Blog Layout
Deadline Fast Approaching for Limited Cannabis Grower Permits in the Netherlands
Last Updated on 19 May 2020
On 1 July 2020, the Netherlands opened the application process for cannabis growers interested in participating in the country’s Weed Experiment. After 44 years of cannabis sales in coffeeshops, the Weed Experiment is the first effort to legalize the adult-use cannabis supply chain in the Netherlands. Up until now, coffeeshops have been able to buy and sell cannabis within legally tolerated limits, while growing and distributing cannabis products remain illegal. This has created a contradiction that has allowed adults to purchase illicit and unregulated products without government oversight. The new program provides considerable benefits to consumers as products will be lab tested for quality and potency before they are sold. Additionally, the program will generate jobs and tax revenue for the country. This program will surely inform the development of similar adult-use cannabis experiments throughout Europe, including those currently being developed in Switzerland and Luxembourg.
Eligibility Requirements:
- Applicants must be residents of the Netherlands with a company in the Netherlands or a legal entity (such as a BV or NV) with a Dutch address.
- Your company must be located in the Netherlands.
- You already have a business located in the Netherlands, or you have a location in the Netherlands in mind where you want to grow hemp and/or hashish.
- You are in possession of a Certificate of Good Conduct (VOG).
- If you do not have a VOG, you need to apply for the VOG immediately. It can take a few weeks before you receive the VOG, and you must enclose the VOG with your application.
Applications Must Include the Following:
Part 1: General Information
- This part of the application includes general information such as the applicant company, a contact person, and a legal representative.
- Annexes to Part 1:
- Certificate of Good Behavior (VOG).
- Evidence of legal representative.
- Organization chart, if your company is part of another company (eg, parent-subsidiary).
- Extract from the Personal Records Database (BRP), if your company is a sole proprietorship (natural person).
Part 2: Cultivation Location
- Part 2 asks several questions about the location(s) where you plan to produce hemp and/or hashish (cultivation location).
- The site does not need to be in your possession at the time of submitting your application.
- Hemp and/or hashish produced by a licensed grower can only be sold in the ten cities that have opted into the program. Therefore you must be strategic in selecting your cultivation location. The cities that have opted in are:
- Almere, Arnhem, Breda, Groningen, Heerlen, Hellevoetsluis, Maastricht, Nijmegen, Tilburg, and Zaanstad
- Annexes to Part 2:
- A map of each cultivation location.
Part 3: Cultivation Plan
- Requirements include:
- Details about how you plan to grow and produce the hemp and/or hashish.
- How many kilos of hemp and/or hashish you can produce on an annual basis.
- How many variations you expect to produce.
- Evidence to demonstrate that you can produce at least 6,500 kilos of dry hemp annually and at least ten different types of hemp and/or hashish.
- Annex to Part 3:
- Support for cultivation experience.
Part 4: Business Plan
- Requirements include:
- Describe the overall management and business administration.
- Describe the tasks and qualifications (such as education level, work experience, certificates) of all employees (permanent and hired) involved in the business operations.
- How many employees you expect to need.
- Describe the required reporting obligations and/or permits required to operate the company at the intended location(s).
- Describe how you will meet the requirements concerning track & trace.
- State the financial risks associated with business operations, risk analysis, and mitigating measures.
- Annexes to Part 4:
- Financial Formats in Excel.
- Budget, operating account, and liquidity budget according to format.
- Letter of intent financier and/or proof of equity.
Part 5: Security Plan
- Requirements include:
- Details on how you will secure your company’s operations and safely store the hemp and/or hashish.
- Site-specific architectural security layout.
- Electronic security measures that you plan to implement.
- How you will ensure the safety and security of transport from your facility to the coffee shop(s).
- Plans for destroying waste materials and products that do not comply with quality standards.
The Application Deadline is July 28th
How 3C Can Help:
- Site zoning analysis, site assessment, and site selection advice.
- Assist in developing site designs, and operational layouts focused on operational efficiency, security, regulatory compliance, and industry best practices.
- Organization chart planning and development.
- Summarize your team’s qualifications and experience for the application.
- Legal and operational infrastructure planning, including recommendations on supply chain management, quality assurance, and quality control.
- Assistance with drafting and review of financial documentation and budgets per the formats required for the application.
- Provide guidance on industry-specific banking arrangements, initial capital formation, and where to seek tax professionals.
- Evaluate vendor options and distribution management options.
- Write detailed plans for all phases of cultivation following the application requirements.
- Identify all applicable reporting obligations and/or permit requirements for your project.
- Create detailed security plans and layouts summarizing the specific systems and procedures needed to secure your facilities and transportation fleet.
- Guidance and written documentation on how to dispose of waste materials and products that don’t meet quality standards.
- Generate application content according to application criteria, including supplier/customer details, estimated yield, source funding, capital, services in developing guidelines to regulate the industry, and other content, as needed.
- Regulatory compliance assurance review.
- Assist in compiling and helping your team submit the completed license application to the Netherlands Ministry of Health.
During these troubling times, securing a license to grow as part of the Netherlands Weed Experiment is a rare and valuable opportunity. For example, as a licensed grower, you can produce at least 6,500 kilos of dry flower. At €2,000/kilo, a low assumption, this can potentially be a €13mm business annually. 3C is the leading global strategic cannabis consultancy, having helped over 500 companies in 17 countries at each phase of business development from licensure to operations. To date, we have won over 300 licenses for our clients, including limited licenses in EU markets on equally tight deadlines. Keep in mind that the details above are only a rough outline of the content required; we have the knowledge and experience to complete all required sections of this application. If you have any interest in applying for this license, schedule a call now. We have limited bandwidth available, and time is of the essence.
Whether you have your sights on the Netherlands or another global cannabis market, 3C has the experience to help you reach your cannabis dreams. 3C assists in creating business plans, securing compliant real estate, developing financial models, writing and implementing SOPs in adherence to local, national, and international standards, designing facilities, forming global partnerships, business development, and applying for cannabis business licenses. Our consulting services extend to cultivation, extraction, manufacturing, retail, delivery, distribution, and ancillary service providers and product manufacturers worldwide.
Neem vandaag nog contact met ons op. Veel succes!
Share
Recommended Articles
This guide highlights all 3C Consulting has learned on helping clients to develop, licence, and grow legal cannabis businesses globally.
Lack of compliance for companies makes investment due diligence risky. This cannabis due diligence checklist supports success for your business.
Despite challenges, the cannabis industry is still growing stronger than ever. Learn how to secure limited cannabis business licenses amid COVID-19 hardships.
