Cannabis key investor reporting form: Cultivation, processing and sale for medical purposes licences

On this page

• How to complete the Key investor report information
• How to submit your Key investor report information

If you're an applicant or a licence holder that needs to report on your key investors, you need to submit the Key investor report information. Refer to the requirements for more information on when you need to submit.

• Submitting as an applicant
• Submitting as a licence holder

Do not delete key investors from your record. If any key investor stops being a key investor during the previous calendar year, you must include this information in your annual reporting.

How to complete the Key investor report information

The key investor report is required for applicants and licence holders who need to report on their key investors. If you don't know if you should report, refer to Who needs to report.

You need to submit the following information for each key investor in a separate document.

Each document should contain all information from January 1 through December 31 of the reporting year.

For licence holders submitting an annual report: you do not need to re-submit transactions and benefits that were reported in a previous year. However, you should report any changes to information that you previously reported for the key investor, such as any update as to how they exercise control over your business.

If you would like to request a printable key investor reporting template, email licensing-cannabis-licences@hc-sc.gc.ca. Use the subject line "Request for Key investor reporting form template". If you do not use the template, ensure that all of the information below is included in a document.

Section A: Applicant or licence holder information

This information should be the same for all your key investors and match the information on your application or licence. Include the following:

• if you are submitting as an applicant or a licence holder
• your application number (APP #) or licence number (LIC #)
• indicate whether you are submitting as an individual or an organization
• name of the applicant or licence holder:
  • for an organization: the name of your organization
  • for an individual: your first and last name
• reporting year (for licence holders only)

Section B: Information on key investor

This information should be unique to a single key investor. Any dollar values shown on this page are examples only. You should ensure that dollar values in your report reflect your situation.

Part 1: Name and mailing address

Include the following:

• the first and last name of the individual or the full name of the corporation or organization
• mailing address
• city or town
• province or state
• country
• postal code or zip code

Part 2: How the key investor exercises, or is in a position to exercise, control

Include the following:

• type of transaction
  • indicate if it is money, goods, services or other. Indicate all that apply
  • if other, specify details
• description of how this key investor exercises, or is in a position to exercise, control over your business. The manner in which they exercise control must be linked to their investment. If the key investor exercises control in various ways, please provide details about each manner in which they exercise control. For example:
  • As a result of having provided money for my business, the investor is the COO of my business and has legal authority to contractually bind my business to other entities. The investor exercises control by managing the day-to-day operations of the business.
  • Investor provided land, rent-free, for my cultivation business. This investor is in a position to exercise indirect control by ending the land use agreement at any time, meaning that my business would no longer be able to cultivate.
  • Investor provided a $250,000 loan with a 5-year term at 10% interest. This loan has the condition that I hire the investor's child as my quality assurance person. (QAP). The investor is in a position to exercise indirect control through a family relationship.
  • Investor provided money in exchange for 10% of the common shares of my business. The common shares give them voting rights, and these are a sufficient number of shares to allow them to have control over my business.

Part 3: For licence holders only: Transaction that made the investor become a key investor

This information is not required if you're an applicant.

If you're a licence holder, you need to provide this information only if the investor became a key investor after your licence was issued. If you had a licence under the Access to Cannabis for Medical Purposes Regulations and it migrated to the Cannabis Act, you only need to provide this information for investors who became key investors on or after October 17, 2018.

If this information is not required, provide reason why. For example:

• the investor became a key investor before I received my licence
• my licence was transferred from the Access to Cannabis for Medical Purposes Regulations and the investor became a key investor prior to October 17, 2018

If this information is required, include the following:

• type of transaction, such as:
  • money
  • goods
  • services
• date of transaction
• amount of money or fair market value of goods and services in Canadian dollars at the time of the transaction
• description, such as:
  • amount of money provided
  • share acquisition
  • loan
  • assets
  • contractual arrangements
  • ownership interest
  • ability to vote
  • family or historical connection

  Example description: the investor provided $1,000,000 in cash in exchange for 60% of the common shares of my business.

  Example description: the investor provided $800,000 in harvesting equipment for my cultivation business.

• any terms and conditions, such as:
  • interest rate
  • sole supplier due to terms on contract
  • maturity date or when repayment is due

  Example terms and conditions: the loan must be repaid within 5 years, interest rate of 20%, can be recalled with 24 hour notice

  Example terms and conditions: as part of the loan agreement, my business may only purchase processing equipment from a company specified by the investor.

Part 4: For licence holders only: Each time the key investor provides money, goods or services

This information is not required if you're an applicant.

If you're a licence holder provide information on each transaction when the key investor provided you with money, goods or services.

Licence holders submitting an annual report only need to report transactions from the reporting calendar year. If there were no reportable transactions during the reporting calendar year, specify as such.

You may include this information in a spreadsheet.

For each transaction, include the following:

• number each transaction
• type of transaction, such as:
  • money
  • goods
  • services
• date
• value
  • amount of money or fair market value of goods and services in Canadian dollars at the time of the transaction
• description, such as:
  • amount of money provided
  • share acquisition
  • loan
  • assets
  • contractual arrangements
  • ownership interest
  • ability to vote
  • family or historical connection
• terms and conditions, such as:
  • interest rate
  • sole supplier conditions
  • the maturity date or when repayment is due

  Example terms and conditions: $10,000,000 loan must be repaid within 3 years, interest rate of 15%, can be recalled with 24 hours notice.

