What is a Type-S License?
What is a Type-S License?
A Type-S License is a “shared-use” license specific to California cannabis manufacturers.
Simply put, a licensed cannabis manufacturer (a “Primary Type-S License”) can allow locally licensed “Type-S Licensees” to use their space. The Type S-Licensee can then use the Primary Type-S License’s facility, equipment, and space to produce their own brand or product.
Why is a Type-S License Important?
The legal cannabis industry is exclusive to licensed operators. That means without a California cannabis license – it is illegal to receive profits from creating and selling cannabis products.
The Problem
A traditional cannabis license usually costs $1,000,000 or more, can easily take 2 years, and there is no guarantee of a successful application.
The Solution
In 2018, California created the “Type-S Cannabis Manufacturing License” designed as a “shared-use” license.
A Type S License can cost less than $50,000, be issued within 60 days, with zero burn-rate.
This makes it possible for entrepreneurs and smaller operators to enter the legal market at a fraction of the price and gain competitive advantages incomparable to traditional licensing.
It also enables existing businesses like retailers, distributors, and cultivators to build their own teams, utilize already compliant spaces, and launch their personal cannabis brands. Lastly, flexible membership plans enable operators to optimize profits while minimizing costs at their own pace.
TYPE-S LICENSE FAQ
The Type-S License was likely created to give smaller operators a realistic route to go legal. After all, not everyone has $1,000,000 sitting in their pocket.
As a result, the Type-S license acts as a win-win situation for both the owner of the shared space and the business owner who needs the shared space to create their product.
1) Legacy/Traditional Market Operators (Go Legal)
2) Chefs, Bakers, and the food and beverage industry (infuse your already-delicious products)
3) CBD Operators (Swap out CBD to THC)
4) Existing California Cannabis Operators (Control and Create your own cannabis line)
5) MSO Operators (Dive into the California market quickly with your team)
The Type-S License permits all cannabis Infusion, Packaging, and Assembly.
This means all edibles, beverages, topicals, pre-rolls, flower, vape-pens, and essentially every product you can think of.
Anything you can’t make – packaging and assembly will allow you to buy any product on the legal cannabis market and package it as your own.
The Type-S License does not allow you to perform cannabis extraction (except food grade oils and butters for your own product use). Think about it – would you allow a stranger to operate your $500,000 volatile extraction machine?
Regardless, you can still purchase distillate, live-resin, live-rosin or any other concentrate from a licensed cannabis manufacturer which specializes in producing safe products to package and sell as your brand. Many operators already do this in the industry today.
Yes. In fact, we already have operators doing this in the MyGN facility. Most companies in the cannabis industry already do this and are called “co-packers.”
First, find a licensed Type-S facility in the city of your choice. Next, you would need to acquire a local cannabis manufacturing license or permit which varies based on the city or county. After you acquire a local cannabis license, you can then apply to register your license with the facility.
At MyGN, we simplify the process as we just do all the licensing work for you as part of our on-boarding process as we guarantee your cannabis license or your money back.
Still Have Questions?
My Green Network is the only intentionally designed cannabis cloud kitchen to maximize the benefits of the Type-S License in California making it easier, faster, and more profitable for our members. If you have any questions about the Type-S License or want more information – contact us today.