hd1.9 companies · the application failed to identify an individual or security firm for their...

Hd1.9 Companies CITY OF PASADENA

Applicant Name: Habib Rene Shbeyer

Reviewer: Kami Miller

Date: 4/18/19

OVERALL SCORE Maximum

Points Points

Awarded Percent Score

1,575 1,102 69.97%

GENERAL COMMENTS

The business has one sole owner has no experience in the cannabis industry. The application failed to follow the guideline procedures and lacked sufficient detail. Most of the application consisted of marketing statics from cannabis resources. The application failed to demonstrate extensive experience that is directly applicable to operating as a cannabis retailer.

SECTION 1: QUALIFICATIONS OF OWNERS/ OPERATORS I 750 I 515 I 68.67%

Experience but his 15 years of experience in the

gives him the knowledge and industry.

Applicant acknowledges that he has never been in the marijuana business, successful operation of businesses that utilize regulated industry, i.e., financial, expertise to operate such a business. 20 years experience in the real estate

Cannabis Industry Knowledge state regulations and the Pasadena The application demonstrated some knowledge about the cannabis industry

Municipal Code.

Ownership Team in the day-to-day operations. They did The application failed to provided a brief description of the roles of owners

identify the owners role as the CEO.

CITY OF PASADENA

Applicant Name: Habib Rene Shbeyer

Reviewer: Kami Miller

Date: 4/18/19

OVERALL SCOREMaximum

Points

Points

Awarded

Percent

Score

1,575 1,102 69.97%

SECTION 1: QUALIFICATIONS OF OWNERS/ OPERATORS 750 515 68.67%

Applicant acknowledges that he has never been in the marijuana business, but his 15 years of experience in the

successful operation of businesses that utilize regulated industry, i.e., financial, gives him the knowledge and

expertise to operate such a business. 20 years experience in the real estate industry.

The application failed to provided a brief description of the roles of owners in the day-to-day operations. They did

identify the owners role as the CEO.

GENERAL COMMENTS

The business has one sole owner has no experience in the cannabis industry. The application failed to follow the

guideline procedures and lacked sufficient detail. Most of the application consisted of marketing statics from

cannabis resources. The application failed to demonstrate extensive experience that is directly applicable to

operating as a cannabis retailer.

Experience

Cannabis Industry Knowledge

Ownership Team

The application demonstrated some knowledge about the cannabis industry state regulations and the Pasadena

Municipal Code.

HABIB RENE SHBYER'S APPLICATION FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA1 OF 58

SECTION 2: BUSINESS PLAN I 525 I 372 I 70.86%

Standard Operating Procedures (SOP) the application. The application provided a few Standard Operating Procedures throughout

Financial Plan

Breakdown of Direct Costs and Operating The application provided a breakdown of their start-up costs totaling Application provided a Three-Year Sales Forecast, Long-term Debt Schedule, Expenses, Profit & Loss Statement, Cash Flow Statement, and Balance Sheet. Application failed to provide their accounting procedures.

Funding/Proof of Capitalization proof of funds to cover start-up costs Application stated they will be fully funded with it failed to provide

and three months off operating expenses.

Records Software record retention for surveillance and The application failed to provide any record retention protocols. It did mention

security inspections.

Track-and-Trace The application a brief description of their track and trace protocols.

State Testing Requirements The applicant demonstrated understanding of testing requirements.

Employee Training be trained in the legal aspects of the

accounting and cash procedures; in the application.

The application merely stated, "In addition to fire training, all employees will state and local marijuana regulations; processing and storage of cannabis products; inventory control; and security procedures." No further detail was provided

SECTION 2: BUSINESS PLAN 525 372 70.86%

The application a brief description of their track and trace protocols.

State Testing Requirements

The applicant demonstrated understanding of testing requirements.

Employee Training

The application merely stated, "In addition to fire training, all employees will be trained in the legal aspects of the

state and local marijuana regulations; processing and storage of cannabis products; accounting and cash procedures;

inventory control; and security procedures." No further detail was provided in the application.

Funding/Proof of Capitalization

Application stated they will be fully funded with it failed to provide proof of funds to cover start-up costs

and three months off operating expenses.

Records Software

The application failed to provide any record retention protocols. It did mention record retention for surveillance and

security inspections.

Track-and-Trace

Standard Operating Procedures (SOP)

The application provided a few Standard Operating Procedures throughout the application.

Financial Plan

The application provided a breakdown of their start-up costs totaling

Application provided a Three-Year Sales Forecast, Long-term Debt Schedule, Breakdown of Direct Costs and Operating

Expenses, Profit & Loss Statement, Cash Flow Statement, and Balance Sheet.

Application failed to provide their accounting procedures.


REDACTED

REDACTED

Customer Education Application stated their budtenders would educate their customers.

Marketing The application provided a marketing plan that consisted of statistics that came from other resources (magazines, websites).

Community Benefits The application failed to include the requirements of this section; though, the Operating Expense spreadsheet identified a community contribution expense.

SECTION 3: NEIGHBORHOOD COMPATIBILITY & ENHANCEMENT I 150 I 115 I 76.67%

Exterior Design Concept included lighting, signage, and

parking available. It failed to identify any The application provided a description of their building concept design. It also confirmed they will have the required number of parking spaces and street landscaping plans.

Design Concept Integration will make every effort to be "good or nuisances that may arise from the would fit into the surrounding area.

The application provided one image of their interior design and stated they neighbors" in the chosen community and to minimize any negative impacts operation. It failed to provide any detail on how their architect or landscape

Integration of Security Measures and prevent unauthorize The application identified utilizing security cameras, light fixtures, panic buttons,

access/entry into the facility, as well as the physical presence of security guards.

Air Quality/Odor Control will be utilized in order to ensure The application stated, "Carbon scrubbing filters or other such technology

compliance with PMC 8.11.06."

SECTION 3: NEIGHBORHOOD COMPATIBILITY & ENHANCEMENT 150 115 76.67%

The application provided a description of their building concept design. It also included lighting, signage, and

confirmed they will have the required number of parking spaces and street parking available. It failed to identify any

landscaping plans.

The application provided one image of their interior design and stated they will make every effort to be “good

neighbors” in the chosen community and to minimize any negative impacts or nuisances that may arise from the

operation. It failed to provide any detail on how their architect or landscape would fit into the surrounding area.

The application identified utilizing security cameras, light fixtures, panic buttons, and prevent unauthorize

access/entry into the facility, as well as the physical presence of security guards.

The application stated, "Carbon scrubbing filters or other such technology will be utilized in order to ensure

compliance with PMC 8.11.06."

Exterior Design Concept

Application stated their budtenders would educate their customers.

Marketing

The application provided a marketing plan that consisted of statistics that came from other resources (magazines,

websites).

Community Benefits

The application failed to include the requirements of this section; though, the Operating Expense spreadsheet

identified a community contribution expense.

Air Quality/Odor Control

Design Concept Integration

Integration of Security Measures

Customer Education


SECTION 4: SECURITY PLAN I 150 I 100 I 66.67%

Security Experience plan; though it did indicate having

deliveries; as it did indicate The application failed to identify an individual or security firm for their security third parry monitoring. The application failed to provide procedures for customer conducting delivery operations.

Background Checks having qualified employees The application failed to confirm performing background checks. It did mention

Employee Safety Education application mentioned having a burglary The application indicated having employees fire and security training. The

alarm but did not indicate any training.

Employee Theft Reduction Measures detail was provided. The application stated their design element would deter any theft; no further

Cash Management Plan failed to elaborate or provide any cash Application indicated training employees on cash handling procedures but

handling procedures.

Product Access Protocols provided brief procedures for their

It did mention secured areas would be Application failed to provide any visitor

It customer check-in process but none for employee check-in or access levels. accessible only to authorized personnel, service personnel or distributors. procedures.

Product Deliveries did indicate returns to vendors. The application failed to provide any product intake delivery procedures. It

Security Guards hours a day. Application provided a brief Application failed to confirm security guards would be on the premises 24

description of protocols and day-to-day procedures.

Video Camera Surveillance indicated The video surveillance protocols met the state requirements; though they

Armored Vehicle or service. The application failed to provide any mention of utilizing an armored vehicle

SECTION 4: SECURITY PLAN 150 100 66.67%

It provided brief procedures for their

customer check-in process but none for employee check-in or access levels. It did mention secured areas would be

accessible only to authorized personnel, service personnel or distributors. Application failed to provide any visitor

procedures.

The application failed to provide any product intake delivery procedures. It did indicate returns to vendors.

Application failed to confirm security guards would be on the premises 24 hours a day. Application provided a brief

description of protocols and day-to-day procedures.

The video surveillance protocols met the state requirements; though they indicated

The application failed to provide any mention of utilizing an armored vehicle or service.

Security Guards

Video Camera Surveillance

Armored Vehicle

Product Access Protocols

Product Deliveries

The application failed to identify an individual or security firm for their security plan; though it did indicate having

third parry monitoring. The application failed to provide procedures for customer deliveries; as it did indicate

conducting delivery operations.

The application failed to confirm performing background checks. It did mention having qualified employees

The application indicated having employees fire and security training. The application mentioned having a burglary

alarm but did not indicate any training.

The application stated their design element would deter any theft; no further detail was provided.

Application indicated training employees on cash handling procedures but failed to elaborate or provide any cash

handling procedures.

