Ann: Appendix 3B, page-34

As per RGI's announcements, they have employed Cannabis Compliance Inc to manage their licence transfers etc.

A quick look at their web site - a few pastes:

"Cannabis Compliance Inc is accepting new clients for the preparation and submission of Standard Processor Licences, and has a 100% success rate with previously submitted applications under the former ACMPR regulations. "

my comment - they've contracted the right people

"The timeframe to achieve a Standard Processor Licence is still unknown, as Health Canada has not set performance targets for application processing, but it is expected to follow similar patterns observed previously under the Licensed Producer (LP) licensing within the Access to Cannabis for Medical Purposes Regulations (ACMPR) (i.e., at minimum 18 months from submission to licence). The Standard Processor Licence is the current-day equivalent of the former LP from the ACMPR, except it does not necessarily have to be coupled with a cultivation licence now."

My comment - The new Cannabis Act allows for LD's to automatically convert to processing licenses, saving the 18 months ++. 

Mernova (Cresco) were granted their license last week. When Cresco acquired Mernova in July 2017 they already had an application in with Health Canada (HC) that was at the "ACMPR Applicant" stage - can't find any info as to when they initially applied, but still 20  months from the acquisition, fair to assume 2 years for the whole process.

This is why buying the LD is so important, since Mernova's application, HC is even more understaffed & snowed under, even if we just save 1 year, the profits will easily pay for the cost of the LD, though the time saved will be a lot more than 1 year.

"However, the finished product must pass analytical testing for chemical residues (including many pesticides) and microbial contaminants. This dictates a strong, disciplined approach to cultivation in order to avoid destruction of crops and/or recalling product from the market. Many licensed producers have experienced recalls and have lost considerable revenue opportunities as a result of poor practices."

My comment - why their small hermetically sealed grow rooms, no pesticide, is so important, not to mention the yields.

"With a Standard Cultivation Licence, a company is permitted to sell wholesale to either a provincial distribution channel (fresh/live plants/seeds) or dried flower/oil to a company with a Processor Licence (Micro or Standard). If the Standard Cultivator also wishes to sell online to Canadians for medical purposes, they must also apply for a Sale for Medical Purposes Licence, which can be stacked onto the Standard Cultivation Licence."

My comment - This is why an offtake agreement is so important - Valen's already have a LP and a LD (apart from Supra's)  so RGI wont need a Sales license, of course they will probably eventually get that to broaden their options.

"Note that only a fully built-out facility will be eligible for a licence, and Health Canada does not offer any “ready to build” (or similar) authorizations ahead of construction; the applicant will need to build out the facility before/during the application is under review."

My comment - Why the delay in HC transferring Supra's LD into a Processing License (a formality under the Act) is not costing us time. I believe they just have to lease the premise - which they have lined up, build out 2 rooms as they've announced for $50k (48 machines - similar to Frozen Penguin) then HC can inspect the premise, transfer the license address & add cultivation. 

I also googled lease costs for around 44,000 sq ft in Caledon Ontario, around $30k a month

https://www.cannabiscomplianceinc.com/licensing/finished-products/standard-processing/      + links in that site