Overall health Canada announced Wednesday new specifications for these applying for a license to develop cannabis in Canada to speed along the application procedure.
The agency mentioned in a statement that helpful right away, new applicants hunting to cultivate, procedure or sell cannabis for healthcare purposes ought to have a completely constructed facility just before they apply.
Previously, applicants only had to submit a company strategy for a facility, but not have 1 completely constructed just before beginning the application procedure.
Applicants who had been pre-authorized by the agency and in the queue would then be in a position to get started securing investments to enable create the actual web site.
The agency says it will carry out a “high-level review” of current applications presently waiting for approval, which is in the hundreds.
Overall health Canada is producing this modify due to a “significant amount” of sources allocated to approve applications. The agency says extra than 70 per cent of authorized applicants in the previous 3 years have not shown they have constructed a facility.
“As a outcome, substantial quantity of sources are becoming made use of to critique applications from entities that are not prepared to start operations, contributing to wait occasions for extra mature applications and an inefficient allocation of sources,” Overall health Canada mentioned in a statement.
In addition, the agency says that the new method is a response to feedback on the quantity of time the licensing procedure could take, exasperated by extra persons attempting to enter the cannabis marketplace.
Previously, the whole application procedure could take extra than a year to total, according to Overall health Canada’s web page.
Some in the business had complained about the length of the procedure, such as Aphria Inc. interim chief executive officer Irwin Simon.
He mentioned to analysts in January that an application to expand his Leamington, Ont., facility submitted in early 2018 nonetheless had not been authorized, according to BNN Bloomberg. It was authorized in March.
The delay in approving cannabis production could be a explanation for a provide shortage in Canada because the drug was legalized in October 2018.
Having said that, Overall health Canada says there is presently extra than 600,000 square metres of space below active cultivation, which is sufficient to create about 1 million kilograms of cannabis per year and meet estimates of total cannabis consumption in Canada.
Overall health Canada says that because Might 2017, it has licensed 129 new web sites, which is almost triple the quantity of web sites licensed in the 4 preceding years.