Cannabis cultivation licence

For a buyer of a licensed cannabis producer, this licence is what authorizes the business to grow. Health Canada says a licence from it is needed to do certain activities with cannabis. Under section 62 of the Cannabis Act, the Minister may on application issue, renew or amend licences that authorize activities such as production.

What the licence ties to

The Cannabis Regulations name micro-cultivation, standard cultivation and a nursery as subclasses of a licence for cultivation. Section 39 requires a licence holder to conduct authorized activities only at the site, and the building within it, set out in the licence. Section 62(7) of the Act lists grounds on which the Minister may refuse to issue, renew or amend a licence, and section 65 lists grounds for revocation.

What to ask

• Which subclass is held, and what does the licence authorize at which site?
• Are there licence conditions the Minister has added under section 62(10)?
• How will changes in the people who must hold a security clearance be notified?

See what a cannabis cultivation facility is worth for how the licence sits in a valuation discussion.