Business
How a cannabis industrial park is partnering with Canadian micro-cultivators
Experienced marijuana growers face plenty of challenges transitioning to the regulated market, but Canadian cannabis industrial park Sitka Weed Works pitches its business model as a way to help growers make the switch – and sell craft cannabis for a profit.
The industrial park is based in British Columbia, on the southern tip of Vancouver Island.
It does business as Sitka Legends and is located in the seaside municipality of Sooke.
Sitka serves two key roles for its partner growers, who have micro-cultivation licenses (a license type meant for small-scale producers):
- Micro-cultivators lease production space from Sitka.
- Sitka serves as the licensed processor for those small growers, processing and packaging their crops and selling it to distributors.
The site was originally an industrial park that Sitka repurposed for licensed cannabis production, said Michael Forbes, majority owner and CEO of the privately held company.
By the time the site was licensed, Forbes said, “we had missed a lot of the hype.”
Forbes said Canada’s micro-cultivation license category opened a new path to the legal industry for “legacy market” growers in B.C., a province famous for cannabis production.
“It’s very, very clear that the growers are in my neighborhood,” Forbes said.
“We interviewed over 400 growers and picked the best of the best to lease these units to them, that were built specifically for micro-cultivators.”
Partnering with micro-growers
Forbes said Sitka’s tenant growers pay about 9,000 Canadian dollars ($7,000) per month to rent each unit, which are roughly 4,500 square feet in size.
Sitka has the right to buy their cannabis output, process it, package it and sell it.
The revenue from those sales gets split with the growers, with Sitka taking a 30% cut.
Forbes said the business model is profitable for both Sitka and its tenant growers.
He believes partnering with Sitka helps small growers avoid the time- and capital-intensive process of securing and rezoning land and building out a production facility.
Sitka also provides its growers with market data to help them focus their production.
“They are their own companies, but they’re our tenants and they’re in contract with us to sell (us) their weed,” Forbes explained.
“(We’re incentivized) to make sure that they’re growing the right cultivars and the right type of weed so that it sells – because otherwise, how are they going to pay the rent?”
Sitka currently hosts six micro growers in its 10 operating units, with some leasing more than one unit.
Forbes said the company has 53 growing units approved, with plans to bring on more growers and add a cannabis nursery as well as farm-gate sales in the future.
The entrepreneur is also CEO of Canadian cannabis extractor and manufacturer Adastra Holdings, and his business portfolio includes cannabis retailers in B.C. and Alberta.
A tenant grower’s perspective
Licensed micro-cultivator Quadessence is one of Sitka’s tenant growers, leasing one unit in the industrial park.
Operations director and manager Carl Ketch, who owns part of the business, said he started growing cannabis under Canada’s old Access to Cannabis for Medical Purposes Regulations and “really developed a passion for it.”
After adult-use legalization, Ketch said he planned to develop a commercial cultivation facility on his own.
“I talked to every single municipality on all of Vancouver Island, and no one was even entertaining it, except for in Sooke,” Ketch told MJBizDaily.
“When we met (Sitka), that really opened the doors for us to be able to enter into the legal space.”
Ketch said the landlord-processor has “been very willing to work with us, and they understand the challenges that we are going through, obviously, no different than anyone else in this space.”
“They’ve been more than doing their part in trying to allow us to be successful at the same time as us working with them.”
Ketch said Quadessence and Sitka originally agreed on the 70%-30% revenue split from sales of finished cannabis.
“But we are negotiating within that contract,” he said.
He explained that Quadessence is interested in taking slightly less revenue in exchange for getting paid up-front, rather than waiting until after the wholesaler pays Sitka.
Quadessence has achieved profitability, Ketch said, and is starting to invest money back into the business with upgrades such as an irrigation system and environmental controls.
Asked whether he would recommend that other micro-growers partner with a landlord-processor such as Sitka, Ketch said it depends on the specifics of the business agreement.
“It depends on the people that you’re working with, and it depends on your experience level that you have going in,” he continued.
“Because if you don’t have experience and you’re trying to enter into this space, you’re going to get crushed very quickly unless you have very deep pockets.”
Quadessence’s arrangement with Sitka helped the grower enter the industry despite limited funding, Ketch said.
“Honestly, if we had started out as a (micro-cultivator) that was going to try to depend on our own sales, our own branding, and all of those things – I think we would very quickly have been trying to sell our product (in) bulk to a (licensed producer), and I know other micros who have tried to do that who have had those challenges.”
Third-party analysis
Lucas McCann is co-founder and chief scientific officer of Toronto-based cannabis consultancy CannDelta, which is unaffiliated with Sitka.
He said the idea of multiple cannabis growers under one roof – albeit with separate addresses to satisfy regulatory requirements – “was a common business model that we were pitched, especially at the beginning of adult-use legalization.”
That said, McCann is unaware of a similar business actually operating in Canada today. (One of CannDelta’s clients is working to open a similar business, he said.)
Many Canadian cannabis growers lease their production space, McCann added.
“Whether or not they’re paying the same person who’s also their central cannabis processor, I don’t really see as a significant detail.”
Although a micro-processing license type exists to accompany micro-cultivation licenses, not every micro-cultivator may want to process their own cannabis, according to Gord Nichol, president of Saskatchewan micro-grower and micro-processor North 40 Cannabis, who is also unaffiliated with Sitka.
“Unless you’re pretty good at it, you’ll lose money at it,” he said.
A micro-processing license requires a Quality Assurance Person (QAP), which can be a significant hurdle, Nichol explained.
“I’m not sure (processing) is a profitable move at a micro level, because you don’t get to scale anything up,” he said.
“If you want to automate it all, that’s very expensive equipment, and you’re not really going to get the most out of it,” Nichol continued.
“You can’t run it full-time and reap the benefits of that – and then, of course, you’re not getting the big deals on your packaging.”
Nichol believes Sitka’s revenue-split model could be profitable for micro-cultivators, provided the product fetches good prices.
Dried cannabis from Sitka tenant-grower Quadessence is currently listed on the Ontario Cannabis Store website for CA$47.95 for 3.5 grams, putting it on the higher end of OCS retail pricing.
On the BC Cannabis Stores website, a different cultivar from Quadessence retails for CA$36.99 for 3.5 grams.
Quadessence’s Ketch said pricing depends largely on THC potency as well as terpene content.
“We’re both incentivized to get the highest price possible for the gram of cannabis,” Sitka CEO Forbes said.
“So that’s why we’re very focused on high, high-quality cannabis.”
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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