Skip to content

What is a Cannabis Processing License?

A Cannabis Processing License allows processing of the fresh or dried plant in to other categories of cannabis such as extracts, oils, vaporizers, food products and topical products. This license also permits the manufacture of finished cannabis products (pre-rolls, bagged/jarred and labeled cannabis flower) that can be sold in the recreational market through the provincial supply chain or directly online in the medical market through the sale for medical purposes license.

The issuance of a processing license by Health Canada depends on the following:

The issuance of a processing license by Health Canada depends on the following:

01

The qualifications of the quality assurance personnel

02

The quality of the SOPs used

03

The quality of the processes used

C&G is able to analyze the situation of the quality assurance person at your disposal and pre-qualify your QAP according to their experience and skills. In the event that the latter is not qualified, C&G can offer training to compensate for their shortcomings and thus help qualify for the key role.

C&G is well aware of Health Canada’s requirements and is able to deliver quality solutions that allow rapid approval in 8 to 12 weeks.

The Consult and Grow team offers

The Consult and Grow team offers a multitude of services related to the production of finished cannabis products of all kinds. Whether it is to develop a stable product formulation or simply to verify legislative compliance, Angelo Servedio and Geraldine Origel, both have extensive experience in the field. Angelo has won numerous awards and competitions for the quality of his cannabis products, while Geraldine has spent many years in the food industry as well as the cannabis industry. Their experience ranges from formulation to the approval of the product by Health Canada, including the drafting of SOPs.

Standard versus Micro Processing License

The Micro Processing license allows up to 600 kg of dried cannabis flower to be processed or to acquire its equivalent in the form of a concentrate for the manufacture of finished products. Alternatively, the Standard Processing license has no production cap. In contrast, the investment and operating costs associated with a Standard Processing license are also much higher than those of a Micro Processing facility.

Additionally, the Micro Processing license is not subject to high physical security requirements unlike the standard processing license which must comply with many more physical security
measures.

STANDARD PROCESSING LICENSE
MICRO PROCESSING LICENSE

No processing limit

Processing limit of 600 kilos / year (or its equivalent)

High security requirements

Lower security requirements

Quality Assurance Person required

Quality Assurance Person required

When the limit of 600 kilos is reached and sold at its full capacity, it is possible to make an amendment to the license to convert it into a standard processing license, provided that it complies with the security measures applicable to standard licenses

STANDARD PROCESSING LICENSE

No processing limit

High security requirements

Quality Assurance Person required

MICRO PROCESSING LICENSE

Processing limit of 600 kilos / year (or its equivalent)

Lower security requirements

Quality Assurance Person required

When the limit of 600 kilos is reached and sold at its full capacity, it is possible to make an amendment to the license to convert it into a standard processing license, provided that it complies with the security measures applicable to standard licenses

What is a finished cannabis product?

A finished cannabis product is a derivative product containing cannabis intended for retail sale. There is a full line of cannabis infused oils, tinctures and capsules on the market today. Currently, many producers are engaged in the production of innovative products including transdermal patches, oral sprays, inhalers and much more.
Since the cannabis derivative industry has only been permitted in the cannabis regulations since 2019, many opportunities for the development of new cannabis products remain unexplored and untapped.
Consult and Grow will help you bring your idea to the Canadian industry’s shelves.

Formulation, Extraction and Manufacture of Cannabis Products

Today’s cannabis consumers demand quality and diversity, so it is important to produce quality and original products. Our experts can assist you in the development and formulation of your products to meet consumer demand.
Deloitte reported that the Canadian market for edibles, extracts and topical cannabis products is 2.7 million dollars per year. In addition to the $6 billion market represented by the dried cannabis flower
market.

Today’s cannabis consumers demand quality and diversity, so it is important to produce quality and original products. Our experts can assist you in the development and formulation of your products to meet consumer demand.
Deloitte reported that the Canadian market for edibles, extracts and topical cannabis products is 2.7 million dollars per year. In addition to the $6 billion market represented by the dried cannabis flower
market.

