Industrial hemp licence

A buyer of a hemp grower or processor meets this term early, because the business can only do what its licence authorizes. Health Canada says you need a licence from it to do certain activities with cannabis and industrial hemp, and the hemp licence is its own licence type.

What the licence does

Under the Industrial Hemp Regulations, a holder of a licence is authorized to conduct any of the activities listed in section 3 that are authorized by the licence. Health Canada notes that if you also want an analytical testing, research, cannabis drug or industrial hemp licence, each needs a separate application. Isolating or concentrating phytocannabinoids from a mature stalk needs a cannabis licence, not a hemp licence.

Changes that touch a sale

The Regulations require the holder to notify the Minister of listed changes. They include the addition, departure or replacement of a partner, officer or director of a partnership, corporation or cooperative, and a change in the ownership of the land used to cultivate industrial hemp. For a land change, the holder must provide a declaration signed and dated by the new owner of the land indicating that the new owner consents to the land being used to cultivate industrial hemp. Ask which of those changes the deal would cause, and whether a licence amendment under the Regulations is needed.

See what licences and permits transfer when I buy a business for the wider checklist, and compare the cannabis cultivation licence.