Health Canada Takes Action Against Compassion Clubs

Ryan Allway

September 22nd, 2015


Health Canada sent cease-and-desist letters to a number of illegal marijuana dispensaries and compassion clubs last week, saying that police would raid them if they don’t shut down immediately. In the letter, officials demanded that dispensaries stop all activity and submit a written statement confirming the shutdowns by September 21st.

This week, it appears that many dispensaries and compassion clubs have ignored the warning, forcing Health Canada to take action. Alberta’s oldest cannabis compassion club, the Mobile Access Compassion Resources Organization Society, was raided by the Alberta Law Enforcement Response Team. The owners will appear in court over the coming months and have an opportunity to contest the charges against them.

Cannabis advocates argue that the compassion club had been serving the community for more than 10 years and provided a much-needed service. Without law enforcement intervention over that time, the group thought that the government recognized their importance to the community of over 1,000 members. The group plans to lobby for a provincially regulated dispensary model moving forward, while fighting to keep its doors open.

Health Canada’s Marijuana for Medical Purposes Regulations (“MMPR”) were designed to replace home growing, compassionate care clubs, and non-profit dispensaries with a limited number of corporate growers that would mail medicine to customers. The move is intended to improve the safety and reliability of cannabis, while enabling the government to crack down on illicit sales from black market participants to recreational users.

Illegal dispensaries could face fines of up to $5 million or two years in prison, or both until Bill C-17 that passed into law last November.

Ryan Allway

About Ryan Allway

Mr. Allway is an experienced financial writer with years of experience in the capital markets.

Network Partners

Follow Us on Social Media

About CannabisFN

Cannabis Financial Network (CannabisFN) is brought to you by TDM Financial, a financial media group and owner of with over a decade of experience educating the markets, profiling public and private companies, and developing specific investor audiences. CannabisFN is the largest dedicated financial network covering the cannabis and medical marijuana (MMJ) industries and publishes industry news, thought leader and executive interviews, and stories on the fluid business and regulatory environment while serving as a leading corporate communications platform for companies operating in the industry.

Learn How Your Company can Be Covered on CannabisFN

Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit:

Copyright © TDM Financial LLC · All Rights Reserved · Privacy Policy · Legal Disclaimer