Cannabis extracts will be authorized for legal sale under the Cannabis Act on October 17, 2019. Cannabis extracts include products that are produced from cannabis using extraction processing methods or by synthesizing phytocannabinoids. Some examples of chemically concentrated cannabis extracts include hash oil, shatter, budder and wax (THC potency is up to 90%). Additionally, cannabis extracts can be physically concentrated and include things such as hash and kief (THC potency is up to 60%).
As is currently the case for dried cannabis, fresh cannabis and cannabis oil, a processing licence (standard or micro) is required in order to produce cannabis extracts and to package and label these types of cannabis products for sale to consumers. In order to sell products within this new class of cannabis, individual licensed processors will need to apply to Health Canada to amend their licence.

The amended Cannabis Regulations will include the following changes with respect to cannabis extracts:

Prohibiting the use of certain ingredients that could appeal to young persons (e.g. vitamins, minerals, sugars, sweeteners or colourants), or ingredients that could increase the appeal of cannabis extracts (e.g. nicotine, caffeine)

Prohibiting certain flavours that are appealing to young persons from being displayed on a product label, consistent with the rules for vaping products.

Placing a limit on the amount of THC that could be in a unit of a cannabis extract—such as a capsule—of 10 mg. The total amount of THC in a package of a cannabis extract is capped at 1,000 mg (e.g., 100 10‑mg capsules).

Requiring child-resistant and plain packaging for cannabis extracts. All packages, as well as certain pre-filled accessories, such as vape pens, are required to display the standardized cannabis symbol. Packages are also required to display a health warning message.

Prohibiting any claims respecting health benefits on the label.

Putting in place strict new manufacturing controls for the production of cannabis extracts to control the quality of the products.

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Cannabis extract products will be allowed to contain flavouring agents in addition to one or more carrier substances and any substance necessary to maintain the quality or stability of the cannabis product.
Ethyl alcohol will be permitted in cannabis extract products that are intended to be ingested (such as tinctures). However, the Cannabis Regulations will prescribe a maximum net weight per container of 7.5 g for all cannabis extract products that contain ethyl alcohol (this limit will apply regardless of the THC content of the product).
Cannabis extract products will not be allowed to contain, or have on them, anything that may cause injury to the health of the consumer when the product is used as intended or in a reasonably foreseeable way. In addition to the current labelling requirements that apply to all cannabis products, a list of ingredients, the identity of the cannabis product in terms of its common name or function, and a list of allergens will be required on the label of cannabis extracts, as well as the intended use of the product (e.g. “for vaping”). For cannabis extracts in a container with an integrated dispensing mechanism, the quantity of THC and CBD per activation (in milligrams) will also be required to appear on the label.

The immediate container of cannabis extracts that are not in discrete units will need to be designed in such a way that the extract could not easily be poured, or drunk directly from the container (thereby mitigating the risk of accidental consumption). For extracts in liquid form that are not intended to be inhaled and that contain at least 10 mg of THC, the immediate container will need to contain an integrated dispensing mechanism (e.g. a metered spray) that dispenses no more than 10 mg of THC, unless the extract is in the form of discrete units (such as a capsule). There will also be a requirement to use “food-grade” packaging (i.e. packaging that meets requirements set out in the FDR and the SFCR for food) for the immediate container of edible cannabis and for any wrappers of edible cannabis and cannabis extracts intended to be ingested.

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