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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

INDUSTRIAL HEMP LICENCE

As of January 2019, changes to the Industrial Hemp Regulations (IHR) have opened the opportunity to harvest hemp for CBD. “As a result, the Canadian hemp industry is expected to exceed $1 billion annually in 2023” (InnoTech Alberta).

The Industrial Hemp Regulations, 2018, define “Industrial Hemp” as cannabis plants or plant parts of any variety whose leaves and flowering heads contain no more than 0.3% THC. However, there are no limitations to the concentration of CBD.

"CBD" stands for cannabidiol. It is the second most prevalent active ingredient of cannabis and is one of over 500 phytochemicals found in the Cannabis sativa plant.

Edibles containing cannabis and cannabis concentrates became legal on Oct. 17, 2019. One of the most notable characteristics of the CBD market is that CBD-infused products constitute one of the widest arrays of any herbal supplement products.

While the Industrial Hemp Regulations have been in place since 1998, hemp seeds and fibre were historically harvested in Canada. “There are more than 72,000 acres of hemp grown in Canada as of 2019” (StatCan). However, there is still a considerable shortfall in demand. An Industrial Hemp Licence provides the Licenced Holder with the opportunity to enter a rapidly growing market with minimal start-up costs and low entry barriers.

Cultivation methods for growing industrial hemp for CBD are consistent with outdoor cannabis cultivation, with a plant rate of 1,500 to 5000 plants per acre. While harvesting methods and equipment vary, most current CBD hemp farmers opt to harvest by hand instead of the “combine method” typically used when harvesting hemp for fibre and seeds. However, several new machines are being introduced to the market, reducing human labour and expediting the harvest.

Industrial Hemp applicants are subject to much less stringent security and capital requirements than applicants seeking to cultivate cannabis. The most costly process in the cultivation of hemp is the labour required to sow and harvest the plant. Typically our Industrial Hemp applications are approved within 60 days by Health Canada.

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!

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