HomeMy WebLinkAboutELEMENT 7 SAN LUIS OBISPO - PDF APPLICATION - CompleteLICENSE APPLICATION
COMMERCIAL CANNABIS
PROPOSED
BY ETHAN
PEREZ
MANUFACTURING, DISTRIBUTION AND NON-
STOREFRONT RETAIL (DELIVERY) LICENSES
A-TYPE AND M-TYPE
ELEMENT 7 SAN LUIS OBISPO LLC
www.element7.co
CITY OF SAN LUIS OBISPO
WWW.ELEMENT7.CO
OUR MISSION
Stimulate sound economic development by providing cannabis you can trust
OUR VISION
A world where cannabis is culturally accepted and legally prescribed to treat humanity’s
most destructive medical illnesses
OUR PURPOSE
To work hand in hand with local governments and be the most taxed, tested, trusted,
controlled and compliant cannabis business in California
m;u.*&w-ru-r 7
Mr. Michoel Codron
Community Development Monoger
City of Son Luis Obispo
9,l9 Polm Street
Son Luis Obispo, CA 93401
Deor Michoel,
I wonted to write to you personolly to offer my thonks for ollowing us to porticipote in the
commerciol connobis opplicotion process in the City of Son Luis Obispo.
We ore looking to significontly expond our operotions ocross the Stote of Colifornio in 20,l9
and 2020, ond Son Luis Obispo is of the top of our list in terms of priority locotions.
lf we ore successful in securing o license, you will hove my full commitment to do oll thot
we con to work with the City to ochieve common gools of properly ond purposefully
occeleroting development ond commencing operotions.
My personol cell phone number is (con be recrched of ony time if you
would like to discuss ony ospect of our opplicotion further.
Yours sincerely,
Roberl'Bobby' DiVito
Co-Founder ond Generol Monoger
Element Z Son Luis Obispo LLC
v
I
January 26, 2019
Mr. Michael Codron
Community Development Manager
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
APPLICATION FOR COMMERCIAL CANNABIS LICENSE
Dear Michael,
The new cannabis regulations implemented in San Luis Obispo create a tremendous
opportunity for emerging and welcomed forms of sustainable economic development to
thrive in your City. The key to achieving this growth lies in finding economically strong and
sustainable cannabis operators that work as partners with the City to create jobs and
develop new forms of commerce while responsibly serving taxed, tested and trusted
cannabis to the local community. We look forward to be given the opportunity to prove
to you, the City, and the community that we are a strong corporate partner that can
accomplish all of these critical objectives.
Element 7 is the optimal partner that the City of San Luis Obispo is looking for.
Our leadership team has decades of successful business management and retail
operations experience that enables us to build a business model, team and set of
processes that guide our business operations and focus on overcoming the uncertainty
and apprehension that was previously associated with cannabis use and businesses in
certain communities. We do this by:
1.Building World Class Operations: We have the best people, products and partners
in the industry to ensure that every interaction with our local government partners
and end users exceeds our and their expectations.
2.Stimulating Local Economic Development: We have a strong track record of
creating local jobs, paying our taxes on time, stimulating economic development
and collaborating with other local businesses to grow a larger and healthier
business environment. Our Founder started his first business at the age of twenty
and scaled that business to over 700 employees in under four years. We are
committed to hiring 91% of the staff for Element 7 San Luis Obispo from the local
community. In addition, we have identified over a dozen local businesses from the
local community that we will work with to build and operate our business (over 80%
of the materials and services we use will be sourced locally within the County).
3.Prioritizing Continuous Community Engagement: We listen carefully to our
constituents and create meaningful Community Advisory Boards that hold us
accountable for the commitments we make to the local communities we serve.
We have identified four local charities we would partner with (annual commitment
of at least $50,000) and our staff will commit to over 700 hours of community service
annually. The four non-profits we have identified for support are Achievement
House (adult education for those with intellectual and physical disabilities), RISE
sexual abuse and violence), One Cool Earth (school garden programs), and the
Janssen Foundation Youth (youth sports).
4.Committing to Business with Purpose: We put purpose before profits. We educate
at-risk' youths, provide discounted medicine to patients, support local community
initiatives and commit hard budgets to ensure that the community benefits from
our business on multiple levels. We have a strong track record of this commitment
in the communities we have operated.
5.Focusing on Sustainable Business Growth: We are financed and funded. If we are
fortunate enough to secure permits from your City, we have the funds needed to
build, operate and scale our business. We pay above the ‘Living Wage’ and give
equity in our business to our hardest working and highest performing staff.
6.Financially Committing for the Long Term: We want to be doing business in San Luis
Obispo for decades, not years, as evidenced by our commitment to identifying
vacant and unused land in San Luis Obispo and then investing funds to build,
develop and operate a world-class cannabis operation.
We Bring Unrivaled Retail Experience
No other cannabis company in North America have the depth or breadth of retail
management experience that Element 7 delivers to San Luis Obispo.
Our core management team brings decades of experience in successfully building,
owning and operating over 1,000 retail stores in North America in the dry cleaning, video
and food service industries.
Element 7 San Luis Obispo One LLC is a joint venture with two shareholders – American
Patriot Brands, Inc. (51%) and Element 7 LLC (49%).
American Patriot Brands, Inc. is a vertically integrated cannabis company with operations
focused on consolidating a highly fragmented cannabis retail market. Element 7 LLC, is a
cannabis licensing company with significant experience in California educating cities on
cannabis policy and operating cannabis businesses from cultivation through to retail.
Element 7 was formed with a vision of operating in a world where cannabis is culturally
accepted and legally prescribed to treat humanity’s most destructive medical illnesses.
We know that customer education and community engagement are the foundations on
which attitudes will shift with regards to how cannabis is viewed as a natural herbal
medical treatment. To achieve this vision, our strategic priority is to change the way we
prescribe, adopt and innovatively create cannabis products for a broad range of
medical and health issues.
We Know that Our People Are Our Greatest Asset
Robert Lee (Chairman and CEO), was the former founder of U.S. Dry Cleaning, the largest
operator of dry cleaning operations in the United States, and Video City, one of North
America’s largest video store companies with over 500 locations in 30 US States. Lee brings
over 38 years of retail experience to American Patriot Brands and Element 7. He is the
former E&Y Magazine Entrepreneur of the Year.
Brian Pallas (Chief Operating Officer), founded and grew a single frozen yoghurt shop into
the first publicly traded franchise of its kind with 120 stores in North America. He has 36
years of retail experience, Chairs the Vistage International think tank for CEO’s and will
manage all of Element 7’s North American retail operations. Brian Pallas is a resident of
Orange County, California, and works closely with the Element 7 LLC Management Team
to oversee and implement all retail operations across the State of California.
Bernard Rice (Chief Financial Officer), is one of the world’s leading financial technology
experts. Rice formerly worked for IBM, heading the company’s Southern Area business
which accounted for $3B in business. He went on to become the CFO and General
Partner for the IBM Venture Capital Group in 1993 and then Global VP for IBM’s Consumer
Division in 1998. Mr. Rice has been a pioneer in innovative software solutions for children
and will oversee all financial management, control and taxation matters for Element 7.
Chris Polaszek (Chief Legal Officer), is a securities and accounting litigation and
transactional matter expert. During his time on Wall Street he worked at Solomon Brothers,
and then he served at Capitol Hill in the office of Senator Bob Graham. Polaszek has an
almost unmatched experience navigating securities law and will head all aspects of legal
management, risk and compliance for Element 7.
Robert DiVito, heads the Element 7 brand and business, and is a cannabis expert with
experience across all aspects of the industry including cultivation, distribution, brand
development and retail operations. He successfully lobbied for the inclusion of the
Cannabis Campus Model into the California cannabis legislation passed in 2017 and sits
on the board of North America’s largest hemp company. Robert understands what it
takes to build a business from nothing - starting a car parking business at only twenty-years
old that scaled to over 700 employees in four-years. Robert will be the General Manager
of Element 7’s San Luis Obispo operations.
Robert is supported by a number of talented staff that each have a different skill-set,
diverse learning background and set of experiences in the regulated cannabis market.
This team includes Dr. An-Chi Tsou, who was the lead staffer on California’s original
medical cannabis laws under the Medical Cannabis Regulation and Safety Act, working
with dozens of stakeholders to negotiate cannabis policy. She was later appointed by
Governor Brown to work as the senior policy advisor for the Bureau of Medical Cannabis
Regulation - now the Bureau of Cannabis Control. Other team members at a
management level have significant military, security, police force, liquor licensing, retail,
environmental management and cannabis industry experience.
In addition, we have a number of highly qualified and experienced individuals that sit on
the Element 7 Advisory Board, including:
Bob Hoban, the pre-eminent attorney in the North American and global cannabis
industry.
An-Chi Tsou, who was the lead staffer on California’s original medical cannabis
laws under the Medical Cannabis Regulation and Safety Act.
Rico Tarver, who plays and active role in implementing Social Equity programs.
YuFu Cheng, medical cannabis advocate and China’s Director for Global
Warming at the R20 United Nations program.
These experienced leaders and dedicated cannabis advocates have committed to
forming the Element 7 Advisory Board & Sub-Committee’s with a charter to ensuring that
the business is operating in the best interests of its customers, neighborhood and
community.
We Have Unmatched Experience Across the Industry
Element 7 and American Patriot Brand initiatives and experience in cannabis is significant,
and includes:
Urban Pharms. 280-Acre outdoor farm and greenhouse operation in Oregon, with
an associated joint venture processing facility.
The Sweet Life Distribution. Cannabis distribution company that serves 427 of
Oregon’s 593 licensed dispensaries.
Monterey Cannabis Co. Element 7 is a founding partner and investor in this
cultivation operation – one of the largest greenhouse cannabis cultivators in the
State of California. www.sunsoilwater.com
International Hemp Solutions. Element 7 are a partner with International Hemp
Solutions (IHS) and BIJA Seed, the largest importer of hemp seed into North
America.
BIO365, Daily Hemp Co., 247X and SLAY Health. A range of hemp-oil
phytocannabinoid rich brands powered by Element 7, sold through mass retail,
Amazon, dispensaries and direct mail. www.dailyhempco.com
Panaxia. Element 7 has a strategic partnership with Ocean Grown which has the
sole rights to Panaxia pharmaceutical-grade cannabis medical products for
California. Panaxia is one of the world’s leading pharmaceutical development
companies headquartered out of Israel. www.panaxia.co.il
Compliance, Security and Understanding Policy are our Foundations
As we have built our team at Element 7, we have been mindful of hiring staff and securing
advisers that have strong compliance, security and policy backgrounds.
We have a team that includes:
The Number 1 Cannabis Lawyer globally (Bob Hoban)
A former Bureau of Cannabis Control (BCC) staffer who was instrumental in writing
the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)
Two former Special Forces Soldiers (Green Berets)
A former employee of South Carolina’s Police Force
Two TILT Certified employees (responsible service of alcohol)
A LEED Certified employee
Three attorneys, including one who served on Capitol Hill
One of the world’s leading experts on climate change, and
One of the world’s leading financial technology experts (formerly worked at IBM)
We Are Local
Element 7 will contribute over $000 per month to local community initiatives in the City
of San Luis Obispo and over 91% of our employees will be local City and County
residents.
In addition, all staff will be required to commit 8 hours each quarter (32 hours annually) to
a local charity of their choice. With 22 staff, that’s over 700 hours of community support
we will be putting back into impacting the San Luis Obispo community annually. Our
Stock Plan is a commitment we make so that key local staff can own a part of the
company they work for. Base wages will meet or exceed ‘Living Wages’ in California,
allowing our staff to enjoy a quality of life that is rewarding and purposeful.
Element 7 is Financed, Funded and Fully Committed
We have the required funding to build, scale and operate the business with up to
of committed start-up and operations funding. Further capital on-call will be
made available as required.
With almost 150,000 residents in San Luis Obispo, the cannabis customer base is
approximately 25,000 regular consumers which provides a strong, sustainable and
profitable business base. We believe the opportunity to expand the business with tourists
and visitors is significant.
Element 7’s commitment to building and growing a profitable and sustainable business
will bring significant annual tax revenue to the City. In addition, we would also generate
over twenty (and well-paying) new jobs, additional incremental business income to a
number of local businesses and contribute over $1,000 per month to a range of local non-
profit entities to drive social change for good. We are confident that our financial
projections are both realistic and feasible.
We Educate Cities and Communities to Build Confidence and Trust
In our business, everything starts with education – from understanding the proper use of
the plant to educating groups and individuals about the positive benefits of cannabis
when used correctly, and the dangers of substance abuse in any form. Education allows
people to build informed opinions which is important in any industry, and particularly true
in the cannabis industry where there is so much misinformation.
Over the last 4 years we have educated over 100 Cities in California regarding cannabis,
many of which have since passed an ordinance that allows them to tightly control how
the industry develops in their community.
The Cannabis Industry Needs Agile Forward-Thinking Operators Like Element 7
Tomorrow’s cannabis consumer is savvier, smarter and more sophisticated than we have
ever seen before. They demand brands that deliver safe and effective experiences,
proven healing capabilities, social and legal empowerment, and overall entertainment
value on a level that their favorite brands like Apple, Nike or Coca-Cola deliver.
Understanding these demands and expectations has been, and will remain, a paramount
concern of Element 7 as we continue to create and refine a superior holistic wellness
experience.
We know that this holistic wellness positioning will resonate with local health-conscious
residents looking to lead a healthier, cleaner and better life, and that it aligns with the San
Luis Obispo Department of Health which promotes a range of health and wellness
initiatives to tackle the biggest local health issues - rising obesity, diabetes, low rates of
exercise, inadequate consumption of fruits and vegetables, asthma and mental health
issues.
Our proposed ‘vertically integrated’ operations, including manufacturing and distribution,
allow us to maximize taxes, create jobs and deliver sustainable economic development.
This integration further allows us to have a price advantage over local competitors
including non-compliant ‘black market’ operators.
We are Committed To Partnering with the City To Eradicate the Non-Compliant Cannabis
Market
Cannabis that is untested, untaxed and unregulated is dangerous for consumers, bad for
business and ruinous for the City of San Luis Obispo. Everyone should have the right to
experience the benefits and pleasures of this incredible plant, but it needs to be sold by
compliant, clean, controlled, taxed, tested and trusted operating partners.
We know that the Number 1 reason why customers shop in the black market is price.
To help eradicate the non-compliant ‘black market’ from San Luis Obispo, Element 7 will
be implementing a unique proposition to its dispensary – a ‘$20.00 Shelf’ which will allow
local customers the opportunity to enjoy a mild Element 7 experience, without having to
run up an expensive tab.
We have evidence there are over 15 cannabis delivery and dispensary businesses offering
and advertising cannabis retail services in San Luis Obispo today. Most of these are
unlicensed, untaxed, untested and non-compliant. We have the package, team,
technology and industry experience to challenge them.
We Have Exclusive Product Relationships with Premium Brands
We have established a strong array of cannabis industry relationships to bring our
premium Element 7 experience to life. These include Wonderbrett - an icon in the LA
cannabis scene and a team that have been cultivating premium handcrafted cannabis
since 1993 (in 1997 Brett was given a cut of the original OG Kush which catapulted him
into the upper echelons of the LA cannabis scene and he has been there ever since).
Wonderbrett products are in huge demand at the moment and we will be bringing an
exclusive range of these products to the dispensary.
