The 3rd party distribution seems to be a county issue, not state. SIGO has a deal with a company called REI Extracts to turn trim into oil, and if REI brought in their own trim from an outside source, SIGO would get a cut. So the rule in Monterey county prevents the license holder ( vbf in this case, but that’s a whole different can of worms) from selling any oils made from cannabis not grown by vbf.
But.....there is a question I’ve had since this deal was first announced, is the REI deal legal in the state’s eyes? Why can’t REI get their own license, the state hands them out to just about anyone. I haven’t read all of the state regulations of course, but the point seems to be to prevent this kind of partnership with non licensed companies.
Some good laughs on the SIGO board though, of course it’s the state’s fault not SIGO’s, I blame their attorney, he works in the county and he should know the rules. The state seems to hand out a license based partly on the city and county rules and regulations being met, so I’m not sure where the miscommunication was. Regardless, hiding this form shareholders since January 28 is disgusting and serves only one purpose.