  Example terms and conditions: investment provided on the condition that my business only use the key investor's personnel to perform maintenance as required.

Part 5: Any benefits that the key investor receives due to their investment

Applicants must include all benefits for the key investor, past or future, due to their investment.

Licence holders must include all benefits that the key investor receives, past or future, due to an investment in the reporting calendar year. Each transaction in Part 4 must appear at least once. A benefit can be associated with more than one transaction. As well, a transaction can be associated with more than one benefit.

Investments include:

• having provided money, goods or services to the licence holder
• holding an ownership interest or other right or interest in relation to the holder's business or, if the holder is an organization, the organization

Licence holders must also list which transaction from Part 4 the benefit is related to.

• Indicate which transaction the benefit is associated with by transaction number.
• If a benefit is associated with multiple transactions, list all associated transaction numbers.

Licence holders submitting an annual report don't need to report benefits from years prior to the reporting calendar year. Benefits from the reporting calendar year, or that could be received in future years, must be reported.

You may include this information in a spreadsheet.

If you don't have any benefits to report, specify why.

Include the following:

• type of benefit, such as:
  • dividends
  • influential position in the business
  • loan interest
  • payments based on business's performance
  • priority vote
  • other (provide details in description of benefit)
• date when it was received
• value (amount of money or fair market value in Canadian dollars, if applicable)
• which transaction the benefit is related to (found in part 4)
• description of the benefit received
  • such as:
    • sole ownership
    • loan interest
    • dividends
    • influential position within the business
    • priority vote
    • payments based on business performance
  • for example, the key investor:
    • gained a seat on the Board of Directors
    • was given priority votes on certain topics
    • has a child who gains a job in a position of control in the business
    • receives $50 in interest payments on the $1,000 loan
    • receives $100 in dividends from their common shares
    • receives a $10,000 payment based on business performance
    • is the sole owner of the company, holding 100% of the shares which are valued at $5,000,000

Part 6: For licence holders only: Repayment or return of goods to the key investor

This information is not required if you're an applicant.

Indicate the repayment or return of goods you gave the key investor.

You may include this information in a spreadsheet.

For each repayment or return of goods include the following:

• type of repayment or return, such as money or goods
• date of repayment or return
• value (amount of money or fair market value of any goods at the time they were returned in Canadian dollars)
• description of repayment or return, such as:
  • repayment of loan
  • return of equipment

Here are some situations and the information to include in your report.

• Situation 1: Your key investor provided you with a $1,000 loan last year. During this reporting year, you repaid $500 of the $1,000 loan. In your records and report, you would indicate:
  • type of repayment or return: Money
  • date of transaction: 2019-01-05
  • description: Partial repayment of $1,000 loan (provided on 2018-12-05)
  • amount of money or fair market value of the goods at the time of transaction: $500
• Situation 2: Your key investor provided you with machinery on 2020-09-01. You returned the machinery on 2021-07-15. The machinery is valued at $1,000 at the time of return. In your records and report, you would indicate:
  • type of repayment or return: Goods
  • date of transaction: 2021-07-15
  • description: Returned machinery that was provided on 2020-09-01
  • amount of money or fair market value of the goods at the time of transaction: $1,000
• Situation 3: Your key investor purchased goods (for example, soil, pots) for your cultivation business on 2020-08-01. During this reporting year, you repaid the investor the full cost of the goods on 2021-06-01. In your records and report, you would indicate:
  • type of repayment or return: Money
  • date of transaction: 2021-06-01
  • description: Full repayment of costs for soil and pots that were provided on 2020-08-01
  • amount of money or fair market value of the goods at the time of transaction: $5,000

Part 7: Key investor who is no longer a key investor

This information is not required if you're an applicant.

For licence holders, only report key investors who stopped being an investor in the reporting calendar year. If you reported key investors in this section in a previous reporting year, you don't need to list them afterwards.

Include the following:

• date they ceased to be a key investor
• how they ceased to be a key investor

If they become a key investor in the future, report them in the relevant year.

Attestation

The responsible person for the licence must attest to the report. Include the following:

• an attestation that includes the following: "I am the responsible person of [LIC-# or APP-#], and I attest that the information included on the key investor is complete and accurate"
• the responsible person's name (printed)
• the responsible person's signature

How to submit your Key investor report information

You need to submit 1 report per licence containing 1 document per investor. Merge the completed documents into a single file when submitting.

Applicants

You need to upload your Key investor report on the "Key investor report" page in the CTLS when you apply for a new licence. Name your document "KeyInvestor_APP-#_Report _YYYY-MM-DD.PDF".

Licence holders

Licence holders are required to submit a Key investor report annually, and may need to submit reports at other times during the year on the "Key investor report" page.

• For your annual report: Before January 31^st of each year, select "Annual" as your "Reason for report"
• For corrections to a previous report: Select "Change" as your "Reason for report"
• When you renew your licence: If you need to upload key investor information during your renewal, select "Renew" as your "Reason for report"

Name your document "KeyInvestor_LIC-#_Report _YYYY-MM-DD.PDF". The responsible person or anyone identified as a reporter for your licence can upload the report.