Producers must be licensed and comply with regulatory requirements such as quality control standards, record-keeping of all activities as well as inventories of marijuana, and physical security measures.

Marijuana for medical purposes has to be distributed to registered clients via secure courier and residential, storefront or retail production operations would not be permitted under the new regulations.

Health Canada currently has a list of 13 authorized licensed producers. Canadian Cannabis Corporation is not currently one of them.

“CCC is currently in the advanced stages of the (Health Canada) licensing process and we are continuing an active dialogue with Health Canada as we work toward the approvals on the application that we have submitted,” said Ward.

The company said it has taken possession of the Brampton facility and started Phase One of a re-purposing effort to meet production needs.

Re-purposing is needed to meet Health and Welfare Canada security standards, the company indicated.

This first construction stage is intended to include all security and preparation work to have 120,000 square feet initially available for the cultivation of Medical Grade Marijuana, according to the firm.

When fully built, the Brampton site is expected to allow a maximum of about 600,000 square feet in production space on two levels. Although the company does not currently intend to build out the entire facility, the company said it expects to revisit plans if demand of medical marijuana justifies expanding production.

According to Health Canada, before a license is issued the government conducts a site inspection to ensure compliance with regulations. Producers are also required to notify local municipal, police and fire officials about intentions to apply for a Health Canada licence.

The Canadian Cannabis Corp. is listed on the NASDAQ as Gold Part Payday Inc. (GPAY), which was founded this year. According to the company’s investment presentation, it is seeking a commercial license to produce 330,000 pounds of cannabis annually.

Prices for its medical marijuana are listed as $8-$12 a gram.