Marie and Timmins are guaranteed cannabis shops by the government following the Alcohol Gaming Commission of Ontario's "Second Allocation Expression of Interest Lottery".
The other eight will be on First Nation reserves and those licences will be handed out on a first come, first served basis.
Previously, 25 retailers were chosen through a lottery to open the province's first brick-and-mortar cannabis stores on April 1, but fewer than half met the deadline.
For this lottery, applicants will have to show evidence that if they are selected, they have already secured retail space that could be used as a store and that they have enough capital to open it, the AGCO said, noting that a bank letter confirming access to $250,000 cash and another confirming the ability to get a $50,000 standby letter of credit would be needed.
The process for First Nation stores will start in July on a first-come, first-served basis.
Graham says competition will also be a factor in deciding where to place a recreational cannabis store should they win the lottery. While Downey said more stores are expected in the years ahead, a shortage in cannabis supply is curtailing how quickly more stores can be opened.
After the last lottery in January, only 10 of 25 stores opened on time.
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Ontario's new government had initially meant to open government-run cannabis stores, similar to how liquor is sold in the province, but changed its mind here just a few months before legalization came into effect and instead allowed privately owned businesses.
Of the 42 soon-to-be-awarded licences, Toronto will be granted 13 new shops, while the Greater Toronto Area will be allowed six new stores.
As indicated in the provincial government's fiscal budget, each prospective cannabis retailer will be vetted to ensure they are equipped to open their doors. "A phased-in approach remains necessary".
In the lead-up to the opening of the stores, the Ontario government asked its municipalities to conduct a one-time vote to determine whether or not the cannabis stores would be allowed in these communities at first. In northern Ontario, one licence will be allocated to each of the following cities: Kenora, North Bay, Sault Ste.
There will be 42 licenses in total available across the province that will be distributed via lottery.
"We want to make sure that the applicants, the people who will go into the draw, are able to follow through and realize the opening of the store", Attorney General Doug Downey told iPolitics in an interview.