Replies to post #37296 on Sunset Island Group Inc (SIGO)

[Neptune]

True keep it simple is usually better and might end up that way in the end. As for SIGO as far as we are concerned when they are past all this and growing away with licenses in hand then they become a target to buy out. This was their plan from the start they said. There are some out there that produce way less than SIGO does and have over 100 million market caps already. One I know of is in that boat and has no license to sell and only grows under contract and they also have almost 100 million cap. SIGO will fetch a good price when the time comes.

[penknee]

I don’t think Monterey issues separate licenses like the state does. At least in the case of a distribution license it seems to be a set of rules everyone has to follow. You’re right about the multiple city, county and state rules, and I think that’s what happened here. SIGO applied for a license they aren’t allowed to have, and the state didn’t double check since all of the other paperwork from Monterey appeared correct. We know for a fact that SIGO intended to distribute for a 3rd party, they even explained the percentages that they would receive from REI, if REI used its own trim. I doubt this was intentional, but it’s against the county rules anyway. An easy way to fix that is to not allow REI to process 3rd party trim, but until they get their own distribution license, they’ll have to sell to a distributor outside of Monterey. Their attorney is actually pretty good, maybe one of the best in the area, so this is a little surprising.

I don’t really see any of that as a big deal, but not telling anyone until a poster finds out is only done for one reason.