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Why Canadian cannabis retailer ShinyBud is buying pharmacies

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Ontario, Canada, cannabis store chain ShinyBud is expanding its retail portfolio with a plan to acquire independent pharmacies and aspirations to synergize those pharmacies with its adult-use stores.

Aspects of ShinyBud’s approach would require certain regulatory changes, but, if successful, the strategy could serve as a novel model for diversification in the Canadian cannabis retail sector.

ShinyBud, which is planning a name change to Shiny Health & Wellness, hopes to be able to sell cannabis health products over pharmacy counters when Canadian regulations allow and perhaps eventually install separate adult-use cannabis stores within some pharmacies.

The company is targeting five to 10 pharmacy acquisitions by the end of January 2023, according to a regulatory filing.

Canadian pharmacies are currently not allowed to sell medical marijuana in its plant form or over-the-counter cannabis health products, although they may dispense cannabis-containing pharmaceuticals such as Sativex.

ShinyBud Chair and CEO Kevin Reed acknowledged that the strategy partially depends on regulatory changes in the coming years.

“We are working through what’s acceptable with the regulators,” Reed told MJBizDaily.

ShinyBud’s expansion into pharmacies is, in part, a bet on deepening consumer interest in cannabis health and wellness products enabled by anticipated regulatory changes.

“We think we will be an absolute leader in redefining the retail space under health and wellness by combining both adult-use (cannabis) and pharmacy,” Reed said.

“Where we can bridge the two, we will have stores-within-stores, subject to regulatory approvals,” he added.

In the meantime, Reed said, the pharmacy space offers easier access to capital for expansion than does cannabis retail, and ShinyBud management considers pharmacies a desirable stand-alone retail sector.

The company announced its first pharmacy acquisition in May, a deal to buy an independent drugstore in Cornwall, Ontario, for 900,000 Canadian dollars (roughly $690,000).

ShinyBud’s pharmacy unit will operate as Mihi Health & Wellness.

Moving from cannabis to pharmacy

Reed said ShinyBud is entering pharmacy for three reasons: “One is customer, one is regulatory, and one is capital markets.”

The company believes a significant proportion of adult-use cannabis consumers are motivated by health and wellness, citing its own customer data and third-party market research.

Meanwhile, with Health Canada working on new regulations that could allow health products containing cannabis to be sold over the counter, Reed sees an opportunity on the horizon.

“You can see, customers are looking for it – regulations are going to go there,” Reed said.

“In Canada, we’ve had the Cannabis Health Products review that started in 2019, where it’s now (gone) through consultation and they’re into the scientific review boards that are looking at what kind of products would be acceptable,” he continued, explaining that such products would be “heavy on CBD, light on THC.”

Reed anticipates that regulatory changes permitting over-the-counter sales of some cannabis health and wellness products will create “a pretty big market,” and he believes adult-use cannabis retail and pharmacies “will be the two main sales channels.”

The proposed reforms permitting nonprescription cannabis health products are part of Health Canada’s regulatory road map through 2024.

Finally, Reed said, capital is more readily available for pharmacy acquisitions than for cannabis transactions.

“Senior debt is really not available to us in the cannabis space, although there are a number of senior debt providers moving in from Alberta,” he said.

In contrast, major banks “readily finance pharmacies on senior debt transactions,” Reed added.

Combining pharmacies with cannabis

Pharmacy retail is “attractive as a stand-alone strategy” and “a competitive differentiator that effectively mitigates certain cannabis sector headwinds,” ShinyBud management wrote in a recent regulatory filing.

However, if regulations permit, ShinyBud’s strategy to align pharmacies with cannabis retail could open new possibilities.

Adult-use cannabis retail workers in Canada are not allowed to make medical claims about cannabis, but Reed said there’s nothing stopping a customer from calling a health professional, such as a pharmacist, from the store and getting advice.

“We believe we have a path to have people linked to, I’ll call it, advice (or) advisory services that (are) deeply grounded in science and help that customer get better access and better information to treating what their needs are,” said Reed.

One possible strategy is that adult-use cannabis shoppers could connect with a Mihi pharmacist for advice, he said.

Another possibility is that ShinyBud’s Mihi pharmacies could host small cannabis stores-within-a-store.

“This is always going to be subject to regulatory approval, with our primary regulator today being the (Alcohol and Gaming Commission of Ontario),” Reed said during a May investor presentation.

“The intent is to get our skilled labor, the pharmacists and (pharmacy technicians) into the adult-use (cannabis) side,” Reed explained to MJBizDaily.

“Inversely, we have adult-use stores, and we would like to have small pharmacies, where applicable, in the adult-use stores – so they would have their own entrance, they would have their own four walls, they would have their own systems, but it’d be a sublease.”

During the May investor call, Reed acknowledged that the store-in-a-store strategy wouldn’t work for every pharmacy.

ShinyBud also believes its pharmacy strategy might benefit from pending Ontario regulatory changes that, as of 2023, will allow the province’s pharmacists to write prescriptions for certain “minor ailments.”

Reed believes that could potentially include prescriptions for cannabis products.

“I’m confident that the writing of scripts will be on a professional basis … And if the pharmacist deems it appropriate that the solution is a cannabis-based solution, as opposed to a pharmaceutical-based solution, that they would write the script accordingly,” he said.

Canadian adult-use cannabis stores do not currently fill prescriptions, and the health care practitioners who now authorize medical cannabis for patients – defined under regulations as “a medical practitioner or a nurse practitioner” – technically write “medical documents,” not prescriptions.

One possible competitor for ShinyBud is major Canadian pharmacy chain Shoppers Drug Mart, owned by grocery giant Loblaw, which also operates recreational cannabis stores within Newfoundland grocery stores.

Shoppers already has an online medical cannabis sales platform, although it does not actually distribute cannabis from its pharmacies.

Growth plans

ShinyBud’s move into pharmacy retail comes as it revises its organic cannabis retail growth plans amid an increasingly crowded market.

The Toronto-based retailer has 31 corporate cannabis stores in Ontario plus 12 ShinyBud-branded stores run under franchise-like licensing agreements. (Reed said the company is working toward full franchise agreements with those stores).

ShinyBud is targeting 25-35 corporate stores and between five and 15 franchised or licensed locations for its fiscal year ending January 31, 2023, a regulatory filing shows. That represents fewer stores than ShinyBud’s previous target.

Reed cited about 6,500 independently owned pharmacies across Canada, with “about 3,600 that are owned by people who are either in the process of looking for succession planning or about to hit succession planning.”

“That’s a really big sector to look at consolidation,” he said.

ShinyBud is doing due diligence on five potential pharmacy acquisitions in addition to its Cornwall purchase.

Source: https://mjbizdaily.com/why-canadian-cannabis-retailer-shinybud-is-buying-pharmacies/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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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.

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