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The licensing categories are meant to allow small businesses and black-market growers to join the legal market, but the number of companies getting approval so far has fallen short of expectations. Tens of thousands of unlicensed growers still supply the lion’s share of the recreational product to Canadian consumers, and large licensed producers control the legal supply. Meanwhile, microlicence candidates face many challenges securing financing and some grapple with complex municipal land-use issues, making it difficult to transition to the regulated market.

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According to Health Canada, as of July 31, there were 192 applications for such sites in the queue at various stages of review, of which 15 are in the final stage. Three microcultivation sites have been approved; one of those companies also holds a microprocessing licence.

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That dual-licensed site is owned by Gordon Nichol, who operates North 40 Cannabis with his family in Nipawin, Sask. North 40, licensed in late July, cultivates cannabis through a method called aeroponics – without the use of soil or rocks – and is Canada’s only licensed microprocessor so far.

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