Merchandised alongside house brands and products, this product strategy (‘mass
everyday’ through to ‘premium niche’) will impact illegal non-compliant black market
cannabis trade activity that currently takes place in the City of San Luis Obispo. In this
instance, good business strategy is also great for our customers and the San Luis Obispo
community.
We Have Partnered with UCLA To Create An Industry-First Study
Our relationship with UCLA recently expanded to include the Anderson School of
Management – UCLA’s graduate business school faculty and program. In a world and
cannabis industry first, Element 7 was selected ahead of some of the world’s fastest
growing technology, health and media companies to take part in a Retail Cannabis
Industry Thesis in 2018/19.
Five incredibly talented UCLA students pursuing their MBAs are currently working with
Element 7 to research and write their graduate theses on how Element 7 and American
Pacific Brands, Inc., are disrupting California’s $20 Billion Dollar Cannabis Retail Industry.
With diverse professional backgrounds at companies including Google, Amazon, Hulu,
Medtronic, JP Morgan Chase, PWC, Bank of America Merrill Lynch and Buzzfeed, the
team is writing the first-ever thesis that UCLA has conducted on a cannabis company.
The output of these students and the fresh perspective they bring is going to be a huge
part of our strategic roadmap over the next 3-5 years as we continue to consolidate the
retail industry in California and strive to become the #1 Cannabis Retailer in California.
Our Operations Are Backed by Passion and Purpose
Our operational approach in and with the City is to remain laser-focused on
being locally relevant to the needs and concerns of the community, residents, and
businesses that are located in the San Luis Obispo. We understand and appreciate that
these needs and concerns are uniquely different from other areas within California and
are strategically addressed in our Business Plan.
Element 7 wants to ensure that it pays-it-forward and pays-it-back to the local San Luis
Obispo community, and as such, has developed a goodwill outreach program, Element 7
Cares, that promotes education, health, drug rehabilitation and veterans’ affairs. We are
committed to a monthly budget of at least $1,000 for community support programs.
Element 7’s Local-Private Enterprise Program (LPEP) governs the business and dictates that
Head Office support should be provided in the initial planning and building phase of the
business with control transitioning over time to allow the local enterprise to have more
autonomy on decision making. Key Management executives for the Local Enterprise will
be prioritised for hiring from the local job community and talent pool. A pool of equity,
proposed to be created and made available for key executives and talent employed at
the local business level with the goal of becoming shareholders over time.
This is in addition to the 6% of equity being granted to three (3) key Element 7 staff who
would work within the business, all of whom currently household
income level.
We ore Committed lo Science, Reseqrch ond Producl Development
Our commitmeni to science exponds beyond Ponoxio ond the UCLA Connobis Reseorch
lnitiotive in Los Angeles, which is leoding the industry on phytoconnobinoid reseorch ond
public policy chonge.
Element 7 is olso working with UCLA Riverside (Dr. Kothryn Ulrich from UCLA's College of
Noturol ond AgriculturolSciences) to conduct field reseorch studies on bocterio ond
microorgonisms in connobis soil - efforts thot Dr. Ulrich is looking to publish in peer-
reviewed journols.
h,V
We Will Set lhe lnduslry Stondord in Son luis Obispo
We ore proud to present our vision for Element 7, confident thot the site we hove selected
best meets the needs of the City ond its community, ond specificolly the City's Connobis
Municipol Code deoling with public sofety, heolth, comfort ond economic development.
We know thot the immersive ond personolized environment delivered oi Element 7 Son
Luis Obispo will set new stondords in the connobis industry ond help the City define how
connobis bronds ond businesses should operote.ond be governed in 2019 ond beyond,
ond we ore excited to portner with the City to ochieve our shored collective ombitions.
Kind Regords,
Brion Pollos
Chief Operoting Officer
Americon Pqtriot Bronds, lnc
Robert DiVito
Co-Founder ond CEO
Element 7 LLC / Element 7 Son Luis Obispo LLC
ADHERENCE TO STATE, COUNTY AND CITY POLICIES AND DIRECTIVES
This Document and all Standard Operating Procedures adopted by Element 7 San Luis
Obispo LLC will conform to the following pieces of legislation, policy and other directives:
MAUCRSA – Medical Cannabis Regulation and Safety Act (June 27, 2017): This Act
also known as Senate Bill 94) creates the general framework for the regulation of
commercial medicinal cannabis in California. Dr. An-Chi Tsou on our team was one
of the principal policy makers on this document.
State of California Regulations (January 2019): Drafted by the Bureau of Cannabis
Control (BCC), these regulations are the formal law for the governance and
management of cannabis operations in the State of California.
The City of San Luis Obispo Municipal Code (SLOMC) Chapter 9.10 and Chapter 17.99
The City of San Luis Obispo Zoning Ordinance
Any directives and issuances from Bureau of Cannabis Control (BCC) and California
Department of Public Health including:
Bureau of Cannabis Control Guidance
o BCC Disciplinary Guidelines
o Transportation Procedures (Form BCC-LIC-015)
o Non-Laboratory Quality Control Procedures (Form BCC-LIC-017)
o Security Procedures (Form BCC-LIC-018)
o Delivery Procedures (Form BCC-LIC-020)
o Sampling Procedures (Form BCC-LIC-021)
o Sampling Preparation Procedures (Form BCC-LIC-022)
o Data Package Cover Page and Checklist (Form BCC-LIC-024)
o CEQA Exemption Petition (Form BCC-LIC-025)
o CEQA Project-Specific Information (Form BCC-LIC-026)
o Bureau Notification and Request (Form BCC-LIC-027)
o Poison Prevention Packaging Act of 1970 Regulations (Revised July, 1995)
California Department of Food and Agriculture Proposed Regulation Documents
o Modified Text of Proposed Regulations
California Department of Health Proposed Regulation Documents
o Modified Text of Proposed Regulations
LICENSE APPLICATION TYPES
Element 7 are applying for the following Licenses from the City of San Luis Obispo:
A-Type 9 Non-Storefront Retail (Delivery) License
M-Type 9 Non-Storefront Retail (Delivery) License
A-Type 6 Manufacturing License
M-Type 6 Manufacturing License
A-Type 11 Distribution License
M-Type 11 Distribution License
A PARTNERSHIP BUILT ON COMMITMENT, COMPLIANCE & CONTRIOLLED DEVELOPMENT
CANNABIS BUSINESS LICENSING SCORING GUIDE
At Element 7, we are committed to doing things right and working with the Cities and
Communities that we partner with to ensure that those jurisdictions and groups benefit as much
as we do as a Company from local operations.
We wanted to point your attention to the following key initiatives that we will implement in San
Luis Obispo to achieve these economic aims:
Community Benefit
Over 90% of employees will be San Luis Obispo City and County residents. 20 of the 22
positions at Element 7 San Luis Obispo will be hired locally.
Over 80% of the supplies, equipment and services used to construct and operate our
business will be sourced locally. We have compiled a list of 14 local suppliers and
businesses that we will commence immediate discussions with on receiving commercial
cannabis licenses.
All Element 7 employees will be required to commit 8 hours each quarter (32 hours
annually) to non-profit unpaid community development work. With 22 employees that’s
over 700 hours annually.
We have committed to providing $1,000 per month to local non-profit groups including
Achievement House (adult education for those with intellectual and physical
disabilities), RISE (sexual abuse and violence), One Cool Earth (school garden
programs), and the Janssen Foundation Youth (youth sports).
We have a history both as a company, and as individuals, in supporting local
community programs.
Equity and Labor
Our Application includes equity for three (3) Element 7 staff to own 2% each in the
Element 7 San Luis Obispo LLC business. All three staff earn
California median household income. Further, we have allocated up to an additional
7% equity in the business for a Stock Plan.
Our lowest pay rate is 50% above the Minimum Wage at $22.00 per hour. All executive
positions range from $60,000 - $90,000 annually which is competitive with a range of
other similar industries.
We have agreed to a Labor Peace Agreement and are ready to execute such
document at 20 or more non-management employees.
Financial Investment
We have demonstrated ready access to capital for building, operating
and managing the business. We are financed by American Patriot Brands, Inc., a
publicly listed and traded entity.
e are committed to finding and developing a vacant or raw parcel of land that has
Eeen ]oned for commercial cannaEis Eusiness activity. 3er our udget and )inancial
3lan we will use our initial Euild out capital to develop this land. Our second priority
would Ee to find an underdeveloped parcel that would allow us to maNe maMor site
improvements in the spirit of revitali]ing the use and commercial opportunity.
eveloping this land or other underutili]ed underdeveloped land will include maMor
improvements for a total Euild out, including Eut not limited to faoade rehaEilitation,
Euilding e[pansion, site improvements and other investments in this underutili]ed and or
undeveloped site.
e commit to finding and or Euilding out the property to include a parNing area that
can accommodate the required numEer of parNing spaces, in addition to providing
safe and convenient access for employees.
Beyond these initiatives, we have also identified two local groups that we can conduct
medical and health research with, being the Centre for Health Research (Cal Poly) and French
Hospital Medical Center Foundation.
OUR CANNABIS EXPERIENCE IS UNMATCHED
The American Patriot Brands and Element 7 team brings decades of experience in building,
owning and operating over 1,000 retail stores in North America. Our Chairman and CEO, and
Chief Operating Officer, have built and operated some of North America’s largest dry-
cleaning, food service and video retail franchises over the last 35 years. Together, they have
almost 70-years of combined retail operations experience.
WE HAVE A STRONG ABILITY TO OPERATE IN A HIGHLY REGULATED ENVIRONMENT
The team at Element 7 San Luis Obispo LLC has decades of experience in managing and
operating highly regulated businesses including:
Cannabis Licensing: The team has broad experience owning and managing cannabis
licenses in several US States including California, Oregon and Colorado.
Hemp Licensing: The team has licenses in Oregon and Colorado. Bob Hoban, our
commercial lawyer and partner at International Hemp Solutions (IHS), is the largest
importer of hemp seed in North America and the #1 cannabis attorney in cannabis and
hemp globally.
Military Contracts: Matthew Fielkow has over 16 years’ experience working for the US
Special Forces in the Middle East, South-East Asia, Latin America, and Eastern Europe. In
Southern Iraq, he supported a broad range of activities including Foreign Internal
Defence, Counter-Insurgency, and Direct-Action Operations. He has trained, mentored
and advised, numerous foreign Special Operations Units across Europe and Latin
America. He has worked on several high-level military projects and brings a tremendous
amount of experience to our team.
Charter Schools: DiVito built a charter school in Chicago from the ground up. This school
was rated one of the top Charter Schools in Chicago and is a testament to DiVito’s
commitment to understanding regulation and compliance management.
Public Markets: Chris Polaszek, is a securities and accounting litigation and transactional
matter expert. During his time on Wall Street he worked at Solomon Brothers, and then
he served at Capitol Hill in the offices of Senator Bob Graham. Polaszek has an almost
unmatched experience navigating securities law and will head all aspects of legal
management, risk and compliance for Element 7.
Alcohol Licensing: We have several staff on our team that have their TIPS Certification.
THE CANNABIS INDUSTRY IS IN OUR DNA
American Patriot Brands has operations in 3 US States Oregon, Colorado and California 4
licensed operating and profitable dispensaries across these markets. Headquartered in
Newport Beach, American Patriot Brands trades on the OTC Market and has a current market
cap of $79.3 Million (as at January 14, 2019).
Element 7 has a significant amount of cannabis and regulatory experience across the full
spectrum of the industry:
1. Robert DiVito: DiVito was the previous General Manager of Riverview Farms in Salinas,
one of California’s largest cannabis cultivation companies with over 720,000 sq. ft of
cannabis under cultivation in California. DiVito is also the Co-Founder of Element 7, a
cannabis investment holding company which has interests in several dispensaries and
several other cannabis licenses in the cultivation, manufacturing and distribution
verticals.
2. An-Chi Tsou: Tsou was the lead staffer on California’s original medical cannabis laws
under the Medical Cannabis Regulation and Safety Act, working with dozens of
stakeholders to negotiate cannabis policy. She was later appointed by Governor Brown
to work as the senior policy advisor for the Bureau of Medical Cannabis Regulation–now
the Bureau of Cannabis Control–under the Department of Consumer Affairs.
3. Matthew Fielkow: Fielkow has a significant amount of experience in the cannabis
industry from an operations perspective consulting to a range of industry operators in
the cultivation, manufacturing, distribution, Dispensary and testing verticals. While in the
military, Fielkow conducted several military operations working in Central South America
and with law-enforcement out of San Diego in counter-narcotics operations.
Joe Rivas who worNs under 0atthew )ielNow in our Security and Operations team,
served years in the 8S Special )orces reen %eret and has also worNed as a private
contractor for various 8.S. *overnment agencies including the &,$.
Amber Norwood is one of California’s best regulatory experts and has won more
applications for cannabis clients than almost any other expert operating in the industry.
WE KNOW CANNABIS
A broad understanding of the cannabis consumer, industry and regulatory processes and
policies is essential for building and operating any cannabis business in California.
At Element 7, our diverse experiences across cultivation (indoor, outdoor and greenhouse),
manufacturing, distribution, retail (store-front and non-storefront delivery), brands and back-
end operations, gives us a great understanding of the industry and where it is moving from
many angles.
Our experience in the industry across key aspects of operating a legally compliant, taxed and
tested operation is significant, especially in relation to:
Systems, Processes and Practices: Our decades of experience in the cannabis industry
and existing operations) give us a huge head-start over our competitors across
everything from construction through to compliance, operations, customer
management, track and trace, City reporting, taxation and inventory management.
Market Understanding: Our team have a diverse range of backgrounds from corporate
finance to brand marketing, retail and customer service. What we all have in common is
a great understanding of the cannabis industry and how it is evolving and changing daily.
Security: Security in this ‘at risk’ industry is key to both customer and staff safety. We take
security seriously and only work with the best which is why we have an ex -Special Forces
and Green Beret soldier embedded within our team.
Being Locally Connected: Element 7 always ensures that we build a strong connection to
the local community through a range of initiatives – from educating ‘at risk’ youths
through to providing free medicine to disadvantaged customers, through to supporting
local sports teams and other community-based programs. We have a policy of hiring and
promoting locally which deepens our connection to the local community.
ALCOHOL INDUSTRY MANAGEMENT EXPERIENCE
Three of Element 7’s management team have alcohol experience. Robert DiVito is an investor
in the Argent, an integrated restaurant and bar facility in the Dana Hotel in Chicago.
Courtney Barber, one of Element 7’s management team has significant bar experience and
has worked in a variety of alcohol service industry roles over the last decade in South Carolina
and Wisconsin. Courtney has been Certified by TIPS (Training for Intervention Procedures) from
March, 2016 – TIPS is the global leader in education and training for the responsible service,
sale, and consumption of alcohol. TIPS is a skills-based training program designed to prevent
intoxication, underage drinking, and drunk driving.
Courtney was a former Correctional Officer employed by the Myrtle Bay Police Department in
South Carolina.
Christopher Bloom previously headed up alcohol licensing compliance and risk management
teams at Binny’s, Chicago’s largest alcohol beverage retail group. This included developing
programs for the responsible service, sale, and consumption of alcohol, and other alcohol
licensing matters. Christopher is TIPS certified across all three levels of TIPS Certification –
production, distribution and retail – giving him a very broad view of the alcohol licensing
industry that is now being applied to cannabis.
COMPANY BACKGROUND: ELEMENT 7
Nitrogen, after water, is the most important nutrient on the planet for plant life. This non-metal
element is critical to produce chlorophyll which allows cannabis plants to convert sunshine into
energy for healthy plant growth. In the same way that Nitrogen acts as a catalyst for plant
growth and development in the nursery, Element 7 acts as a catalyst to achieve business
objectives in the boardroom.