Cannabis regulations govern the manufacturing of products made from cannabis. Regulators such as Health Canada want to ensure that cannabis products are safe for Canadians before they are distributed to dispensaries and online medical platforms for sale to medical cannabis patients.

GROWING DEMAND FOR MEDICAL CANNABIS FINISHED PRODUCTS

More and more Canadians with chronic pain and other symptoms are turning to medical cannabis as a solution. For example, topical cannabis products such as creams and other cannabis products such as vaporizers, soft gels, and oils are used to alleviate many medical ailments and symptoms.

These different by-products require cannabis extracts in order to be produced. The majority of these extracts will be produced from cannabis biomass cultivated outdoors as raw material. The extraction of biomass-based oil produced with outdoor cannabis allows reducing the production costs of derivative products and thus allows better accessibility to patients across Canada. Through our network of clients with Medical Sales licenses as well as our own medical cannabis clinic, Coverleaf.ca, we are able to distribute your finished cannabis products efficiently to tens of thousands of medical cannabis patients across Canada.

Cannabis Processing / Research and Development licenses

Cannabis Processing / Research and Development licenses

The Consult and Grow team also has deep expertise in cannabis processing. Angelo Servedio, heads this department. Renowned for being an expert in the field with over 15 years of experience, Angelo has received numerous awards for the quality of his cannabis products. Accompanied by the Consult and Grow team, he will assist you with your extraction projects, no matter your needs: CO2, Butane, Ethanol, Hashish, Rosin, Recrystallization, and many more. In addition, we can assist you with the formulation and production of finished products such as vaporizer cartridges, topical products (oils, creams, lotions), edibles, cannabis infused beverages, pre-rolls and more.

Geraldine Origel, one of our senior project managers, is an agri-food industry scientist who spent 3 years with one of the largest cannabis producers in Canada. She was responsible for their regulatory affairs and quality control. Thanks to her experience, we will be able to assist you with all aspects of your cannabis processing projects such as standardized operating procedures, product formulation, compliance with good production practice standards, quality assurance and packaging / labelling… In addition, our knowledge of Health Canada regulations and high standards allows us to easily obtain Health Canada approval for a processing license, whether it be Micro or Standard.

The design of finished cannabis products is a very lucrative opportunity

There is huge potential for the sale of finished cannabis products. To date, supply remains very limited at retailers across all provinces. Since 2020, many Canadian cannabis processors have turned to outdoor cannabis cultivators, which allows processors to access biomass at a reasonable price. Even if you don’t want to extract cannabis, you can directly buy cannabinoid oils and concentrates at a good price from licensed processors who sell them. Thereafter, you can integrate these ingredients into your recipe/formulation and then distribute your products across Canada, on the recreational and medical markets.

Consult and Grow understands Health Canada's strict requirements

Consult and Grow understands Health Canada’s strict requirements for processing, quality assurance, distribution, and research and development. We have helped many customers with this aspect of their project by supporting their application, product formulation, equipment selection, production site design and more. If necessary, we will set up research processes and protocols in collaboration with your team to allow you to develop new innovative products that the market demands.

FIRST CANNABIS-FLAVOURED BEER IN 2018

In May 2018, Consult and Grow marketed the famous beers with cannabis flavours without cannabinoids in collaboration with Brasserie Saint Bock and Brasseurs du Monde. This project was a great success with Quebec beer and cannabis lovers. This product was marketed in more than 80 points of sale in the province and more than 70,000 litres of beer were sold until October 17, the date of federal legalization of cannabis, which obliged us by law to stop the production of this product.

Notice regarding a New Cannabis Product

It is important to remember that since the advent of the Regulations Amending the Cannabis Act and the Cannabis Regulations in October 2019, which also introduced the 3 new classes of cannabis we know today, licensed processors are required to notify Health Canada of their intention to sell a new cannabis-derived product that they have not previously sold in Canada (other than products belonging to the categories of cannabis plants or seeds derived from a cannabis plant).

