The Health Canada Licensed Producer system, which evolved to become the framework of the Cannabis Act of 2018, is perhaps the strictest regulation system for cannabis producers in the world. This system reduces the illegal market, helps keep cannabis out of the hands of minors, and ensure a high-quality product while reducing the risk of contaminants. Health Canada has reported that no products grown by Licensed Producers has been sold on the illegal black market.

Dig a Little Deeper

Cannabis, like any drug, needs to be produced and distributed responsibly. Having a regulated system like the Health Canada Licensed Producer system is very important for meeting these goals. Canada is known for its high standards in food production, alcohol regulation, and pharmaceutical safety. It is no surprise then that Health Canada holds the cannabis industry to a high level of standards as well.

For buyers outside of Canada, the Health Canada Licensed Producer system is great because it ensures a safe and quality product. The Canadian licensed producer system could become the Gold Standard for cannabis producers around the world. Canadian companies are already opening facilities around the world, becoming global leaders in medical and adult-use cannabis.

The system is also good for investors looking for more exposure to cannabis stocks. The Health Canada application process is so strict with security checks, inspections, and even a review of business plans that it is like a level of due diligence all in itself. This will help keep out fly by night companies and provide an extra layer of checks for financials.