The objective of a Nursery Licence under the Cannabis Act, 2018, and Cannabis Regulations, 2018, is to authorize the use of propagation materials such as seedlings, seeds, and clones for growing cannabis and related activities.
Health Canada’s Cannabis Act, 2018, adapts existing regulatory compliance utilized in the medical cannabis industry to help legalize cannabis in Canada while establishing a new industry to compete with the current illicit marihuana market. The Act aims to create a very diverse yet highly competitive legal industry consisting of various activities, from the growth and production of cannabis to the sale of cannabis to the general public. Individuals and organizations of all sizes consist of this new industry and will need to work together to ensure Canada’s legalized cannabis industry’s success.
The Act and its Regulations further define the processes and procedures for obtaining a Nursery Licence. This Licence Class intends to create a legal entity for starting materials to support the cannabis industry and develop high-quality varieties of cannabis.
To distinguish a Nursery Licence from other Cultivation Class Licences, Health Canada has placed certain limitations on the facility’s size, having a total surface area for cultivation not exceeding 50m2, including vertical grow areas. Possession limits also exist with a Nursery. Licenced Holders for Nursery are not allowed to possess more than 5kg of harvested flowering heads.
Under the Act, Licenced Holders for Nursery are allowed to cultivate and clone any cannabis variety, including industrial hemp. Furthermore, a Licenced Holder is permitted to produce seedlings and seeds.
Holders of Research
Authorizations
Licenced Processors
Licenced Cultivators
Prohibitions for Nursery Licences include the sale to the general public or authorized retailers and the production or harvest of other plant materials of other cannabis classes. Applicants can apply for multiple Licence Classes and Subclasses when they want to engage in various allowable activities.
Applicants can submit a single application, whether they want to engage in a single activity or multiple activities requiring multiple permits or licences. All licences and permits would be issued and regulated by Health Canada.
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Under the Cannabis Act and Regulations, a Nursery License permits the production of starting materials like cannabis seeds, clones and plants. This license is crucial for supporting the legal cannabis industry by supplying high-quality plant varieties essential for the sector's growth and sustainability.
A Nursery License is distinct from other cultivation licenses (such as micro and standard cultivation licenses) due to specific limitations imposed by Health Canada, including a maximum cultivation area of 50m² and a possession limit of 5kg of harvested flowering heads. These parameters are meant for you to focus on specializing in breeding and developing unique cannabis strains, giving you the ability to create and perfect new varieties that cater to specific market demands or offer unique characteristics.
The business model for cannabis nurseries revolves around the production and sale of high-quality cannabis starting materials, such as seeds, seedlings, and clones, to other licensed cannabis businesses. Here’s an overview of the key components of a cannabis nursery business model:
Intra-Industry Sales: Nurseries primarily sell their products to other licensed cannabis businesses, including:
Sales to the general public or authorized retailers are not permitted under a Nursery License alone. To sell plants and seeds directly to the public, a business would need either a Cannabis Online Sales License or a Retail License. Businesses can obtain these licenses, whether under one roof or at various locations, enabling their business model to align perfectly with the licensed activities within the cannabis industry.
Applicants can submit a single application for one or multiple activities requiring different licenses or permits. Health Canada regulates and issues all licenses and permits, ensuring that businesses are fully compliant and positioned for success.
Apply Now! Get licensed and become part of our Global Cannabis Inter-Industry Ecosystem
At GrowLegally, we guide your business through every step, from licensing to developing a strategic growth plan, ensuring your success in the cannabis industry.
We encourage you to schedule a complimentary consultation with our expert consultant for a comprehensive budget and ROI analysis, including detailed operational cost estimates and guidance on the licensing requirements, process, and timeline. We’ll help you understand the types of licenses required to conduct the activities that align with your business model, ensuring you're fully prepared to succeed in the cannabis industry.
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