This notification regarding a new cannabis-derived product must be provided to Health Canada at least 60 calendar days before a new cannabis product is made available for sale.

Consult and Grow also reminds you that this obligation to provide the 60-day notice

Processing License

Applies only to processing license holders (both standard and micro)

Cannabis Product

Applies only in respect of a cannabis product, once packaged and labelled for retail sale to
consumers

Not applicable

Does not apply to cannabis plants or seeds derived from a cannabis plant, drugs containing cannabis or cannabis intended for animals and any accessories containing them

As its name suggests, this 60-day notice applies to all new cannabis products. In this regard, it is important to keep in mind that Health Canada considers several factors in what constitutes a “new cannabis product”, including a new trade name you intend to use. Not sure if you need to submit to the 60-day notice for your cannabis product? Contact one of our consultants to find out more.

Do you think this 60-day notice requirement applies to you? Not sure how to submit this notice? Consult and Grow can certainly assist and support you through this process. Do not hesitate to contact us about this.

Consult and Grow would also like to remind you that notifying Health Canada of your new cannabis product in this way does not constitute an approval for sale by Health Canada, nor does it mean that the product in question is considered compliant by Health Canada. Approval for sale by Health Canada is a necessary process that follows its own separate procedure. Consult and Grow has solid experience in this regard, and can also assist and support you in your application to obtain approval for sale by Health Canada. Contact us to find out more.

Edibles and beverages

the legalization of cannabis federally across Canada. Their arrival expands the range of derivative products that we can find in stores and opens the door to the innovation of new products.
Cannabis regulations added these products in the ministerial order that came into effect on
October 17, 2019.
Most of today’s cannabis processors who would like to produce cannabis edibles and drinks often run into the following problems:

01

Misunderstanding of cannabis finished product legislation

02

Product quality issue, including stability and formulation

03

Incorrect or incomplete operating procedures

Consult and Grow can help you position yourself in the edibles market thanks to the deep experience of our experts in the food industry

Consult and Grow can help you position yourself in the edibles market thanks to the deep experience of our experts in the food industry

Our team can assist you in modifying your site in order to conform to cannabis regulations, ensuring an efficient cannabis workflow. That is to say, the positioning of the rooms which will be used exclusively in the manufacture of food products. Indeed, activities related to edible products must be carried out in a building separate from a site where other non-cannabis food products could be produced, Our experts can assist you in the implementation of good production practices (GPP) as well as the creation and implementation of your preventive control (PCP) required for the production of derivative and finished cannabis products.

CANADA REVENUE AGENCY (CRA) CANNABIS LICENSE AND CANADA REVENUE AGENCY (CRA) STAMPING REGIME

Some cannabis-related activities require a license from Health Canada and a license from the Canada Revenue Agency (CRA), while others only require a license from Health Canada.

To become a holder of a CRA cannabis license under the Excise Act 2001, you must produce or package cannabis products. Cannabis production includes the cultivation and processing of cannabis. This license applies to all cannabis products, both products sold recreationally and those for medical purposes. Cannabis products include cannabis seeds, cannabis plants, fresh cannabis, dried cannabis, edible cannabis, cannabis extracts and cannabis topicals.

The CRA license application is made at the same time as the Health Canada application. However, this will only take effect when the license from Health Canada is received. Thus, during the license application process, a licensee will be pre-approved by the CRA to avoid delays. Once the Health Canada license has been issued, a copy will be sent to the CRA in order to obtain the cannabis license.

ENROLLMENT IN THE CRA CANNABIS PRODUCT STAMPING REGIME

License holders who package and label finished cannabis products must register with the Cannabis Product Stamping Regime. Excise stamps received from the CRA are used to indicate that cannabis duty, and if applicable, additional cannabis duty have been paid on the cannabis products and that the cannabis products have been produced for legal sale