14:27:57 EDT Fri 19 Apr 2024
Enter Symbol
or Name
USA
CA



Van Sun says Canopy, others see microplayers go grey

2019-06-27 07:35 ET - In the News

See In the News (C-WEED) Canopy Growth Corp

The Vancouver Sun reports in its Thursday edition that Health Canada rules for microcultivation of recreational cannabis have kept most of the pot sold in British Columbia locked up in the grey market. The Sun's Randy Shore writes that licensing just 15 per cent of B.C.'s 6,000 grey-market craft cannabis growers and raising production caps could legitimize nearly $3-billion in cannabis sales in two years, according to an analysis by cannabis business accelerator Grow Tech Labs. The cost of entering the regulated market, combined with tight limits on capacity, conspire to create a business model that is not viable for growers in the unregulated market, said Grow Tech's Barinder Rasode. "The process is so challenging that would-be growers are forced to hire consultants to get through the process, plus you can't apply for a cultivation licence until you have an acceptable facility already fully built," she said. A microcultivation licence limits the size of the production facility to 200 square metres (2,100 square feet) while microprocessors are allowed to handle no more than 600 kilograms of dried cannabis per year. Doubling those production caps could help create thousands of jobs, the analysis concludes.

© 2024 Canjex Publishing Ltd. All rights reserved.