Security Experience

Background Checks

Employee Safety Education

Employee Theft Reduction Measures

Cash Management Plan


REDACTED

REDACTED

Habib R. Shbeyr 626-390-4220 I [email protected]

January 29, 2019

City of Pasadena

100 N. Garfield

Pasadena, CA 91109

Dear City of Pasadena:

I am pleased to submit my application to be an operator of one of the first legal commercial cannabis business in the City of Pasadena. If approved I would be opening a marijuana dispensary that would not be your typical "head shop," rather, it would be an "herbal boutique." At this time, we are still searching for a location where such a herbal boutique can be situated. But no matter of location, and as with any store that sells regulated products, security must be a priority but that does not mean the store must be designed like a fortress. With this concept, I intend to create a marijuana products retail center with an atmosphere that will take marijuana sales out of the underground and into the mainstream. We will train our employees in our products (potency, variety), customer service, compliance with laws, and cash management. We will also provide education for customers relating to product selection, effects, and potency.

I am a businessman with expertise in finance and marketing. I know how to take an idea and turn it into a profitable business. Our marketing studies show that commercial cannabis is a growing market. The concept of an herbal boutique will fit into the Pasadena image and more importantly, into the commercial neighborhoods. I will be financing this venture with my own money and have committed for this purpose.

Even though I have been successful with my business ventures, I do not have expertise in the marijuana industry. To remedy that deficiency, I have engaged the services of Daniel P. Rome who will be the Operations Director. Mr. Rome will be responsible for the day to day operations of the dispensary. He has demonstrated knowledge of the regulations that control this industry, the need for impeccable record keeping, the software that is necessary to accomplish this (CCTT), the requirement that all cannabis products must be tested and certified, and the security processes needed for medical use and recreational use.

Sincerely,

ffabib Rene Shbeyi-Habib R. Shbeyr

Habib R. Shbeyr 626-390-4220 | [email protected]

January 29, 2019

City of Pasadena

100 N. Garfield

Pasadena, CA 91109

Dear City of Pasadena:

I am pleased to submit my application to be an operator of one of the first legal commercial cannabis business in the City of Pasadena. If approved I would be opening a marijuana dispensary that would not be your typical “head shop,” rather, it would be an “herbal boutique.” At this time, we are still searching for a location where such a herbal boutique can be situated. But no matter of location, and as with any store that sells regulated products, security must be a priority but that does not mean the store must be designed like a fortress. With this concept, I intend to create a marijuana products retail center with an atmosphere that will take marijuana sales out of the underground and into the mainstream. We will train our employees in our products (potency, variety), customer service, compliance with laws, and cash management. We will also provide education for customers relating to product selection, effects, and potency.

I am a businessman with expertise in finance and marketing. I know how to take an idea and turn it into a profitable business. Our marketing studies show that commercial cannabis is a growing market. The concept of an herbal boutique will fit into the Pasadena image and more importantly, into the commercial neighborhoods. I will be financing this venture with my own money and have committed for this purpose.

Even though I have been successful with my business ventures, I do not have expertise in the marijuana industry. To remedy that deficiency, I have engaged the services of Daniel P. Rome who will be the Operations Director. Mr. Rome will be responsible for the day to day operations of the dispensary. He has demonstrated knowledge of the regulations that control this industry, the need for impeccable record keeping, the software that is necessary to accomplish this (CCTT), the requirement that all cannabis products must be tested and certified, and the security processes needed for medical use and recreational use.

Sincerely,

Habib R. Shbeyr

Habib Rene Shbeyr


REDACTED

REDACTED

www.cityofpasadena.net/marijuana-regulations

Applicant/Owner Information Form* Commercial Cannabis Screening Application

*Portions of the information disclosed in this application is public information pursuant to the California Public Records Act.

INSTRUCTIONS: Complete the pertinent sections for each owner, applicant, entity owner and non-owner with financial interest in the business. A separate form is required for each individual.

Type: ❑ Entity Owner (Complete Sections A and E)

El Owner (Complete Sections B, C, D and E)

❑ Applicant (Complete Sections B, C, D and E)

❑ Non-owner with financial interest (Complete Sections B and E)

MA ..112111Mailli niala i.fidalialMILli• • •

An entity is anything other than an individual. If an entity is an owner of the commercial cannabis business pursuant to Business and Professions Code section 26001(a1), you will need to complete the following information. Attach additional pages if needed.

Name of Entity: Phone Number:

Ownership %: Organizational Structure: Email:

Authorized Agent:

List entity members below (attach additional sheets if necessary):

Name:

Name:

Name:

Name:

Name:

Name:

Name:

Name:

Name:

Name:

Title:

Title:

Title:

Title:

Title:

Title:

Title:

Title:

Title:

Title:

Title:

SECTION B: OWNER/NON-OWNER/APPLICANT INFORMATION Pursuant to 16 CCR § 5023, an owner is defined as a person with an aggregate ownership interest of 20% or more, chief executive officer, member of the board of directors of a nonprofit, or an individual participating in the direction, control, or management of the applicant. All business owners must be listed, including the applicant.

Full Name: SHBEYER HABIB

Mailing Address:

Phone:

RENE Date of birth: Last First

M.I.

Street Address

Apartment/Unit #

City 626-390-4220

State ZIP Code Email: [email protected]

Page 1 of 3 Page 1 of 3

www.cityofpasadena.net/marijuana-regulations

Applicant/Owner Information Form* Commercial Cannabis Screening Application

*Portions of the information disclosed in this application is public information pursuant to the California Public Records Act.

INSTRUCTIONS: Complete the pertinent sections for each owner, applicant, entity owner and non-owner with financial interest in the business. A separate form is required for each individual.

Type: Entity Owner (Complete Sections A and E)

Owner (Complete Sections B, C, D and E)

Applicant (Complete Sections B, C, D and E)

Non-owner with financial interest (Complete Sections B and E)

SECTION A: ENTITY OWNERSHIP INFORMATION An entity is anything other than an individual. If an entity is an owner of the commercial cannabis business pursuant to Business and Professions Code section 26001(al), you will need to complete the following information. Attach additional pages if needed.

Name of Entity: Phone Number:

Ownership %: Organizational Structure: Email:

Authorized Agent: Title:

List entity members below (attach additional sheets if necessary):

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

Name: Title:

SECTION B: OWNER/NON-OWNER/APPLICANT INFORMATION Pursuant to 16 CCR § 5023, an owner is defined as a person with an aggregate ownership interest of 20% or more, chief executive officer, member of the board of directors of a nonprofit, or an individual participating in the direction, control, or management of the applicant. All business owners must be listed, including the applicant.

Full Name: Date of birth:

Last First M.I.

Mailing Address:

Street Address Apartment/Unit #

City State ZIP Code

Phone: Email:

x

SHBEYER HABIB RENE

[email protected]


REDACTED

REDACTED

REDACTEDREDACTED REDACTED

Ownership % 100

Social Security No.

Title: OWNER

Current Employer: SELF/ ALPHA REAL ESTATE APPRAISER

ECTION C: DECLARATIONS

1. Do you have an ownership or financial interest (as defined in Title 16 CCR 5003 and 5004) in a licensed cannabis business? YES NO If "yes", complete section C-1. ❑

2. Have you ever been denied a permit or state license to engage in commercial cannabis activity, or had a permit or state YES NO license to engage in commercial cannabis activity suspended and not reinstated, or revoked, by any city, county, city and ❑ county, or any other state cannabis licensing authority? If "yes", complete section C-2. (PMC §5.78.100)

YES 3. Have you ever been convicted of a crime? If "yes", complete section C-3. (HSC BPC §26057) ❑

4. Have you owned or operated any cannabis-related business(es) in the City of Pasadena on or after December 14, 2017? If YES NO ❑ N "yes", complete section C-4. (PMC §5.78.100)

5. Have you ever been notified that you were conducting commercial cannabis activity in non-compliance with City of Pasadena YES NO ordinances, codes, and requirements and failed to discontinue operating in a timely manner? (PMC §5.78.100)

6. Have you ever failed to pay federal, state, or local taxes and/or fees when notified by the appropriate agencies? (PMC §5.78.100)

Section C-1: Other Licensed Cannabis Businesses

Use additional sheets if necessary.

YES NO

Agency: Description of business:

License No. Date Issued:





Section C-2: Cannabis License s Sus • ended, Revoked or Denied


License License Suspension or Authority : Type Revocation Date:

Details:


Details:


Details:


Ownership % Title:

Social Security No. Current Employer:

SECTION C: DECLARATIONS

1. Do you have an ownership or financial interest (as defined in Title 16 CCR 5003 and 5004) in a licensed cannabis business?If “yes”, complete section C-1.

YES NO

2. Have you ever been denied a permit or state license to engage in commercial cannabis activity, or had a permit or statelicense to engage in commercial cannabis activity suspended and not reinstated, or revoked, by any city, county, city and county, or any other state cannabis licensing authority? If “yes”, complete section C-2. (PMC §5.78.100)

YES NO

3. Have you ever been convicted of a crime? If “yes”, complete section C-3. (HSC BPC §26057)YES NO

4. Have you owned or operated any cannabis-related business(es) in the City of Pasadena on or after December 14, 2017? If“yes”, complete section C-4. (PMC §5.78.100)

YES NO

5. Have you ever been notified that you were conducting commercial cannabis activity in non-compliance with City of Pasadenaordinances, codes, and requirements and failed to discontinue operating in a timely manner? (PMC §5.78.100)

YES NO

6. Have you ever failed to pay federal, state, or local taxes and/or fees when notified by the appropriate agencies?(PMC §5.78.100)

YES NO

Section C-1: Other Licensed Cannabis Businesses


Agency: License No. Date Issued:

Description of business:





Section C-2: Cannabis License(s) Suspended, Revoked or Denied


License Authority :

License Type

Suspension or Revocation Date:

Details:

License Authority :

License Type


Details:

License Authority :

License Type


Details:

X

X

X

X

X

X

100

SELF/ ALPHA REAL ESTATE APPRAISER

OWNER


REDACTED

Section C-3: Criminal Violation s


Date of Conviction: Date of incarceration:

Details:

Code Section: Date of

Probation

Felony or Misdemeanor?

