Current through Register Vol. 48, No. 38, September 20, 2024
a) When
applying for a cultivation center permit, the applicant shall disclose all
relevant financial information to the Department. The applicant shall have a
continuing duty to disclose promptly any material changes in the financial
information provided to the Department. If an applicant is issued a permit,
this duty of ongoing disclosure shall continue throughout the permitted period.
These disclosures shall include:
1) The
ownership structure of the cultivation center;
2) A current organizational chart that
includes position descriptions and the names and resumes of persons holding
each position to the extent those positions have been filled. To the extent not
revealed by the resume, include additional pages with each resume setting out
the employee's particular skills, education, experience or significant
accomplishments that are relevant to owning or operating a cultivation
center;
3) Documents such as the
articles of incorporation, articles of association, charter, by-laws,
partnership agreement, agreements between any two or more members of the
applicant that relate in any manner to the assets, property or profit of the
applicant, or any other comparable documents that set forth the legal structure
of the applicant or relate to the organization, management or control of the
applicant;
4) A copy of all
compensation agreements with producer backers, directors, owners, officers,
growers, other high-level employees or any other persons required to complete
these agreements;
5) A compensation
agreement that includes any agreement that provides, or will provide, a benefit
to the recipient, whether in the form of salary, wages, commissions, fees,
stock options, dividends, interest, bonuses or otherwise;
6) The nature, type, terms, covenants and
priorities of all outstanding bonds, loans, mortgages, trust deeds, pledges,
lines of credit, notes, debentures or other forms of indebtedness issued or
executed, or to be issued or executed, in connection with opening or operating
the proposed cultivation center;
7)
Audited financial statements for the previous fiscal year, which shall include,
but are not limited to, an income statement, balance sheet, statement of
retained earnings or owners' equity, statement of cash flows, and all notes to
these statements and related financial schedules, prepared in accordance with
generally accepted accounting principles, along with the accompanying
independent auditor's report. If the applicant was formed within the year
preceding the application for permit, provide certified financial statements
for the period of time the applicant has been in existence and any pro forma
financials used for business planning purposes;
8) Complete copies of all federal, state and
foreign (with translation) tax returns filed by the applicant for the last
three years, or for the period the applicant has filed returns if less than
three years;
9) Complete copies of
the most recently filed federal, state and/or foreign (with translation) tax
returns filed by each producer backer and by each producer backer member
identified in the applicant's application.
b) The applicant shall disclose all sources
of funding used to acquire or develop the business for which the permit is
sought, and shall provide independent documentation concerning the source of
the funds and copies of closing documents in connection with the purchase of a
registered business.
c) The
applicant shall disclose the estimated expenditures to be incurred before the
cultivation center is operational.
d) The applicant shall disclose the estimated
full facility cost and projected annual revenue of the cultivation center under
operation.
e) The applicant shall
disclose whether any principal officer and/or board member has ever:
1) Filed for bankruptcy;
2) Defaulted on a student loan;
3) Defaulted on alimony or child support
payment;
4) Been disciplined or
sanctioned by a State or federal agency; or
5) Been convicted of an excluded
offense.
f) The
applicant shall disclose whether there are currently or have ever been any
state or federal tax liens against the property of the applicant, as well as
the property of any principal officer and/or board member.