Element 7 is an early-stage cannabis licensing development company that builds cannabis
businesses in emerging new markets in California. We educate cities, stimulate economic
development and growth, align with local influencers and submit license applications that are
backed by insight, proprietary exclusive data, community advisory boards, flexible business
models and building micro-relationships that position us to expand our footprint.
Element 7 formed a business partnership with American Patriot Brands, Inc., in 2018 after
working together on previous business deals and realizing that the two companies had
complimentary skillsets, similar performance cultures and a shared vision of expanding their
existing retail footprint.
Element 7 expanded their interest in hemp in early 2018 after being granted shares and options
in International Hemp Solutions (IHS) and its hemp seed company, BIJA Seed. IHS is the largest
imported of certified hemp seed into North America, currently importing over 40% of all hemp
seed used in the industry which is now one of the fastest growing agriculture industries in the US.
With the recent 2018 Farm Bill developments, IHS and BIJA are set to continue to be major
players in the industry, with Element 7 being a key partner of the business. IHS developed a
world-first exclusive partnership with Poland’s State-Owned Institute of Natural Fibers and
Medical Plants (IWNiRZ) to supply certified seed to North America, the world’s leading hemp
research institute founded in 1930.
BOB HOBAN (ELEMENT 7 GENERAL COUNSEL) WITH ROBERT SOBKOW (IWNiRZ) AND DUANE
SINNING (COLORADO DEPARTMENT OF AGRICULTURE)
Element 7’s brand division is currently launching 3 advantaged daily-dose hemp oil products in
North America, which include:
BIO365: A range of daily-dose full-spectrum hemp oil products that are being sold
through direct marketing channels. Element 7’s partners in this venture have over 20
years of experience selling supplements through multi-level marketing programs.
247X: A range of pre, post and sleep full-spectrum hemp oil products targeted at
athletes and those seeking products that help them excel their human performance.
With pre, post and sleep formulations and a price point of $29.99, the product has an
advantaged formulation, price and consumer positioning.
DAILY HEMP CO.: A range of daily-dose full spectrum hemp oil tinctures and tablets
targeted at mass everyday consumers, which are being developed with one of
Amazon’s largest nutrition and vitamin wholesalers.
SLAY: Hemp wellness for young urban millennial women – range of products for inner
health, outer beauty, confidence and indulgence so you can SLAY all day.
BIO365, DAILY HEMP CO., AND 247X. FULL SPECTRUM HEMP FORMULATIONS FOR DAILY USE BY A
RANGE OF CONSUMER GROUPS.
In an effort to be a leader in clean cannabis, Element 7 has also developed a strategic
alliance with oxyION, a leader in clean air technology that removes pathogens from handling
areas for the food and agriculture industry. Element 7 has been working with oxyION for the last
12 months to apply technology proven with large-scale food manufacturers such as Tyson
Chicken, into the cannabis industry, to add a further layer of cleanliness to cannabis cultivation
operations. Element 7 currently have North American first rights to oxyION technology.
Element 7’s distribution entity, Market Menu, formed a strategic partnership with the Emerald
Exchange in August 2018, which will allow Market Menu to be a leading driver in the market of
keeping craft cannabis alive and bringing a range of unique small-craft / hand-touched / sun-
grown cannabis brands to Southern California from Mendocino, Humboldt and the Trinity
Triangle.
Element 7’s international arm is currently pursuing a range of cannabis (medical) and hemp
opportunities in Costa Rica, Colombia, Spain, Australia, Nigeria and The Philippines.
Element 7 will continue to add businesses, brands and partners that allow it to continue to
achieve and expand its mission creating a vertically integrated cannabis and hemp business
globally that brings advantaged products to market with speed as market conditions and
regulations continue to change in North America and global markets.
ROBERT DIVITO: FOUNDER AND OWNER, ELEMENT 7 LLC
DiVito is one of the cannabis industries hardest working and most dynamic operators. His
relationships span the industry from top cultivators through to policy-makers, brands, investors
and platforms.
DiVito first started his career in the cannabis industry in 2010, launching a digital media and brand
platform (SmokeOn) that was built out of the same co-working offices as businesses including
LYFT and Snapchat in Santa Monica. Prior to entering the cannabis industry, DiVito had built one
of Chicago’s largest car parking companies which he founded and grew to over 700
employees, exiting the business to a large national group. Following the sale of the business, he
pursued capital investments as a restauranteur and partnerships with the famed ‘Double Door
Concert Venue’ and ‘Wrigley View Rooftops’ with the Chicago Cubs. He built one of Chicago’s
most successful Charter Schools, which, in its third year of operations, won numerous city-wide
awards including ‘Best Children’s Academy’ awarded by a popular parenting magazine.
In 2015, DiVito took the learnings from these businesses and re-entered the Californian market,
three years before adult-use cannabis was legalized. He invested in two cultivation facilities in
Sacramento and became an investor-operator of one of the State’s largest greenhouse
cultivation operations – Riverview Farms / Monterey Cannabis Company. With over 720,000 sq.
ft of cultivation, the operation is still one of the largest cannabis operations in California
producing a range of high-quality greenhouse strains under contract for some of the industry’s
leading brands.
MONTEREY CANNABIS CO.: 720,000 SQ. FT CULTIVATION FACILITY
In 2016, DiVito met the former Mayor of Los Angeles, at a political event. The pair formed an
immediate friendship, driven by DiVito’s desire to think big in the cannabis industry and the
former Mayor’s interest in driving economic development in communities across California. His
advice to DiVito was to focus on cities and communities that needed education, jobs, economic
growth and community development – advice that saw him quickly end up in California’s
Central Valley.
Despite many communities having commercial cannabis bans in place and, in some cases,
hostility towards the industry, DiVito travelled the State lobbying for education, change and
growth through his ‘Cannabis Campus Model’ – a model that was later adopted into the
Medical Cannabis Regulation and Safety Act (MAUCRSA) in June, 2017. In September 2017,
DiVito’s profile in the industry rose sharply as he convinced big-ag to invest in cannabis, securing
commitment from one of the country’s largest organic farming families to invest in
cannabis cultivation. This was a landmark deal and marked big-ag’s first serious investment into
cannabis and will have a huge impact on the future development of the industry. The company,
Genezen, is building operations in Hanford and Parlier, California.
In 2018, DiVito was promoted to the Board of International Hemp Solutions (IHS) and BIJA Seed,
North America’s largest importer of certified seed from Europe. DiVito is helping IHS expand to
new markets, new clients and new product lines as they expand into full service manufacturing.
Underpinned through an exclusive data agreement with BRIGADE, the sole global licensee of
Weedmaps data, DiVito continues to position Element 7 as a cannabis business that is driven by
hard work, grit and determined focus.
DiVito is a graduate of the De Paul University Business Management Program where he was an
International Honors Student.
RESUME: ROBERT DIVITO
Business: Element 7
Role: Founder and CEO
Dates: November 2017 - Current
Responsibilities: As the Founder and CEO, Robert manages the full business including
investor relations, business development, sales and marketing and
operations. Robert runs a full team of professionals and technical experts
across security, logistics, government relations, community education, sales,
marketing, legal and data.
Business: Genezen
Role: Founder
Dates: August 2017 - Current
Responsibilities: DiVito founded Genezen after lobbying the State of California to adopt the
Campus Model’ into the MAUCRSA Regulations passed in 2017. After
successfully lobbying the State to include this language, his first project was
in the Central Valley where he partnered with big-ag to secure a 152-Acre
parcel of land with over 1.6 million square feet of indoor cultivation space.
DiVito continues to be involved with this business as a shareholder - all
development works are now being managed by the big-ag funding partner
and their in-house team that have developed operations across the State
in a range of agricultural products.
Business: Monterey Cannabis Co.
Role: General Manager
Dates: May 2016 - August 2017
Responsibilities: DiVito is the former General Manager for Monterey Cannabis Co., one of
the largest cannabis cultivation operations in the State of California. With
720,000 sq. ft of cultivation, Monterey Cannabis Co., employs over 150 staff
and produces a range of company-owned cannabis products and
cultivates cannabis for some of the largest brands, under contract, in the
State of California.
Business: Imagination Children’s Academy
Role: Founder and CEO
Dates: 2013 – 2016
Responsibilities: CEO for the business which included everything from strategy, government
relations, sales, marketing, human resources, community outreach,
compliance, finance and legal. In his role, Robert dealt with a range of
local and city government departments including the Department of
Education, Department of Children and Family Services and Chicago
Police and Fire Departments.
Business: Argent (Dana Hotel)
Role: Founding Investor
Dates: 2010-2012
Responsibilities: Oversight of marketing, sales and investor relations.
Business: Capital Parking
Role: Founder
Dates: 2007 – 2011
Responsibilities: Founded and built the company to over 700 employees, with operations
across pay and display, valet and car parks. Responsible for all aspects of
the business including legal, HR, finance, sales, marketing, business
development and government relations. Exited the company to a large
national operating group.
ORGANIZATIONAL CHART
M
G
KEY APPLICANT DETAILS (EXECUTIVES AND OWNERS)
The following persons are individuals who have control over either how the Commercial
Cannabis Business would be operated (including functions such as sales and marketing) or
influence what products the delivery service would offer for retail sales.
Where an individual has a financial interest in the proposed facility, their related shareholdings
have been indicated.
NAME ORG. POSITION %
SHARES
DOB ADDRESS PHONE EMAIL
Robert DiVito Element 7 LLC Owner 43%
All of these individuals will submit Background Checks/Live Scans as required by (SLOMC
9.10.250 (A)) and can provide IRS Tax Returns.
Element 7 has attached the following documents:
Articles of Organization Element 7 San Luis Obispo LLC
Minutes of Organizational Meeting of Members of Element 7 San Luis Obispo LLC
Operating Agreement for Element 7 San Luis Obispo LLC
Department of Treasury Internal Revenue Service EIN Letter
LOCAL STOCK PLAN
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
CINCINNATI OH 45999-0023
Date of this notice: 01-24-2019
Employer Identification Number:
Form: SS-4
Number of this notice: CP 575 G
ELEMENT 7 SAN LUIS OBISPO LLC
ROBERT M DIVITO SOLE MBR
7936 HILLSIDE AVE For assistance you may call us at:
LOS ANGELES, CA 90046 1-800-829-4933
IF YOU WRITE, ATTACH THE
STUB AT THE END OF THIS NOTICE.
WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NUMBER
Thank you for applying for an Employer Identification Number (EIN). We assigned you
EIN This EIN will identify you, your business accounts, tax returns, and
documents, even if you have no employees. Please keep this notice in your permanent
records.
When filing tax documents, payments, and related correspondence, it is very important
that you use your EIN and complete name and address exactly as shown above. Any variation
may cause a delay in processing, result in incorrect information in your account, or even
cause you to be assigned more than one EIN. If the information is not correct as shown
above, please make the correction using the attached tear off stub and return it to us.
A limited liability company (LLC) may file Form 8832, Entity Classification Election,
and elect to be classified as an association taxable as a corporation. If the LLC is
eligible to be treated as a corporation that meets certain tests and it will be electing S
corporation status, it must timely file Form 2553, Election by a Small Business
Corporation. The LLC will be treated as a corporation as of the effective date of the S
corporation election and does not need to file Form 8832.
To obtain tax forms and publications, including those referenced in this notice,
visit our Web site at www.irs.gov. If you do not have access to the Internet, call
1-800-829-3676 (TTY/TDD 1-800-829-4059) or visit your local IRS office.
IMPORTANT REMINDERS:
Keep a copy of this notice in your permanent records. This notice is issued only
one time and the IRS will not be able to generate a duplicate copy for you. You
may give a copy of this document to anyone asking for proof of your EIN.
Use this EIN and your name exactly as they appear at the top of this notice on all
your federal tax forms.
Refer to this EIN on your tax-related correspondence and documents.
If you have questions about your EIN, you can call us at the phone number or write to
us at the address shown at the top of this notice. If you write, please tear off the stub
at the bottom of this notice and send it along with your letter. If you do not need to
write us, do not complete and return the stub.
Thank you for your cooperation.
IRS USE ONLY) 575G 01-24-2019
Keep this part for your records. CP 575 G (Rev. 7-2007)
Return this part with any correspondence
so we may identify your account. Please CP 575 G
correct any errors in your name or address.
9999999999
Your Telephone Number Best Time to Call DATE OF THIS NOTICE: 01-24-2019
EMPLOYER IDENTIFICATION NUMBER:
FORM: SS-4
INTERNAL REVENUE SERVICE ELEMENT 7 SAN LUIS OBISPO LLC
CINCINNATI OH 45999-0023 ROBERT M DIVITO SOLE MBR
7936 HILLSIDE AVE
LOS ANGELES, CA 90046
STATEMENT DESIGNATION OF
THE ORIGINAL MEMBERS
Of
Element 7 San Luis Obispo,LLC
MINUTES OF ORGANIZATIONAL MEETING
OF MEMBERS
OF
ELEMENT 7 SAN LUIS OBISPO, LLC
The form of this Agreement, Consents, Regulations and other forms and documents enclosed with this order are offered as a sample only of standard
provisions contained in such forms and documents. They do not purport to address the specific requirements of individual transactions or situations.
These forms and documents are not a substitute for professional legal, tax and accounting advice, and are not being offered as such. If utilized
incorrectly, significant negative tax and business consequences could result. Persons outside the legal profession who intend to utilize these forms
and documents must seek competent legal counsel and tax advice prior to their use or adaptation thereof for his or her particular requirements.
c) 2005 - 2018 ALL RIGHTS RESERVED.
MINUTES OF ORGANIZATIONAL MEETING OF MEMBERS OF
ELEMENT 7 SAN LUIS OBISPO, LLC
ACALIFORNIA LIMITED LIABILITY COMPANY
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4
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8
o
OPERATING AGREEMENT
FOR
ELEMENT 7 SAN LUIS OBISPO, LLC
A SINGLE MEMBER CALIFORNIA
LIMITED LIABILITY COMPANY
The form of this Agreement, Consents, Regulations and other forms and documents enclosed with this order are offered as a sample only of standard
provisions contained in such forms and documents. They do not purport to address the specific requirements of individual transactions or situations.
These forms and documents are not a substitute for professional legal, tax and accounting advice, and are not being offered as such. If utilized
incorrectly, significant negative tax and business consequences could result. Persons outside the legal profession who intend to utilize these forms
and documents must seek competent legal counsel and tax advice prior to their use or adaptation thereof for his or her particular requirements.
c) 2005 - 2018 ALL RIGHTS RESERVED.
OPERATING AGREEMENT
FOR
ELEMENT 7 SAN LUIS OBISPO, LLC
A SINGLE MEMBER CALIFORNIA
LIMITED LIABILITY COMPANY
This Agreement is effective as of
12/20/2018
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CITY OF SAN LUIS OBISPO
Community Development Department
919 Palm Street, San Luis Obispo, CA 93401
805.781.7170
Commercial Cannabis Business Operators Permit Application
A.Business Information
Business Name:
Property Address:
Assessor Parcel Number: Zoning Designation:
B.Business Type (Check all that apply)
Cultivation - Specialty (Up to 5,000
Sq. Ft. Max)
Cultivation - Small (5,001 - 10,000
Sq. Ft. Max)
Cultivation – Nursery (Up to 10,000
Sq. Ft. Max)
Manufacture (Non-volatile Raw
Product Extraction)
Manufacture (Cannabis Infusion) Manufacture (Itinerant – No
permanent facility)
Manufacturer (Research and
Development)
Distributor Testing Laboratory
Retailer Storefront (Adult-use) Retailer Storefront (Medical) Retailer Storefront (Adult-use and
Medical)
Retailer Non-storefront (Adult-use) Retail Non-Storefront (Medical) Retail Non-storefront (Adult-use and
Medical
Transporter Microbusiness (No more than 50%
GR* from cultivation, distribution
and manufacturing)
Microbusiness (More than 50% GR*
from cultivation, distribution and
manufacturing)
GR – Gross Receipts
C.Definitions
Applicant - The entity petitioning for the Cannabis Business Operator Permit.
