Processing

The Canadian Model

A processing license is ideal for anyone looking to work with cannabis and its derivatives. It allows for the manufacture and packaging of cannabis-based products such as vape cartridges, edibles (and beverages), wax, shatter, prerolls, and topicals and the finished product packaging of dried flower.

There are two kinds of processing licenses in Canada – the micro processing license and the standard processing license. The difference between the two licenses is the allowable amount of cannabis to be processed each year. Both micro processing and standard processing licenses require that a production- ready facility be in place prior to submitting a licence application to Health Canada.

Micro Processing

Micro processing license holders are permitted to possess and produce cannabis products – as opposed to propagating, cultivating and harvesting the plant.

It allows license holders to produce a wide range of cannabis products. Micro processors have a production limit that constrains the holder to process no more than 600 kg of dried cannabis or equivalent within a given calendar year. Production limits do not apply to micro processors who also hold a micro-cultivation license on the same site.

Standard Processing

Standard Processing licenses function much like micro processing licences, but there is no limit on the amount of cannabis products the business can process each year.

License holders can manufacture, sell, and distribute an unlimited amount of cannabis products with this licence.

Additional Requirements for standard processing license

Access controls are required around operations areas, and a record must be made of everyone who exits and enters from storage areas.
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.
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.
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.

License Overview

What is a Processing License for?

A processing license is ideal for anyone looking to work with cannabis and its derivatives, such as oil, wax, hash, butter, and other extracts.
The Cannabis Act and Regulations have opened up many possibilities for established businesses – such as those in the food and beverage, wellness, and personal care sectors – to expand into the legal cannabis market, as the production of edible cannabis and topical cannabis products is now legal.
A Standard Processing License will most often benefit companies that want to do large scale production and the micro processing license will benefit smaller companies that intend to produce smaller crops for niche markets.
Micro cultivation license holders might also consider growing their operations by applying for a micro processing license so that they may conduct finished product packaging of their dried flower and expand into the edibles, extracts and topicals industries.

Security Clearance

Security clearances are needed for key investors, directors and officers of corporations or cooperatives; for any person who exercises, or is in a position to exercise direct control over the corporation or cooperative; and any individual who is a partner that exercises direct control over the entity.
Security clearances also pertain to Health Canada roles required at the production facility, including the Responsible Person (RP), Head of Security (HoS), Quality Assurance Person (QA), and alternates of these key positions.