HdIP Companies CITY OF PASADENA Applicant Name: Bonavento Investment & Management Company, LLC Reviewer: Billie-jo Naysmith Date: 4/1/19
Maximum Points Percent OVERALL SCORE Points Awarded Score 1,575 1,365 86.67%
GENERAL COMMENTS Applicants have operated. Kaleafa Portland.Portland, Oregon... City, and Beaverton Retail locations (licenses provided in owner I info) in Oregon since 2015; have operated medical retail since 2014. They also have ownership in a Des Moines, WA retail location as well as a Palm Springs, CA retail location (license number not provided for these two).
SECTION 1: QUALIFICATIONS OF OWNERS/ OPERATORS I 750 I 685 I 91.33% Experience Applicants have operated Kaleafa Portland, Oregon City and Beaverton Retail locations (licenses provided in owner info) in Oregon since 2015; have operated medical retail since 2014. They also have ownership in a Des Moines, WA retail location as well as a Palm Springs, CA retail location (license number not provided for these two).
Cannabis Industry Knowledge Extensive history of new cannabis business startups; sole partner with Eaze delivery in Oregon.
Ownership Team The application included detailed of applicants' roles and responsibilities in Oregon businesses, but did not indicate what their level of participation in day to day operations of a Pasadena business would be.
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 1 OF 92 SECTION 2: BUSINESS PLAN I 525 I 437 I 83.24% Standard Operating Procedures (SOP) Very comprehensive SOPs for all aspects of the retail storefront operations.
Financial Plan Financial plan included accounting procedures (detailed), proforma, capital expenditures and startup schedule, balance sheets. Startup estimates were not clear.
Funding/Proof of Capitalization The application included verifiable capital via bank statements that totaled approximately .
Records Software Met minimum standards.
TrackTrack-and-Trace-and-Trace Applicants are very comfortable with Metrc, as they have been using for six other businesses. SOPs included in the SOP subcategory.
State Testing Requirements Met minimum standards.
Employee Training Detailed training descriptions for each level of employee.
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 2 OF 92 Customer Education Very little detail provided.
Marketing Marketing plan documented the importance of knowing and understanding customers; provided results of customer surveys, marketing strategies, marketing channels, branding and identity examples.
Community Benefits The applicants will hire employees with cannabis convictions when possible, partner with community organizations and utilize local cultivators and manufacturers.
SECTION 3: NEIGHBORHOOD COMPATIBILITY & ENHANCEMENT I 150 I 121 I 80.67% Exterior Design Concept Application stated, "A compatible design will include consideration for the existing character of its neighboring residences and properties." Applicants intend to hire professional engineers, architects and general contractors to maintain proper permitting during and after construction.
Design Concept Integration The application provided no information about how the design concept would integrate with Pasadena except to say they love to absorb the history surrounding new location areas. The application included descriptions of the Oregon locations and how they fit in with the respective cities.
Integration of Security Measures Will utilize a reception/check-in area at the entrance of the location, easily concealed security cameras, lighting and well maintained vegetation to integrate security measures into the business.
Air Quality/Odor Control Met minimum standards.
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 3 OF 92 SECTION 4: SECURITY PLAN I 150 I 122 I 81.33% Security Experience The application identified Gus Goulet as the security consultant.
Background Checks Met minimum standards.
Employee Safety Education Some detailed information about the type of training provided.
Employee Theft Reduction Measures Met minimum standards.
Cash Management Plan Procedures included for employees and managers.
Product Access Protocols Age verification procedures.
Product Deliveries Met minimum standards.
Security Guards Met minimum standards.
Video Camera Surveillance Met minimum standards.
Armored Vehicle Met minimum standards.
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 4 OF 92 January 30, 2019
City of Pasadena Planning & Community Development Department
RE: Marijuana Retail Licensing Application
Dear Committee Members:
We are pleased to present Kaleafa Cannabis Company's application for a new marijuana retail license to the City of Pasadena. Founded in 2014 by the Widmer family, Kaleafa is a rapidly growing cannabis retailer that provides top-quality, legal medicinal and recreational marijuana products directly to consumers. With five stores and a distribution license, the company has established itself as a trusted brand with a strong affinity in our home market of Portland, OR.
