Canada expanded the licensing of cannabis-based products in 2019. As discussed in the last post, the industry is slated to grow at a humongous pace to reach a whopping $194 billion by 2025. The hurdles faced by the industry is not the cultivation and processing of cannabis dried flowers, extracts and finished goods but licensing and retail of the same.
Sales of Recreational vs. Medicinal Cannabis
As per the Cannabis Act and Regulations, you can sell cannabis for both the medicinal and recreational markets. The Federal government has the jurisdiction over both, while the Provincial and Territorial governments are co-responsible for recreational cannabis sales.
Medicinal sales require a federal Sale for Medical Purpose license and a separate licence to sell to the Provinces and Territories. Provinces and territories are responsible for determining how cannabis is distributed and sold within their jurisdictions.
The Retail license in the recreational segment varies from province to province. The three types of models that that the provinces have largely adapted to are:
- Government run model
- Privately set up and managed model
- The third way is to build a hybrid model that engages features of both the styles and sell both offline through stores, and online.
Each province and territory have 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.
Therefore, licensing requirements will differ depending on where you want to sell recreational cannabis.
Different Types of Cannabis Products
The list of cannabis products that are legal and fall under the jurisdiction of a seller’s license is as follows:
- The maximum strength that you can legally sell cannabis oil (eg. not in a capsule) in Canada is 30 mg of THC per ml.
- The rerolled joints or cannabis cigarettes are the next popular option for Canadian retailers. These are permitted under the license. The net weight of a joint must not exceed 1.0 g.
- Edibles and beverages are currently allowed. We are looking at a huge market with chocolates, sweets, lozenges, brownies, cookies and other options. In this manner cannabis can be eaten and does not need to be smoked or inhaled. This is currently permitted under the new legislation. Each packaged unit must not exceed 10 mg of THC.
- Tinctures, balms and creams that come under topicals are also permitted under the seller’s license.
- Accessories like bongs, rolling paper, dabbing rigs are crucial to the retail segment. Current laws deem their sale as legal.
Genesis can help you get Sales License for your cannabis business
We understand the complexities and hassles you can face with the license application process. Our cannabis consultants have helped many Cannabis Businesses in acquiring cannabis licenses with the help of our expertise in the cannabis industry. We can also help you get GMP certification Canada to enable your to take your business across borders. And GPP to stay compliant with Good Production Practices (GPP) so as to produce and sell cannabis for medical and recreational purposes. Know the importance of GMP and GPP.
The above information can be overwhelming as there are many things to consider and understand before you apply for a cannabis sales license once you already have a micro processing license or a standard processing license. It is best that you take professional help of B2B brokers to get the paperwork in place and fast track your application process.
Phone : +1-647-455-2226
Email : rrajan@genesiscannabissolutions.com
