Winnipeg police shut down magic mushroom dispensary days after opening

While officials with a newly opened magic mushroom dispensary say they had good intentions, Winnipeg police claim those intentions were drug trafficking.

Police say they have shut down a Winnipeg store selling illegal magic mushrooms, and two people have been arrested on drug-trafficking charges.

The mushroom dispensary in Osborne Village began its Friday with a long lineup outside. It ended with a police raid and arrests.

The Winnipeg Police Service says the business on Osborne Street – by Ontario-based Magic Mush – was conducting illegal activity.

The store began selling psilocybin mushrooms earlier this month.

“This is drug trafficking, that’s all this is,” said WPS Insp. Elton Hall with the organized crime unit.

“There’s no responsible way to traffic drugs, it’s illegal. These people are drug traffickers and they’re going to be charged accordingly.”

Two Winnipeg police officers outside the magic mushroom dispensary in Osborne Village on May 19, 2023. (Morgan Modjeski/CityNews)

Hall says police became aware of the dispensary on May 13, adding officers were originally going to take a “softer approach” to shutting down the business. But he says that changed to an enforcement approach after public remarks made by those affiliated with the shop who claimed the storefront was a responsible way for people to get the drugs.

“At the end of the day, it’s still a controlled substance and Health Canada has not approved it,” said Hall. “It’s a schedule III controlled substance, so although the lawyer is in the media discussing this and talking about it, the bottom line here is that the people here are now going to be charged with drug trafficking.”

‘This is not organized crime,’ says lawyer

The production, sale and possession of magic mushrooms are illegal in Canada.

Jamie Kagan, legal counsel for Magic Mush, previously told CityNews few people are using the drugs for fun, instead using them to help deal with depression, trauma and PTSD.

“It’s hard to keep the supply in the store,” he said. “We’ve sold out on four straight occasions.”

Prior to the execution of the search warrant Friday, Kaplan stressed the mushrooms being sold at the shop were not the same as what’s sold on the street.

“This is not organized crime,” he told CityNews. “This isn’t street drugs. These are all what I would consider medical-grade product that we are consciously selling to the public knowing it’s going to be consumed.”

Kagan said the store received no notice by Winnipeg police prior to Friday afternoon, at which time officers executed a search warrant at the shop.

Insp. Hall says more arrests and search warrants may be on the way, and the investigation could cross provincial borders.

Magic mushroom dispensary in Osborne Village on May 19, 2023. (Morgan Modjeski/CityNews)

Magic mushroom dispensary in Osborne Village on May 19, 2023. (Morgan Modjeski/CityNews)

Those who purchased won’t be targeted: police

“This isn’t acceptable. This is illegal,” said Hall. “It’s not safe, you don’t know where the drugs are coming from. People who are using them don’t know where they’re coming from. We don’t know where they’re coming from yet; we know they’re out of province, and that’s it.”

Hall says those who purchased mushrooms from the shop won’t be targeted by police, but members of the public are encouraged to dispose of the drugs or turn them over to the WPS.

The police inspector says these types of dispensaries are not welcome in Winnipeg.

WPS Insp. Elton Hall with the organized crime unit on May 19, 2023. (Morgan Modjeski/CityNews)

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