Kaleafa was first opened with a medical marijuana license in 2014 and successfully transitioned into the recreational market in mid-2015. Since inception, Kaleafa has maintained a perfect track record with all compliance and regulatory agencies. The company has grown to just under in Historical Performance annual revenues in what is often considered to be the most competitive market in the country. Our business philosophy focuses not just on topline growth but achieving this growth in a sustainable way through disciplined management and 2015 2015 2017 2018 generating strong cash flows. • Rweruies • EBODA
Kaleafa's vision is to be at 50 stores (offering delivery and online pickup where allowed) within the next five years. We have developed a detailed strategy and a month by month tactical plan to support these goals. Sales forecasts in our strategic plan are driven from actual performance of existing locations. Accordingly, new stores tend to ramp-up quickly based on Kaleafa's proprietary Store Launch Playbook, local recognition, and affinity for Kaleafa's homegrown yet professional approach to business. New stores will come from a blend of (i) growing licenses organically and (ii)
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 5 OF 92 acquiring existing dispensaries that choose to benefit from our operational expertise, technology infrastructure, and centralized back-office functions (i.e. accounting, banking, compliance, marketing, human resources, risk management, etc.). Below is a snapshot of our pro forma with more detail in the accompanying business plan.
Two) Historical 5-Year Pro Forma 2015 2016 2017 2018 2019 2020 2021 2022 2023
Current Store Revenues New Store Revenues Total Revenues 9 ofStoros
Cost of Sales Gross Profit Gross Margin %
SG&A Expenses Net Income
Adj. EBITDA EBITD.4 Margin %
We are proud of our reputation within the community as a family-owned, professionally managed, socially responsible business. Over the past five years, Kaleafa has participated and sponsored more than 20 community events (e.g. food drives, event-based profit sharing, and donations to local schools, etc.). The lion's share of our contributions focuses on helping to build a better future for our youth.
The Kaleafa team has worked diligently on compiling this application to present to the City of Pasadena, which we hope demonstrates our commitment to the cannabis industry, education, and consuming responsibly. We are excited for this opportunity to serve the people of Pasadena while creating another impactful Kaleafa family in Southern California.
Sincerely,
Julie Ann Widmer President of Operations (Co-Founder)
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 6 OF 92 Applicant/Owner Information Form* Commercial Cannabis Screening Application
"Portions of the information disclosed in this application is public information www.cityofpasadena.net/marijuana-regulations 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; jg 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(aff, you will need to complete the following information. Attach additional pages if needed.
Name of Entity; Bonevento Investment & Management Company, LLC Phone Number: 503-705-4052
Ownership %: 99 Organizational Structure: Functional Email: [email protected]
Authorized Agent: Julie A Widmer Title: President of Operations
List entity members below (attach additional sheets if necessary): Name: Julie A Widmer (3 Kids, Inc.) Title: President of Operations Name: John P. Widmer (3 Kids, Inc.) Title: President of Retail 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: Widmer Julie Ann Date of birth: Last First Ml. Mailing Address: 19197 South Molalla Ave Street Address Apartment/Unit# Oregon City Oregon 97045 City State ZIP Code Phone: 503-705-4052 Email: [email protected]
Page 1 of 3
APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA BONAVENTO INVESTMENT & MGMT CO LLC'S BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS7 OF 92 FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA Ownership % 99% Title: President of Operations
Social Security No. Current Employer: Kaleafa 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? 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 O X 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. (h&G BPC §26057) 0
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 "yes", complete section C-4. (PMC §5.78.100) • Jul 5. Have you ever been notified that you were conducting commercial cannabis activity in non-compliance with City of Pasadena YES ordinances, codes, and requirements and failed to discontinue operating in a timely manner? (PMC §5.78.100) • Qg
6. Have you ever failed to pay federal, state, or local taxes and/or fees when notified by the appropriate agencies? YES NO- (PMC §5.78.100)
Section C-1: Other Licensed Cannabis Businesses Use additional sheets if necessary.
