One of the final steps toward licensing — receiving security

clearances — is also difficult for racialized communities, which are disproportionately affected by cannabis possession arrests.

For example, in Toronto between 2003 and 2013, Black people without criminal records were three times more likely to be arrested for cannabis possession than Caucasians with similar records, the Toronto Star reported.

"There hasn't really been much movement on providing amnesty to groups that were targeted unfairly because of the drug laws," said Boodram.

She recently had a client who didn't receive security clearance because he had -- years ago -- had his licence revoked and car impounded for speeding. He didn't show up to a court date, so Health Canada rejected his application, saying it couldn't trust him to follow the Cannabis Act.

At that point in the process, companies have already spent significant amounts of cash, only to face removing the person from the business, or at the very least, limit their access to cannabis and their involvement with controlling decisions.

If the person was an investor with a large stake, they might have to slash their stake to 15 or 20 per cent and show Health Canada proof, said Boodram.

"If you get denied, it's a huge fall."

This report by The Canadian Press was first published Feb. 21, 2022.

Tara Deschamps, The Canadian Press

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