Cannabis
With the legalization of cannabis comes new opportunities and new legal challenges. The full-service team at Stewart McKelvey is suited to assist industry entrants and seasoned participants with a full skillset. We understand more than regulation: we understand the business, from financing to production to corporate governance and beyond.
Our Work
- Advise cannabis producers in license applications and private equity capital raises to finance the construction of cannabis cultivation and production facilities.
- Advise cannabis cultivation companies in license applications, friends and family seed raises, and convertible debt issuances to finance the construction of cannabis cultivation and production facilities.
- Advise cannabis companies in regulatory matters relating to successful issuances of standard cultivation licenses and standard processing licenses.
- Act for a consortium of private lenders in secured distressed asset loans (secured against cannabis facilities in Ontario, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador).
- Act as counsel to a specialty finance company in drafting a receivables purchase agreement with a cannabis producer.
- Act in the purchase of a commercial facility for conversion into cannabis production facility and negotiate commercial lease for cannabis production facility on behalf of the landlord.
- Draft terms and conditions for cannabis packaging machinery producer and facilitate secured purchases of cannabis machinery lines.
- Negotiate co-packing and production agreement for cannabis oil among holders of standard processing licenses.
Federal Legislation
The Cannabis Act creates a legal and regulatory framework for controlling the production, distribution, sale and possession of cannabis in Canada. The Act:
- restricts youth access to cannabis;
- prohibits promotions that are designed to encourage youth to use cannabis;
- imposes serious criminal penalties on people who break the law
- establishes strict product safety and quality requirements;
- reduces the burden on the criminal justice system;
- provides for the legal production of cannabis;
- allows adults to possess and access regulated, quality-controlled, legal cannabis
Atlantic Canadian Legislation
The federal government sets the minimum standards and provincial governments will license and regulate the sale and distribution of cannabis. Provincial authority answers practical questions such as:
- How cannabis can be sold?
- Where might the stores be located?
- How many stores must be in operation?
- Who is allowed to sell and consume cannabis (i.e. – minimum legal age)?
Insights
Health Canada provides draft guidance on personal production of cannabis for medical purposes
Kevin Landry and Emily Murray On March 8, 2021, Health Canada released draft guidance on personal production of cannabis for medical purposes (“Guidance Document”). At present, the Guidance Document is being circulated for public comment for a 60-day period ending May 7, 2021. Why is public consultation being sought? This consultation is a step towards addressing…
Final cannabis edibles, topicals and extracts regulations released
Kevin Landry On June 14, 2019, Health Canada announced the release of the final version of amendments to the Cannabis Regulations, which will permit for the production and sale of edibles, extracts and topicals. The announcement follows recent changes to the cannabis licensing regime and was preceded by a 60-day consultation period on the strict…
Changes to Canadian cannabis licensing application process
Kevin Landry Health Canada has announced changes to the cannabis licensing regime. These changes come ahead of the release of the cannabis edibles, extracts, and topicals amendments to the Cannabis Regulations expected to be released in the Canada Gazette Part II prior to October 2019. The changes Effective May 8, 2019 there are changes for…
