Half of Canada’s cannabis cultivation applicants stuck in limbo

More than half of the cannabis website purposes in Canada had not transitioned to the brand new licensing system as of the top of 2018, which means their purposes are successfully in regulatory limbo and never being scrutinized by the nation’s cannabis regulator.

Only 409 of the 839 cannabis website purposes in the queue to be cannabis cultivators had transitioned to the Cannabis Tracking and Licensing System (CTLS) as of Dec. 31, in accordance with new knowledge that Health Canada shared with Marijuana Business Daily.

Since August 2018, Health Canada has requested that each one applicants in queue for a license underneath the Access to Cannabis for Medical Purposes Regulations (ACMPR) migrate to the brand new cannabis licensing system.

Health Canada informed Marijuana Business Daily there isn’t a onerous deadline and potential licensees can nonetheless switch, however purposes won’t be reviewed till they enter the CTLS.

“Health Canada continues to see ACMPR applications being entered in CTLS at a steady rate,” in response to Health Canada’s Tammy Jarbeau.

Michael Elkin, director of strategic gross sales at Cannabis Compliance (CCI), stated the transition is just not a cakewalk and must be completed with excessive element.

“It’s a big deal. We have been referring to it as a purge,” he stated. “It’s going to be a method for Health Canada (to dump) a bunch of previous purposes.

“The transition is not as easy as snapping your fingers.”

CCI represents about 200 potential licensees.

Race is on

More companies than ever are aiming to be licensed cannabis cultivators, processors and/or sellers, however specialists foresee a hyper-competitive market creating as the current scarcity transitions to an enormous glut inside 5 years.

Prospective cultivators that transition their information to the CTLS early have an edge over those that delay.

“Once the applicants successfully transition their applications into CTLS, they are generally reviewed in the order in which they were received,” Jarbeau stated.

She stated the time to course of an software is affected by a quantity of elements, together with the standard, completeness and complexity of purposes in addition to the state of readiness of the applicant, which might embrace whether or not a licensable facility already exists.

Applicants are required to offer proof to show how their submission meets required safety measures and recordkeeping necessities specified in the Cannabis Regulations and Good Production Practices.

Separately, Health Canada established devoted groups to evaluate purposes for brand spanking new license courses – micro, analysis and analytical testing.

There are roughly 145 approved cultivators, processors and sellers underneath the Cannabis Act.

‘Intent to refuse’

After an software is entered into the CTLS, it undergoes a screening course of by Health Canada to confirm that the knowledge has been correctly entered into the system.

However, in instances the place the appliance is lacking info, the applicant is shipped an “intent to refuse” discover.

The discover lists the knowledge that have to be submitted inside 30 days, based on Health Canada.

Most applicants given an “intent to refuse” discover have offered the lacking info and their software has moved again to the assessment and security-clearance stage, Health Canada stated.

Matt Lamers could be reached at [email protected]

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