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Licences Types
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.
Ontario Retail Cannabis Opportunity
Since the legalization of cannabis in Canada, there has been immense interest amongst both multinational corporations and new entrepreneurs to tap into a booming recreational market. Legal recreational cannabis sales amounted to $2.6 billion across Canada in 2020, up a staggering 120% from $1.2 billion in 2019. Ontario accounts for more than a quarter of the sales nationwide, with a total of $717.4 million sold legally in 2020 – up more than 150% from 2019. Due, in part, to aggressive programs by federal and municipal police forces to shut down illicit dispensaries, Statistics Canada estimated that legal sales of recreational cannabis exceeded that of the illicit market for the first time in the second half of 2020. The overall size of the Canadian cannabis market is expected to exceed $8.7 billion by 2026.
LICENSING TYPES
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GrowLegally Cannabis Clinic and Consulting
4711 Yonge St., 10th Floor
Toronto, Ontario M2N 6K8
Toll Free: 1.888.909.6336
Local: 1.647.931.7011
GrowLegally
Medical Cannabis Clinics and Commercial Licensing Consultants
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