The variety of applicants to domesticate cannabis in Canada rose 150% in the primary quarter of 2018 because the business ramps up for legalization late this summer time.
Health Canada acquired 74 cultivation purposes in the primary 4 months of this yr, bringing the full variety of purposes in the pipeline to over 500; 30 utilized for cultivation licenses in the identical interval in 2017.
The latest applicants aren’t anticipated to have product on retailer cabinets till 2019 on the earliest as a result of, on common, it takes 341 days after an organization is awarded a cultivation license to get a allow to promote. Getting a cultivation license can take six months to a number of years.
The lack of large-scale, absolutely licensed capability in Canada might exacerbate a marijuana shortage, relying on shopper demand from provincially regulated retailers, in line with Hamish Sutherland, CEO of White Sheep, a business operator and strategic investor in cannabis belongings.
Of the 104 corporations allowed to develop cannabis, lower than half (48) can promote dried cannabis and simply 25 are permitted to promote cannabis oil.
“The number of cultivators is critical, because that leads to the next step – sales licensing,” he stated. “Once all these ‘majors’ get everything in the ground, then they have to go through the process to get a sales license.”
Ontario-based CannTrust holds the document for quickest turnaround, 129 days.
Most of Canada’s largest amenities have but to get a license from Health Canada to promote cannabis, together with Aurora Sky in Alberta (owned by Aurora Cannabis) and BC Tweed in British Columbia (owned by Canopy Growth), Sutherland stated.
The longer it takes a licensed producer to efficiently and persistently domesticate cannabis in its giant facility, the longer it takes to get a gross sales license.
“Adult users will almost certainly not have access to adequate legal supply for a considerable number of months/years,” he stated.
CannTrust, Aurora Cannabis and Canopy Growth are traded on the Toronto Stock Exchange underneath the symbols TRST, ACB and WEED, respectively.
Matt Lamers may be reached at [email protected]
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