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SALE FOR MEDICAL PURPOSES LICENSE


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Under the Cannabis Act and Regulations, cannabis can be sold for both recreational and medical purposes.


While the federal government oversees the sale of cannabis for medical purposes, the provincial and territorial governments are responsible for the sale and distribution of recreational cannabis. To sell cannabis to medical patients, a Sale for Medical Purposes license is required. To sell cannabis recreationally, a Retail Licence is required in the province/territory where the cannabis retail store will be located.

Each province and territory has established its own unique regulatory framework to manage the distribution and sale of non-medical cannabis within their jurisdiction. As a result, each province and territory has adopted either a government-run retail model, a privately-run model, or a hybrid of the two, engaging in cannabis retail through both brick-and-mortar and online stores.

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License Overview

Who is the Sale for Medical Purposes License For?

The Sale for Medical Purposes License is for anyone interested in selling medical cannabis products to medical patients. Such businesses could include treatment centers and clinics, licensed grow facilities, private practices, and patient cooperatives. This licence can be sought with possession of cannabis or without possession of cannabis.


What Can You Do with a Sale for Medical Purposes License?

The Sale for Medical Purposes License permits the holder to possess cannabis products and sell or distribute them to medical patients (upon successful registration and proof of medical document) as well as other federal cannabis license holders.

Standard and Micro-Cultivation License holders can be sold dried cannabis, fresh cannabis, cannabis plants and cannabis seeds that are packaged and labelled for retail. Nursery License holders can also be sold cannabis plants and cannabis seeds that are packaged and labelled for retail. Processing License holders can be sold any classes of cannabis (dried, fresh, edibles, extracts, topicals) that are packaged and labelled for retail.


What Isn't Covered Under the Sale for Medical Purposes License?

Sale for Medical Purposes license holders are not permitted to grow or produce cannabis, and are not authorized to supply the general public with any kind of access to the cannabis in their possession.


Sales & Retail License Requirements



Special Requirements

  1. The holder of a Sale for Medical Purposes license must hold a security clearance. In addition, key personnel required under the Sale for Medical Purposes license (e.g. Responsible Person, Head of Security), as well as any directors, officers and key investors, are also required to hold a security clearance.
  2. The license holder must retain the services of one individual as the Responsible Person, who has the authority to bind the holder. The Responsible Person will be accountable for the license holder’s activities and should have an adequate understanding of how the Cannabis Act and Regulations apply to the licence holder. They are also required to hold a security clearance. The license holder may designate one qualified alternate Responsible Person (who is also required to hold a security clearance).
  3. The license holder must retain the services of one individual as the Head of Security who is responsible for ensuring that the applicable physical security measures set out in Part 4 of the Cannabis Regulations are complied with and that implements the organizational security plan of the licence holder. One qualified alternate Head of Security may be designated. The Head of Security, and any alternate, must hold a security clearance.

If Cannabis is On-Site

  1. The license holder’s facility must have any on-site storage and operations areas surrounded by a physical barrier in order to safeguard against unauthorized access. It should be possible to demonstrate how the barrier’s construction, as well as the required access controls on the exit and entry points, are able to achieve this goal. Access to all operations and storage areas must be restricted to authorized personnel only.
  2. A record must be made of everyone who enters and exits from storage areas.
  3. Each storage area must be located in a place that satisfies the security measures outlined in the Cannabis Regulations.
  4. The site perimeter, operations areas, and storage areas are required to be monitored by visual recording devices at all times to detect and record any unauthorized attempts, successful or unsuccessful, to access the site.
  5. The site perimeter, operations areas, and storage areas must have an intrusion detection system operating 24/7 to discover any unauthorized attempts to access the site or tamper with the system. It must also be possible to detect unauthorized movement within operations and storage areas.
  6. The intrusion detection system is required to be monitored at all times, and the license holder is responsible for determining what measures are appropriate in response to any incidents. In cases of an incident, the holder must retain a document that contains the date and time of the occurrence, how it was responded to, and the date and time of when that response took place.


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