TAYLOR LOOKS TO APPEAL POT DECISION

The news the Cannabis Research Institute's Brian Taylor got from the
federal government was hardly the sort to bring Christmas cheer.

On Dec. 22 Health Canada announced that it had awarded a contract to
a Saskatoon company, Prairie Plant Systems, to supply marijuana for
federal government studies of the plant's medicinal properties.
Taylor's Grand Forks company was one of many to submit a bid.

The contract is valued at $5,751,250 over a period of five years.
The evaluation committee that looked at the bids included members of
the Agri-Food Canada, the RCMP, the federal public works department
and Health Canada.

Prairie Systems will be setting up its operation in an unused mine
shaft near the town of Flin Flon, Man. The added security of the
underground site, Taylor says, was probably extra incentive for
Ottawa to go with the Saskatchewan-based firm, although he adds that
his Cannabis Research Institute (CRI) did meet the guidelines for
security as set out by Health Canada.

The big problem, according to Taylor, was that the federal government
expected an enormous financial backup in the form of a performance
bond. Specifically, this meant the company could not get the
necessary $1-million letter of credit as was required. As evidence,
Taylor points to a letter he received via fax dated Dec. 28, from the
public works department, which states the company's inability to
provide the necessary bond or security deposit was the factor keeping
CRI from meeting all of the necessary criteria.

"They created a situation where we couldn't get that million-dollar
underwriting," says Taylor.

If not for this clause, he says his company was well-suited as the
marijuana supplier to the federal government. "We had by far the
most comprehensive package."

As it stands, Taylor is looking into how he can appeal the decision,
whether this can be done and who would adjudicate the matter.

Taylor is also planning a return to politics with plans to be the
leader of the provincial Marijuana Party.