Canada’s first nursery license marks ‘key point’ in cannabis industry’s development

Canada’s first nursery license marks ‘key point’ in cannabis industry’s development

Canada’s cannabis regulatory agency issued its first nursery license to Alberta-based InPlanta Biotechnology – a milestone that will lead to a more diversified selection of cannabis from a wider variety of genetics and a more competitive legal market.

The new license category allows holders to produce and sell cannabis and hemp genetics for seeds and clones.

Demand for starting material is rising in Canada as the number of federal cannabis license holders has reached a record 175. With another 1,000 applicants in the pipeline, demand will continue to grow.

Deepak Anand, a cannabis industry expert based in Vancouver, British Columbia, said nursery license holders stand to capitalize on the growing demand for diversified starting plant material.

“This opens up a number of pathways to address the genetics issue. I think that’s why Health Canada launched these product categories,” he said, adding that nurseries will supply licensed standard cultivators and, to a lesser extent, provincial wholesalers.

Situated on the University of Lethbridge campus in Alberta, InPlanta has been breeding under a research permit since 2016.

The regulated sector has suffered from a limited selection of starting material, according to InPlanta co-founder Darryl Hudson.

“(This license) is a really key point in the industry now,” he said.

“… There is access to genetics now in the industry, and I think that’s going to allow businesses to set themselves apart, because if you have something unique and proprietary from the beginning, then you can market and brand it.”

InPlanta was able to cross the nursery finish line first by applying for a standard cultivation license in October 2017 and transitioning to a nursery one when the application was switched to the Cannabis Tracking and Licensing System last year.

InPlanta also plans to address demand in the consumer market for seeds and genetics, where supply has been lacking since legalization last October. 

Nursery license: Need to know

  • Nursery licenses come with an annual fee of 2,500 Canadian dollars ($1,800) – plus an application fee of CA$1,638.
  • License holders must also pay a 1% rate if their annual revenue is CA$1 million or less.
  • Standard cultivation permit holders must pay a CA$23,000 annual fee.
  • There is a limit of 50 square meters for flowering canopy space.
  • The license does not allow the production and sale of finished product like pre-rolls or dried flower.

Matt Lamers can be reached at [email protected].

Published at Thu, 02 May 2019 17:45:46 +0000

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