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Medical Marijuana Producer License Information - Canada

Corporate Financing - Marihuana for Medical Purposes Regulations (MMPR)

The Marihuana for Medical Purposes Regulations (MMPR) will treat dried marihuana as much as possible like other narcotics used for medical purposes by creating a licensing process for the production and distribution of dried marihuana for medical purposes. The current Marihuana Medical Access Regulations (MMAR) will be repealed on March 31, 2014. Until that date, both the MMAR and the MMPR will be in force.

Health Canada is establishing a licensing framework to allow for a commercial industry for the production and distribution of dried marihuana for medical purposes. Personal and designated production of dried marihuana for medical purposes would be eliminated, and Health Canada would no longer produce and distribute marihuana directly to individuals, eliminating related contract costs.

Private industry participation in the proposed regime is expected to yield benefits to society. Major attention was given to longer-term benefits from the full establishment of a large, competitive and innovative legal industry for marihuana users, the economy and Canadian society, and the longer-term possibility that a fully functioning and reasonably competitive, efficient and innovative market would promote increased uptake by individuals currently accessing marihuana through the illicit market.

Business, especially medium-sized business, is also a beneficiary in terms of producer surplus benefits and the expansion of the legal marihuana supply industry that could grow to more than $1.3 billion per year in annual sales by the end of the forecast period.

The principal impact on the economy would be the replacement of the current regime — a combination of personal production by private citizens and a heavily subsidized Government supply option — by a commercial industry. This would significantly reduce the burden on the Government of Canada and Canadian taxpayers. By 2024, rather than attempting to regulate potentially up to 450,000 individuals, Health Canada would likely be dealing with a significantly smaller number of licensed businesses.

It is projected that within one to two years of the industry’s establishment, licensed producers would have grown beyond the scope of small business. While there would be substantial investments required at the start-up phase, returns supported by a growing industry could potentially compensate owners of capital in a relatively short time.

The proposed MMPR would enable an entirely new industry to be created in Canada. Achieving the benefits contemplated by the proposed MMPR is highly dependent on establishing a viable marihuana for medical purposes industry, with licensed producers that produce as the anticipated demand for the product increases.

If you require corporate financing to start your business based on this new industry in Canada, there is protocol in place to assist you with this process.

 

Contact us here.

 

 

 

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