
CASE STUDY #1
CASE STUDY #1: DISTRESSED CLIENT – DELAYED LICENCE APPLICATION
CASE OVERVIEW
CannaNavigators assisted a client in distress who faced many challenges with their licence application. These challenges resulted in a delay in licensing and to the start-up of operations at their facility; however, CannaNavigators was able to identify and understand the challenges and work diligently with the client to rescue the application. CannaNavigators did this by developing a thorough plan to tackle the application and licensing delays, breaking down each obstacle into detailed strategic plans so the right approaches were taken without further delaying the process and increasing costs.
PROBLEMS/CHALLENGES
There were many challenges that disrupted the application process for the client:
1. The first obstacle related to the client’s security system which had been over-engineered by their initial security system designer and was quoted at over $750,000. This client was going to be spending excessive money on electronic security systems before CannaNavigators stepped in and pared down the security system to strike a more appropriate balance between cost and compliance with the Cannabis Regulations.
2. The second obstacle involved a major communication barrier between the client and Health Canada Licensing. Investors discovered they were receiving misinformation from the Responsible Persons on file and subsequently removed these individuals. This created a communication barrier between Health Canada and the client; the new Responsible person was unable to access CTLS or communicate with Health Canada as their name and email were not recognized. CannaNavigators was able to convey the issue to Health Canada on behalf of the client and worked with all parties to update the Responsible Person on file and resume proper communications.
3. The third obstacle involved the client hiring a Quality Assurance Person (QAP), through an agency; however, the agency had not done their due diligence and had not properly vetted the background of the individual. Since the clients’ licensing process had been completed, it appeared only ungranted security clearances were preventing the issuance of a license. CannaNavigators explained its suspicions to the client and steps were taken to ascertain whose clearance was causing the delay. It was quickly discovered the QAP failed to disclose to the company that he had criminal charges; this jeopardized the granting of the client’s license. CannaNavigators responded quickly and worked with Health Canada to remove the QAP and adjust the application to remove processing activities (to be added a little later). Thus, allowing the client to receive their license within a week of discovering the issue.
RESULTS
• Saved the client over $200,000 - CannaNavigators addressed and resolved the first issue by attending the site and auditing the security system design at the outset of the installation. Our security technician reviewed existing security plans and provided analysis and support. With proper security devices installed due to the security due-diligence check, we helped the client save over 30% of the security device costs from the initial quotation of over $750,000.
• Opened up communications with Health Canada - CannaNavigators identified solutions to authenticate the new Responsible Person with Health Canada and allow CTLS records to be updated, allowing the transition to be simplified and less stressful for the Client.
• Solved the licence delay problem - CannaNavigators determined the client’s licensing delay was due to an issue with a security clearance and the investigation revealed an issue with a staff’s background. We worked with the Licensing and Security Branch to remove the individual causing the delay and updated the documentation to change licensing types to accommodate loss of a key staff member. We communicated with Health Canada on behalf of the client until the licence was issued.
OUTCOME
CannaNavigators assessed each obstacle the client faced and created a detailed plan to tackle these issues. Working one-on-one with the client, CannaNavigators was able to provide tangible and prompt resolutions, which allowed the client to save money, achieve licensing and commence operations at their facility.