Principal(s) - The individual members of the applicant team.
Primary Principal - An individual who has a 10% or greater ownership stake of the applicant business , which
includes partners, officers, directors, and stockholders of every corporation, limited liability compa ny, or general
limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the
commercial cannabis business or that is one of the partners in the commercial cannabis business; the managers of
the commercial cannabis business.
Operator - An applicant that has been licensed and conducts or conducted active cannabis operations.
Majority - A greater number; more than half. An equal number does not constitute a majority.
D.Applicant Information
Name of Primary Responsible Party Completing the Application:
Title: DOB:
Social Security No:
If applicant is a not
ROBERT DIVITO R.
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
E.Additional Responsible Party Information
Name:
Title: DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
Please attach additional sheets if there are more than 2 Responsible Parties.
F.Information on Property Owner or Landlord
Name:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s
Statement of Consent to operate a commercial cannabis business on the property.
G.Related License Information
The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the
past 10 years.
Yes No (If yes, please provide the following information)
Name:
City or County: Start Date: End Date:
Business Name: Business Type:
Please attach additional sheets if necessary.
y
ROBERT DIVITO R.
OtEER
y
y
PLEASE SEE ATTACHED
ADD/T/KEAL SHEET ATTACHED
ADD/T/KEAL SHEET ATTACHED
CITY OF SAN LUIS OBISPO
Community Development Department
919 Palm Street, San Luis Obispo, CA 93401
805.781.7170
E.Additional Responsible Party Information Continued
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
E.Additional Responsible Party Information Continued
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
Preferred method of contact (check one) Mail Phone Email
BRIAE WALLAS
C,IE&OWERATIE'O&&ICER
y
MATT,Et IEL<Ot
SEChRITz DIRECTOR
y
E.Additional Responsible Party Information Continued
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
E.Additional Responsible Party Information Continued
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
Preferred method of contact (check one) Mail Phone Email
C,RISTOW,ER BLOOM
AMBER EORtOOD
y
OWERATIOES MAEA'ER
COMWLIAECE DIRECTOR
y
G. RELATED LICENSE INFORMATION
ENTITY NAME POSITION DATES LICENSE TYPE LICENSE
NUMBER
LOCATION
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Nursery TAL 18-0012278 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Nursery TAL 18-0012445 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007867 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Medium Mixed
Light – Tier 1
TAL 18-0008962 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007869 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007868 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007866 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007865 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Manufacturing
AM Type 6)
CDPH-
T00000717
Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Distribution A11-18-
0000269-TEMP
Salinas,
Monterey, CA
Genezen
Hanford
Robert
DiVito
Owner
19%)
Oct
2017 -
Current
Cultivation (16)
Manufacturing
Distribution
City Permits
Issued. No
State Licensing
Applied For Yet
Hanford, CA
Genezen
Parlier
Robert
DiVito
Owner
19%)
Oct
2017 -
Current
Cultivation City Permits
Issued. No
State Licensing
Applied For Yet
Parlier, CA
Required Submissions (Please check the box for each attachment)
Please attach all applicable documents listed below as part of your application as they pertain to your business type.
For any items that do not apply to your business type, please provide a brief explanation as to why they do not
apply.
Business Operations Plan
Business Plan: A plan describing how the commercial cannabis business will operate in accordance with City
code, state law, and other applicable regulations. The business plan must include plans for handling cash and
transporting cannabis and cannabis products to and from the site.
Community Relations Plan: A plan describing who is designated as being responsible for outreach and
communication with the surrounding community, including the neighborhood and businesses, and how the
designee can be contacted.
State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant
holds (when available).
Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s
permit, and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the
business operations tax account will be set up in-house after the application has been submitted).
Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and
certificates of all other insurance related to the operation of the cannabis business.
Budget: A copy of the applicant’s most recent annual budget for operations (If available)
Financial Capacity: Financial information such as bank balances, available loans and other sources of funding
the enterprise.
Products and Services: A list/description of the general products and services the business will provide.
Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring
and community support.
Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by
the business to the community.
Security Plan: A detailed security plan outlining the measures that will be taken to ensure the safety of persons
and property on the business site. The security plan must be prepared by a qualified professional.
Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide
adequate security lighting for the business site.
Site and Floor Plans: A dimensioned site plan of the business site, including all buildings, structures, driveways,
parking lots, landscape areas and boundaries. Also provide dimensioned floor plans for each level of each building
that makes up the business site, including the entrances, exits, walls and cultivation areas, if applicable. The plans
shall also include the following information about the site: current zoning, parking requirements, consistency with
development standards for the zone, if new development planned for the site, and any other site development
information.
Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply
exists for the use.
Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the
cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such
that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings.
Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its
operations, the applicant shall provide a hazardous materials management plan that complies with all federal,
state and local requirements for management of such substances.
Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free
power sources to provide reliable and efficient energy solutions for their business.
y
y
y
y
y
y
y
y
y
y
H.City Authorization
I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification
of the information contained on this application.
I.Indemnification
I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee
under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal liability
of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall defend
with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obispo, the San Luis Obispo
City Council, and its respective officials, officers, employees, representatives, agents and volunteers from any liability,
damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedi ngs, or judgments
including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs)
against the City to attach, set aside, void or annul, any cannabis -related approvals and actions and strictly comply
with the conditions under which such permit is granted, in any. The City may elect, in its sole discretion, to participate
in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys’
fees.
J.Nonrefundable Filing Fee
I, the applicant, understand and accept that the nonrefundable filling fee must be submitted with the competed
Commercial Cannabis Business Operators Permit Application and will be retained by the City regardless of the out-
come of the application review.
K.Background – Request for Live Scan Services
I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California
Form BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for
the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and
interested parties.
L.Disqualification
Application was received late
Application is incomplete or inaccurate
Facility does not meet City business licensing standards
More than one application is received for the same cannabis business type on one property (stacking of
applications)
y
y
y
y
Applicant's Certification
I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal
Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the
approval of the Commercial Cannabis Business Operators Permit shall, in no way, permit any activity contrary to the
San Luis Obispo Municipal Code, or any activity which is in violation of any applicable law.
I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the
information in a ication, and that the information contained herein is true and correct.
Date:/- 2y- /7
Signature:
Signature:
Date:l-z[,tl
Date:t-La (1
Date /- a 8 - tq
Signature:I q
The information contained on this document is subject to disclosure under the public Records
Act.
Applicants providing false or misleading information in the permitting process will result in rejection of the
application and/or nullification or revocation of any issued permit. All commercial cannabis permits must be
approved by the City Council. The City may attach conditions to the permit. A commercial cannabis permit may
be denied if any of the following findings are made:
i) The application does not meet all requirements of the commercial cannabis ordinance; or
ii) Approval would very likely result in harm to public safety, health, or welfare; or
iii) Potential negative impacts of the use cannot be mitigated with conditions or through the
ordinance requirements.
Applicants will be notified regarding application completeness
DENTIFICATION FORMS: PRINCIPALS AND OWNERS
ROBERT MARTIN DIVITO JR.
DRIVERS LICENSE
PASSPORT PHOTO
SOCIAL SECURITY
PASSPORT
DENTIFICATION FORMS: PRINCIPALS AND OWNERS
BRIAN PALLAS
DRIVERS LICENSE
PASSPORT PHOTO
SOCIAL SECURITY
3
DENTIFICATION FORMS: PRINCIPALS AND OWNERS
MATTHEW FIELKOW
DRIVERS LICENSE
PASSPORT PHOTO
SOCIAL SECURITY
1
DENTIFICATION FORMS: PRINCIPALS AND OWNERS
CHRISTOPHER JAY BLOOM
DRIVERS LICENSE
PASSPORT PHOTO
SOCIAL SECURITY
7
DENTIFICATION FORMS: PRINCIPALS AND OWNERS
AMBER NORWOOD
DRIVERS LICENSE
PASSPORT PHOTO
SOCIAL SECURITY
1
BUSINESS OPERATIONS PLAN
BUSINESS PLAN: NON-STOREFRONT DELIVERY, DISTRIBUTION AND
MANUFACTURING
COMMUNITY RELATIONS PLAN
STATE LICENSES
TAX COMPLIANCE
INSURANCE
BUDGET
FINANCIAL CAPACITY
PRODUCTS AND SERVICES
BUSINESS OPERATING PLAN: DELIVERY BUSINESS
SHIPPING & TRANSPORTATION
The Applicant will strictly adhere to all rules, requirements and regulations regarding
transportation of cannabis within the state of California, as they are created and modified by
City and State legislators. No deviation from those rules will be tolerated or allowed. The Head
of Security will implement additional measures beyond the minimum requirements (i.e. transfer
of currency for remitting City tax payments).
TRANSPORTATION MANIFEST
A LIVE transportation manifest will be created which tracks every order, purchase and
product delivery business;
Pursuant to SLOMC, no product will leave the Facility without being accompanied by an
authorized driver of the Facility, together with transportation manifests to show the vehicle
information, driver and accompanying personnel information, date and time the delivery
business vehicle leaves the facility, the amount of product that is being transported, a
breakdown of the individual boxes that will be delivered to individual patients, the route
that the vehicle will take, and expected delivery business times for delivery business to
each delivery business.
ORDER FULFILMENT (PRE-DELIVERY)
Orders will be taken by the Applicant through an SSL Encrypted Responsive Website,
Smart-Phone APP and by phone. All Patients will be checked to ensure they have the
appropriate ID Card.
Received Orders will then be approved by the Shift Manager and queued for Packing. A
Packer Employee will fulfil the order from stock in either the Ambient Storage Room or
Cold Storage Room, where it will be packed in the Packing Room. It will then be queued
for Dispatch.
Packed Orders will be assigned to a Driver by the Dispatch Manager and moved to the
Dispatch Room from the Packing Room. Cannabis shall only be sold to an individual in
an amount consistent with personal possession and use limits allowed by the State of
California and enforced by San Luis Obispo and the Licensee (1 ounce per day).
The order fulfilment boxes (plastic) containing cannabis to be delivered to patients will be
verified, recorded and sealed. Once sealed they will be loaded into the lock boxes in the
delivery business vehicle from the Dispatch Room; and
Both the Inventory Control Specialist and the driver that will accompany the product will
verify the number of boxes, the date and time of delivery business, the date and time that
the delivery business vehicle leaves the Facility, and the addresses to which the product
will be delivered.
Only after the delivery business employee has completed the check with checklist for
delivery business will the vehicle then be driven out of the lock area, and immediately
began its delivery business route.
The total amount of cannabis carried in the vehicle shall comply with State Law.
ORDER FULFILMENT (POST-DELIVERY)
Post-Delivery, once the delivery business vehicle is in the locked and secured area
designated for that purpose, the lockbox inside of the delivery business vehicle will be
opened by delivery business personnel; and
The Inventory Control Specialist will perform a visual verification that the lockbox is in fact
empty and contains no leftover medical cannabis products from a previous delivery
business. If there is medical cannabis, it will be removed from the vehicle, identified,
recorded and placed in the vault for either reshipment or in the ca se of a cancelled
order, the box seal will be cut, the contents verified as being un-tampered with and then
re-stocked into inventory and recorded as being re-stocked, including time, date,
amount, package numbers, weights, employee performing the re-stocking and reason
for the return of the product. Any product that has been tampered with will be accounted
for and then destroyed in accordance with Applicant procedures.
Any cash payments received by the Driver will be logged, accounted for, signed and
held in the cash register until the end of the shift or day, at which point it will be counted
and locked in the Walk-In Vault.
COMMUNICATIONS
Each driver will carry a communication device and a cell phone for backup
communication.
Driver will always remain in contact with the Applicants Central Security Control Room
as well as 911 and emergency services, if necessary.
ROUTE PLANNING
The Dispatch Team will plan route security after the time and destination are determined.
Routes will be randomized and times varied. Other consideration, in addition to
randomization and time, for each route will be based upon:
Operational security (based on number of stop on route, crime by area, known previous
routes etc);
Traffic (time of day or road incident);
Known public events, i.e. parades, demonstrations, unusual activity using current
information available from a variety of sources to include news releases, police and city
offices, social media; and
Ongoing real-time incidents that would impede delivery business.
CARRIAGE OF BUSINESS LICENSE
All vehicles associated with the business shall carry in the vehicle a copy of the valid, unexpired
business license.
EMPLOYEE AGE RESTRICTION
Element 7 will not employ or retain persons under 21 years of age.
AGE VERIFICATION (SLOMC 9.10.230)
Electronic age verification will be utilized to determine the age of any individual
attempting to purchase cannabis goods. All employees will be instructed on its use.
Cannabis will not be sold to the public without electronic age verification.
Delivery employees will verify the age and identity of the recipient of the cannabis
goods at both order time and delivery of goods.
Cannabis goods will only be received by the customer. The driver will scan the
customers valid identification card and verify that the individual is 21 years of age or
older.
FACILITY RESTRICTIONS
On-site consumption of cannabis is prohibited at all times by all individuals on the
property (SLOMC 9.10.210).
No cannabis or cannabis products or graphics depicting cannabis or cannabis products
will be visible from the exterior of the business premises, or on any of the vehicles owned
or used as part of the business.
Each entrance will be visibly posted with a clear and legible notice indicating that
smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas
adjacent to the commercial cannabis business is prohibited.
The original copy of the commercial cannabis business permit issued by the City will be
posted inside the business premises in a location readily visible.
SALES
Element 7 will not sell no more than 28.5 grams of non-concentrated Cannabis in a
single day to a single customer.
Element 7 will not sell no more than 8 grams of Cannabis Concentrate, including
Cannabis Concentrate contained in Cannabis Products, in a single day to a single
customer.
Element 7 will not sell no more than 6 immature Cannabis plants in a single day to a
single customer.
Element 7 will not sell edible Cannabis Products containing more than 10 milligrams of
THC per serving.
Element 7 will not sell edible Cannabis Products containing more than 100 milligrams of
THC per package.
Element 7 will not sell Cannabis Products that is in the shape of a human being, either
realistic or caricature, animal, insect, or fruit.
Element 7 will not sell Cannabis-infused beverages or powder, gel, or other concentrate
with instruction for the preparation of Cannabis-infused beverages.
Element 7 will not provide free Cannabis or Cannabis Products to any Person.
TRACK-AND-TRACE (SLOMC 9.10.130 (E))
Element 7 will have in place a point-of-sale or management inventory tracking system to
track and report on all aspects of the commercial cannabis business including, but not
limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and
by sale), time and date of each sale, etc.
All transactions will be entered into the track and trace system by 11:59 p.m. Pacific
Time, on the day the transaction occurred.
Element 7 will only enter and record complete and accurate information into the track
and trace system and will correct any known errors entered into the track and trace
system immediately upon discovery.
