Shelter Market, a seller of medical cannabis beloved by many Canadian patients, is closing shop.
In a series of tweets on Tuesday, the online marketplace said it’s closing its website.
“Beginning today, you may notice disruption in the availability of products on Shelter Market,” reads the initial message.
So clients can continue their care, Shelter is providing a number of options.
@Agro_Greens – ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ผ๐ฟ ๐ผ๐ณ ๐ฆ๐ต๐ฒ๐น๐๐ฒ๐ฟ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ – ๐ถ๐ ๐ฐ๐น๐ผ๐๐ถ๐ป๐ด ๐๐ต๐ฒ ๐ฆ๐ต๐ฒ๐น๐๐ฒ๐ฟ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐บ๐ฒ๐ฑ๐ถ๐ฐ๐ฎ๐น ๐ฐ๐ฎ๐ป๐ป๐ฎ๐ฏ๐ถ๐ ๐๐ถ๐๐ฒ.
Beginning today, you may notice disruption in the availability of products on Shelter Market. 1/7๐งต pic.twitter.com/Tt0V5AGjmE— Shelter Market (@Shelter_Market) January 25, 2022
Through its client care team, patients can have their medical cannabis document transferred to Medicibis — doing business as Mendo Cannabis — another vendor with a selection “comparable to” Shelter’s.
If their document is expiring this year, Mendo will cover the renewal costs. Mendo is also offering 10 per cent off two orders.
Alternatively, a patient’s medical document can either be returned to them, or Shelter will take care of a transfer to another licensed seller.
“We appreciate your patience and understanding at this time, as our Client Care team supports an unprecedented volume of transfers and requests. Thank you so much for supporting Shelter Market. It has been a pleasure to serve you.”
Launching in March 2020, B.C.-based Shelter developed a strong reputation with a curated list of high-quality products and compassionate pricing, while offering detailed consumer information like terpene content.
Read more: How craft could save legal cannabis
Read more: Over 90% of Canadian cannabis patients want policy change: survey
“Agreeing on terms with Medicibis was essential to ensure easy transition for our members,” Shelter COO David Purcell said in a statement following the announcement. “We are confident that the Mendo team and platform will serve our clients needs with the same kindness and care patients have come to expect from Shelter Market.”
“It breaks my heart that we are no longer able to support medical clients though Shelter Market, but I am exceedingly grateful to Mendo,” Agro Greens managing director Jeremy Vokins added.
Mendo COO Jay Swartz says his company was created with all Canadian patients in mind
“Helping Shelter Market members easily transition to a new platform reinforces our core values and patient-first approach,” he says.
Many in the industry have criticized the high taxes on cannabis products in general, and especially for patients, who are also taxed — unlike for other medications.
Full details for Shelter’s closure have not yet been provided. Mugglehead has reached out for more information.
In 2020, Shelter acquired Saskatchewan-based producer Agro Greens Natural Products Ltd.
Through the Agro Greens site, the company sold cannabis wholesale, as well as offered white-label services for other producers. Shelter also sold recreational products, but only to customers in Saskatchewan. It’s unclear if the recreational sales will transfer to Agro Greens following the closure.
This should raise alarm bells across the industry.
Cannabis firms are systemically incapable of breakeven income under current excise conditions.
There is no profit at $1m, $5m, or $50m annual revenues.
Demand excise reform now, or watch your favourite brands go insolvent. https://t.co/kTmwHWIthh
— dansutton.eth (@DSutton1986) January 25, 2022
AND if you're not happy being ushered around, we invite you to join us and we'll take care of your medical cannabis needs at North 40 Cannabis. Drop us an email at medical@north40cannabis.com We're a Mom and Pop operation from Saskatchewan and we'd love a chance to serve you.
— North 40 Cannabis (@40Cannabis) January 25, 2022
Update (2022-1-25 4:20 p.m. PT): This article has been updated to include a statement released after the initial news.
nick@mugglehead.com
