CannDelta has experience consulting businesses that wish to obtain a cannabis nursery licence in Canada, the US, and worldwide.
A cannabis Nursery Licence allows its Licence Holders to possess cannabis; to propagate, cultivate and harvest cannabis plants and seeds; to conduct ancillary activities, and alter the chemical or physical properties of cannabis for testing purposes. The licence also allows the sale and distribution to other licensees and to sell and distribute cannabis plants and seeds to licence holders authorized to sell cannabis for medical purposes or under provincial/territorial legislation.
Restrictions & Conditions
Restrictions and conditions of this licence concern seed production, harvest limits and destruction of plants. For seed production, a total surface area of no more than 50 meters squared must contain all the parts of budding or flowering plants. A maximum of 5 kg of flowering heads may be harvested from plants, except for seeds. The Licence Holder must destroy the flowering heads (except for seeds), leaves and branches of the plants within 30 days of harvesting.
Aside from the limits mentioned above on flowering cannabis, there are no further restrictions on cultivation space or facility size, with minimal security requirements. Indoor or outdoor cultivation is permitted.
Key Personnel & Security
Key personnel with security clearances required are the Licence Holder (as an individual), Responsible Person, Head of Security and Master Grower. Applicants must show that personnel have the knowledge, qualifications, experience and ability to fulfill applicable responsibilities. The requirements of the Responsible Person are noteworthy as this individual will have the authority to bind the licence holder, has overall responsibility for activities conducted by the licensee, and must know the Cannabis Act and Regulations provisions applying to the holder of the license. The Responsible Person also serves as the official point of contact with Health Canada.
There are four priority security areas that all applicants and licence holders will be expected to address through SOPs. The number of SOPs is the applicant’s decision, but all four—Security Clearances, Physical Security, Security Awareness & Training, and Record-Keeping, Reporting & Testing—must be included.
Physical security requirements to be addressed focus on on-site design, physical site barrier, a physical barrier for storage areas and restricted access by personnel to storage areas. As with other licence classes, an Organizational Security Plan must be developed as part of the application.
Security Clearances are a critical requirement for all key site personnel, directors and officers of the corporation and all main investors in the enterprise. An organizational chart is needed with the package to show the structure of the enterprise, with names, titles and reporting relationships, including management positions and any other roles that influence strategic business and operational decisions, and the movement of money or cannabis.
The Nursery Licence application includes:
Good Production Practices (GPP) report
Nursery licences must fulfill Good Production Practices (GPP)requirements but not as many as for processing licences. Key GPP requirements include SOPs, pest control, storage, distribution, filtration and ventilation systems, sanitation, etc. Excluded are competencies and qualifications, temperature and humidity control, incompatible activities and others (see Health Canada: GPP Requirements by Licence Class Guidance Document; Appendix A.).
The Nursery Licence may be combined with three other cannabis licences, i.e., Sales for Medical Purposes, Analytical Testing, and for Cannabis Research.
Key Investor Report
Applicants are required to file a key investor report if the entity’s shares are not publicly traded.
Hemp & Cannabis Business Plans
A Business Plan for the proposed operation is needed to help secure this licence. The plan should describe the applicant’s business model indicating the products they intend to sell and the activities that will be conducted. Attention will be paid to any affiliations or business relationships the operation will maintain with other companies.
Site Evidence Package
A site evidence package must comprise a guided video tour of the whole site (indoors and outdoors), highlighting the site perimeter, a photograph of the perimeter, and a detailed list of all storage areas. The application package includes additional information detailing physical barriers and site design, visual monitoring and intrusion detection measures, restricted access and logs, and monitoring and response plans. This will include details on the types, specifications, and location of surveillance cameras and access control devices (e.g., proximity card readers and electric door strikes), if any exist, and a description of how authorized personnel will be provided access.