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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.

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NURSERY LICENCE

The objective of a Nursery Licence under the Cannabis Act, 2018, and Cannabis Regulations, 2018, is to authorize the use of propagation materials such as seedlings, seeds, and clones for growing cannabis and related activities.

Health Canada’s Cannabis Act, 2018, adapts existing regulatory compliance utilized in the medical cannabis industry to help legalize cannabis in Canada while establishing a new industry to compete with the current illicit marihuana market. The Act aims to create a very diverse yet highly competitive legal industry consisting of various activities, from the growth and production of cannabis to the sale of cannabis to the general public. Individuals and organizations of all sizes consist of this new industry and will need to work together to ensure Canada’s legalized cannabis industry’s success.

The Act and its Regulations further define the processes and procedures for obtaining a Nursery Licence. This Licence Class intends to create a legal entity for starting materials to support the cannabis industry and develop high-quality varieties of cannabis.

To distinguish a Nursery Licence from other Cultivation Class Licences, Health Canada has placed certain limitations on the facility’s size, having a total surface area for cultivation not exceeding 50m2, including vertical grow areas. Possession limits also exist with a Nursery. Licenced Holders for Nursery are not allowed to possess more than 5kg of harvested flowering heads.

Under the Act, Licenced Holders for Nursery are allowed to cultivate and clone any cannabis variety, including industrial hemp. Furthermore, a Licenced Holder is permitted to produce seedlings and seeds.

Licenced Nurseries are permitted to sell seeds and live plants, but only to intra-industry operations, such as:

Holders of Research
Authorizations
Licenced Processors
Licenced Cultivators

Prohibitions for Nursery Licences include the sale to the general public or authorized retailers and the production or harvest of other plant materials of other cannabis classes. Applicants can apply for multiple Licence Classes and Subclasses when they want to engage in various allowable activities.

Applicants can submit a single application, whether they want to engage in a single activity or multiple activities requiring multiple permits or licences. All licences and permits would be issued and regulated 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!