Skip to content 
Micro-Processing Licence
The holder of a Micro Processing Licence is permitted to possess and produce cannabis products, including:
- pre-rolls
- vape cartridges and
- pens
- edibles
- beverages
- topicals
- A variety of other products
A micro-processing licence holder is allowed to alter chemical or physical properties of cannabis by using an organic solvent, but processing of cannabis oils is limited to 30mg of THC per mL.
This licence also authorizes the production and packaging of cannabis products, including dried and fresh cannabis, plants, seeds, and oils. The Licence Holder is permitted to sell and distribute cannabis to other licence holders, such as other processors, analytical testers, researchers, and cannabis drug licence holders. Only plants or seeds may be sold/distributed to licenced nurseries.
Cannabis produced for the purposes of testing (needed to determine the chemical characterization of cannabis. e.g., for a reference standard) may be sold or distributed to all of the preceding licence class holders.
Finally, a micro processing licence allows cannabis products to be sent to a buyer at the request of a Licence Holder who is authorized to sell cannabis for medical purposes, or who is authorized to sell under provincial/territorial statute.
Restrictions
Micro-processors are restricted to certain processing limits:
- a maximum of 600 kg of dried cannabis (or equivalent) in one (1) calendar year. However, If a Licence Holder also has a micro-cultivation licence for the same site and the cannabis comes exclusively from that site, this maximum quantity does not apply.
- Cannabis must also be produced, packaged, labelled, stored, sampled and tested indoors, and meet all Good Production Practices (GPP).
- Cannabis obtained under this licence class cannot be recovered by the synthesis of cannabinoids.
- Analytical testing of cannabis must occur prior to sale.
Security Requirements
A micro-processor licence holder must ensure that the site is designed to prevent unauthorized access; that both the site and storage areas are surrounded by a physical barrier to prevent unauthorized access; and that access to storage areas is restricted to persons who are required to be there to exercise their duties.
Security Clearances
Security Clearances are needed for key investors, directors and officers of the corporation or cooperative (if the Licence Holder is a corporation or cooperative); for any person who exercises, or is in a position to exercise direct control over the corporation or cooperative; any individual who is a partner in a partnership that exercises (or is in a position to exercise) direct control over the entity; and typically, the Responsible Person, Head of Security, QAP and designated Alternates of key personnel.
Key Pesonnel
Key personnel who must be identified and obtain security clearance are the Licence Holder (who has overall responsibility for the licence), Responsible Person (responsible for activities conducted by the Licence Holder), Head of Security (Responsible for ensuring that the physical security measures comply with Part 4 of the Cannabis Regulations and for the Organization Security Plan), and the Quality Assurance Person (QAP).
The QAP is responsible for assuring the quality of the cannabis before it is made available for sale. The QAP also investigates complaints about cannabis and takes steps to mitigate risks. The Licence Holder must retain a QAP who has the training, experience and technical knowledge related to the requirements of Parts 5 and 6 of the Cannabis Regulations. Where the QAP lacks the expertise to process edibles, the Licence Holder must retain an alternate who has the needed training, experience and technical knowledge. Up to two individuals may be hired as alternate QAPs if they are qualified to replace the primary QAP.
Those applying for a Micro Processing Licence must file a key investor report with their application, which is required if the entity does not have publicly traded shares.
Why Work with CannDelta?
CannDelta offers comprehensive support for preparing, submitting, and monitoring your federal cannabis license application, ensuring compliance and competitiveness. Our team includes experts with past experience at Health Canada, providing unparalleled insight into the regulatory landscape.
Business Plan Development
Build a solid foundation for your cannabis venture with business plans that meet Health Canada’s regulatory requirements and promote long-term growth.
Security Plan
Protect your assets and ensure compliance with thorough security plans that adhere to Canadian federal regulations.
Site Audits and Inspections
Stay proactive with detailed site audits. We identify potential issues and offer practical solutions to maintain compliance and efficiency, ensuring smooth operations.
Standard Operating Procedures (SOPs)
Enhance daily operations with tailored, compliant SOPs designed to facilitate smooth business processes and boost efficiency.
Marketing Plan
Make your brand stand out! We help you build your brand and create outreach strategies to establish your presence in Canada’s cannabis market.
Employee Staffing and Training Plan
Prepare your team for success with our recruitment strategies and customized training programs, ensuring your staff is well-equipped to excel in the cannabis industry.
Frequently Asked Questions
What is a Micro-Processing Licence?
A micro-processing licence allows you to engage in a variety of activities involving the manufacturing of cannabis products. However, the micro-processing licence does not allow you to produce synthetic cannabis through chemical reactions or recombinant bacteria. Additionally, you are allowed to possess up to 600 kg of dried cannabis or its equivalent per calendar year. This limit does not apply if the cannabis is cultivated under your own micro-cultivation license at the same location. For more details on possession limits, please visit the micro-cultivation page.
How Much is a Micro-Processing Licence?
The micro-processing licence application costs $1,886, and an annual licensing fee must be paid every year. The annual licensing fee is calculated by Health Canada, and it is different for each facility. There is also a security clearance fee that must be paid for each person requiring security clearance. There are numerous other expenses that come with opening a micr-processing facility beyond the application, licence, and security clearance fees.
What Can I Do With a Micro-Processing Licence?
With a micro-processing licence, you can process cannabis into bulk, wholesale, packaged, and labeled products, perform analytical testing of cannabis, conduct research and development of new processing procedures. You can also produce, distribute, and sell reference standards, and manufacture or assemble test kits. With a micro processing license, you are prohibited from producing synthetic cannabis through chemical reactions or recombinant bacteria. You are allowed to possess up to 600 kg of dried cannabis per calendar year, or its equivalent. This limit is waived if the cannabis is grown under your own micro-cultivation license at the same location. For comprehensive information on possession limits, please refer to the micro cultivation page.
How do I Apply for a Micro-Processing Licence?
You can apply for a micro-processing licence by submitting a complete and comprehensive application and paying the application fee of $1,886. The application process will involve notifying local authorities, preparing your site according to all regulatory requirements, identifying all of your key personnel, and more.
