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 – 𝗼𝗽𝗲𝗿𝗮𝘁𝗼𝗿 𝗼𝗳 𝗦𝗵𝗲𝗹𝘁𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 – 𝗶𝘀 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗦𝗵𝗲𝗹𝘁𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 𝗺𝗲𝗱𝗶𝗰𝗮𝗹 𝗰𝗮𝗻𝗻𝗮𝗯𝗶𝘀 𝘀𝗶𝘁𝗲.
Beginning today, you may notice disruption in the availability of products on Shelter Market. 1/7🧵 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
“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 firstname.lastname@example.org 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.