Date of Parole:

Date of Code Conviction: Section: Date of Date of incarceration: Probation:

Details:


Date of Parole:

Date of Conviction: Date of incarceration:

Details:

Code Section: Date of

Probation


Date of Parole:

Section C-4: Commercial Cannabis 0 . erations in the Ci of Pasadena


Business Name: Dates of Operation:

Business Address:

Title:


Business Address:

Title:


Business Address:

Title:

SECTION D: REQUIRED DOCUMENT

IX Copy of a currently valid government-issued identification

SECTION E: AFFIRMATION & CONSENT

Under penalty of pe►jury, l hereby declare that the info►mation contained within and submitted with the application is complete, t►ue and accurate. l understand that misrepresentation of fact is cause for rejection of this screening application, denial of a license, or revocation of a license issued.

Signature: ffabib Rene Shbeyi- Date: 01/29/2019

Printed Name: HABBIB RENE SHBEYR


Section C-3: Criminal Violation(s)


Date of Conviction:

Code Section:


Date of incarceration:

Date of Probation Date of Parole:

Details:

Date of Conviction:

Code Section:



Date of Probation: Date of Parole:

Details:

Date of Conviction:

Code Section:



Date of Probation Date of Parole:

Details:

Section C-4: Commercial Cannabis Operations in the City of Pasadena


Business Name:

Business Address:

Dates of Operation: Title:

Business Name:

Business Address:


Business Name:

Business Address:


SECTION D: REQUIRED DOCUMENTS

Copy of a currently valid government-issued identification

SECTION E: AFFIRMATION & CONSENT

Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that misrepresentation of fact is cause for rejection of this screening application, denial of a license, or revocation of a license issued.

Signature: Date:

Printed Name:

X

HABBIB RENE SHBEYR

01/29/2019 Habib Rene Shbeyr


Section D:

Government-Issued

Identification

Redacted

Overview

Chandelier Cannabis Dispensary

Date Created:

01/23/2019

Chandelier Cannabis Dispensary hopes to be one of the first legal cannabis dispensary in the City of Pasadena. Chandelier Cannabis Dispensary will not be a "head shop" or be an underground business, rather it will be a boutique that would be welcome in any commercial neighborhood. With this approach Chandelier Cannabis Dispensary is seeking entry into the California Cannabis Industry. Chandelier Cannabis Dispensary will be a brand of cannabis dispensary /retail store that will provide an unparalleled patient/customer shopping experience. Our customers will enjoy shopping in a beautiful environment that inspires healing, creativity and comfort.

Our knowledgeable retail sales personnel will guide and educate our customers through our vast product variety featuring locally sourced medicines along with our core product line of the highest quality cannabis flowers, concentrates, edibles and more.

Chandelier

Cannabis Dispensary

Overview


hopes to be one of the first legal

cannabis dispensary in the City

of Pasadena. Chandelier

Cannabis Dispensary will not be

a “head shop” or be an

underground business, rather it

will be a boutique that would be

welcome in any commercial

neighborhood. With this

approach Chandelier Cannabis

Dispensary is seeking entry into

the California Cannabis Industry.


will be a brand of cannabis

dispensary /retail store that will

provide an unparalleled

patient/customer shopping

experience. Our customers will

enjoy shopping in a beautiful

environment that inspires

healing, creativity and comfort.

Our knowledgeable retail sales

personnel will guide and

educate our customers through

our vast product variety

featuring locally sourced

medicines along with our core

product line of the highest

quality cannabis flowers,

concentrates, edibles and more.


Date Created:

01/23/2019

Chandelier

Cannabis Dispensary


Executive Summary

Executive Summary

Company Summary

Chandelier Cannabis Dispensary (CCD) seeks to take advantage of the City of Pasadena's recently enacted

legislation allowing for the first time in the City's history the lawful establishment of marijuana

dispensaries. Chandelier Cannabis Dispensary intends to establish a recognizable retail brand of cannabis

dispensary/retail store that will provide an unparalleled shopping experience for both medical patients

and recreational users.

CCD has not yet chosen a location in the City of Pasadena, but we propose to be located on one of the

busiest streets in City of Pasadena, California. The facility will be well positioned, and it will match the ideal

picture of a community store/boutique. The dispensary will be designed and built to feature state of the art

technology with forward looking green practices. Security and safety are critical components of our

operation. Every effort will be made to be "good neighbors" in the chosen community and to minimize any

negative impacts or nuisances that may arise from the operation. Although the business is being launched

with just one outlet in City, we have plans to open other outlets in key locations in California.

We will have knowledgeable budtenders who will guide and educate our customers through our vast

product variety featuring locally sourced and State certified medicines along with our core product line of

the highest quality State certified cannabis flowers, concentrates, edibles and more.

CCD will be organized/formed as a Limited Liability Company (LLC)/Corporation and will be led by Habib

Rene Shbeyr, who will serve as CEO / Owner. Mr. Shbeyr is currently the CEO of Alpha Real Estate

Appraisers and has successfully been in business for 20 years. The business has developed a good

relationship with the financial enterprises, the community and its neighbors. Mr. Shbeyr has a degree in

mathematics and was a middle school principal for 15 years.

Mr. Shbeyr acknowledges that he has never been in the marijuana business, but his 15 years of experience

in the successful operation of businesses that utilize regulated industry, i.e., financial, gives him the

knowledge and expertise to operate such a business. To ensure that Chandelier Cannabis Dispensary will

be a success, he will hire a manager that will be thoroughly familiar with the commercial marijuana

business. Additionally, he has and will continue to bring in consultants and legal counsel as necessary.

Daniel P. Rome will be the Operational Manager with his experience working for 4 years in a cannabis

dispensary in Los Angeles. Which is a full service, licensed medical dispensary. Mr. Rome has a degree in

Bachelor of Science in Business from The University of Arizona. In addition, attended a management

Executive Summary

Executive Summary

Company Summary

Chandelier Cannabis Dispensary (CCD) seeks to take advantage of the City of Pasadena’s recently enacted

legislation allowing for the first time in the City’s history the lawful establishment of marijuana

dispensaries. Chandelier Cannabis Dispensary intends to establish a recognizable retail brand of cannabis

dispensary/retail store that will provide an unparalleled shopping experience for both medical patients

and recreational users.

CCD has not yet chosen a location in the City of Pasadena, but we propose to be located on one of the

busiest streets in City of Pasadena, California. The facility will be well positioned, and it will match the ideal

picture of a community store/boutique. The dispensary will be designed and built to feature state of the art

technology with forward looking green practices. Security and safety are critical components of our

operation. Every effort will be made to be “good neighbors” in the chosen community and to minimize any

negative impacts or nuisances that may arise from the operation. Although the business is being launched

with just one outlet in City, we have plans to open other outlets in key locations in California.

We will have knowledgeable budtenders who will guide and educate our customers through our vast

product variety featuring locally sourced and State certified medicines along with our core product line of

the highest quality State certified cannabis flowers, concentrates, edibles and more.

CCD will be organized/formed as a Limited Liability Company (LLC)/Corporation and will be led by Habib

Rene Shbeyr, who will serve as CEO / Owner. Mr. Shbeyr is currently the CEO of Alpha Real Estate

Appraisers and has successfully been in business for 20 years. The business has developed a good

relationship with the financial enterprises, the community and its neighbors. Mr. Shbeyr has a degree in

mathematics and was a middle school principal for 15 years.

Mr. Shbeyr acknowledges that he has never been in the marijuana business, but his 15 years of experience

in the successful operation of businesses that utilize regulated industry, i.e., financial, gives him the

knowledge and expertise to operate such a business. To ensure that Chandelier Cannabis Dispensary will

be a success, he will hire a manager that will be thoroughly familiar with the commercial marijuana

business. Additionally, he has and will continue to bring in consultants and legal counsel as necessary.

Daniel P. Rome will be the Operational Manager with his experience working for 4 years in a cannabis

dispensary in Los Angeles. Which is a full service, licensed medical dispensary. Mr. Rome has a degree in

Bachelor of Science in Business from The University of Arizona. In addition, attended a management


CANNABIS RETAIL Business Plan

2

course 420 at the university which discussed all Federal/State laws and regulations regarding cannabis.

The course also outlines all packing, labeling and handling guide lines pertaining to cannabis sales.

Products & Services

Aside from the dispensing of certified cannabis plant material and concentrates which is our core product,

Chandelier Cannabis Dispensary will sell a wide range of additional Medicinal Cannabis Infused products

such as edibles and topicals. We will also engage in the sale of accessories and supplies related to

concentrate delivery methods.

CCD will ensure that all our customers are given first class treatment whenever they visit our store. We

have a CRM software that will enable us to manage a one-on-one relationship with our customers no

matter how large our patient base grows. We will ensure that we get our customers involved in their own

personal health decisions to make the right choices for their unique medicinal needs.

Our Mission: To provide high quality cannabis to customers with a product and service they can trust. To

build our brand on the core values of customer service and care, hospitality, highest standards of quality, honesty, integrity and community outreach.

Vision: Be the number one cannabis dispensary/retail store in Pasadena.

Goal: Our primary goal is to advocate and support a proactive approach to health management by

providing a local and safe environment to dispense cannabis and cannabis products.

Management: Our owner has 20 years of experience in a regulated industry and will develop, with the help

of a manager with strong commercial cannabis expertise, strong vendor relationships and many strategic

partnerships extending nationally and covering all areas of the Cannabis Industry.


2

course 420 at the university which discussed all Federal/State laws and regulations regarding cannabis.

The course also outlines all packing, labeling and handling guide lines pertaining to cannabis sales.

