Cannabis Processing License

Under the new Cannabis Act, companies who manufacture cannabis-based products will be required to hold one of two licenses: Micro Processing or Standard Processing. While the first is best for smaller outfits, the latter is ideal for large and growing companies.

With edibles, extracts and topicals cannabis product that will become legal in Canada on October 17, 2019, it’s very exciting that the Act’s passage will soon give consumers access to all varieties of merchandise derived from the plant. For companies that already work within this field, or those interested in breaking into it, there is one major distinction to keep in mind while applying for a Processing License: quantity. Whereas a Standard Processing License puts no limit on how much cannabis the holder can process, a Micro Processing License only allows for the handling of up to 600 kg of dried flower (or the equivalent) per year. While the second option may seem limiting to some, it is great for businesses that plan to stay on the smaller side.

License Overview

Who is a Processing License for?

This license is ideal for anyone who desires to work with cannabis and its derivatives, such as oil, wax, hash, butter, and other extracts. The Cannabis Act and Regulations have undoubtedly opened up a lot of possibilities for established businesses – such as those in the food and beverage, wellness, and personal care sectors – to expand into the legal cannabis market. A Processing License would allow for exactly that, with large companies requiring the Standard, and smaller outfits better suited to the Micro version. Micro Cultivation License holders might also consider growing their operations by applying for a Micro Processing License.

What can you do with a Processing License?

Standard Processing License holders are permitted to possess an unlimited quantity of cannabis, and produce it by any means other than propagating, cultivating, or harvesting. A Micro Processing License allows for the handling of up to 600 kg dried flower annually, with the same rules for cannabis production as a Standard License and the addition of synthesis being unauthorized. Both licenses give permission for the sale and distribution of cannabis (dried, fresh, plants and seeds) to those who hold a Processing, Analytical Testing, Research, or Cannabis Drug License, as well as Micro and Standard Cultivators. They also allow for the sale of cannabis plants and seeds to licensed nurseries, the delivery of cannabis products to license holders that sell cannabis for medical purposes, and delivery to those authorized to sell cannabis under a provincial or territorial Act.

What isn’t covered under a Processing License?

Both Standard and Micro Processing Licenses permit the holder grow, retain, sell and distribute cannabis – but only within the guidelines that the license’s terms provide for (given above). These licenses do not authorize the holder to give the general public any kind of access to the cannabis, or cannabis materials, that they work with, and the cultivation of cannabis is not allowed.