A gency: Agency: OLCC License No. 10011 06576F Date Issued: 12/28/2015 Description of business: Kaleafa Portland Woodstock Retail
Agency: OLCC License No. 1005978077D Date Issued: 12/13/2017 Description of business: Kaleafa Oregon City Retail
Agency: OLCC License No. 10000407C53 Date Issued: 1/29/2017 Description of business: Kaleafa Beaverton Retail
Section C-2: Cannabis License(s) Suspended, Revoked or Denied Use additional sheets if necessary.
License License Suspension or Authority : Type Revocation Date:
Details:
License License Suspension or Authority: Type Revocation Date:
Details:
License License Suspension or Authority : Type Revocation Date:
Details:
Page 2 of 3
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 8 OF 92 Section C-3: Criminal Violation(s) Use additional sheets if necessary.
Date of Code Felony or Conviction: Section: Misdemeanor? Date of Date of incarceration: Probation Date of Parole:
Details:
Date of Code Felony or Conviction: Section: Misdemeanor? Date of Date of incarceration: Probation: Date of Parole: Details:
Date of Code Felony or Conviction: Section: Misdemeanor? Date of Date of incarceration: Probation Date of Parole:
Details:
Section C-4: Commercial Cannabis Operations in the City of Pasadena Use additional sheets if necessary.
Business Business Name: Address: Dates of Operation: Title: Business Business Name: Address: Dates of Operation: Title: Business Business Name: Address: Dates of Operation: Title:
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: ;Ado Date: 7 340 et Printed Name: jj,t4? /427 /Jr AnCr
Page 3 of 3
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 9 OF 92 10 OF 92 OF C 10
BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA OF CITY LICENSE, RETAILER CANNABIS FOR APPLICATIONS LLC'S CO MOWMGMT '9& IN31,11S3ANIINVESTMENT O1N BONAVENTO APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 11 OF 92 KALEAFA CANNABIS COMPANYCOMPANY BUSINESS PLAN - PASADENAPASADENA APPLICATION 1/31/191/31/19
Table of Contents Qualifications of Owners & Operators ...... 3 1.1 —– Experience ...... 3 1.2 —– CannabCannabisis Industry Knowledge ...... 4 1.3 —– Ownership Team ...... 5 Business Plan - Operations ...... 6 2a.12a.1 —– Standard Operating Procedures (SOP) ...... 6 Retail Operations —– Store Opening Procedures ...... 6 Retail Operations —– Customers Service ...... 8 Retail Operations —– Customer Check-in-in ...... 9 Retail Operations —– Making a Sale ...... 10 Retail Operations —– Customer Service (Receipts) ...... 11 Retail Operations —– Product ReturnsReturns ...... 11 Retail Operations —– Register Cash Payouts ...... 12 Retail Operations —– Store Closing Procedures ...... 12 Retail Operations —– Cannabis Disposal ...... 13 Human Resources —– Employee Management ...... 13 Human Resources —– Termination ...... 15 Wholesale Support —– Overview ...... 16 Wholesale Support —– Creating New Items in BiotrackTHC ...... 18 Wholesale Support —– Product Intake ...... 19 Wholesale Support —– Splitting Items in Metrc and BiotrackTHC ...... 21 Wholesale Support —– Processing Product ...... 22 Wholesale Support —– Creating Transfers in Metrc and BiotrackTHC ...... 24 Wholesale Support —– Creating Flower Jar Labels ...... 25 Wholesale SupportSupport —– Making Sales Floor Barcodes ...... 26 Wholesale Support —– Preparing Bins for Transport ...... 27 Wholesale Support —– Inner Store Transfers ...... 28 Wholesale Support —– Metrc Sales Uploads ...... 29
1 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 12 OF 92 2a.2 —– Financial Plan ...... 31 2a.3 —– Funding & Proof of Capitalization ...... 35 2a.4 —– Records Software ...... 40 2a.5 - Track-and-and-Trace-Trace ...... 42 2a.6 —– State Testing Requirements ...... 43 2a.72a.7 —– EmployeeEmployee Training ...... 43 2a.8 —– Customer Training ...... 48 2a.9 —– Marketing ...... 48 Business Plan —– Community Benefits ...... 56 2b.1 —– Community Benefits ...... 61 Business Plan —– Product Offerings ...... 68 2c.1 —– Product Procurement ...... 68 Neighborhood Compatibility & Enhancement ...... 69 3.1 —– ExteriorExterior Design Concept ...... 69 3.2 —– Design Concept Integration ...... 70 3.3 —– Integration of Security Measures ...... 71 3.4 —– Air Quality/Odor Control ...... 71 Security Plan ...... 72 4.1 —– Security Experience ...... 72 4.2 —– Background Checks ...... 72 4.3 —– Employee Safety Education ...... 73 4.4 - Employee Theft ReductionReduction Measures ...... 75 4.5 —– Cash Management Plan ...... 76 4.64.6 - Product Access Protocols ...... 77 4.7 - Product Deliveries ...... 78 4.8 - Security Guards ...... 79 4.9 - Video Camera Surveillance ...... 80 4.99 - Armored Vehicle ...... 81
