Skip to content

WHAT IS A CANNABIS CULTIVATION LICENSE?

A cannabis cultivation license allows its holder to legally cultivate and produce cannabis (dried cannabis, fresh cannabis, cannabis plants or seeds from such plants) so that its products are ultimately distributed in the Canadian recreational or medical market.
It is important to note that this type of license does not include cannabis extraction activities and the manufacture of finished products, which fall under the activities of a different but related license, namely THE CANNABIS PROCESSING LICENSE
It is important to note that this type of license does not include cannabis extraction activities and the manufacture of finished products, which fall under the activities of a different but related license, namely THE CANNABIS PROCESSING LICENSE
The cultivation license is issued according to the site and cannot be moved. However, a second production site may be associated with the license if it meets the requirements of the Cannabis Regulations. Moreover, under certain conditions, a second license can be issued on the same site. Contact one of our experts to find out about these requirements and conditions

THE CULTIVATION LICENSE GIVES ITS HOLDER THE OPPORTUNITY TO:

THE CULTIVATION LICENSE GIVES ITS HOLDER THE OPPORTUNITY TO:

The cultivation license is issued according to the site and cannot be moved. However, a second production site may be associated with the license if it meets the requirements of the Cannabis Regulations. Moreover, under certain conditions, a second license can be issued on the same site. Contact one of our experts to find out about these requirements and conditions.

A Cultivation License has the ability to operate an indoor production area and an outdoor production area simultaneously as long as the areas meet the boundaries set by the license.

For example, it may be advantageous to operate an outdoor production area during the summer to benefit from the low production costs offered by natural lighting and to operate indoor production when the temperature becomes colder and thus benefit from air conditioning.
Natural.

OBTAINING AND SELLING DRIED CANNABIS

OBTAINING AND SELLING DRIED CANNABIS

OBTAINING AND SELLING CANNABIS PLANTS (CLONES)

OBTAINING AND SELLING CANNABIS SEEDS

PERFORM CANNABIS TRIALS

obtain cannabis by altering, by any means, its physical or chemical properties

HEALTH CANADA HAS REPORTED THAT 85% OF FIRST-TIME APPLICATIONS ARE REJECTED BECAUSE THEY ARE DEEMED 'INCOMPLETE'

Our experts have the knowledge to produce your application in a timely manner and ensure that it includes all the elements necessary for the approval of your license. Generally, Health Canada approves our license applications within 90 days. To date, we have worked on more than fifty cannabis cultivation projects, both small and large scale. Indoor or outdoor. Our clients accumulate MORE THAN 5,000,000 square feet of cultivated space and produce a total OF MORE THAN $50,000,000 in annual revenue.

2 Types of Cultivation Licenses

Standard Cultivation License
No production Limit

Aucune limite de production

Canopy area limit of 200 square meters (2152 square feet)

Higher Security Requirements

Lower Security Requirements

When the production of 2152 square feet is harvested and sold at its full capacity, it is possible to make an amendment to the license to convert it to a standard cultivation license, provided that it complies with the security measures applicable to standard licenses

Standard Cultivation License

No production Limit

Higher Security Requirements

Micro Cultivation License

Canopy area limit of 200 square meters (2152 square feet)

Lower Security Requirements

When the production of 2152 square feet is harvested and sold at its full capacity, it is possible to make an amendment to the license to convert it to a standard cultivation license, provided that it complies with the security measures applicable to standard licenses

STANDARD CULTIVATION LICENSE VS.
CANNABI MICRO-CULTIVATION LICENSE

A standard cannabis cultivation license will allow you to cultivate cannabis without any maximum production limit unlike a micro-cultivation license where the total area of cultivation
area is limited to 2152 square feet.

Consequently, the security requirements related to a micro-culture are lower and allow applicants to minimize project costs and thus position themselves more easily and quickly in the industry.

In the same logic, the license fees to be paid to Health Canada (both in terms of application examination fees and annual license fees) will be higher in the case of a standard cultivation license. This observation generally also applies to the initial investment for the construction of your installations. A standard license also requires additional manpower which will contribute to increased operating costs

Of course, conversely, the potential sales revenue will generally be higher in the case of a standard cultivator compared to a micro-cultivator given the difference in production capacity. In conclusion, the choice of license depends on your business objectives, but keep in mind that a micro-cultivation license can be amended to a standard license later

A standard cannabis cultivation license as well as a micro-cultivation license can be combined with other types of licenses to allow the extraction of cannabis, the manufacture of finished products, the performance of certain analytical tests, research and development and sale for medical purposes. Contact one of our experts to find out about the different possible combinations as well as those offering the best synergies.

Entering the industry with less than $150,000 is possible…

Entering the industry with less than $150,000 is possible…

Do you have farming or growing experience and want to enter the legal cannabis industry with minimal investment? We have your solution.

Since 2017, our team has conceptualized many large and small scale outdoor cannabis cultivation projects, depending on the needs and budgets of our clients. The experience accumulated through these many projects has allowed us to target and eliminate unnecessary costs in the construction stages and thus develop an outdoor micro production model that allows anyone to enter the cannabis industry, even with an initial investment less than $150,000.

