Micro-Processing Licence

Processing licences are primarily for refining cannabis obtained from cultivators into cured cannabis, oils, and other extracts, and selling the finished products to certain parties.

  • Why a Micro-Processing Licence?
  • How Camas can help

SMALLER FACILITY & PRODUCTION CAPACITY

Micro-Processing facilities are limited to 600kg of dried flower (or its equivalent) in a single calendar year. However, if the licence holder also holds a Micro-Cultivation licence for the same site, this limit does not apply to the cannabis grown at that site and the cannabis comes exclusively from that site, this maximum quantity does not apply. Processing cannabis means to produce cannabis products other than obtaining it by propagating, cultivating, or harvesting; and finished products would include ready-to-sell loose flower and value-added cannabis derivatives such as oils, vape pens, capsules, tinctures, and edibles. 

FEWER SECURITY REQUIREMENTS

With limited production capacity and less cannabis on-site at any given time, the security requirements for Micro-Processing facilities are more lenient. For example, unlike the Standard Processing licence, 24/7 intruder and visual monitoring systems are not required for Micro-Processors. A detailed Organizational Security Plan (OSP) is still required, along with other various physical barriers and secure storage access control protocols.  

MINIMAL OPERATIONAL COSTS

A Micro-Processing facility requires considerable capital investment to build, however due to the more lenient security requirements and restricted processing weight per year, it is less costly than a Standard Processing. Furthermore, limited processing capacity means a lighter workload; the business can be managed by 2-4 people and run a lean operation with less administrative expenses, such as wages, utilities, maintenance fees, etc.

UNIQUE PERSONNEL REQUIREMENTS

Processing licences are the only class of Health Canada licences that require a Quality Assurance Person (QAP). The QAP is a highly trained professional who has training, experience, and technical knowledge related to the Good Production Practices (GPP) and the Cannabis Products requirements set out in the Cannabis Regulations. The QAP is responsible for approving all cannabis before it is made available for sale, investigating every complaint received in respect to the quality of the cannabis and, if necessary, take corrective and preventative measures. Like cultivation licences, processing licences also require a Licence Holder, a Responsible Person, and a Head of Security; a single person may hold multiple roles within one application, provided they satisfy the requirements. 

The Purple Camas Consulting team would like to offer our proven track record of licensing and operational success, and the opportunity for our clients to build equity in a long-term cannabis venture. We offer assistance with various classes of Cannabis Act licenses.

Entering the cannabis industry can be an exciting business venture with significant upfront costs. The Camas team is here to ease that transition and provide our industry expertise to develop successful cannabis businesses for our clients’ investments. 

We provide assistance with a complete Micro-Processing application including the most challenging and time-consuming aspects of the application such as the Organizational Security Plan (OSP), Good Production Practices Report (GPP), Standard Operating Procedures Report (SOP), and the Record Keeping Report. We can create all of the templates and the full suite of SOPs necessary for a basic Health Canada Micro-Processing application.

Licence Combinations
It is possible to acquire multiple licence classes on the same site. This table demonstrates the possible combinations of Health Canada licence classes an applicant can pursue. 
 
Both cultivation and processing licences are permitted to sell their product to medical patients if they acquire a Sale for Medical Purposes licence. Nursery, Standard and Micro-Cultivators are only permitted to sell fresh flower and clones to medical patients, and Standard and Micro-Processors can sell cured and finished products.
 
A processing licence is required to sell to provincial distribution networks or recreational retailers.
Health Canada Cannabis Site Combinations

NOTE: Recreational sales in Canada are not regulated by Health Canada, but by each individual province and territory. Recreational sales are not included in this table.

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