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