Products & Services

Aside from the dispensing of certified cannabis plant material and concentrates which is our core product,

Chandelier Cannabis Dispensary will sell a wide range of additional Medicinal Cannabis Infused products

such as edibles and topicals. We will also engage in the sale of accessories and supplies related to

concentrate delivery methods.

CCD will ensure that all our customers are given first class treatment whenever they visit our store. We

have a CRM software that will enable us to manage a one-on-one relationship with our customers no

matter how large our patient base grows. We will ensure that we get our customers involved in their own

personal health decisions to make the right choices for their unique medicinal needs.

Our Mission: To provide high quality cannabis to customers with a product and service they can trust. To

build our brand on the core values of customer service and care, hospitality, highest standards of quality,

honesty, integrity and community outreach.

Vision: Be the number one cannabis dispensary/retail store in Pasadena.

Goal: Our primary goal is to advocate and support a proactive approach to health management by

providing a local and safe environment to dispense cannabis and cannabis products.

Management: Our owner has 20 years of experience in a regulated industry and will develop, with the help

of a manager with strong commercial cannabis expertise, strong vendor relationships and many strategic

partnerships extending nationally and covering all areas of the Cannabis Industry.


Executive Summary

Market Opportunities

Over 60% of the U.S. population now lives in states that have legalized some form of cannabis use and sales, illustrating the rising acceptance of cannabis nationwide and highlighting the industry's immense potential for future growth.

The passage of initiatives in California, Nevada, Massachusetts, Maine, Michigan (2018), Missouri (2018), Florida, Arkansas, Montana, North Dakota, Oklahoma (2018), Utah (2018) and West Virginia will add $7.4 billion to

California

Washington 1,975

Colorado 1,762

Massachusetts 1,015

Oregon =III 953

Michigan 755

Florida 726

Arizona I= 717

Nevada 630

5,619

the market bringing the overall market projection for legal adult use and medical sales in North America to $24.5 billion by 2021. That brings the compound annual growth rate (CAGR) to 28%.

In 2015, California lawmakers and the

-1,000 1,000 3,000 5,000 7,000 governor approved legislation creating

$ million the Medical Cannabis Regulation and Safety Act (MCRSA) to regulate the state's MMJ industry, which has been

governed by a patchwork of local rules. The MCRSA took effect in January 2016, and the government had until Jan. 1, 2018, to develop statewide rules.

In November 2016 California voters approved cannabis for recreational use. The California Legislature passed and the Governor signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates the general framework for the regulation of both commercial medicinal and adult-use (recreational) cannabis. Under MAUCRSA, the California cannabis industry is regulated by three state agencies: Bureau of Cannabis Control (distribution, testing, retail and microbusiness), Department of Food and Agriculture (cultivation), Department of Public Health (manufacturing).

On June 27, 2017, the legislature passed and Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both medicinal and adult-use commercial cannabis activity within the state. Recreational cannabis sales officially began in California and during the first six months of 2018 the number of granted licenses jumped from 1,272 licenses on January 17th to 6,421 licenses on June 30th.

Maine 321

Figure 1. Medical and recreational cannabis sales in top states, 2020

2021 forecast

Executive Summary

Market Opportunities

Over 60% of the U.S. population now lives in states that have legalized some form of cannabis use and sales,

illustrating the rising acceptance of cannabis nationwide and highlighting the industry’s immense potential

for future growth.

The passage of initiatives in California, Nevada, Massachusetts, Maine, Michigan (2018), Missouri (2018),

Florida, Arkansas, Montana, North

Dakota, Oklahoma (2018), Utah (2018)

and West Virginia will add $7.4 billion to

the 2021 market forecast bringing the

overall market projection for legal adult-

use and medical sales in North America

to $24.5 billion by 2021. That brings the

compound annual growth rate (CAGR)

to 28%.

In 2015, California lawmakers and the

governor approved legislation creating

the Medical Cannabis Regulation and

Safety Act (MCRSA) to regulate the

state’s MMJ industry, which has been

governed by a patchwork of local rules. The MCRSA took effect in January 2016, and the government had

until Jan. 1, 2018, to develop statewide rules.

In November 2016 California voters approved cannabis for recreational use. The California Legislature

passed and the Governor signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act

(MAUCRSA), which creates the general framework for the regulation of both commercial medicinal and

adult-use (recreational) cannabis. Under MAUCRSA, the California cannabis industry is regulated by three

state agencies: Bureau of Cannabis Control (distribution, testing, retail and microbusiness), Department of

Food and Agriculture (cultivation), Department of Public Health (manufacturing).

On June 27, 2017, the legislature passed and Governor Brown signed into law the Medicinal and Adult-Use

Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both

medicinal and adult-use commercial cannabis activity within the state. Recreational cannabis sales

officially began in California and during the first six months of 2018 the number of granted licenses jumped

from 1,272 licenses on January 17th to 6,421 licenses on June 30th.




4

Over the next five years the total California market to grow at a compounded annual rate of 18.5% to $5.6

billion by 2020 according to the ArcView Market Research projections.


4

Over the next five years the total California market to grow at a compounded annual rate of 18.5% to $5.6

billion by 2020 according to the ArcView Market Research projections.


Executive Summary

Start-up Summary

The business will be fully funded with This will include total capital cost of over

leaving over as working capital. These estimates are provided by our financial staff and may

change as situations warrant.

Table 1. Start-up expenses, $

$ Quarter 1 Quarter 2 Quarter 3 Quarter 4

CAPEX Land & Development Space improvements including finishing/painting, kitchen, office space, bathrooms, etc. Security system including multiple camera feeds and metal/weapons detectors Furniture, Display Counters, Refrigerators, Freezers, Multiple POS/ Cash Registers, Registration Computer, Commercial Label Printer, Storage Hardware and Shelving Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro)

OPEX Direct Costs Initial & General Costs Operating Expenses, including salaries Marketing & Sales Expenses Misc.

Total

Executive Summary

Start-up Summary

The business will be fully funded with This will include total capital cost of over

leaving over as working capital. These estimates are provided by our financial staff and may

change as situations warrant.

Table 1. Start-up expenses, $

$ Quarter 1 Quarter 2 Quarter 3 Quarter 4

CAPEX

Land & Development

Space improvements including finishing/painting, kitchen, office space, bathrooms, etc. Security system including multiple camera feeds and metal/weapons detectors Furniture, Display Counters, Refrigerators, Freezers, Multiple POS/ Cash Registers, Registration Computer, Commercial Label Printer, Storage Hardware and Shelving Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro)

OPEX

Direct Costs

Initial & General Costs

Operating Expenses, including salaries Marketing & Sales Expenses

Misc.

Total


REDACTED

REDACTED REDACTED

REDACTED


6

Financial Summary

Chandelier Cannabis Dispensary will fund its startup costs through personal savings.

From a total investment of CCD is expected to generate nearly in gross revenues

with net income of nearly in Year 2, its first full year of operations. Revenues are expected

to grow to nearly in Year 3 and

stabilizing to in Year 5, with net income of nearly and over of gross

profit.

After the first year of operations, it is expected that

CCD will be able to trim expenses through realizing

business efficiencies, gaining operational experience

and industry knowledge.


6

Financial Summary

Chandelier Cannabis Dispensary will fund its startup costs through personal savings.

From a total investment of CCD is expected to generate nearly in gross revenues

with net income of nearly in Year 2, its

first full year of operations. Revenues are expected

to grow to nearly in Year 3 and

stabilizing to in Year 5, with net income

of nearly and over of gross

profit.

After the first year of operations, it is expected that

CCD will be able to trim expenses through realizing

business efficiencies, gaining operational experience

and industry knowledge.

Th

ou

san

ds


REDACTED

REDACTEDREDACTED REDACTED

REDACTED

REDACTED

REDACTED

REDACTED REDACTED

Table of Contents

Executive Summary 1

Company Summary 1

Market Opportunities 3

Start-up Summary 5

Financial Summary 6

Market Overview 9

Global Market 9

North American Cannabis Market 11

The U.S. Cannabis Market 12

U.S. Cannabis Retail Market 13

Target Market 14

SWOT Analyses 18

Marketing Strategy 20

Marketing Plan 20

Target Customers 22

Sales Forecast 23

Operating Plan 25

Dispensary/Retail Store Location and Facilities 25

Physical Security Plan 27

Laboratory Testing Requirements 31

Packaging and Labeling Requirements 31

THC Limits 31

Tracking Solution 32

Organizational Structure 34

Ownership 36

Financial Plan 38

Funding analysis 38

Direct and Operating Expense Breakdown 40

Profit & Loss Forecast 42

Cash Flow Statement 43

Balance Sheet 44

Table of Contents

Table of Contents

Executive Summary ......................................................................................... 1

Company Summary ...................................................................................... 1

Market Opportunities ................................................................................. 3

Start-up Summary ........................................................................................ 5

Financial Summary ...................................................................................... 6

Market Overview ............................................................................................... 9

Global Market ................................................................................................. 9

North American Cannabis Market ...................................................... 11

The U.S. Cannabis Market ....................................................................... 12

U.S. Cannabis Retail Market ................................................................... 13

Target Market .............................................................................................. 14

SWOT Analyses ........................................................................................... 18

Marketing Strategy ........................................................................................ 20

Marketing Plan ............................................................................................ 20

Target Customers ...................................................................................... 22

Sales Forecast .............................................................................................. 23

Operating Plan ................................................................................................. 25

Dispensary/Retail Store Location and Facilities .......................... 25

Physical Security Plan .............................................................................. 27

Laboratory Testing Requirements ..................................................... 31

Packaging and Labeling Requirements ............................................ 31

THC Limits .................................................................................................... 31

Tracking Solution....................................................................................... 32

Organizational Structure............................................................................. 34

Ownership .................................................................................................... 36

Financial Plan .................................................................................................. 38

Funding analysis ........................................................................................ 38

Direct and Operating Expense Breakdown ..................................... 40

Profit & Loss Forecast .............................................................................. 42

Cash Flow Statement ................................................................................ 43

Balance Sheet .............................................................................................. 44



8

Main Ratios 45

Appendix 48


8

Main Ratios ................................................................................................... 45

Appendix ............................................................................................................ 48


Market Overview

Market Overview

Glo

bal

Mar

ket

Spen

ding

on

legal

cann

abis

worl

dwid

e is

expec

ted to hit $57 billion by 2027, while cannabis market in the United States and Canada is estimated to be

Market Overview



10

about $46.5 billion and other $10.5 billion would go to other markets. The recreational cannabis market

will cover about 67% of the spending while medical cannabis will take up the remaining 33%.