Although this type of project is very inexpensive, it is also extremely profitable since it allows you to cultivate a significant number of plants which will result in a significant revenue compared to the initial investment cost. We have found that the return on investment for these projects can
be as low as two years depending on the success of the operations. The initial investment of $150,000, includes construction or renovation of an existing facility, security and production equipment. Operating costs can also be very low, especially if you are able to take care of the day-to-day tasks yourself with a small team. This model is ideal for entering the cannabis industry quickly and minimizing the risks associated with a higher investment.

In addition, when you experience increasing success in your operations and wish to take it to the next step, your Micro Cultivation license may be amended to a Standard Cultivation license. In order to do so, one must put in place the missing security requirements necessary for a Standard Cultivation license.

The importance of an ideal production site

Determining the ideal location for a cannabis cultivation license is a significant challenge. You need to consider the costs of facility upgrades, zoning, municipal bylaws, water and electricity, and much more.

For example, with an indoor cannabis cultivation facility, it is best to choose a production site that includes a building with an interior layout or floor configuration suitable for your cannabis operations. In addition, you could save a lot of money during the site preparation phase if the materials already used on the floors, walls and ceilings are in accordance with Good Manufacturing Practices (GMP).

experts de C&G

If you plan on growing outdoors, it is important to choose a site that offers a good ratio of sunlight in a climate suitable for farming. For example, an outdoor growing site in a hardiness* zone would not allow favorable plant development since the temperature often drops below 15 degrees Celsius overnight. It would then be necessary to set up a different cultivation strategy with C&G experts to overcome this problem and allow for optimal growth of the cannabis plants.

Conversely, setting up an indoor production site in Zone 4 is optimal since the cold temperature at night limits cooling costs and directly impacts the cost of biomass production, which gives an advantage in contrast to an outdoor producer in this same zone.

Determining and selecting your production site is fundamental. Do not hesitate to call on our experts ahead of your site selection process for an informed and optimal decision. Our team will be at your side during this step to ensure that all the ideal conditions are met.

Construction: A crucial step

The first step in obtaining your license is to select the location where the business will operate. When it is determined that the site meets municipal and federal regulations, we can then begin with the experts of C&G on the design of the production site plans and optimize the work flow thanks to our experience in this industry. Once the plans are completed, you will need to start the construction or renovation of your building according to the plans provided. At the same time, C&G will be working on required application documents which includes: Standard Operating Procedures (SOPs), Organizational Security Plan (OSP), Cannabis Tracking solutions, Business Planning, and much more.

Health Canada requires a fully constructed site when submitting the application. A report along with a visual site evidence package (photos and videos) demonstrating your facility and site at the time of submitting your application is required by Health Canada. Videos as well as photos of the site will allow the analysis of the site’s compliance by Health Canada examining agents, so this step is inevitable and must be impeccable to reduce any questions and time delays in the license issuance process. When the time comes, Consult and Grow will certainly be able to assist you with the proper capture of relevant videos and photos that will make up the efficient site evidence kit that will be submitted in support of your license application.

Consult and Grow is committed to providing you with floor plans that will ensure an efficient and ergonomic work circuit, allowing you to comply with good production practices required by the cannabis regulations.

Our consultants will make periodic visits to the construction site to ensure that everything is compliant and thus avoid generating cost overruns due to errors or oversight.

Before issuing a license, Health Canada assesses the construction of the site and closely analyzes the following elements:

  • Does the workflow allow good production practices to be respected?
  • Are the construction materials compliant and allow for good production practices?
  • Does the building’s ventilation meet the requirements of the Cannabis Regulations?
  • Will the cannabis be stored under suitable conditions?
  • Does the site meet the security requirements based on the category of license requested?

Thanks to our network of experienced professionals

Thanks to our network of experienced professionals, we are able to provide the best counsel which is upheld by high industry standards, at every stage of your project.

What is a Site Evidence Package?

In order to submit a full application to Health Canada, it is important to include a site evidence package that will allow Health Canada to determine that your facility meets Good Production Practice (GPP) standards. For this, it is necessary to complete the construction of your facilities before submitting your application.

Through our network of professionals, we can assist you during the construction stage of your facilities by referring you to suppliers of quality services, materials and equipment at a reasonable price. With the completion of over 50 commercial cannabis cultivation projects in Canada, we are able to direct you to the least expensive solutions for your project and get you on your feet sooner rather than later.

Most Popular in Canada

Most Popular in Canada

Cannabis cultivation on agricultural land (outdoor)

Cultivation in an open field or in greenhouses is increasingly popular in Canada. Cannabis processors are flocking to this biomass, the cost of which is much more interesting in comparison to cannabis flower produced indoors with similar cannabinoid and terpene concentration.

The reasons are simple:

The reasons are simple:

The initial investment is very low compared to an indoor cannabis production site. Production costs vary on average from 0.30 cents up to 0.50 cents versus $1 and more for growing cannabis indoors.

Did you know that…

Did you know that…

2,152 square feet of cannabis production can generate revenues between $100,000 and $250,000 per annual harvest?
The price varies according to the genetics as well as the care given to the plants to boost their floral production.
As of March 31, 2019, Health Canada had received 151 applications for Micro Cultivation permits.
The three largest numbers of these requests came from (41) Ontario, (36) British Columbia and (34) Quebec.