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Licences Types

Research & Development

Processing

INDUSTRIAL HEMP

OVERVIEW OF CANNABIS PROCESSING

Under Health Canada's Cannabis Act (2018) and Cannabis Regulations (2018), the control and production of cannabis are strictly regulated to ensure compliance across Canada's medical and recreational cannabis industries. Cannabis processing focuses on the manufacturing, packaging, and labelling of cannabis products.

A Processing Licence is essential for businesses looking to enter the cannabis industry. It enables them to produce a wide range of cannabis products, from oils and edibles to topicals and concentrates. Additionally, combining an Online Sales Licence with a Processing Licence allows direct sales to Patients and other intra-industry Licensed Holders.

CLASSES OF CANNABIS PROCESSING LICENCES

There are two main classes of Cannabis Processing Licences:

STANDARD PROCESSING LICENCE

Scope: This Licence is designed for large-scale cannabis product manufacturers. It allows for the processing of various cannabis products, including legal packaging and labelling for direct-to-consumer sales through authorized distributors and intra-industry operations. Market Opportunity: This opportunity is ideal for businesses that aim to produce and distribute large volumes of cannabis products to the broader market.

MICRO-PROCESSING LICENCE

Scope: This Licence limits processing to a maximum of 600 kilograms of dried cannabis (or equivalent) per year. However, if the Licence Holder also has a micro-cultivation Licence for the same site and the cannabis comes exclusively from that site, this maximum quantity does not apply. Market Opportunity: Suited for smaller operations focusing on niche markets or specialized products with lower volume production.

Licence. This includes tasks such as hiring staff, maintaining inventory, and ensuring compliance with all regulations.
Obtaining these licenses is essential to operating a cannabis retail business legally in Ontario. GrowLegally can assist you through every step of the application process to ensure a smooth and successful launch.

HOW GROWLEGALLY CAN HELP

At GrowLegally, we can handle every aspect of your application process, ensuring you receive your Retail Operator Licence, Retail Store Authorization, and Manager Licence(s) without hassle.

Once you're licensed, we offer comprehensive "Kickstart" services to set your store up for success.

Development of training programs for store managers and staff, along with daily operation manuals

Setting up accounts with the Ontario Cannabis Retail Corporation(OCRC) for cannabis inventory

Assistance with Point of Sale (POS) system setup

Merchant account setup with providers

Bank account setup

Establishing relationships with third-party vendors for cannabis accessories

Providing detailed market research and data specific to your retailstore's location

Helping develop a procurement list for your first purchase of cannabis products and accessories

INVESTMENT & RETURN

Starting a cannabis retail store requires an initial pre-operational capital investment, typically between $55,000 and $100,000. These costs generally include:

Rent/Carry Costs (First and Last + 3 months): Approximately$15,000 (We recommend keeping rent under $3,000 per month)
AGCO Licensing Fees: Around $10,000
Construction Fit-Out: Between $15,000 and $50,000
Inventory Purchase: Ranging from $15,000 to $30,000

With a conservative estimate, annual revenues for a well-run store in a decent location are projected to be between $650,000 and $1.2 million. Based on current market data and a lean operational structure, you can expect gross profits to be just under 30% to 40% of your annual revenue.

If you have any questions or need further details, please don't hesitate to reach out. We're here to help you succeed and look forward to welcoming you into the GrowLegally Cannabis Supply Ecosystem.

Book tour free consultation today

Standard Cultivation Opportunity

With the ratification of the Cannabis Act in October 2018, Canada became the first G7 country to legalize recreational cannabis on a federal level. According to Statistic Canada,” the cannabis market in Canada contributes upwards of $17.27 billion to its GDP, with legal recreational sales expected to account for approximately 60%.” “Globally, the market is forecasted to hit USD 97.3 billion by the end of 2026” (Fortune Business).

Canadian sales of legal recreational cannabis totalled 2.6 billion in 2020, which represents a 120% increase in sales compared to 2019.

The Cannabis Act, 2018, requires that Health Canada’s Minister of Health receives and considers any application filed for Commercial Cannabis Licence, including the Cultivation Class. There are two Classes of Cannabis Cultivation Licences.

Standard Cultivation

A facility granted a Standard Cultivation Licence is more than (200 m2 or 2150 ft2). Standard cultivation is for operations that want to obtain a licence for the large-scale growing of cannabis plants.

Micro-cultivation

The licence permits cultivation space of up to no more than 200 square metres (approximately 2,152 square feet), and applicants are subject to less stringent security requirements than those applying for a Standard Cultivation Licence.

The Cultivation Class Licences allow entrepreneurs to tap into a booming industry and market a premium, locally-grown product. There are no limits for Standard Cultivation Licences, unlike Micro-cultivation Licences. Additionally, new regulations stemming from the Cannabis Act, 2018, grant all cultivation applicants a one-time influx of black market genetics; this poses a tremendous opportunity for individuals to introduce new strains to Canada’s legal market.

A Cultivation Class Licence would allow an individual or corporation to:

Produce Cannabis Seeds
Grow Cannabis Plants
Harvest Cannabis Plants
Produce Fresh and Dried Cannabis

A Cultivation Class licence would allow for
supplemental or associated activities such as:

Possession
Transportation
Storage
Destruction
Intra-Industry Sale of Cannabis
Cultivation of Industrial Hemp Plants

A Cultivation Class Licence only allows cultivation and wholesale sales to authorized Licenced Holders. It does not allow an individual or corporation to label, package, or sell cannabis directly to the public or straight to authorized retailers or consumers. A Sale for Medical Purposes Licence is required to sell medical cannabis online directly to consumers. A Retail Cannabis licence is required to sell recreational cannabis online directly to consumers or through over-the-counter sales. An applicant can apply for these licences simultaneously.

The Act, allows individuals and organizations to obtain authorizations for permits and licensing for multiple activities at a single location. For instance, an individual could obtain the authorization, licences, and permits to cultivate, process, and then sell cannabis directly to the public.

Health Canada’s Cannabis Act, 2018, has established strict application requirements followed by a prescribed licensing procedure to ensure applicants have met all regulatory requirements. Once approved, Health Canada exercises ongoing oversight to ensure cannabis products are produced legally and fit for their intended use. Under the Act, Health Canada can issue, restrict, deny, amend, renew, revoke, or suspend a licence.

The Act’s overall goal is to create a legal cannabis industry that would essentially outcompete with the current illegal market.

GrowLegally believes in a highly competitive, diverse, and legal industry composed of many different size operations and activities, all working together to promote Canada’s new legal marihuana system.

Applicants are free to choose which licences and permits they want to apply for with the ability to add allowable authorized activities.

GrowLegally will work with your company from Seed to Success from Licensing to developing a strategic growth strategy!

Apply Now! Get licenced and Join our Global Cannabis Inter-Industry Ecosystem!