TOLL FREE: 1(888)909.6336

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

CANNABIS PROCESSING LICENCES

Health Canada’s Cannabis Act, 2018, and Cannabis Regulations, 2018, regulates the control and production of cannabis. This framework enforces regulatory compliance for Canada’s medical and recreational cannabis industries.

Processing focuses on the manufacturing, packaging, and labelling of cannabis products. An Online Sales Licence can be combined with a Processing Class Licence to sell to other Licenced Holders and other intra-industry operations.

There are two classes of Cannabis Processing Licences.

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 Processing Licence

This Licence Class applies to individuals looking to become large-scale manufacturers of cannabis products in Canada. It allows them to process a variety of cannabis products, legally package and label cannabis products for direct-to-consumer sales and sell to authorized distributors and other intra-industry operations.

Micro-processing Licence

This Licence Class authorizes the same with a restriction of processing no more than 600 kilograms of dried cannabis (or equivalent) per year.

This Licence Class is subject to additional requirements proposed by Health Canada.

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

Beverages
Oils
Cannabis Resin
Oral Sprays
Capsules
Other Intermediary Products
Edibles
Synthesizing Phytocannabinoids
Extracts
Topicals
Hash
Other Authorized Products

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

Possession
Storage
Transportation
Destruction
Sales to other Licenced Holders
‍

Edibles and topicals:

The manufacturing of these cannabis product types is a different activity from the typical Processor who manufactures extracts.

There are additional requirements and restrictions for the manufacturing of edibles and topicals. For example, you may process cannabis and food products on the same site (property). However, the production, packaging, labelling, and storage of cannabis and the production, packaging, and labelling of food products must be conducted in separate buildings. This requirement also applies to other cannabis product types.

The Cannabis Regulations, 2018, require any cannabis production (cultivation or extraction) to occur in a separate building from any food or ingredient production. This requirement is a crucial strategy to mitigate against the food safety and public health concerns associated with multi-product manufacturing facilities and mitigate against the risks of cross-contamination between ingredients and products and the increased risk of mislabelling and product mix-ups.

The regulations intend to assure Canadians, Canada’s international trade partners, and importers of Canadian food products that Licenced Holder took all possible measures to reduce the risk of cross-contamination of Canadian food products with cannabis. Licenced Holders are permitted to sell to other intra-industry operations, authorized distributors, and other Licenced Holders.

Separate authorizations will be required to sell recreational cannabis products directly to the general public.

All applications for Processing Licences are reviewed and approved by the Ministry of Health. The Ministry of Health is also responsible for overseeing licence suspensions, revocations, renewals, restrictions, amendments, and the right to deny applications.

The Cannabis Act, 2018, allows applicants to submit a single application for various Licence Classes and Subclasses, such as Cultivation.

GrowLegally will work with your company from Seed to Success, help you choose the licence that is right for your company while developing a strategic growth strategy!

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