Health Canada Changes The License Approval Procedure As Of May 2019
This amendment (see below) directly impacts on the funding requirements for filing an application for a Cannabis Business License; the applicant has to fund the entire build-out of the premises before filing the license application.
This amendment has the effect of substituting the COR with a filing of an “evidence package” within 10 days of filing the application on the cannabis tracking licensing system (“CTLS”). The evidence package comprises of a video walkthrough of the fully built out premises using the floor plan as a point of reference. This video evidence is then sent to Health Canada using a USB memory device and is also a requirement for pending applicants that have not received a COR.
A business plan is now required with a license application
Health Canada requires a business plan for the Cannabis Commercial Producer’s License Application to rationalize the applicant’s business models and its sales and marketing strategy with forwarding pro forma financials. Numerical quantification of Marijuana, or cannabis, markets in Canada are estimated to be a total of over $13 Billion. The recent Dundee report estimates the market at $3 Billion of the Medical Market with the Recreation Market at over $10 Billion. These numbers have been confirmed by the Parliamentary Budget Office analysis. Further confirmation of these market quantification by the Deloitte’s survey using the Colorado data to extrapolate the Canadian Cannabis Recreational Market at $10 Billion. There is further market quantification undertaken by Health Canada which is accurate for the medical marijuana markets with an analysis of the use of cannabis for medical purposes with patient numbers and patients.
Business Plan For Operations
Our 35 years of finely honed business planning and operations experience, including the medical cannabis industry, will assist your team in:
- Selection of the optimum physical site for the premises to assist in negotiating the land transaction
- Preparing the business case prior to filing for the cannabis license
- Quantifying the production capacity
- Assisting in initial funding
- Filing for the producer's license
- Understanding the proposed operations
Business Plan For Funding
We can assist you in funding the buildout
- We will help you to execute on the business plan that we develop for you and assist you in finding the funding you need as outlined in your business plan
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Let our cannabis business plan expert guide you
Before you file for your cannabis license you will need to choose the location and size of the physical site for the proposed operations because the site location impacts directly on the security and other critical Health Canada requirements. The business plan will help you to not only identify the physical site of the property to match your production requirements but also to assist in the funding of the fixed property lease or purchase.
Also, one of the mainsprings of the application is the require consents from the locale fire department and local law enforcement, not to mention the site cannot be near schools and residential.
It is recommended that have a business plan for operations before file the License application with Health Canada. This gives you the advantage of understanding right from the beginning what your new business will comprise in terms of revenues, costs, and production capacity, this also will help you finance the costs of filing the License application and other associated costs.
What else can our cannabis business plan provide?
Determine where the proposed site will be
Negotiate the commercial lease or purchase of fixed property
Determine the true extent of the medical marijuana production premises (Floor Plan)
Accurately calculate medical cannabis production capacity in terms of floor plan (for use in the License Application)
Identify the medical cannabis growing technologies to be used in a processing License Application
Identify the extraction technology to be used
Quantify the growing costs of cannabis per gram
Quantify Capital Expenditure Costs
Five Year forward pro forma revenues and EBITDA profits and break evens
Form your marketing and marketing communication strategy
Described Further Cannabis growing Expansion Plans
Company Valuation relative to cross section of existing medical Cannabis Licensed Producers
Analysis of adult use market and its revenue model
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business plan for funding
This is a Business Plan to help fund the building of the Production Facility in anticipation of the Health Canada license filed. This will also include the funding of fixtures such as security vault, lights, cannabis extraction technology, machinery and equipment and working capital to fund the final stages of the Licensing Process.
We will ensure that the Business Plan for funding the medical marijuana operations is crafted, and packaged for presentation to investors, to ensure a clear value proposition that investors will want to buy into your future cannabis business.
Want to know what the business plan for funding? Download our sample!
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