Current through Register Vol. 48, No. 12, March 22, 2024
a) When
applying for a Conditional Adult Use Cultivation Center License, 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 an Adult Use Cultivation Center License, this duty of
ongoing disclosure shall continue throughout the licensed 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 2 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 directors, owners, officers and growers;
5) 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; and
6) 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 license,
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.
b) The
applicant shall disclose all sources of funding used to acquire or develop the
business for which the license 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 whether any principal officer and/or board member:
1) Has ever filed for bankruptcy;
2)
Is more than 30 days delinquent in
complying with a child support order [5 ILCS 100/10-65c]; or
3) Has been disciplined or sanctioned by a
State or federal agency.
e) 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.