The global legal cannabis market amounted to $9.5 billion in 2017, growing by 37 percent on the year,

according to the report "The Road Map to a $57 Billion Worldwide Market"1. The largest market was the

United States, which totaled $8.5 billion. It was followed by Canada with $600 million. Analysts predicts

the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021. That brings the compound annual growth rate (CAGR) to almost 28%, however the

largest growth rate is predicted within the rest-of-world markets, from $52 million spent in 2017 to a

projected $2.5 billion in 2027.

According to a report provided by Energias Market Research, the global medical cannabis market is

projected to increase in value from $8.28 billion in 2017 to $28.07 billion in 2024 and at a CAGR of 19% from 2018 to 2024.

Key Trends:

• The initial decision by many U.S. states and Canada to create medical-only cannabis regulations prompted many other countries to act similarly while legalization of adult recreational use in California and Canada triggered a second wave of legalizing laws internationally to increase access to medical cannabis.

• South America countries have the most liberal medical cannabis programs. Led by Brazil, Argentina, Peru and Uruguay, the South American medical cannabis market may grow from $125 million in 2018 to $776 million in 2027.

• Germany is ready to become the leader of the European cannabis market, and Italy is expected to be second with $1.2 billion in sales by 2027. Some form of medical cannabis is now legal in 22 countries in Europe.

• Australia's legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion in 2027, the 5th largest in the world.

• Israel has a small population and a long history of legal medical cannabis use. It continues to be a leader over the years in the development of cannabis pharmaceuticals.

1 https://arcviewgroup.com/research/reports/


10

about $46.5 billion and other $10.5 billion would go to other markets. The recreational cannabis market

will cover about 67% of the spending while medical cannabis will take up the remaining 33%.

The global legal cannabis market amounted to $9.5 billion in 2017, growing by 37 percent on the year,

according to the report “The Road Map to a $57 Billion Worldwide Market"1. The largest market was the

United States, which totaled $8.5 billion. It was followed by Canada with $600 million. Analysts predicts

the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5

billion by 2021. That brings the compound annual growth rate (CAGR) to almost 28%, however the

largest growth rate is predicted within the rest-of-world markets, from $52 million spent in 2017 to a

projected $2.5 billion in 2027.

According to a report provided by Energias Market Research, the global medical cannabis market is

projected to increase in value from $8.28 billion in 2017 to $28.07 billion in 2024 and at a CAGR of 19%

from 2018 to 2024.

Key Trends:

• The initial decision by many U.S. states and Canada to create medical-only cannabis regulations

prompted many other countries to act similarly while legalization of adult recreational use in

California and Canada triggered a second wave of legalizing laws internationally to increase

access to medical cannabis.

• South America countries have the most liberal medical cannabis programs. Led by Brazil,

Argentina, Peru and Uruguay, the South American medical cannabis market may grow from

$125 million in 2018 to $776 million in 2027.

• Germany is ready to become the leader of the European cannabis market, and Italy is expected

to be second with $1.2 billion in sales by 2027. Some form of medical cannabis is now legal in 22

countries in Europe.

• Australia’s legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion in

2027, the 5th largest in the world.

• Israel has a small population and a long history of legal medical cannabis use. It continues to be a leader over the years in the development of cannabis pharmaceuticals.

1 https://arcviewgroup.com/research/reports/


Market Overview

North American Cannabis Market

Legal cannabis market reached $9.2 billion in North America in 2017, according to a new report from

cannabis industry analysts ArcView Market Research, in partnership with BDS Analytics2. That represents an unprecedented 33% increase over 2016.

The report further forecasts the entire legal cannabis market in North America to reach $24.5 billion in

sales - a 28% annual growth rate by 2021 - as more countries and states legalize cannabis for

recreational use and existing markets mature and will grow to $47.3 billion six years later.

30

25

20

15

10

0

15.4

12.4

8.9

5.0

2.7

1.8 1.4

8.4 8.2 8.4 9.1 6.5

4.3 4.9

2015 2016 2017 2018 2019 2020 2021 (projected) (projected) (projected) (projected)

Figure 2. Medical and recreational cannabis sales forscas4 billion $

2 https://bdsanalytics.com/

Market Overview

North American Cannabis Market

Legal cannabis market reached $9.2 billion in North America in 2017, according to a new report from

cannabis industry analysts ArcView Market Research, in partnership with BDS Analytics2. That

represents an unprecedented 33% increase over 2016.

The report further forecasts the entire legal cannabis market in North America to reach $24.5 billion in

sales – a 28% annual growth rate by 2021 – as more countries and states legalize cannabis for

recreational use and existing markets mature and will grow to $47.3 billion six years later.

2 https://bdsanalytics.com/

Figure 2. Medical and recreational cannabis sales forecast, billion $



The U.S. Cannabis Market

12

Although the use of cannabis is illegal under the federal law and the federal government classifies

cannabis as a schedule 1 drug, more than 60% of the U.S. states have legalized it in some form. Most

states legalized it only for medical purposes, but ten states - Alaska, California, Colorado, Maine, Michigan (2018), Nevada, Massachusetts, Oregon, Vermont and Washington - have gone further,

legalizing the recreational use.

F~gwe 3. U.S. legalization map

Medical / Recreational cannabis legalization Medical cannabis legalization No laws legalizing

As a result, at November 2018, there are 32 States that allow cannabis for medical use, 16 States allow

Cannabidiol (CBD), 10 States and the District of Columbia allow cannabis for recreational use.


12

The U.S. Cannabis Market

Although the use of cannabis is illegal under the federal law and the federal government classifies

cannabis as a schedule 1 drug, more than 60% of the U.S. states have legalized it in some form. Most

states legalized it only for medical purposes, but ten states – Alaska, California, Colorado, Maine,

Michigan (2018), Nevada, Massachusetts, Oregon, Vermont and Washington – have gone further,

legalizing the recreational use.

As a result, at November 2018, there are 32 States that allow cannabis for medical use, 16 States allow

Cannabidiol (CBD), 10 States and the District of Columbia allow cannabis for recreational use.

Figure 3. U.S. legalization map

Medical / Recreational cannabis legalization

Medical cannabis legalization

No laws legalizing


Market Overview

500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00

California

Colorado 1,128

Washington 975

Michigan 633

Oregon 502

Arizona 407

Massachusetts IM 106

Nevada IM 103

Illinois IM 91

Maine MI 83

Rhode Island NI 60

New Mexico • 54

Connecticut • 50

• S million

2,757

Figure 4. Medical and recreational cannabis sales in top May42017

There are about 10,000 active licenses for cannabis businesses in the U.S., according to Statista3. This includes cultivation, extraction and manufacturing, retail, distribution and testing licenses.

The industry employed 121,000 people in 2017. If cannabis market continues its growth trend, the number of workers in that industry could reach 292,000 by 2021, according to BDS Analytics.

20

15

5

0 2016 2017 2018 2019 2020 2021

Dispensary/Store Sales

1-0—'&14;litiond Economic Impact of Dispensary/Store Skies

45.0 U.S. Cannabis Retail Market

40.0

35.0 BDS Analytics estimates that the retail 30.0 sector owed $1 billion in state taxes in 25.0 2016 and owes another $1.4 billion 20.0 for 2017. 15.0

In 2017, overall cannabis sales in the United States at the retail level to soar

5.0 10.0

isinesses-number/

Market Overview


There are about 10,000 active licenses for cannabis businesses in the U.S., according to Statista3. This

includes cultivation, extraction and manufacturing, retail, distribution and testing licenses.

The industry employed 121,000 people in 2017. If cannabis market continues its growth trend, the

number of workers in that industry could reach 292,000 by 2021, according to BDS Analytics.

U.S. Cannabis Retail Market

BDS Analytics estimates that the retail

sector owed $1 billion in state taxes in

2016 and owes another $1.4 billion

for 2017.

In 2017, overall cannabis sales in the

United States at the retail level to soar

3 https://www.statista.com/statistics/596641/us-cannabis-businesses-number/

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

0

5

10

15

20

2016 2017 2018 2019 2020 2021

bil

lio

n $

Dispensary/Store Sales

Additional Economic Impact of Dispensary/Store Sales



14

by 31.5%, hitting $5.7 billion on the back of continued growth in existing recreational cannabis markets.

In fact, rec sales are expected to surpass medical next year for the first time ever. Medical cannabis sales

also are expected to buoy the industry, fueled in part by the expected launch of MMJ markets in

Maryland and Hawaii. At the same time, fledging medical cannabis programs in states such as Illinois,

Nevada and New York could post Figure 5. Cannabis retail industry economic impact

impressive growth last year.

The expected growth comes after a solid 2016, when recreational cannabis sales jumped by 80% to hit $1.8 billion. Colorado and Washington led the charge, while Oregon's adult-use market posted strong

sales gains in its first full calendar year of operation. The industry also saw a spike in medical cannabis

sales last year, as patient counts rose in new MMJ states and continued climbing in mature markets like

Arizona and Michigan.

