RE:RE:RE:2.8M Management Options Expire Today & a Conspiracy?I disagree. If you are right, why did they basically come out today with a PR that does just what you said they are not in a position to do - that is to blame city government officials for the delay. Let me explain further why I disagree.
I don't believe management needs to frame a PR in a way that blames City Council for delays. After all, by saying that they cannot start calibration and production until they receive the COO is in and of itself blaming the city regulations for delays. They are basically saying the City won't let us start operating until we make them happy during a final inspection, the result of which is a COO.
A Certificate of Occupancy is, afterall, a city certificate issued once you meet the required facility regulations. The company has previously disclosed that they need the COO to move forward and I don't believe they have done this in a way that angered or upset the City Council.
Think about all the junior mining companies that are awaiting approval of permitting on their projects to move forward. They don't hide behind the fact that they are delayed by regulations. It's a fact and it's stated as such.
Updating of a city ordinance is really no different in my books. Management has an obligation to be forthright with shareholders and could have easily said something like the following (which would have told everyone up front what we are waiting on): Production is expected to commence once the Adelanto facility leasehold improvements have been completed and a final inspection is successfully completed by the city inspector and once the municipality of Adelanto approves an amendment to Ordinance No. 572 to include new more stringent safety measures.
Although management cannot provide definitive guidance on the timing for the approval of the amendment to Ordinance No. 572, the City Council is firmly committed to updating the regulation to include the necessary safety measures. Management expects the amendment to be completed in the normal course during Q3 while the Adelanto facility leasehold improvements are on track for completion in late-July.
Does this seem offensive to city politicians? Instead they appear to have hidden this fact and now it's blown up because shareholders are saying WTF, why are you not done and they were forced to come clean and say... oh yeah, sorry we can't get the COO because we are waiting on the city (oops... did we forget to mention that small detail.... sorry). See what I mean? The path they took is much worse than just being open up front and keeping shareholders informed.
And no, the Adelanto City Council is not making everything up as they go along. Yes they are putting in place nw ordinances, but they are one of the most progressive/advanced municipalities in the state of California with respect to implementing bylaws to issue Conditional Use Permits for medical cannabis cultivation and extraction. They are way further ahead of other municipalities which is why the city of Adelanto is such a boom town currently for the cannabis industry. Their Ordinances / bylaws are quite advanced.
~S
bob2949593 wrote: To your question on timing, it looks like the Adelanto City Council is making everything up as they go along. This is a new industry after all.
Management isn't really in a position to publicly blame city government for delays. "Don't anger public officials you need permits from" must be pretty high on the list of good business practices.
In other words, management can't issue a press release condemning the city government every time another regulatory hurdle is set up.