When legalization of recreational marijuana was on the near horizon, right after the final report by the Liberal government’s legalization task force in late 2016, a would-be cannabis company purchased property in B.C. suitable for cannabis production.
The purchase price was $2.9 million and the company, Grun Labs, Inc., had high hopes after nearly 100 years of marijuana prohibition. In the coming months, another $1.1 million was spent on the project.
Grun Labs applied to be a licensed cannabis producer under the old medical marijuana regulations with Health Canada. The government reviewed the application and had no critical concerns.
Meanwhile, Kan Paul Lum, Grun Labs owner, applied for security clearance, a status needed for him to run his planned business.
Although laws legalizing recreational cannabis radically loosened marijuana use in 2018, the corporate side of its production remained regulated, monitored and controlled.