The cannabis dispensary market is growing at a high rate in the United States alone, with their currently

being over 1,000 open and operating dispensaries throughout the country according to data

from Statista4. The growing numbers of dispensaries is a large part as to why New Frontier projects the

industry to top $25 billion in revenue by 2025.

The increase in retail sales over the next five years will provide a substantial economic boost for the

United States. The total economic output from legal cannabis will grow 150% from $16 billion in 2017

to $40 billion by 2021, according to the "US Legal Cannabis: Driving $40 Billion Economic Output"

report released by ArcView Market Research, in partnership with BDS Analytics.

The level of sophistication and involvement among investors in the cannabis industry varies quite

widely, as some belong to cannabis-specific venture capital firms while others have taken a material

interest in a friend or family member's cannabis business. For example, only a handful of investors in

our survey indicated they intend to invest over $25 million in cannabis companies, whereas a large

portion of respondents plan to invest less than $20,000.

But in general, more investors are pumping money into the cannabis industry than ever before, and

they're also increasing the size of their capital placements. The average investor/investment firm

involved in the cannabis industry has placed $450,000 in cannabis companies.

Target Market

Legalization

In 1996, California became the first state to allow for medical cannabis use. State voters approved

Proposition 215, the law that made it legal for doctors to recommend cannabis to patients.

California has 482 cities and 58 counties, all with the power to govern their own medical cannabis

industries. The methods they choose vary throughout the state. Some local governments have rules

4 https://www.statista.com/statistics/754751/medical-marijuana-dispensaries-number-by-state/


14

by 31.5%, hitting $5.7 billion on the back of continued growth in existing recreational cannabis markets.

In fact, rec sales are expected to surpass medical next year for the first time ever. Medical cannabis sales

also are expected to buoy the industry, fueled in part by the expected launch of MMJ markets in

Maryland and Hawaii. At the same time, fledging medical cannabis programs in states such as Illinois,

Nevada and New York could post

impressive growth last year.

The expected growth comes after a solid 2016, when recreational cannabis sales jumped by 80% to hit

$1.8 billion. Colorado and Washington led the charge, while Oregon’s adult-use market posted strong

sales gains in its first full calendar year of operation. The industry also saw a spike in medical cannabis

sales last year, as patient counts rose in new MMJ states and continued climbing in mature markets like

Arizona and Michigan.

The cannabis dispensary market is growing at a high rate in the United States alone, with their currently

being over 1,000 open and operating dispensaries throughout the country according to data

from Statista4. The growing numbers of dispensaries is a large part as to why New Frontier projects the

industry to top $25 billion in revenue by 2025.

The increase in retail sales over the next five years will provide a substantial economic boost for the

United States. The total economic output from legal cannabis will grow 150% from $16 billion in 2017

to $40 billion by 2021, according to the “US Legal Cannabis: Driving $40 Billion Economic Output”

report released by ArcView Market Research, in partnership with BDS Analytics.

The level of sophistication and involvement among investors in the cannabis industry varies quite

widely, as some belong to cannabis-specific venture capital firms while others have taken a material

interest in a friend or family member’s cannabis business. For example, only a handful of investors in

our survey indicated they intend to invest over $25 million in cannabis companies, whereas a large

portion of respondents plan to invest less than $20,000.

But in general, more investors are pumping money into the cannabis industry than ever before, and

they’re also increasing the size of their capital placements. The average investor/investment firm

involved in the cannabis industry has placed $450,000 in cannabis companies.

Target Market

Legalization

In 1996, California became the first state to allow for medical cannabis use. State voters approved

Proposition 215, the law that made it legal for doctors to recommend cannabis to patients.

California has 482 cities and 58 counties, all with the power to govern their own medical cannabis

industries. The methods they choose vary throughout the state. Some local governments have rules

4 https://www.statista.com/statistics/754751/medical-marijuana-dispensaries-number-by-state/

Figure 5. Cannabis retail industry economic impact


Market Overview

limiting the number of dispensaries and where they can open. Others, such as the City of Pasadena,

passed ordinances banning all cannabis sales.

In California, the weather conditions are ideal for cultivating cannabis outside, while a lot of cannabis is

also grown indoors in massive warehouses. The state's marketplace is also known for its decades-long

experience developing cannabis strains. Third-generation growers and breeders have some

unparalleled knowledge of the plant and of the related regulatory environment compared to other

states.

In the years since medical legalization, consumers have become more educated and sophisticated about

products, and the state's medical market is relatively saturated. Consumers have high expectations for

quality, according to ArcView research.

In 2015 Gov. Jerry Brown signed three bills that toughened regulations for medical cannabis businesses

and sought standards for documentation and testing. The bills are known as the Medical Cannabis

Regulation and Safety Act, or MMRSA for short. Collectively, the legislation also paved the way for

medical cannabis businesses to turn a profit. The legislation is impacting cannabis business models in

other ways. The laws have eliminated the idea of home-based dispensaries.

On November 8, 2016, California voters have approved cannabis for recreational use.

On November 16, 2017, California published rules and regulations to implement voter approved

Proposition 64, the Adult Use of Cannabis Act of 2016, which legalized adult use of cannabis in the State

of California. The California Legislature passed and the Governor signed into law the Medicinal and

Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates the general framework for the

regulation of both commercial medicinal and adult-use (recreational) cannabis. Under MAUCRSA, the

California cannabis industry is regulated by three state agencies: Bureau of Cannabis Control

(distribution, testing, retail and microbusiness), Department of Food and Agriculture (cultivation),

Department of Public Health (manufacturing).

On June 27, 2017, the legislature passed, and Governor Brown signed into law the Medicinal and Adult-

Use Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both

medicinal and adult-use commercial cannabis activity within the state. The state cannabis authorities

adopted emergency regulations in December 2017 for initial implementation of the provisions of

MAUCRSA and are now using the regular rulemaking process to adopt permanent regulations.

The current emergency regulations, adopted by the Bureau of Cannabis Control, California Department of Public Health and California Department of Food & Agriculture in December 2017 and readopted in

June 2018, were originally issued through the emergency rule-making process to meet the legislative

mandate to open California's regulated cannabis market on January 1, 2018. These emergency

regulations will remain in effect until the non-emergency rule-making process is complete.5

5 https://cannabis.ca.gov/2018/07/13/28617/

Market Overview

limiting the number of dispensaries and where they can open. Others, such as the City of Pasadena,

passed ordinances banning all cannabis sales.

In California, the weather conditions are ideal for cultivating cannabis outside, while a lot of cannabis is

also grown indoors in massive warehouses. The state's marketplace is also known for its decades-long

experience developing cannabis strains. Third-generation growers and breeders have some

unparalleled knowledge of the plant and of the related regulatory environment compared to other

states.

In the years since medical legalization, consumers have become more educated and sophisticated about

products, and the state's medical market is relatively saturated. Consumers have high expectations for

quality, according to ArcView research.

In 2015 Gov. Jerry Brown signed three bills that toughened regulations for medical cannabis businesses

and sought standards for documentation and testing. The bills are known as the Medical Cannabis

Regulation and Safety Act, or MMRSA for short. Collectively, the legislation also paved the way for

medical cannabis businesses to turn a profit. The legislation is impacting cannabis business models in

other ways. The laws have eliminated the idea of home-based dispensaries.

On November 8, 2016, California voters have approved cannabis for recreational use.

On November 16, 2017, California published rules and regulations to implement voter approved

Proposition 64, the Adult Use of Cannabis Act of 2016, which legalized adult use of cannabis in the State

of California. The California Legislature passed and the Governor signed into law the Medicinal and

Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates the general framework for the

regulation of both commercial medicinal and adult-use (recreational) cannabis. Under MAUCRSA, the

California cannabis industry is regulated by three state agencies: Bureau of Cannabis Control

(distribution, testing, retail and microbusiness), Department of Food and Agriculture (cultivation),

Department of Public Health (manufacturing).

On June 27, 2017, the legislature passed, and Governor Brown signed into law the Medicinal and Adult-

Use Cannabis Regulation and Safety Act (MAUCRSA) which provided one regulatory framework for both

medicinal and adult-use commercial cannabis activity within the state. The state cannabis authorities

adopted emergency regulations in December 2017 for initial implementation of the provisions of

MAUCRSA and are now using the regular rulemaking process to adopt permanent regulations.

The current emergency regulations, adopted by the Bureau of Cannabis Control, California Department

of Public Health and California Department of Food & Agriculture in December 2017 and readopted in

June 2018, were originally issued through the emergency rule-making process to meet the legislative

mandate to open California’s regulated cannabis market on January 1, 2018. These emergency

regulations will remain in effect until the non-emergency rule-making process is complete.5

5 https://cannabis.ca.gov/2018/07/13/28617/



16

Recreational cannabis sales officially began in California and during the first six months of 2018 the

number of granted licenses jumped from 1,272 licenses on January 17th to 6,421 licenses on June

30th. The number of licenses grew during the first six months of 2018:

- cultivation - 1001% - distributor and delivery - 263% and 252%, respectively - manufacturing - 175% - microbusiness - 160% - retail/dispensary - 113% - testing licenses - 107%

The City of Pasadena placed Measures CC and DD on the ballot which would allow commercial cannabis

businesses to operate in the City and provide for their taxation. On June 5, 2018 the voters approved

these measures and the City of Pasadena enacted the requisite legislation to regulate this industry. As

the City had previously prohibited marijuana dispensaries to operate, this new legislation would allow

for the first time in the City's history the operation of a commercial cannabis business. The City's

regulations make it clear that anyone who operated a dispensary or other cannabis business in

violation of the City's law would not be eligible to apply for a commercial cannabis business permit.

