Getting Ready for California Recreational – Nutritional Submits CUP Application for Cannabis Manufacturing to the City of Sacramento and Issuance of Stock Options
sed to announce this important milestone in the State of California. We’ve identified Sacramento as a favorable municipality to establish our base in California, due to proximity to key cannabis markets in the state and robust regulatory framework for cannabis businesses. We are excited to lay down the groundwork to roll-out our FLI brand in California, which is one of the largest cannabis markets in the country.”
Permitting Overview in Sacramento and the State of California
The permitting process in California is fairly complex, as the state regulations are still evolving, and different municipalities have different local ordinances. Most local jurisdictions in California (such as cities or unincorporated areas of counties) require the operators to submit a CUP submission, which pre-qualifies the property and by the zoning or municipal planning authorities to house a cannabis business.
The second step in the permitting process in Sacramento is submitting a business operating permit (“BOP“) to the City of Sacramento Police Department together with LiveScan fingerprinting for the principals of the applicant. The Company anticipates submitting the BOP shortly to advance the permitting efforts ahead of launch of recreational sales in the State of California on January 1, 2018.
Following the submission of the CUP and BOP applications with the City of Sacramento the Company intends to apply for a manufacturing license with the California Department of Public Health (“CDPH“), which are expected to be available in the new year. Establishing of the Company’s cannabis manufacturing business is subject to receiving all requisite approvals from the City of Sacramento and the State of California.
Stock Option Issuance
The board has approved the issuance of 500,000 stock options (“Stock Options“) to a consultant. Each Stock Option is exercisable into Common Shares at a price of $0.13 per Common Share for a period of five years from the date of issuance. 150,000 Stock Options vest immediately, and the remaining 350,000 shall vest every 6 months in equal amounts over eighteen months, and any vested options shall expire eighteen months after termination of the consulting agreement with the consultant.