Element 7 will record in the track and trace system, all commercial cannabis activity,
including any:
1. Packaging of cannabis goods.
2. Sale of cannabis goods.
3. Transportation of cannabis goods to a licensee.
4. Receipt of cannabis goods.
5. Return of cannabis goods.
6. Destruction and disposal of cannabis goods.
7. Laboratory testing and results.
8. Any other activity as required by any other licensing authority.
The following information will be recorded for each activity entered in the track and
trace system:
1. Name and type of the cannabis goods.
2. Unique identifier of the cannabis goods.
3. Amount of the cannabis goods, by weight or count.
4. Date and time of the activity or transaction.
5. Name and license number of other licensees involved in the activity or
transaction.
6. If the cannabis goods are being transported Element 7 will transport pursuant to a
shipping manifest generated through the track and trace system as well as:
a) The name, license number, and premises address of the originating
licensee.
b) The name, license number, and premises address of the licensee
transporting the cannabis goods.
c) The name, licensee number, and premises address of the destination
licensee receiving the cannabis goods into inventory or storage.
d) The date and time of departure from the licensed premises and
approximate date and time of departure from each subsequent licensed
premises, if any.
e) Arrival date and estimated time of arrival at each licensed premises.
f) Driver’s license number of the personnel transporting the cannabis goods,
and the make, model, and license plate number of the vehicle used for
transport.
If cannabis goods are being destroyed or disposed of, the licensee will record in the
track and trace system the following additional information:
1. The name of the employee performing the destruction or disposal.
2. The reason for destruction or disposal.
3. The name of the entity being used to collect and process cannabis waste.
Description for any adjustments made in the track and trace system, including, but not
limited to:
1. Spoilage or fouling of the cannabis goods.
2. Any event resulting in exposure or compromise of the cannabis goods.
3. Any other information as required by any other applicable licensing authorities.
TRACK AND TRACE – LOSS OF ACCESS
If at any point Element 7 loses access to the track and trace system for any reason,
Element 7 will prepare and maintain comprehensive records detailing all commercial
cannabis activities that were conducted during the loss of access.
The licensee will both document and notify licensing authorities immediately:
1. When access to the system is lost;
2. When it is restored; and
3. The cause for the loss of access.
Once access is restored, all commercial cannabis activity that occurred during the loss
of access will be entered into the track and trace system within three (3) business days
of access being restored.
Element 7 will not transport, transfer or deliver any cannabis goods until such time as
access is restored and all information recorded in the track and trace system.
TRACK AND TRACE RECONCILIATION
Element 7 will reconcile the physical inventory of cannabis goods at the licensed
premises with the records in the track and trace database at least once every 14 days.
If Element 7 finds a discrepancy between its physical inventory and the track and trace
system database, the licensee will conduct an audit.
INVENTORY CONTROL PRACTICES
The Applicant will be using industry specific tracking software – preferred choice is BioTrack THC
and METRC, the State approved tracking system. To the extent any employee will be using the
system, employees will be trained and given a specific passcode to access the system. An
employee must NEVER share or disseminate the passcode to any third party or other employee.
An employee must NEVER allow another employee to access the inventory control system with
their unique passcode.
All cannabis will be kept in a safe, locked access-controlled area. This area will have the
highest and tightest security restrictions in the Facility and will only be accessible by the Shift
Manager and General Manager. No other persons will be allowed to access this room at any
time, without exceptions. Employee theft and/or diversion of medical cannabis, regardless of
the amount, is grounds for immediate termination and will not be tolerated. Offenders will be
reported to the Police.
All marijuana inventory including each day’s beginning inventory, acquisitions, sales,
disbursements, disposal of unusable marijuana, and ending inventory will be taken daily. All daily,
weekly and monthly inventory logs will be kept at the Delivery for 5 (five) years from the date of
the document and will be available to the City for review upon request.
MONTHLY INVENTORY PROCEDURE
On the first of each month a complete inventory audit according to generally accepted
accounting principles of usable and unusable medical marijuana will be taken by the inventory
control manager and documented in the inventory log. All usable and unusable products will
be accounted for.
INVENTORY DISCREPANCIES
Inventory counts are to match those recorded into the Data Management System. If for any
reason the inventory counts do not match those entered into the database due to suspected
criminal activity by an employee, the Applicant will immediately contact local law enforcement
authorities.
Inventory discrepancies not due to criminal activity will be documented by the General
Manager. The Applicant will investigate the source of the difference, those suspected to be
involved and take and document corrective action.
Inventory counts are taken very seriously and any discrepancy in numbers is of the utmost
importance to the Applicant. All documentation of inventory count discrepancy will be
available to the General Manager, the Head of Security and relevant external Tax Authorities.
RECORDS RETENTION (SLOMC 9.10.130 (F))
Element 7 will keep and maintain the following records related to commercial cannabis
activity for at least seven years:
1. Financial records including, but not limited to, bank statements, sales invoices,
receipts, tax records, and all records required by the California Department of
Tax and Fee Administration.
2. Personnel records, including each employee’s full name, social security or
individual taxpayer identification number, date employment begins, and date of
termination of employment if applicable.
3. Training records, including but not limited to the content of the training provided,
and the names of the employees that received the training.
4. Contracts with other licensees regarding commercial cannabis activity, including
the source(s) of all products.
5. Permits, licenses, and other local authorizations to conduct the licensee’s
commercial cannabis activity.
6. Security records, except for surveillance.
7. Records relating to the composting or destruction of cannabis goods.
8. Documentation for data or information entered into the track and trace system.
9. All other documents prepared or executed by an owner or his employees or
assignees in connection with the licensed commercial cannabis business.
10. Accurate books and records in an electronic format, detailing all of the revenues
and expenses of the business, and all of its assets and liabilities.
11. A current register of the names and the contact information (including the name,
address, and telephone number) of anyone owning or holding an interest in
Element 7, and separately of all the officers, managers, employees, and agents
currently employed or otherwise engaged by Element 7.
12. Element 7 will maintain an accurate record of sale for every sale made to a
customer. A record of a cannabis goods sale will contain the following
information:
a) The first name and employee number of the retailer employee who
processed the sale;
b) The first name of the customer and a retailer assigned customer number
for the person who made the purchase;
c) The date and time of the transaction;
d) A list of all the cannabis goods purchased, including the quantity
purchased; and
e) The total amount paid for the sale including the individual prices paid for
each cannabis good purchased and any amounts paid for taxes.
Records will be kept in a manner that allows the records to be produced for licensing
authorities at the licensed premises in either hard copy or electronic form.
Employee Records: Element 7 will keep the following records of each of its employees
on file at the premises of the business:
a) Name, address, and phone number of the employee;
b) Age and verification of employee. A copy of a birth certificate, driver's
license, government issued identification card, passport or other proof that
the employee is at least twenty- one (21) years of age must be on file with
the business;
c) A list of any crimes enumerated in California Business and Professions Code
Section 26057(b)(4) for which the employee has been convicted;
d) Name, address, and contact person for all previous employers of the
employee for the last ten (10) years, including, but not limited to, all
employers from which the employee was fired, resigned, or asked to leave
and the reasons for such dismissal or firing;
e) The fingerprints and a recent photograph of the employee;
f) Verification that the employee is a qualified customer or primary
caregiver, if applicable.
ANNUAL REVIEW AUDIT (SLOMC 9.10.130 (B))
Element 7 will submit an “annual performance review report” for review and approval by the
development services director.
BUSINESS OPERATING PLAN: DISTRIBUTION
Element 7 have proposed operating a A-Type and M-Type State Distribution License at the
Facility, which is required for picking up and transporting raw materials for our manufacturing
operations and selling packaged products to other Dispensaries in the State of California.
The Applicant will strictly adhere to all rules, requirements and regulations regarding shipment
of adult-use and medical cannabis to licensed dispensaries within the state of California as
they are created and modified by City and State legislators. No deviation from those rules will
be tolerated or allowed. The Head of Security and the Head of Distribution will implement
additional measures beyond the minimum City and State requirements.
The Applicant will comply with the following operating requirements:
A cannabis distribution facility will only procure, sell, or transport cannabis or adult-
use/medical cannabis products that are packaged and sealed in tamper-evident
packaging that uses a unique identifier, such as a batch and lot number or barcode,
to identify and track the cannabis or cannabis products.
A cannabis distribution facility will maintain a database and provide a list of the
individuals and vehicles authorized to conduct transportation on behalf of the
cannabis distribution facility to the City Manager or designee.
Individuals authorized to conduct transportation on behalf of the cannabis distribution
facility will have a valid California Driver’s License.
Individuals authorized to conduct transportation on behalf of the cannabis
distribution facility will undergo a Fingerprint-Based Criminal History Records Check
conducted by the City Police Department and will not have been convicted of an
offense listed in the Municipal Ordinance.
Individuals transporting cannabis or cannabis products on behalf of the cannabis
distribution facility will maintain a physical copy of the transportation request (and/or
invoice) and will make it available upon request of agents or employees of the City
requesting documentation.
During transportation, the individual conducting transportation on behalf of the
cannabis distribution facility will maintain a copy of the cannabis distribution facility’s
cannabis facility regulatory permit and will make it available upon request of agents
or employees of the City requesting documentation.
A cannabis distribution facility will only transport cannabis or cannabis products in a
vehicle that is (a) insured at or above the legal requirement in California, (b) capable
of securing (locking) the cannabis or cannabis products during transportation, and
c) capable of being temperature controlled if perishable cannabis or cannabis
products are being transported.
STANDARD OPERATING PROCEDURES: DISTRIBUTION
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
PACKAGING AND LABELING
A. Element 7 will not package, re-package, label, or re-label manufactured cannabis
products except for when Element 7 also holds a manufacturing license and is
packaging, re- packaging, labeling, or re- labeling its own manufactured cannabis
products; UNLESS it is determined during laboratory testing that a manufactured
product is labeled with the incorrect amount of THC per package or serving but is
within the THC limits for sale, Element 7 may re-label the package with the accurate
THC amount.
B. Element 7 may also re-label packages with the accurate amount of cannabinoids
and terpenoids if laboratory testing determines that the manufactured product is
labeled within incorrect amounts.
LOCATION VERIFICATION
After receiving a distribution service request, employees must verify that the requesting
licensee is located within the boundaries covered by their local license(s). If a requesting
licensee is not within the boundaries of Element 7’s license(s) Element 7 must reject the order
request.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
TRANSPORTATION
A. The following requirements apply when transporting cannabis goods between
licensees or licensed premises:
1. All vehicles transporting cannabis goods “for hire” will be required to
have a motor
carrier permit.
2. Transportation by means of aircraft, watercraft, drone, rail, human
powered vehicle, and unmanned vehicle is prohibited.
3. Cannabis goods will only be transported inside of a vehicle or trailer
and will not be visible or identifiable from outside of the vehicle or
trailer.
4. If it is not operationally feasible to transport cannabis goods inside of
a vehicle or trailer because the licensed premises that the cannabis
goods will be transported from and the licensed premises that will be
receiving the cannabis goods are located within the same building or
on the same parcel of land, the cannabis goods may be securely
transported by foot, hand truck, forklift, or similar means.
5. A vehicle used for the transportation of cannabis goods will be
outfitted with a dedicated Global Positioning System (GPS) device
for identifying the geographic location of the delivery vehicle. A
dedicated GPS device does not include a phone or tablet. The
device will be either permanently or temporarily affixed to the
delivery vehicle and will remain active and inside of the delivery
vehicle at all times during delivery. At all times, Element 7 will be able
to identify the geographic location of all delivery vehicles that are
making deliveries for Element 7 and will provide that information to
the City upon request.
6. Cannabis goods will be locked in a box, container, or cage that is
secured to the inside of the vehicle or trailer.
7. While left unattended, vehicles and trailers will be locked and
secured.
8. Element 7 will not leave a vehicle or trailer containing cannabis
goods unattended in a residential area or parked overnight in a
residential area.
9. At a minimum, Element 7 will have a vehicle alarm system on all
transport vehicles and trailers. Motion detectors, pressure switches,
duress, panic, and hold-up alarms may also be used.
10. Packages or containers holding cannabis goods will not be
tampered with, or opened, during transport.
11. Element 7 will only travel between its shipping or receiving cannabis
goods and its own licensed premises when engaged in the
transportation of cannabis goods. Element 7 may transport multiple
shipments of cannabis goods at once in accordance with
applicable laws.
12. Employee transporting cannabis goods will only travel between
licensees shipping or receiving cannabis goods and its own licensed
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
premises when engaged in the transportation of cannabis goods.
The distributor may transport multiple shipments of cannabis goods
at once in accordance with applicable laws. A distributor will not
deviate from the travel requirements described in this section,
except for necessary rest, fuel, or vehicle repair stops.
13. In no circumstances will non-cannabis goods be transported with
cannabis goods.
14. Vehicles and trailers transporting cannabis goods are subject to
inspection by the Bureau at any licensed premises or during
transport at any time (SLOMC 9.10.140).
B. Required Transport Vehicle Information
1. Element 7 will provide the following information to the Bureau:
a) Proof of ownership or a valid lease for any and all vehicles and
trailers that will be used to transport cannabis goods;
b) The year, make, model, license plate number, and numerical
Vehicle Identification Number (VIN) for any and all vehicles and
trailers that will be used to transport cannabis goods; and
c) Proof of insurance for each vehicle and trailer used to transport
cannabis goods.
2. Element 7 will provide the Bureau with the required transport
vehicle information in writing for any new vehicle or trailer that will
be used to transport cannabis goods prior to using the vehicle or
trailer to transport cannabis goods.
3. Element 7 will provide the Bureau with any changes to the
information required by this section in writing within 30 calendar
days.
C. Transport Personnel Requirements
1. No person under the age of 21 years old will be in a commercial
vehicle or trailer transporting cannabis goods; and
2. Only employees of Element 7, and/or security personnel, will be in a
vehicle while transporting cannabis goods.
3. An employee will, during deliveries, carry a copy of Element 7's
License, the employee's driver’s license, a physical copy of the
shipping manifest, and an employer provided badge containing a
picture and the name of the delivery employee.
4. Employee will not consume cannabis goods or be under the
influence of any substance that impairs the ability of the employee
while delivering cannabis goods.
DELIVERIES
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
SHIPPING MANIFEST
A. Prior to transporting cannabis goods, Element 7 will generate a shipping manifest
through the track and trace system for the following activities:
1. Testing and sampling;
2. Sale of cannabis goods to a licensee;
3. Destruction or disposal of cannabis goods; and
4. Any other activity, as required pursuant to this division, or by any other
licensing authority.
B. Element 7 will securely transmit the manifest to the Bureau and the licensee that will
receive the cannabis goods prior to transporting the cannabis goods.
C. Element 7 will ensure and verify that the cannabis goods being taken into possession
for transport at the originating licensed premises are as described and accurately
reflected in the shipping manifest.
D. Element 7 will not take into possession or transport:
1. Any cannabis goods that are not on the shipping manifest; or
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
2.Any cannabis goods that are less than or greater than the amount
reflected on the shipping manifest.
E. Element 7 is responsible for any discrepancies between the shipping manifest and
the cannabis goods in its possession during transport, and subject to any
enforcement or disciplinary action related to such discrepancy.
F.Element 7 will not void or change a shipping manifest during transport, or after
departing from the originating licensed premises.
G. A shipping manifest will accompany every transport of cannabis goods.
H.The licensee receiving the shipment will maintain each electronic shipping
manifest. Upon receipt of the transported shipment, the licensee receiving the
shipment will submit to the licensing authority a record verifying receipt of the
shipment and the details of the shipment.
