Micro Cultivation and Micro Processing licenses for cannabis

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There is two exciting information about Health Canada micro-processing license that change the game:

• The microprocessor may share a Quality Control Person (QAP) with another processor. However, the applicant must include in his organization chart/SOP a justification or statement that the quality assurance requirements will meet even if the QAP works part-time.

• The microprocessor, which also owns a micro-cultivation license for the same site, can process its crop plus 600 kg of cannabis from another person.

These two developments modify the equation in the cost-benefit analysis for those who want to apply for a micro-license.

Micro Cultivation Licensing

Not more than 2100 square feet coverage: This is practically equivalent to an approximate limit of 500-700 houseplants per crop. With three crops per year, there are about 1500-2100 plants (on average 1,650 plants). Assuming that each houseplant produces 3 ounces of dried flowers, the average annual production would be about 309 pounds of dried flowers. At 2,000/lb, this would bring an annual gross income of $618,000. It would also give about the same average weight per plant, with an increase of 309 pounds per year. Even though the trim sells for a fraction of what the flowers sell (but contains about half of the cannabinoids), Health Canada treats them in their calculations in the same way (yes, that does not make sense, but it's right). Assuming that the price for the "road" of the trim is about $100 per pound, you can add another $31,000 to the gross income, which is about $649,000 per year. Multiple licenses can be "stacked" to gradually increase production.

Micro Processing Licensing

It can process up to 600 kg per year per license; it can also be "stacked." Based on the mathematics of the previous micro-cultivation section, a single micro processing license could handle the production of four micro cultivation license. Oil production with a yield of 10% by weight of the flower would amount to 132 pounds of oil, which at $10,000 per pound corresponds to $1.32 million per year. If the oil extracted from the molded part, it would only be half so that the income would be around $650,000 a year.