Market

In 2017, California's regulatory regime allowed only holding state-issued medical cannabis cards to

legally purchase cannabis. But that hasn't

stopped sales in the state from eclipsing the

other states with recreational sales.

6,000

5,000

4,000

3,000

2,000

1,000

a California Colorado Washington Oregon


CA state dispensaries sold $2,757 million

worth of cannabis products, compared to $1,129 million in Colorado's robust cannabis

marketplace, $975 million in Washington,

and $502 million in Oregon.

In fact, sales in California represented about

34 percent of legal sales in the United States. In comparison, combined sales in Colorado,

Washington and Oregon represent 41

percent of U.S. sales according to BDS

Analytics report.

The California Department of Tax and Fee Administration (CDTFA) have released revenue numbers for

cannabis sales in the first quarter of 2018. Tax revenue from the cannabis industry totaled $60.9 million

since January 1, 2018, which includes state cultivation, excise and sales taxes. It does not include local

tax revenue collected by cities or counties.


16

Recreational cannabis sales officially began in California and during the first six months of 2018 the

number of granted licenses jumped from 1,272 licenses on January 17th to 6,421 licenses on June

30th. The number of licenses grew during the first six months of 2018:

cultivation - 1001%

distributor and delivery - 263% and 252%, respectively

manufacturing - 175%

microbusiness - 160%

retail/dispensary - 113%

testing licenses - 107%

The City of Pasadena placed Measures CC and DD on the ballot which would allow commercial cannabis

businesses to operate in the City and provide for their taxation. On June 5, 2018 the voters approved

these measures and the City of Pasadena enacted the requisite legislation to regulate this industry. As

the City had previously prohibited marijuana dispensaries to operate, this new legislation would allow

for the first time in the City’s history the operation of a commercial cannabis business. The City’s

regulations make it clear that anyone who operated a dispensary or other cannabis business in

violation of the City’s law would not be eligible to apply for a commercial cannabis business permit.

Market

In 2017, California’s regulatory regime allowed only holding state-issued medical cannabis cards to

legally purchase cannabis. But that hasn’t

stopped sales in the state from eclipsing the

other states with recreational sales.

CA state dispensaries sold $2,757 million

worth of cannabis products, compared to

$1,129 million in Colorado’s robust cannabis

marketplace, $975 million in Washington,

and $502 million in Oregon.

In fact, sales in California represented about

34 percent of legal sales in the United States.

In comparison, combined sales in Colorado,

Washington and Oregon represent 41

percent of U.S. sales according to BDS

Analytics report.

The California Department of Tax and Fee Administration (CDTFA) have released revenue numbers for

cannabis sales in the first quarter of 2018. Tax revenue from the cannabis industry totaled $60.9 million

since January 1, 2018, which includes state cultivation, excise and sales taxes. It does not include local

tax revenue collected by cities or counties.



Market Overview

California's excise tax on cannabis generated $32 million in revenue for the first quarter of calendar

year 2018. The cultivation tax generated $1.6 million, and the sales tax generated $27.3 million in

revenue. Medicinal cannabis is exempt from sales tax if the purchaser holds a valid Medical Marijuana

Identification card.

Pre-Rolled, 5%

Edibles, 12%

Concentrates, 25%

Other, 3%

Figure 7 Cannabis products sales structure

Flower, 55%

Californians spend most of their dollars (55 percent)

on flower. Concentrates, the next largest slice of the

cannabis pie, captures 25 percent of the market.

Edibles, with 12 percent, come in third. Pre-rolled

joints grab 5 percent of the market, and non-THC items

like apparel and devices represent much smaller

slivers of the marketplace.

According to a study by the University of California

Agricultural Issues Center, California's recreational

cannabis market could be worth more than $5 billion;

however, the benchmark will only be achieved once

cannabis consumers fully embrace the state's legal

market. While recreational cannabis market is expected to grow, medical cannabis sales are expected to

decline down to $600 million as people migrate toward the adult-use market to avoid medical cannabis

ID fees. After the state adopts regulations, legal recreational use will make up 61.5 percent of the overall

market, illegally purchased cannabis will make up about 29.5 percent of the market and legal medical

cannabis use will be about 9 percent of the overall market, the analysis estimated.

A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis to hit $3.7

billion in 2018 alone and predict that number will increase to $5.1 billion in 2019 as more dispensaries

come online.

Market Overview

California’s excise tax on cannabis generated $32 million in revenue for the first quarter of calendar

year 2018. The cultivation tax generated $1.6 million, and the sales tax generated $27.3 million in

revenue. Medicinal cannabis is exempt from sales tax if the purchaser holds a valid Medical Marijuana

Identification card.

Californians spend most of their dollars (55 percent)

on flower. Concentrates, the next largest slice of the

cannabis pie, captures 25 percent of the market.

Edibles, with 12 percent, come in third. Pre-rolled

joints grab 5 percent of the market, and non-THC items

like apparel and devices represent much smaller

slivers of the marketplace.

According to a study by the University of California

Agricultural Issues Center, California’s recreational

cannabis market could be worth more than $5 billion;

however, the benchmark will only be achieved once

cannabis consumers fully embrace the state’s legal

market. While recreational cannabis market is expected to grow, medical cannabis sales are expected to

decline down to $600 million as people migrate toward the adult-use market to avoid medical cannabis

ID fees. After the state adopts regulations, legal recreational use will make up 61.5 percent of the overall

market, illegally purchased cannabis will make up about 29.5 percent of the market and legal medical

cannabis use will be about 9 percent of the overall market, the analysis estimated.

A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis to hit $3.7

billion in 2018 alone and predict that number will increase to $5.1 billion in 2019 as more dispensaries

come online.

Flower, 55%

Concentrates, 25%

Edibles, 12%

Pre-Rolled, 5% Other, 3%

Figure 7. Cannabis products sales structure



SWOT Analyses

S • Building of

dependable

relationships

with indoor and

outdoor

cultivators,

concentrates and

edibles

manufactures

across northern

and southern

California

• Diversified,

Strategic

Partnerships

• Extensive

industry

knowledge

18

L w • Enhanced risk of

banking /

financial / IRS

scrutiny

• Lack in

professional

workforce for a

cannabis industry

• High starting

capital

.M% I

• High growth

industry

• Growing interest

and demand for

natural,

alternative

medicine

• Trend toward

greater cannabis

legalization,

including the use

of cannabis for

recreational

purposes

• A significant drop

in wholesale

pricing

• Global Market

• Enforcement of

federal law

• Possible cannabis

law changing

• Indicators of a

slowed global

economy

• Large companies

entering the

market


18

SWOT Analyses


Chandelier

Cannabis Dispensary

Marketing Strategy •

Implementation

Market Overview

Marketing Strategy &

Implementation

Chandelier

Cannabis Dispensary



20

Marketing Strategy

Marketing Plan

Because cannabis is illegal under federal law, state governments and online advertising platforms are

placing strict rules on how companies can market their products.

Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of

cannabis. Google's policy prohibits ads that promote "substances that alter mental state for the purpose

of recreation." Facebook restricts any "illegal, prescription, or recreational drugs." And Twitter bans

"illegal drugs" as well as substances that cause "legal highs." Instagram and Facebook have decided to

go a step further by removing pages of cannabis related businesses.

The most effective strategies for legal cannabis companies are direct marketing at industry conferences

and other events, building communities around cannabis -related concerns such as health and wellness.

The marketing and sales strategy of Chandelier Cannabis Dispensary /retail store will be based on

generating long-term personalized relationships with growers and manufactures.

Marketing and advertising campaign include:

- Meeting with growers and manufactures - E-mail Marketing - Advertising and articles in the thematic Magazines, including:

■ Cannabis Now ■ 420 Magazine ■ Marijuana Venture ■ MG Magazine

- Business events and conferences - Business and industry associations - Brand development - Brochures - Website development with search engine optimization

■ Keywords ■ Fresh content

- Cannabis business directories and platforms.


20

Marketing Strategy

Marketing Plan

Because cannabis is illegal under federal law, state governments and online advertising platforms are

placing strict rules on how companies can market their products.

Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of

cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose

of recreation.” Facebook restricts any “illegal, prescription, or recreational drugs.” And Twitter bans

“illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to

go a step further by removing pages of cannabis related businesses.

The most effective strategies for legal cannabis companies are direct marketing at industry conferences

and other events, building communities around cannabis -related concerns such as health and wellness.

The marketing and sales strategy of Chandelier Cannabis Dispensary /retail store will be based on

generating long-term personalized relationships with growers and manufactures.

Marketing and advertising campaign include:

Meeting with growers and manufactures

E-mail Marketing

Advertising and articles in the thematic Magazines, including:

▪ Cannabis Now

▪ 420 Magazine

▪ Marijuana Venture

▪ MG Magazine

Business events and conferences

Business and industry associations

Brand development

Brochures

Website development with search engine optimization

▪ Keywords

▪ Fresh content

Cannabis business directories and platforms.


Marketing Strategy

Table 2. Cannabis business directories

WEEDMAP

https://weedmaps.com/

Cannabis dispensary/store finder on the planet. With over 7,750 listings throughout the U.S., Canada, and Europe.

WeedMaps has 7.96 million total visits each month.

LEAFY

https://www.leafly.com/

Leafy is a cannabis information resource for finding the right strains and products. Services include: cannabis finder, online store, branding, doctors' portal.

Leafy has 226.27 thousand total visits each month.

https://www.cannasaver.com/ Canna-Saver is website for cannabis and related coupons, devoted to cannabis deals and savings. Offers a constant flow of deals and savings from the top cannabis and cannabis retailers.

Cannasaver has 310.04 thousand total visits each month.

http://cannabiscouponcodes.com/ Website with cannabis coupon codes.

Cannabiscouponcodes has 81.49 thousand total visits each month.