I.If Element 7 has not obtained access to the track and trace system, Element 7 will
complete the shipping manifest outside of the track and trace system and transmit
it to the Bureau and the licensee receiving the shipment by electronic mail.
J.If Element 7 has access to the track and trace system and the licensee receiving
the shipment has not obtained access to the track and trace system, Element 7 will
complete the shipping manifest in the track and trace system and transmit it to the
Bureau. However, Element 7 will send a copy to the licensee receiving the
shipment by electronic mail.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
BUSINESS OPERATING PLAN: MANUFACTURING
Element 7 has proposed operating a 1,000 sq. ft small manufacturing operation in which
there would be no exterior evidence of manufacturing. Our intention would be to pack,
process and produce items including packaged flower eighths, pre-rolls, cannabis cigars
and a range of edibles from a small manufacturing lab (Type 6 License). There would be no
extraction operations on site as that primary manufacturing function would take place at
other Licensed Facilities owned and operated by Element 7.
The raw materials for these products (bulk flower and trim) would be purchased from
State-Licensed Cultivators and Manufacturers via our in-house Distribution License, with
secondary minor processing, filling and packing to take place at the Licensed premises in
San Luis Obispo.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
STANDARD OPERATING PROCEDURES - MANUFACTURING
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
RECORDKEEPING
Element 7 will have the following documents available on the premises at all times and will
make the documents available to the Department and any enforcement agency upon
request:
o The valid state license issued by the Department;
o Any other valid license issued by a state cannabis licensing agency;
o The valid license, permit, or other approval issued by the local jurisdiction;
o The premises diagram;
o The current standard operating procedures;
o Shipping manifests;
o Employee records, including evidence of employee qualifications and training
procedures and logs; and
o Any other record or documentation required.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
OPERATIONAL GUIDELINES
OPERATING HOURS (SLOMC 9.10.250 (C))
Pursuant to BCC, CDPH and SLOMC requirements, the proposed main hours of operation for
the Facility will be between 7am and 9pm:
7am – 8am: Daily Cleaning (Facility)
8am – 9pm: Delivery Operations
8am – 9pm: Daily Distribution Operations
7am – 9am: Daily Cleaning (Manufacturing/Distribution Areas)
8am – 9pm: Manufacturing Extraction Operation
DAILY BUSINESS SCHEDULE
The following proposed schedule represents the general daily tasks that will take place at the
business location:
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
MANAGING COMPLIANCE WITH LOCAL AND STATE LAWS (SLOMC 9.10.170)
The General Manager is the head of the business and all commitments thereunder including
ensuring that all commitments to the City and State are being met. Element 7 will ensure that
all obligations, taxes, fees and other operational procedures are in place.
Specifically, the General Manager will also ensure the following Compliance Measures take
place:
Providing all necessary information and reports to local and state regulatory agencies;
Monitoring reports from the inventory control system (SLOMC 9.10.130 (C));
Tracking any discrepancies between known or expected values, counts, weights or
other information back to the source of the error;
Providing input and implementing changes to protocols to correct errors, and/or other
deficiencies in the Facility operations;
Monitoring shipping manifests, inventory levels, inventory weight amounts, and other
seed to sale tracking information;
Interfacing with Security;
Engaging local counsel when necessary; and
Any other responsibilities required by management.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
CASH MANAGEMENT PLAN
All products will be sold with appropriate exit packaging that is tamper-free, child-proof and
does not display the product.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
PRODUCT DELIVERIES
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
COMMUNITY RELATIONS PLAN
Element 7 believe that good relations with the immediate business community are important
and as such, we will be creating an outreach program to actively engage with our
immediate business neighbors on both an always-available and formalized twice a year
basis.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
We are very interested in working with local businesses and would look to form a pool of
local businesses across several industries including local marketing agencies, architect firms,
general contractors, car auto-shops and repairs, HVAC servicing, security and guard
protective services, catering companies for Events, plumbing and electric repairs and others
for minor services.
During the first year of operations, Element 7 will attend quarterly meetings with the City
Manager to discuss costs, benefits, and other community issues.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
STATE LICENSES
ENTITY NAME POSITION DATES LICENSE TYPE LICENSE
NUMBER
LOCATION
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Nursery TAL 18-0012278 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Nursery TAL 18-0012445 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007867 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Medium Mixed
Light – Tier 1
TAL 18-0008962 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007869 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007868 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007866 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Small Mixed Light
Tier 1
TAL 18-0007865 Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Manufacturing
AM Type 6)
CDPH-
T00000717
Salinas,
Monterey, CA
Monterey
Cannabis
Co.
Robert
DiVito
Owner (4%) 2016 -
Current
Distribution A11 -18-
0000269-TEMP
Salinas,
Monterey, CA
Genezen
Hanford
Robert
DiVito
Owner
19%)
Oct
2017 -
Current
Cultivation (16)
Manufacturing
Distribution
City Permits
Issued. No
State Licensing
Applied For Yet
Hanford, CA
Genezen
Parlier
Robert
DiVito
Owner
19%)
Oct
2017 -
Current
Cultivation City Permits
Issued. No
State Licensing
Applied For Yet
Parlier, CA
TAX COMPLIANCE
Element 7 San Luis Obispo LLC is a California Registered entity and has applied for a Seller’s
Permit.
INSURANCE (SLOMC 9.10.160)
At the time of application submission, Element 7 San Luis Obispo LLC does not possess a valid
insurance policy as the entity was created for submission purposes for this Application.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
However, upon being awarded a Cannabis Business Permit from the City of San Luis Obispo,
Element 7 will pay for and maintain in full force and effect all policies of insurance required
hereunder with an insurance company(ies) either (i) admitted by the California Insurance
Commissioner to do business in the State of California and rated not less than "A-VII" in Best's
Insurance Rating Guide, or (ii) authorized by city manager or his/her designee and in his/her
sole discretion. The following policies of insurance are required:
Commercial General Liability Insurance which shall be at least as broad as the most
current version of Insurance Services Office (ISO) Commercial General Liability
Coverage Form CG 00 01 and include insurance for "bodily injury," "property damage"
and "personal and advertising injury" with coverage for premises and operations
including the use of owned and non-owned equipment), products and completed
operations, and contractual liability (including, without limitation, indemnity obligations
under the contract) with limits of not less than two million dollars ($2,000,000.00) per
occurrence for bodily injury and property damage, one million dollars ($1,000,000.00)
per occurrence for personal and advertising injury, four million dollars ($4,000,000.00)
aggregate for products and completed operations and four million dollars
4,000,000.00) general aggregate.
Commercial Automobile Liability Insurance which shall be at least as broad as the most
current version of Insurance Services Office (ISO) form CA 00 01 and shall include
coverage for "any auto" with limits of liability of not less than one million dollars
1,000,000.00) per accident for bodily and property damage.
Workers' Compensation Insurance as required under the California Labor Code.
Employers' Liability Insurance with minimum limits of one million dollars ($1,000,000.00)
each accident, one million dollars ($1,000,000.00) disease each employee and one
million dollars ($1,000,000.00) disease policy limit.
Element 7 shall be responsible for payment of any deductibles or self-insured retentions
contained in any insurance policies required hereunder.
onfidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
BUDGET AND FINANCIAL PLAN
Site works are estimated at $which covers all building preparations, building and
construction costs, and fit-out costs. All building works would be conducted in full
compliance and accordance with the SLOMC and BCC Directives and Policy. In addition,
we would invest a further $on equipment.
CONSTRUCTION AND SITE WORKS BUDGET: ELEMENT 7 SAN LUIS OBISPO
CONSTRUCTION TIMELINE: ELEMENT 7 SAN LUIS OBISPO
START-UP FUNDING
Element 7 has budgeted for capital works, starting inventory and operating capital of up to
to start and launch Element 7 the business. This budget covers all construction
costs, fit-out costs, external works, design and project management, security measures, POS
Systems implementation and branding required to open and operate the business ($
It also includes of starting inventory; $of operating capital
with a further $of contingency funds ($
Element 7 San Luis Obispo LLC is owned by American Patriot Brands Inc., and Element 7 LLC.
A full-time Certified Public Accountant (CPA) would be hired by Element 7 to manage
financials across the range of business anticipated by Element 7. In addition, a 3rd party
uditor would be engaged to audit the business twice annually to ensure all Investor, City,
State and Federal measures are being correctly managed and accounted for.
We are confident, based on our existing footprint of cannabis operations that our projections
for fit-out, security compliance and design works are accurate.
PRO FORMA
Element 7 has provided detailed financials for the first 3 years of operations, which are
added below and also included at the back of this section of the application.
The financials are built on assumptions based on population, existing purchasing habits,
expected market share and a range of other costs built into our financial models. We expect
our COGS to be averaged at or below 30-35% which we are able to achieve through our
vertical integration.
The first year financials are based on the assumption of being able to commence and
launch operations in November, 2019, with a filter applied to the first 6 months of growth as
we build and start to scale the business.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
YEAR 1 FINANCIAL PROJECTIONS
YEAR 2 FINANCIAL PROJECTIONS
onfidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
YEAR 3 FINANCIAL PROJECTIONS
FINANCIAL SUMMARY
ONGOING OPERATIONS
The CPA employed by Element 7 would manage all accounting processes and a 3rd party
Auditor would be engaged to audit the business twice annually. A professional software (eg.,
QuickBooks) would be used for all accounting, integrating with our retail POS Systems.
Ongoing operations will be funded by cash flow generated from the business which is
conservatively expected and projected at per month pre-tax in Year
2+ of operations.
Apart from the CPA employed by Element 7, we do have a strong executive team that have
significant business experience across all facets of financial management, P&L control, debt
and equity structures and cost management.
CFO oversight functions would be managed by Chris Polaszek and Bernard Rice on our
Board of Directors. Both have significant financial experience as highlighted below.
Chris Polaszek: Securities and accounting litigation and transactional matter expert.
ELEMENT 7 FINANCIALS: SAN LUIS OBISPO
UNIT COSTS / SALES $1 2 3 4 5 6 7 8 9 10 11 12 SUMMARY
GROSS REVENUE
Income from Delivery Sales $
2019
ELEMENT 7 FINANCIALS: SAN LUIS OBISPO
UNIT COSTS / SALES $1 2 3 4 5 6 7 8 9 10 11 12 SUMMARY
GROSS REVENUE
Income from Delivery Sales $
2020
ELEMENT 7 FINANCIALS: SAN LUIS OBISPO
UNIT COSTS / SALES $1 2 3 4 5 6 7 8 9 10 11 12 SUMMARY
GROSS REVENUE
Income from Delivery Sales $
2021
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
During his time on Wall Street he worked at Solomon Brothers and then served at
Capitol Hill in the offices of Senator Bob Graham.
Bernard Rice: One of the world’s leading financial technology experts, Rice formerly
worked for IBM, heading the company’s Southern Area business which accounted for
3B in business. Went on to become the CFO and General Partner for the IBM Venture
Capital Group in 1993 and then Global VP for IBM’s Consumer Division in 1998.
SCHEDULE FOR BEGINNING OPERATIONS
The following schedule is an estimated schedule for beginning operations and is only used to
demonstrate our ability to be operational within a desired timeframe. It is obviously subject to
being approved for a Commercial Cannabis License in San Luis Obispo.
January, 2019 Acquire Location in proper zone and agree to terms with Landlord
January, 2019 Apply for Business License from San Luis Obispo
May, 2019 Attain Business License from San Luis Obispo (Estimated Date)
May, 2019
Apply for BCC and CDPH State Licenses and Start Construction Works
2 Month Approval) with 4-Month construction schedule
May, 2019 Attain State License from State of California
October, 2019 Complete Construction Works
October, 2019
Integrate Inventory Management Software and full Track and Trace
System
October, 2019
Purchase supplies, equipment, and technology for compliance: age
verification, air filtration, security cameras etc.
October, 2019 Order Company branded child proof compliant bags for all orders
October, 2019
Implement Customer Service protocol and handbook. This includes
setting up phone system and all communication channels.
October, 2019
Use Online, Print, and Media tools and Resources to launch our Sales
Marketing Campaign. This includes registering social media profiles.
This includes business cards, flyers, and brochures.
October, 2019 Use Online & Network Recruitment tools and resources to hire staff
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
October, 2019
Assign responsibilities. Initiate time clock, accounting software, design
software
November, 2019 Expected Launch Date
We have a large range of existing relationships that operate nationally in the cannabis
industry that could be ignited for these operations, including:
Wonderbrett: Wonderbrett are currently building a 180,000 sq.ft indoor cultivation and
manufacturing facility in Long Beach, California. We are an equity partner in
Wonderbrett and have full access to their team, engineers, architects, general
contractors and other key staff across both cultivation and manufacturing, which
would accelerate our market-entry.
General Contractors: We have identified 2 large general contractors in San Luis
Obispo that have significant experience with medium sized building projects. Both
have large teams of contractors and would be paired with our cannabis specialists to
ensure that all site works are completed on schedule and within budget.
All of these suppliers and years of industry relationships would be leveraged to ensure that
Element 7 could meet its construction timelines, producing an efficient build that produces
clean and compliant cannabis.
PROOF OF CAPITALIZATION
The Applicant has attached a copy of its Proof of Funds Document demonstrating ready
access to
Further, as demonstrated below, American Patriot Brands, Inc., has a current market cap of
79.3M.
American Patriot Brands, Inc.
4570 Campus Drive, Suite 1, Newport Beach, CA 92660, USA
January 24, 2019
Mr. Robert M. DiVito Jr.
Element 7 San Luis Obispo LLC
RE: SAN LUIS OBISPO – PROOF OF FUNDS / DEMONSTRATION OF CAPITAL
Dear Robert,
This letter confirms our discussions to date and is written specifically in support of your
application for a commercial cannabis license in the City of San Luis Obispo, CA.
We stand ready, willing and able to provide funds sufficient for land ownership / leasing and
project development, operations, staffing, inventory and other capital and operational costs if
Element 7 San Luis Obispo LLC is successful in securing the licenses it is applying for.
Specifically, we stand ready to provide up to $for this investment that would be
immediately available. All such funds would be fully free of any liens, debts and / or
encumbrances and are of clean, clear and non-criminal origin.
Naturally, the foregoing is a statement of our wherewithal and general interest as a partner in
the Element 7 San Luis Obispo LLC business.
Should any City of San Luis Obispo officials require verification of the above mentioned
funds, please do not hesitate to have them reach out to me at (
Sincerely,
Robert Lee
Chairman and CEO
American Patriot Brands, Inc.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
PRODUCTS RANGE AND FORMULATIONS
Element 7 will produce finished cannabis products in the form of edibles and liquids.
Edibles and liquids will contain medical cannabis oil or fractional oil distillate and
combined with natural or organic ingredients to create a homogenized material with a
consistent cannabinoid profiles and potency. Processing Technicians will combine
sustainably sourced, organic fruit juices, grains, sugars, nuts, seeds, chocolates, and other
ingredients with cannabis oils to create a spectrum of palatable edibles.
Element 7 will also produce finished cannabis products in the form of topical applications,
including lotions, creams, salves, balms, and/or moisturizers. Processing Technicians will infuse
dried or fresh cannabis into organic coconut oil and strained using durable mesh fiber
filtration to achieve the extraction of chlorophyll, a substantially beneficial compound for skin
care and localized inflammation, as well as cannabinoids and terpenes. Technicians will
then dilute the infused coconut oil with other organic ingredients to achieve a consistent
cannabinoid profile and determined potency. The Processing Technicians will emulsify
organic and locally sourced beeswax, as well as cocoa butter, shea butter, and sustainably
sourced essential oils approved for topical application into topical applications to achieve
desirable product consistencies. Technicians will conduct all production procedures
involving the manufacturing of topical applications on stainless steel surfaces and take
utmost care to conduct all activities in a sterile, sanitary environment.
