radio's On The Go in an emailed statement the licences associated with the Water Street, Kenmount Road, and Corner Brook Tweed locations were part of Canopy Growth's production agreement with the province signed in 2018. Canopy Growth is the parent company of Tweed.

But production never took off.

In December 2020 Canopy Growth axed its under-construction, 150,000-square-foot production facility, which was set to open in the White Hills area of St. John's, and ended operations in Fredericton, Edmonton, and Bowmanville, Ont. in an effort to save between $150 million and $200 million before the St. John's plant could even open its doors.

It was poised to be Canopy's largest production site in Atlantic Canada.

According to its website, Atlantic Cultivation has completed construction on its marijuana production facility in St. John's. (Mark Quinn/CBC)

The NLC said given that the production agreement was terminated, with Canopy's decision to cease operations at its production facility, the retail licenses went under review.

"A decision was made to extend a modified conditional licence to each of the impacted locations, with Water Street and Corner Brook extended to Sept. 30, 2021 and Kenmount Road extended to March 31, 2022, pending the results of NLC's March 29 request for proposals for licenced cannabis retailers in these areas," wrote Darrell Smith, manager of marketing and communications with the NLC.

Smith said other proposals ranked higher than Canopy's in each of these instances, and the Water Street and Corner Brook Tweed locations will cease operations, as planned, on Sept. 30 with "new locations opening shortly thereafter."

Those two licences are going to Atlantic Cultivation, a company owned by a team Newfoundlanders and Labradorians who, in partnership with Auxly Cannabis Group, signed its own production agreement in September 2019. 

According to the company's website it has finished building its 110,000-square-foot production facility in St. John's, located in the Kenmount Crossing Industrial Park.

Atlantic Cultivation is currently operating five Spiritleaf franchises across Newfoundland. Spiritleaf has 80 stores across Canada.

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