Canada releases key details on marijuana business licensing

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Canada released details outlining the rules for the legal production, distribution, sale, importation and exportation of cannabis.

The regulations largely confirm what Health Canada has released for consultation since November.

The new rules will come into force when legal sales begin Oct. 17. The Cannabis Act and these additional regulations will supersede the Access to Cannabis for Medical Purposes Regulations and Industrial Hemp Regulations.

However, the regulations maintain a distinct system for access to cannabis for medical purposes.

Details concerning licences for micro-cultivation, industrial hemp and nurseries are included in the rules.

The regulations also outline packaging, labeling, electronic tracking, analytical testing and security requirements for federally licensed sites.

Other key takeaways:

  • Cannabis oil must not exceed a maximum yield quantity of 30 milligrams of THC per milliliter of oil.
  • Privately held license holders must report annual details regarding certain financial transactions and “key investors,” such as amounts invested and loans.
  • There is no cap on the potency of dried cannabis, but the net weight of a dried cannabis product intended to be consumed by means of inhalation is limited to 1 gram.
  • There is no quota or cap for the number of cultivation licenses to be issued.
  • There is no limit to the number of micro-cultivation licenses a single individual can hold.
  • A criminal conviction will not bar individuals from obtaining a security clearance. Applicants will be assessed on a case-by-case basis.
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