Element 7 will make tinctures in a variety of cannabinoid profiles and flavors available to
enhance product diversity and therapeutic options for its customer base. Element 7 will also
produce finished medical cannabis products in the form of semi-viscous liquid tinctures.
Tinctures will be vegetable-glycerin-based and may be applied by a glass and rubber self-
contained liquid dropper. Tinctures will have consistent cannabinoid profiles. The Processing
Manager will randomly select finished, packaged samples and test them for potency and
the presence of microbial contaminants. Processing Technicians will bottle tinctures in
accordance with industry best practices. Technicians will produce tinctures from medical
cannabis oil that contains activated cannabinoids and add material to food-grade glycerin
and other natural or organic sweeteners and/or flavors to enhance the palatability of the
finished product. Agave nectar will be a desired sweetener for its low viscosity at room
temperature.
Pre-Rolls and joints will be made from a range of flower-grade products sourced from the
market, using pre- roll machinery equipment that produces up to 2,000 pre-rolls an hour.
Element 7 will provide a fire and life safety technical report to the Fire Department,
prepared by a licensed professional engineer, to evaluate the totality of the cannabis
operation, including the certification of equipment. Said report will be approved by the
Fire Department prior to Operation.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
COMMUNITY BENEFIT: LOCAL HIRING
At Element 7 we understand that the backbone of our business is our employees and the
relationships we hold with them and the relationships they hold with the customers. This is
what creates and drives business advantage.
We continuously monitor our salaries and benchmarks and will exceed the “Minimum Wage”
benchmark across all our California operations, including San Luis Obispo. In addition, we
have also provided equity ownership to three (3) of our existing staff including Matthew
Fielkow, Amber Norwood and Christopher Bloom.
Over 91 percent (91%) of our staff will come directly from San Luis Obispo City and County. At
Element 7 we strongly believe in equity, diversity and social responsibility an integral part in
our hiring practices. We understand that economic, ethnic, gender, and racial equality
requires social change, progress, and action. We at Element 7 look to contribute to societal
equality through our hiring practices, retention practices, and treatment of employees. These
practices only serve to further facilitate community bonding with not only our
patients/customers, but also with the San Luis Obispo community.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
We aim to exceed any ‘Fair Living’ wages dictated by the City or State.
Employees, given the nature of the industry, should be paid more than the industry standard.
This is also important for attracting and retaining key talent. We want to incentivize good
work and compensate outstanding practices. We know that in order to retain good talent as
an employer we need to offer more in the form of benefits such as health insurance, paid
vacations, paid sick days, dental and the right to take leave for medical or family reasons
etc.
Never will Element 7 take advantage of its employees. Overtime will always be logged
correctly and paid accordingly, there will be no working ‘off the clock’ at Element 7.
We at Element 7 understand that the main advantage of offering attractive benefits is not
only in finding and keeping top-notch talent, but that having a happy and healthy
workforce will be more productive and have lower absenteeism. All workers, regardless of
gender or ethnic background, will be paid the same rates with zero deviation.
Estimated Salary Ranges are:
General Manager: USD$90,000.00 annually
Heads of Departments: USD$70,000.00 annually
Retail Staff: USD$22.00 per hour
Security Staff: USD$25.00 per hour
Manufacturing Staff: USD$22.00 per hour
Staff will be paid salaries above the Living Wage with the minimum salary set at $22.00 per
hour which is 50% above the California Minimum Wage.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Element 7 will have a range of front-line and office management roles as part of its
operations base. An Organizational Chart is attached in the Owners Section of this
document which depicts the various key employees within the Applicant’s organization –
managerial and line roles would be created under this Org. Chart and then advertised to
applicants.
Element 7 will maintain the following hiring criteria for all hired personnel:
MUST be 21 years of age or older;
High School Diploma or GED equivalent;
Must be able to read, write, speak and comprehend the English language;
Will follow Affirmative Action guidelines for hiring;
Will not discriminate based upon age, gender, race or religious affiliation;
Will favour hiring local City of San Luis Obispo (and surrounding areas) residents; and
Will favour hiring individuals that are a part of the Applicant’s community outreach.
TRAINING PROGRAMS
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
LABOR PEACE AGREEMENT
A Labour Peace Agreement will be created between the Facility and any Union or
Cooperative that the workers want to form.
The following key terms will form the Labour Peace Agreements:
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
COMMUNITY BENEFIT: COMMUNITY SUPPORT
Element 7 will be an active supporter of the community of San Luis Obispo by launching our
ELEMENT 7 CARES program that will be headed by a Committee of 4 persons – two directors
from Element 7 and two from the local community. The local community representatives will
be nominated by the community and are essential to the governance and accountability of
the program and achieving its mission of giving back to San Luis Obispo community.
Aligning with San Luis Obispo vibrancy, we will look to be involved in many of the existing
programs that groups within the City are already running to engage the local community.
The Community Engagement program will cover commitments to supporting substance
abuse, prevention education and information throughout the community, especially with
regards to issues surrounding the youth.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
ENGAGEMENT WITH LOCAL NON-PROFITS
Young people are exposed to alcohol and drugs at an early age – we want to be an active
participant in ensuring that these youth received the appropriate level of information on the
dangers of substance abuse at an early age so that they are better informed and more
capable of decision making as they develop and mature. We believe that this program will
have positive flow-on effects for social issues affecting San Luis Obispo – neighborhood crime
prevention, substance abuse and creating safer and cleaner parks and recreation facilities.
We know that beyond education, it is critically important to provide meaningful facilities and
opportunities to youth that inspire, educate and entertain them. To bring meaning to our
intent to create these facilities, Element 7 will be committing 5% (well over the $1,000.00 per
month requirement) of all Net Profits to ELEMENT 7 CARES program for the purposes of
actively building and creating facilities that achieve youth development in San Luis Obispo.
The use of these funds will be overseen by the 4-person Committee and directed to two
identified non-profit organizations that are active in San Luis Obispo.
The local entities that we have identified for support include:
Organization Focus Name of Company and Contact
Education ACHIEVEMENT HOUSE
Provides vocation training programs for adults living in the San Luis
Obispo community that have intellectual and physical disabilities. Efforts
are aimed at training and placing individuals into useful and productive
jobs, and assisting individual adults who wish to live independently within
the San Luis Obispo community.
Health RISE
As a non-profit organization that serves both victims of intimate partner
violence and sexual assault/abuse and their loved ones, RISE provides
comprehensive programs, services and resources to the San Luis Obispo
community. The tagline of RISE - Respect. Inspire. Support. Empower. -
embodies the work of RISE. RISE strives to INSPIRE the community to be
active in the movement to end gender-based violence.
Environmental Awareness ONE COOL EARTH
One Cool Earth creates school garden programs that power healthy,
happy and smart youth. This organization has over 43 thriving school
garden programs in schools across the San Luis Obispo County.
Youth Sports JANSSEN FOUNDATION YOUTH
The Janssen Foundation Youth & Youth Sports Fund was established in
2006 through the generosity of the Robert H. Janssen Foundation. Mr.
Janssen was a lifelong resident of San Luis Obispo County, and he
devoted a considerable amount of energy to youth sports along with
other community and youth activities.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
COMMUNITY EVENTS
Element 7 propose developing a Community Educational Outreach Program that will be held
4 times a year in conjunction with San Luis Obispo Cannabis Community. At Element 7 we
believe that education and community outreach can change the way cannabis is viewed
and help people understand its benefits. To have a successful cannabis program, we believe
that there needs to be an active relationship between the community, research, physicians.
To enact such a program, we will be recruiting a panel of specialists and experts onto our
team which will help us conduct the outreach program. We would envision each event
having 3 specialists that conduct 15-minute lectures with a 30-minute question and answer
session at each event. Each event would run for approximately 90-minutes and focus on:
Myths and Facts of Cannabis
Customer Treatment Options
The History of Cannabis
Latest Research and Medical Findings for Cannabis
Responsible Use and Management of Cannabis
Our goal is to provide the community with the facts and information that they need to be
educated and make informed decisions. It is our goal to educate the community so that
they can make the best decisions for themselves and their health. All sessions will be
provided at zero cost to the attendees. We will schedule a free shuttle bus for attendees that
want to attend the session but may not have transport options.
Dr. Jeff Chen, Director of the Cannabis Research Initiative at UCLA, has committed in writing
to helping us with this initiative. Jeff is one of the most respected cannabis experts in North
America and holds a dual MD/MBA from Cornell University. He has spent the last four years
working at the intersection of academia, industry, non-profit and government to accelerate
cannabis research in California and North America. Dr. Chen is the founder of the UCLA
Cannabinoid Affinity Group, a published author, David Geffen Fellow and UCLA Wolfen
Entrepreneurial Award Recipient.
LOCAL BUSINESS ENGAGEMENT
Element 7 believe that good relations with the immediate business community are important
and as such, we will be creating an outreach program to actively engage with our
immediate business neighbors on both an always-available and formalized twice a year
basis.
e
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
We have identified the following businesses in the local San Luis Obispo area as being entities
that we would actively engage with, in the event that we were issued a Commercial
Cannabis License by San Luis Obispo.
We have a target of using these suppliers for at least 80% of the construction needs for the
property that Element 7 San Luis Obispo would develop.
Category Name of Company Address and Contact Details
General
Contractor
JW Design and Construction 3563 Suledo Street, Suite 1
San Luis Obispo
HVAC Specialist Knecht’s Plumbing and Heating 60 Zaca Lane, San Luis Obispo
Plumbing Knecht’s Plumbing and Heating 60 Zaca Lane, San Luis Obispo
Electricals Electricraft Inc 200 Suburban Road, San Luis Obispo
Handyman James Handyman Services San Luis Obispo
Landscaping Dan’s Landscaping Company San Luis Obispo
Janitorial Services Excel Cleaning, Inc 225 Tank Farm Road, San Luis Obispo
Architect Garcia Architecture and Design 1308 Monterey Street, #230, San Luis Obispo
Staffing Services San Luis Personnel Services San Luis Obispo
Vehicle
Maintenance
Certified Auto Repair 393 Marsh Street, San Luis Obispo
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Catering Popolo Catering 1605 Calle Joaquin, San Luis Obispo
Marketing
Services
20/20 Creative Group 975 Osos Street, San Luis Obispo
Accounting Mosaic Bookkeeping 545 Higuera Street, San Luis Obispo
Legal Services Curtze Law Offices 1177 Marsh Street, Suite #200, San Luis
Obispo
ALIGNING WITH CORE LOCAL CITY VALUES & BELIEFS
A business without purpose is a business without a soul and direction. All the individuals
involved in Element 7 have not just been selected because of the position they hold or the
financing they bring – they are visionaries, game-changers and people that live their lives
every day with conviction.
Building a business that meets the needs of our patients/customers and the concerns of the
residents and business owners of San Luis Obispo is of the utmost importance to us. With this in
mind, we believe the following values are important for both the City of San Luis Obispo and
Element 7:
ALIGNED CORE VALUES
City Position Element 7 Response
a. Respect and Support for People
We recognize and celebrate the
diversity of our community by treating
all individuals with respect for their
personal dignity and providing a wide
array of specialized services. We
promote mutual respect, courtesy,
and thoughtfulness in all interactions.
At Element 7 we value diversity, individualism and
expressiveness in all its forms. We have created a
concept that is based on the different needs,
frequency of use and interest in cannabis culture that
is in San Luis Obispo. Patients/customers can spend
20.00 or $200.00 on our site depending on the quality
of product they select (not quantity as there are
enforced daily limits).
b. Responsiveness to the Public
We hold ourselves accountable to the
members of our community and are
committed to actively seeking public
participation. We promote a public
process whereby we can respond to
the community's needs while
balancing competing interests and
diverse opinions.
We will hold ourselves accountable to San Luis Obispo
Community by creating a process that allows for 2
Members to join our Community Element 7 Cares
program – the Committee overseeing this program
and the use of funds is responsible for ensuring our
financial and program funding commitments are met
as we have stated in this Application.
c. Quality of Residential Life
We maintain a balanced sense of
community by protecting quality of
life, conserving our historic
neighborhoods, safeguarding housing
affordability, and proactively
governing growth with care and
We have been in business far too long to understand
that unless you respect and acknowledge the
community in which you do business, you are going to
eventually fail. We will make every effort we can to
minimalize any disruption to our neighbors and
business partners, not only because this could
negatively affect their business and life, but because
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
thought. we want those people to be our valued
patients/customers in the future. We will take this
approach from parking management through to
exterior design, odor management devices, waste
management and our support for the local
community.
d.Promote Economic Development
We recognize that economic
development is essential to
maintaining quality of life for the total
community. We support an
environment where our diverse and
eclectic businesses can flourish and
seek mutually beneficial relationships
with the business community.
We want to be active, not only in the local residential
community, but in the broader business community of
San Luis Obispo . Being a member of San Luis Obispo
Chamber of Commerce.
e.Public Safety
We protect the personal safety of our
constituents and safeguard the
community from the threats of natural,
technological and other man-made
hazards. Through preparation and
planning, we minimize the effects of
these disasters.
Ou Our involvement in the operations of cannabis
dispensaries over the last five years in Los Angeles has
been that the security measures we implement at our
facilities (including guards) can have a positive impact
on reducing any crime in the immediate area of the
facility. Whilst this possibly just pushes the problem to
another area, we hope that our commitment to Youth
and Young Adult Programs through Element 7 Cares
might have a positive impact on the community from
a safety and ‘better citizens’ perspective. We will
actively participate in any community initiatives we
can to make San Luis Obispo a better and safer place
to work and live.
f.Responsibility for the Environment
We make it our responsibility to protect
and improve our natural and built
environments, pursuing opportunities to
preserve and create open and green
space in our urban setting. We initiate
partnerships with other cities and
agencies to address regional and
global environmental challenges.
It’ As Co-Founders of the business, we are also fathers to
young girls and boys and we want them to inherit a
planet that is better tomorrow than it is today. We are
committed to doing whatever we can to make the
world a better place – where possible we will use
materials in our design that have a lower carbon
footprint, we will ensure that we responsibly recycle,
reuse and reduce wherever we can as we start to
operate the business. Element 7 will be implementing
the use of ENERGY STAR Portfolio Manager, which is an
online tool for tracking waste, energy and water data
over time. We will be using this platform to benchmark
the performance of the building from a waste
management perspective with a long-term goal to
consistently improve the performance of our waste
reduction program. We’ve also brought on YuFu
Chen, Arnold Schwarzenegger’s go-to on Global
Warming to oversee our Environmental Sub-
Committee.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
VOLUNTEER SERVICES
Element 7 will ensure that it gives back to the community by requiring all full-time staff to
commit at least 8 hours per quarter (32 hours annually) to a local cause or charity. The 4-
person Element 7 Cares Committee will ensure that the business is held accountable to
ensuring that staff commit this time and the General Manager at the Facility will be
responsible for tracking all such commitments.
DISCOUNT PROGRAMS
Seniors, veterans, patients and customers on government assistance need cannabis to treat
a wide range of conditions. We will assist these groups to access cannabis at-cost by working
with Hospitals and Health-Care Centers in proximity to our operations.
These partners will be responsible for identifying patients and others that could benefit from
cannabis and need financial assistance in securing discounted pricing.