Marketing Strategy

Table 2. Cannabis business directories

WEEDMAP

https://weedmaps.com/

Cannabis dispensary/store finder on the planet. With over 7,750 listings throughout the U.S., Canada, and Europe.

WeedMaps has 7.96 million total visits each month.

LEAFY

https://www.leafly.com/

Leafy is a cannabis information resource for finding the right strains and products. Services include: cannabis finder, online store, branding, doctors’ portal.

Leafy has 226.27 thousand total visits each month.

https://www.cannasaver.com/

Canna-Saver is website for cannabis and related coupons, devoted to cannabis deals and savings. Offers a constant flow of deals and savings from the top cannabis and cannabis retailers.

Cannasaver has 310.04 thousand total visits each month.

http://cannabiscouponcodes.com/ Website with cannabis coupon codes.

Cannabiscouponcodes has 81.49 thousand total visits each month.



22

Target Customers

Aside from the cannabis which is our core product, Chandelier Cannabis Dispensary/retail store will

retail a wide range of Medicinal Cannabis Infused products to customers who are based in Pasadena

and every other city where our stores will be opened. We will also engage in the sale of accessories such

as pipes, lighters, apparel, etc.

Chandelier Cannabis Dispensary /retail store will ensure that all our customers are given first class

treatment whenever they visit our store. We have a CRM software that will enable us to manage a one-

on-one relationship with our customers no matter how large our patient base grows. We will ensure

that we get our customers involved in their own personal health decisions to make the right choices for

their unique medicinal needs.

Medical Cannabis patients come from diverse groups, ages, races and socioeconomic backgrounds. Ranging from young to old, treating chronic and terminal illnesses such as cancer, epilepsy, HIV/AIDS,

and beyond.

The types of patients the law covered are cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. Physicians have

recommended cannabis for hundreds of indications, including such common complaints as insomnia,

PMS, post-traumatic stress, depression, and substance abuse.

The market potential for cannabis products in California is estimated between 15 million and 21 million

adults over 21 years of age. While 39% of Californians already use cannabis, another 44% are non-users

interested in trying it now that it's recreationally legal.

• 83% of California residents are willing to try or use Cannabis Consumers' top health issues that medical cannabis can alleviate include Pain (58%), Stress (54%) and Insomnia (49%)

• Cannabis brand awareness remains very low (49% didn't know any brands) • Most consumers are interested in edible (62%) and topical products (44%), though heavy users

(use daily or almost every day) still prefer smoking (75%) • Most target customers use or plan to use medical cannabis, while a smaller group will use

cannabis recreationally


22

Target Customers

Aside from the cannabis which is our core product, Chandelier Cannabis Dispensary/retail store will

retail a wide range of Medicinal Cannabis Infused products to customers who are based in Pasadena

and every other city where our stores will be opened. We will also engage in the sale of accessories such

as pipes, lighters, apparel, etc.

Chandelier Cannabis Dispensary /retail store will ensure that all our customers are given first class

treatment whenever they visit our store. We have a CRM software that will enable us to manage a one-

on-one relationship with our customers no matter how large our patient base grows. We will ensure

that we get our customers involved in their own personal health decisions to make the right choices for

their unique medicinal needs.

Medical Cannabis patients come from diverse groups, ages, races and socioeconomic backgrounds.

Ranging from young to old, treating chronic and terminal illnesses such as cancer, epilepsy, HIV/AIDS,

and beyond.

The types of patients the law covered are cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma,

arthritis, migraine, or any other illness for which cannabis provides relief. Physicians have

recommended cannabis for hundreds of indications, including such common complaints as insomnia,

PMS, post-traumatic stress, depression, and substance abuse.

The market potential for cannabis products in California is estimated between 15 million and 21 million

adults over 21 years of age. While 39% of Californians already use cannabis, another 44% are non-users

interested in trying it now that it’s recreationally legal.

• 83% of California residents are willing to try or use Cannabis Consumers’ top health issues that

medical cannabis can alleviate include Pain (58%), Stress (54%) and Insomnia (49%)

• Cannabis brand awareness remains very low (49% didn’t know any brands)

• Most consumers are interested in edible (62%) and topical products (44%), though heavy users

(use daily or almost every day) still prefer smoking (75%)

• Most target customers use or plan to use medical cannabis, while a smaller group will use

cannabis recreationally


Mau:0in

S2Tles Forecast

AS.711'114,.:Ri Liffu'

During the first year, Company intends to launch sales of the vendors' product line and it is expected to generate in gross revenue.

From the second year Company will generate income from a day for the first few months with increasing to about a day within 1-2 years of the dispensary/retail store Grand Opening.

From the third year Rose City expects a healthy annual increase in retail revenue.

Figure 8. Sales forucast $

Table 3 Sales Farecastfor first threeyears,$

Marketing Strategy

Sales Forecast

Assumptions

During the first year, Company intends to launch sales of the vendors’ product line and it is expected to

generate in gross revenue.

From the second year Company will generate income from a day for the first few months

with increasing to about a day within 1-2 years of the dispensary/retail store Grand Opening.

From the third year Rose City expects a healthy annual increase in retail revenue.

Figure 8. Sales forecast, $

Table 3. Sales Forecast for first three years, $


REDACTED

REDACTEDREDACTED

REDACTED

REDACTED

• to

Chandelier

Cannabis Mspensary

Operating Plan


24

City

Operating Plan

Chandelier

Cannabis Dispensary


Pages 35 - 42 Redacted

Operating Plan

Chandelier

Cannabis Dispensary

Organizational Structure

Operating Plan


Chandelier

Cannabis Dispensary



34


Chandelier Cannabis Dispensary is a business that will be built on a solid foundation. From the outset,

we have decided to recruit only qualified people to man various job positions in our company. We are quite aware of the rules and regulations governing the cannabis industry of which cannabis dispensing falls under which is why we decided to recruit experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our business brand to be well

accepted in the California.

These are the positions that will be available at Chandelier Cannabis Dispensary:

Owner

Operational Director

Security

Receptionist (3)

Budtenders

Figure 9. Organizational structure

Table 4 Personnel plan

Position Year 1 Year 2 Year 3 Annual Salary

Operating Director 1 1 1

Admin and Logistics Personnel 1 2 2

Sales& Marketing Personnel 1 3 5 Security


34


Chandelier Cannabis Dispensary is a business that will be built on a solid foundation. From the outset,

we have decided to recruit only qualified people to man various job positions in our company. We are

quite aware of the rules and regulations governing the cannabis industry of which cannabis dispensing

falls under which is why we decided to recruit experienced and qualified employees as foundational

staff of the organization. We hope to leverage on their expertise to build our business brand to be well

accepted in the California.

These are the positions that will be available at Chandelier Cannabis Dispensary:

Table 4. Personnel plan

Position Year 1 Year 2 Year 3 Annual Salary

Operating Director 1 1 1

Admin and Logistics Personnel 1 2 2

Sales& Marketing Personnel 1 3 5

Security

Figure 9. Organizational structure


REDACTED

REDACTED

REDACTED

Ownership

The owner is Habib Shbeyr, a real estate investor and entrepreneur. He is very familiar with how to

select a business and make it grow. All indicators show that the marijuana industry is growing and

based on Mr. Shbeyr real estate experience, the locations of such and business is the key to success.

Pasadena provides that opportunity because of the desirability of Pasadena as a business location. Mr.

Shbeyr's vision of creating a high-end herbal boutique be consistent with the Pasadena way. The owner

recognizes that he has not previously owned or operated a marijuana dispensary. However, he has

educated himself regarding this industry and will retain a manager who will have significant experience

in the operation of a marijuana dispensary.


The Operational Director is Daniel P. Rome. Mr. Rome was/is an Operations Manager with legal

marijuana dispensary in the City of Los Angeles for the last 4 years. Mr. Rome was/is responsible for

establishing and maintaining various policies and procedures for the safe and efficient operations for

this city permitted collective. His experience in dealing medical cannabis vendors, patients and city

regulations has provided him direct insight as to some of the challenges that existing laws and

regulations have on permitted medical marijuana collectives. What he has learned from these challenges will be immensely valuable in this new era of recreational adult use. He is an enthusiastic,

thoughtful, and determined entrepreneur who thrives on building and establishing great organizations.


36

Ownership

The owner is Habib Shbeyr, a real estate investor and entrepreneur. He is very familiar with how to

select a business and make it grow. All indicators show that the marijuana industry is growing and

based on Mr. Shbeyr real estate experience, the locations of such and business is the key to success.

Pasadena provides that opportunity because of the desirability of Pasadena as a business location. Mr.

Shbeyr’s vision of creating a high-end herbal boutique be consistent with the Pasadena way. The owner

recognizes that he has not previously owned or operated a marijuana dispensary. However, he has

educated himself regarding this industry and will retain a manager who will have significant experience

in the operation of a marijuana dispensary.


The Operational Director is Daniel P. Rome. Mr. Rome was/is an Operations Manager with legal

marijuana dispensary in the City of Los Angeles for the last 4 years. Mr. Rome was/is responsible for

establishing and maintaining various policies and procedures for the safe and efficient operations for

this city permitted collective. His experience in dealing medical cannabis vendors, patients and city

regulations has provided him direct insight as to some of the challenges that existing laws and

regulations have on permitted medical marijuana collectives. What he has learned from these

challenges will be immensely valuable in this new era of recreational adult use. He is an enthusiastic,

thoughtful, and determined entrepreneur who thrives on building and establishing great organizations.


Chandelier

Cannabis Mspensary

Financial Plan


Financial Plan

Chandelier

Cannabis Dispensary


Pages 48 - 56 Redacted

Chandelier

Cannabis Dispensary

Financial Plan

Chandelier

Cannabis Dispensary


Ap

pen

dix


REDACTED

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