Pubdate: Wed, 03 Sep 2014
Source: Record, The (Kitchener, CN ON)
Copyright: 2014 Metroland Media Group Ltd.
Contact:  http://www.therecord.com/
Details: http://www.mapinc.org/media/225
Author: Dean Beeby
Page: A4

APPROVALS SLOW FOR MEDICAL POT LICENCES

OTTAWA - The number of Canadian firms applying for lucrative medical
marijuana licences has topped 1,000, as a so-called "greenrush"
continues to overwhelm Health Canada.

So far, only two new licences have been approved this summer even as
the department tightens the application rules - and as nervous
investors await decisions on their multi-million dollar bids.

Health Canada says that as of Aug. 25, it had received 1,009 formal
licence applications to grow medical weed since a call for proposals
was issued last year, with 462 returned as incomplete, 201 rejected
and 32 withdrawn. That still leaves almost 300 applications being assessed.

Some 13 licensed producers are actively providing medical marijuana to
patients, while another nine Health Canada approved producers are
about to market their products.

Just two new licences were issued in the last three months, raising
questions among applicants about why the department's approval process
is so slow.

In July, Health Canada tightened the rules for prospective producers,
increasing some security requirements to ensure inventories of medical
marijuana were stored in secure facilities.

A spokesperson for the department says the new restrictive rules have
not affected the approval process.

"The increased security requirements have not had an impact on the
processing of active applications," said Gary Scott Holub in an email.
Even so, some applicants say the move appears to be aimed at smaller
players, to discourage them from applying. And some still-unapproved
firms are under pressure from their impatient investors, who have
leased buildings, hired staff and paid legal fees with no returns in
sight.

Health Canada radically changed the rules for medical marijuana on
April 1, to end home-grown weed production in favour of commercial
products under a new licensing system.
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MAP posted-by: Matt