Health Canada Recognizes Cannabis Licensing Process Part of Bottlenecks – LPC
Health Canada is changing its cannabis licensing process in response to bottlenecks that are affecting the supply chain. Now, new applicants will need to have a facility ready before they can apply for a cannabis licence. According to Health Canada, 70+ per cent of applicants in the last three years have yet to build a facility.
The ruling affects new applicants for licences to cultivate, process or sell cannabis, and is effective immediately.
“Health Canada is implementing these adjustments following a review of its current (cannabis) licensing process,” it announced on May 8. “A significant amount of resources are being used to review applications from entities that are not ready to begin operations.”
The result: the review process was being taken up by applications that have ultimately gone nowhere.
Cam Battley, chief corporate officer at Aurora Cannabis https://licensedproducerscanada.ca/listings/aurora-cannabis applauded the cannabis licensing process changes.
“It is good for patients and consumers,” Battley said. “I think it is likely to be beneficial to companies that have demonstrated professionalism, access to capital and an ability to comply with rigorous regulations.”
Supply Chain Problems Have Led to Shortages – LPC
Health Canada’s cannabis licensing process review has quite a history. Soon after cannabis was legalized for personal use in Canada last year, there were reports of a cannabis shortage. That shortage also began affecting medical cannabis patients who were not able to fill prescriptions. Some argued that it wasn’t supply, but problems with the supply chain. Whatever the source of the problem, it clearly affected legal retail cannabis.
Cannabis lawyer Matt Maurer believes these changes to the cannabis licensing process will help.
“We have a supply shortage and people are dumping on the federal government, rightly or wrongly, for not licensing fast enough,” Maurer said. “If they think they can expedite that by changing the process, I think that will help.”
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