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Page 12 January 15, 2018 • Law Times www.lawtimesnews.com on police who have long used sus- pected marijuana possession as grounds to search an individual or their car for other criminality. There are numerous re- ported judicial decisions where police have testified that they smelled unburned marijuana after detaining a suspect and that is why a further search took place. In one high-profile decision in Toronto in 2014, the seizure of a gun was excluded as evi- dence by Superior Court Justice Nancy Spies as a result of Char- ter violations by police related to what they said was a search based on their marijuana- smelling skills. The officers testified in R. v. Graham that they were able to smell a small amount of mari- juana inside a Ziploc bag, which was located inside a Coach bag that was zippered shut. They also claimed to have re- ceived training on how to smell both burned and unburned cannabis, which was rejected by the judge. "The 'training' the officers had was really just exposing them to the smell of marijuana and so I find that special train- ing is not necessary to be able to identify the smell. Furthermore I do not accept the submission that the officers' senses were 'more turned on,'" the judge wrote. "[I] have found that the of- ficers have acted in bad faith. They came to this Court and gave false evidence in an at- tempt to persuade me that they smelled a strong odour of mari- juana . . . ," said the ruling. Miller does not think the fact that having a small amount of unburned marijuana in your car is legal will deter police when they want to conduct a search. "They will switch from un- burned to burned," he says. "They will say it is suspected drug-impaired driving. That will be the justification." LT Minden Gross LLP in Toronto and chairman of its canna- bis law group, says there can be challenges in valuing these companies. "Cost per gram [of canna- bis] is not uniformly reported. Some companies publish that data. Others do not. I think the market will demand they are disclosed in a uniform manner," he says. Another factor at this time is the change in policy by Health Canada in granting licences to producers to try to ensure there is enough product to meet the expected demand, he notes. "That has led to a quicker turnaround in the application process. They have ramped up the number of licences. There is a lot of opportunity for busi- ness," says Maurer. He says there will be a fu- ture contraction in terms of the number of participants in the industry, however. "The big players will end up buying out the smaller players." Along with complying with securities regulations, canna- bis companies must abide by Health Canada requirements, some of which may change, says Maurer. "There is still a fair bit to be determined," he says. For exam- ple, medical marijuana produc- ers have been obligated to store cannabis in vaults, which can be quite costly. "Now, they are talking about scaling that back," Maurer says. Whether interprovincial sales in cannabis will be permit- ted, such as through an online purchase, is not clear, he says. That could depend on a re- cent Supreme Court of Canada case, still on reserve, involving interprovincial beer purchases. Another unknown for can- nabis companies in Canada and potential investors is U.S. government policies to do with marijuana, notes Gilbert. The TMX group, the parent company for the Toronto Stock Exchange and the TSX Venture Exchange, warned last October that companies with U.S. inter- ests or operations could face a delisting review. While some states have legal- ized marijuana sales, it is still federally regulated in the U.S. and illegal. Earlier this month, U.S. At- torney General Jeff Sessions announced a reversal of the pol- icy of the Obama government, which was not to interfere or prosecute cannabis sellers that were approved in states where the sales are legal. Canadian companies that are publicly traded here "may be required to sell U.S. interests," says Gilbert. The uncertainty is also why potential investors such as the major banks have been watch- ing the growth in the industry instead of "getting involved in the space," she says. "Eventually, banks will be more comfortable. The sec- tor will start to mature in that sense," Gilbert says. LT Continued from page 10 Uncertainty causes banks to shy away from investing Courts already adjusted Continued from page 11 Mindy Gilbert says an unknown for canna- bis companies in Canada and their poten- tial investors is U.S. government policies to do with marijuana. Medico/Legal Your case is too important. You deserve the right EXPERT WITNESS. Unparalleled expertise from our award-winning national team of experts CONNECTMLX.COM EXPERTS@CONNECTMLX.COM TOLL FREE: 855-278-9273 ✔ More than 2,000 medical malpractice, personal injury and class action cases. ✔ More than 300 lawyer clients assisted. ✔ Direct access to hundreds of specialists from all areas of healthcare expertise. ✔ A top provider of cost of care reports for your most catastrophically injured clients. Since 2001, we've become a leader in Expert Witness Services in Canada. ntitled-4 1 2017-10-24 2:41 PM FOCUS In-class and online programs recognized by Law Societies Executive Education to Navigate the Canadian Legal Landscape Visit Lexpert.ca to find out more LawTimesNews.com Fresh Ontario legal news and analysis available on any device. Get More Online

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