LOCAL HEALTH & MEDICAL PARTNERSHIPS
Element 7 started as a medically focused cannabis company and this aspect of the industry
remains core to our mission and company focus. We would therefore seek to develop
partnerships with local health and medical institutes in order to advance customer
treatment, care and the scientific advancement of cannabis. We have identified several
local institutions that we would target for partnership development:
Category Name of Entity / Institution
Health Centre for Health Research (Cal Poly)
The Centre for Health Research (Cal Poly) facilitates transdisciplinary
research in the prevention and treatment of obesity and related
chronic diseases. Initial studies have shown that phytocannabinoids
could play an important role in treating obesity.
Medical French Hospital Medical Center Foundation
The French Medical Center operates several divisions focused on
Health Education and Research. The Institute for Health Education
and Research is devoted to cutting edge scientific health care
informatics and prevention research. We believe that
phytocannabinoids and their role in treating a range of diseases
would be of strong interest to this group.
HISTORY OF SUPPORTING LOCAL COMMUNITY PROGRAMS
American Patriot Brands has a strong track record of supporting local communities in the
jurisdictions it operates. In South and Central America, it has allocated equity in each of its
businesses to local community groups so that these groups can not only benefit from job
growth, but also from direct economic growth of the business.
Similarly, Element 7, both as a Company and individuals, have a strong track record of
supporting local community groups. Robert DiVito has set up booths at a number of job fairs
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
in California’s Central Valley; Rico Tarver is active in implementing Social Equity programs
which focuses on diversity and inclusion in the cannabis industry; Matthew Fielkow is deeply
involved in veterans affairs and supporting retired servicemen and women find jobs in the
cannabis industry; and Amber Norwood is a strong advocate for womens rights and equal
employment, sitting on the Pasadena Community Cannabis Council. Christopher Bloom
has been involved with several community-based environmental, educational and youth
sports
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
EDUCATION PLAN
At Element 7 we believe that education can change the way medical cannabis is viewed
and help people understand its benefits. To have a successful cannabis program, we believe
that there needs to be an active relationship between our customers, the community,
research, physicians and patients.
To enact such a program, we will be recruiting a panel of specialists and experts onto our
team which will help us conduct the outreach program. We would envision each event
having 3 specialists that conduct 15-minute lectures with a 30-minute question and answer
session at each event. Each event would run for approximately 90-minutes and focus on:
Myths and Facts of Cannabis
Patient Treatment Options
The History of Cannabis
Latest Research and Medical Findings for Cannabis
Responsible Use and Management of Cannabis
Our goal is to provide the community with the facts and information that they need to be
educated and make informed decisions. It is our goal to educate the community so that
they can make the best decisions for themselves and their health.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
All sessions will be provided at zero cost to the medical cannabis patients and attendees. We
will schedule a free shuttle bus for attendees that want to attend the session but may not
have transport options.
We will also be creating a Medical Marijuana and Pain Education and Support Group hosted
through Meetup.com. At this support group pain patients are welcome to attend and hear
from guest speakers, ask questions and share personal experiences. This group will meet
monthly and is also free to attend.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
SECURITY PLAN (SLOMC 9.10.250 (A))
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
15901 Hawthorne Blvd Suite #324, Lawndale, CA 90278
Phone: 310.371.5300 I Fax: 310.371.5302
www.gsgprotective.com
January 22, 2019
Mr. Michael Codron
Community Development Manager
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
RE: ELEMENT 7 SAN LUIS OBISPO LLC SECURITY
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
LIGHTING PLAN
The front and rear of the Facility will be equipped with security lighting as approved by the
City. Entrance and rear of building lighting will be continuously illuminated. Each light will
provide at least 0.1-foot candle intensity.
The Facility will be lit by exterior lighting between the hours of dusk and dawn, 365 days a year.
There may be occasions (e.g., inclement weather) when the lights are required to be used
during the day, which will be at the judgement of the General Manager. All outdoor lighting
used for security purposes will be shielded and downward facing. In any case, we will adjust
our external lighting to meet San Luis Obispo’s guidance under SLOMC.
We will be using LED 4000K Flood Lights supplied by GE. These lights offer 11 years of light life
50,000 hours) and are widely used to illuminate similar buildings in the industry. The LED lighting
solution selected considers security and safety requirements, design, energy efficiency
reduced carbon footprint) and a uniform distribution of light (to aid security cameras and
minimize ‘dark areas’ which become potential security breaches).
The lights have a die-cast aluminium housing and a slim architectural design that incorporates
an integral heat sink and light engine, ensuring maximum heat transfer, long LED life and a
reduced Effective Projected Area (EPA). Lights meet 2g Vibration leve l per ANSI (C136.31 –
2010). The lights are rated at -40 degrees to 50 degrees Celsius and are fully compliant with all
industry standards. The lights will be mounted on the building exterior and wired with cable to
the building power.
Insulated
and ventilated
roofPROPOSED LIGHTING PLANscale 3 /
32'' =1' - 0''SHEET NO:
4/5DATE: 01/
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
SITE AND FLOOR PLAN
Full Site, Floor and Security Plans have been attached to this Document as required.
PROPOSED
SITE PLANscale 1 / 32'' =
1' - 0''SHEET NO:2/
5DATE: 01/
28/2019SCALE:1 /
PROPOSED
FLOOR PLANscale 3 / 32'' =
1' - 0''SHEET NO:3/
5DATE: 01/
27/2019SCALE:3 /
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
WATER EFFICIENCY PLAN – MINIMALLY APPLICABLE FOR LICENSE TYPES
Element 7 has an internal goal of exceeding industry standards when it comes to waste
management and water reduction, recycling and recirculation. Element 7’s mission is to be
at the forefront of water use and treatment processes and procedures for the industry,
reducing, minimising and ideally eliminating any and all negative impacts on the
communities in which it conducts business.
The License types Element 7 San Luis Obispo is applying for use minimal water.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
AIR QUALITY / ODOR CONTROL
We will take measures to eliminate any cannabis odor that may potentially emanate from
the facility to mitigate disturbances to local business residents. There are several industry best-
practices that we will install into our facility to ensure that the air poses zero health risks to any
employee or the surrounding businesses.
Polarized Filters with Activated Carbon Inserts
We will be using polarized media filters with activated carbon insert pads to provide a
medical-grade air quality to the Facility. Polarized media filters utilize electromagnetic
polarization to maximize the collection of dust and pollutants in the air, which increases the
effectiveness of air filtration and odor control. The carbon pads provide an additional layer
of odor removal, providing maximum efficiency and benefit. Upgrading filters is relatively
inexpensive, and the costs are heavily offset by the reduced labor and cost of replacing
those filters less frequently. These technologies are utilized by hospitals, laboratories and other
clean facilities around the world and are a great option for cannabis facilities.
Carbon Scrubbers
We will use activated carbon scrubbers these in the storage room where the greatest
concentration of products is. These types of filters use pelletized granule carbon to remove
odor, dust and pollutants from the air, and can be used as a standing unit in a space or as
an exhaust filter. Just like the carbon in the air filters mentioned previously, these pellets
remove dust, odor and other pollutants through the air as it passes through the filter.
Ozone Generators
Ozone generators use ultraviolet bulbs or corona discharge (an electrical discharge) to
produce ozone gas that works on a molecular level to eliminate virtually all odor, molds,
mildews and bacteria – we will use these in the waste area and storage room. Ozone can be
used safely and easily by utilizing generators that fit directly into your exhaust lines. This is one
of the most effective methods for removing odors in the exhaust system.
Any air that is emitted from the facility will be dual-filtered through HEPA and charcoal filters
to ensure clean, odor-free air.
Strict cleaning and sanitizing procedures are part of the standard operating procedures for
all operations in the facility. Product-contact surfaces will be cleaned before and after
operations and between shift changes. Additionally, surfaces will be cleaned after contact
with potentially hazardous items. Employees must wash their hands with warm water and
antibacterial soap after eating or using the restroom before returning to operational areas.
Operational areas will be easy to clean and maintain by using appropriate, durable finishes
for each functional space; careful detailing of finishes to avoid hard-to-clean crevices;
adequate and appropriately located maintenance spaces; and incorporation of
antimicrobial surfaces.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
HAZARDOUS MATERIALS PLAN – NOT APPLICABLE FOR LICENSE TYPES
Element 7 facility operations do not intend to use any hazardous materials in its operations.
All cleaning and sanitizing products will be environmentally friendly.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
ENERGY EFFICIENCY PLAN: ENVIRONMENTAL AND WASTE MANAGEMENT
Element 7 considers itself to be an environmentally conscious business and we are
committed to considering and identifying all avenues and initiatives in order to be as ‘Green’
as possible. Our focus is on sustainability which is why we have brought Dr. YuFu Cheng,
China Country Director for R20: Regions of Climate Action, onto our team. Dr. Cheng is one
of the world’s leading experts on Climate Change and works closely with former Governor
Arnold Schwarzenegger who founded the initiative with the support of the United Nations. Dr.
Cheng has a PHD in Ecology (Climate Change) from UC Davis.
Element 7 will implement a range of energy-saving measures at the Facility designed to
reduce / reuse and recycle, including:
Energy efficient lighting on the interior and exterior of the building;
Water-saving devices for all tap faucets and facilities;
Use of recycled building materials (where possible) to reduce the carbon footprint of
the Facility; and
Full recycling of any secondary packaging materials.
The business will have no adverse environmental impacts on San Luis Obispo area and no
adverse effects on the surrounding area. The business category operates under heavily
regulated practices regarding waste in the State of California. The Facility will have minimal
or no impact whatsoever on sewage, drainage, solid waste disposal, energy, roads or public
transportation.
At the direction of the City, we will make any applications required to the Water District and
Sanitation District regarding adequate water supply and waste treatment for the proposed
use.
CLIMATE ACTION PLAN ALIGNMENT
At Element 7, we are committed to staying at the forefront of green building and
sustainability in the cannabis industry. We plan on furthering our goals through the following
steps:
All building materials, including but not limited to energy efficient lighting, water
efficient hardware for sinks and toilets, and green building materials used for any
buildout or construction, shall be chosen with efficiency and renewability in mind. At
Element 7, we contract with local builders who know that we are looking for ways to
reduce our carbon footprint.
LEED core concepts are considered during everyone of our developments. Examples
include lighting that is properly spaced and aimed, low flow toilets and faucets,
sustainably grown and harvested building materials, and energy efficient appliances
are chosen in the LEED integrative process design phase.
Recyclable materials will be utilized for all products used within our facilities whenever
possible. We aim to be as close to a Zero-Waste certified facility as possible and will re-
evaluate our processes on an ongoing basis in order to meet these goals.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
Landscaping will be based on native and local drought resistant species to ensure an
attractive look and to minimize the environmental impact of our operations.
Vehicles purchased or leased by Element 7 have been carefully considered with
regards to fuel economy and environmental impact.
We welcome and encourage any input from local green initiatives and utility services
on how to better our own knowledge on this as well. Element 7 commits to opting in
to Clean Energy programs such as SDG&E Eco-Choice in order further decrease our
footprint by using up to 100% renewable energy in accordance with the San Luis
Obispo 2017 Climate Plan initiative of using clean sources of energy citywide.
At Element 7, we involve the US Leadership in Energy and Environment Design (LEED)
developed triple bottom line approach, the guiding philosophy of which is that the social
people), environmental (planet), and economic (profit) dimensions of the organization are
to be considered with respect to one another. Taking into consideration the life-cycle of all
decisions and products, we can have a net positive impact on the community, environment,
and health of the company.
WASTE MANAGEMENT
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Managing Waste and Conserving Resources which we can achieve by training our staff
correctly. This will have a direct impact on minimizing waste. Staff will have thorough and
consistent training in order to execute this precisely. The same staff will be responsible for
taking inventory, whether it's on a weekly, bi-weekly or monthly basis. We will have efficient
back-office software for managing things such as inventory, invoicing and reporting.
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
AUTHORIZATION & ACCEPTANCE
January 26, 2019
Mr. Michael Codron
Community Development Manager
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Dear Michael,
On behalf of the Applicant, Element 7 San Luis Obispo LLC, and all Owners of the Applicant, I
hereby provide my acknowledgement and acceptance of the City of San Luis Obispo City
Manager’s Office contacting any other party, agency or government body, with regards to this
Application.
I further certify under penalty of perjury that all the information contained in the application is
true and correct.
Element 7 San Luis Obispo LLC understands and agrees that the following conditions must be
adhered to in order to have continuing validity of any issued Permit or License for a cannabis
business in the City of San Luis Obispo.
1.Strict adherence to each requirement of the City of San Luis Obispo Municipal Code and
relevant State of California and BCC and CDPH directives.
2.Notarized Statement from the Building Owner / Landlord (and their name and address) prior
to submitting any property for future operations.
3.Attending regular meetings with the City of San Luis Obispo Police Department, the City of
San Luis Obispo Fire Department and City Public Safety Department staff to review public
safety matters and policy changes.
4.Providing unrestricted access will be given at any time to the City of San Luis Obispo Code
Compliance Officers, the City of San Luis Obispo Police Department, the City of San Luis
Obispo Fire Department staff, or other agents or employees of the City requesting admission
for the purposes of determining compliance (SLOMC 9.10.190).
5.Maintaining with the City current and valid contact information of the owner(s) and
manager(s) of the Commercial Cannabis Businesses.
6.Maintaining with the City current and valid contact information of a Legal Representative
of the Business.
7.Maintaining valid State Licenses.
8.Maintaining a valid City Business License.
9.A Certificate of Occupancy.
onfidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
In the event that a License is successfully secured by Element 7, our company further
acknowledges that it will:
1.Execute an agreement indemnifying the city, its elected officials, employees, agents,
officers, and representatives, and each and all of them individually, from all liability in
connection with all claims, damages, attorney's fees, costs and allegations arising from or
in any way related to the operation of the Commercial Cannabis Businesses (SLOMC
9.10.160).
2.Execute an agreement to:
a.Defend, at the permit holder's sole expense, any action against the city, its elected
officials, employees, agents, officers, and representatives, and each and all of them
individually, which arises from the operation of the commercial cannabis business.
b.To reimburse the city for any court costs and attorney fees that the city may be
required to pay as a result of such action. The city may, at its sole discretion,
participate at its own expense in the defense of any such action.
3.Maintain continuing compliance with background check requirements of the City of San
Luis Obispo Cannabis Ordinance by ensuring that upon the hiring, association or retention
of an employee by the commercial cannabis business, the requirements are met by
immediately providing the City of San Luis Obispo Director of Development Services in
writing with:
a.The results of a live scan for the employee which was performed within ninety (90)
days prior to the date of the hiring, association or retention of the employee; and
b.A color photocopy of either a valid California Driver's License for the employee, or
equivalent identification for the employee approved by the director.
4.Immediately update the director in writing with correct and current contact information,
when there is any change in the address or phone number, previously provided to the City
in compliance with SLOMC, for any owner(s), manager(s) or legal representative(s) of the
commercial cannabis business.
We hereby authorize the City of San Luis Obispo to verify the information and representations
contained in this document in any way the City sees fit. We look forward to doing business in the
City of San Luis Obispo, and respectfully submit our application, attached herein.
Yours sincerely,
Robert DiVito
Founder and CEO
Element 7 San Luis Obispo LLC
Confidential. No part of this presentation may be copied or reconstituted with any 3rd party without the consent of Element 7 LLC.
For any information regarding this application please contact:
Robert DiVito
Founder and CEO
Element 7 LLC
Element 7 San Luis Obispo LLC