2 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 13 OF 92 Qualifications of Owners & Operators 11.1 1 —– Experience
Since the inception of Kaleafa, John and Julie Widmer have been on the front lines of the entire operationoperation including Sales flfloor,oor, Inventory, Accounting, and Regulatory Licensing. Below is a brief outline of their history as it would relate to expanding our brand into Pasadena. Julie Widmer,Widmer, President of Operations - Managing Member, Original Investor. Her pprimaryrimary dutiesduties include:
• Finance, Accounting, Tax (city and state - marijuana specific),specific),
• Budgets and Cash Management
• New Store BuildBuild-out-out and Design (All 5 current Oregon Stores and 1 Wholesale location)
• Regulatory,Regulatory, Compliance and Business Licensing
• 280E TTaxax Optimization
• HumanHuman Resources (benefits,(benefits, training and talent developmentdevelopment))
• Community & Brand Advocacy (public speaking and education)
• Corporate Social Responsibility
• Customer / Product Education John Widmer,Widmer, President of Retail - Managing Member, OrigiOriginalnal Investor. His primary dutiesduties include:
• Supply Chain Management
• Inventory Wholesale & DistributionDistribution
• Business Development / Key Partnerships
• Product Screening, Selection & Purchasing
• CustomerCustomer Service & Loyalty
• Sales / New Product TrainingTraining
• Online and PromotionalPromotional Marketing
• Investor Relations
• Real Estate Development and Site Selection Through detailed "gap“gap analysis"analysis” the owners have created a formal Board of Advisors targeting specific technicaltechnical capabilities and professional expertise in the areas of StrategicStrategic Development, Risk Management, Raising Capital, HR, Marketing, and Management Information Systems.
3 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 14 OF 92 1.2 —– Cannabis Industry Knowledge
Kaleafa Cannabis Company has been operating as a Medical Retail facility since 2014 and Recreational Retail licensee since 2015 in the State of Oregon. Julie and John Widmer areare the original founding members of the company and havehave retained the same staff since inception with a near zero turnover rate.rate. The skill set,set, knowledge and experience their leadership team brings to thethe business will provide anan exceptional support base as Kaleafa expandsexpands into new markets.markets. Julie and John spent the first 3 years of their married life residing in Monrovia, CACA.. This background allows them to combine leading cannabiscannabis retailretail experienceexperience withwith real world insights of the Pasadena customer and cultural influencesinfluences.. We have already idenidentifiedtified a strong leader for the potential Pasadena location, who is currentlycurrently Vice President of Human Resources for a large International Company based in Pasadena.Pasadena. TheThe person will simultaneously add value across all of the companies by filling one of the leadershipleadership gaps previously mentioned —– HR. While always looking to do more, the team at Kaleafa is proud of the success and reputation they have earned in their firstfirst 5 years of operation.operation. Following are some highlights:highlights:
• Growing the business from a single shopshop tucked away in SE Portland to more than five retail locations,locations, several more under development with a robust delivery business that is taking off.
• Kaleafa continuescontinues to fund its expansion with the cash flflowsows that come from existing store profitsprofits.. In an industry that constantly requires cash,cash, we have self-funded-funded 90% of our organic growth.
• The company has grown from 3 employees to just under 100 employees. Kaleafa bebelieveslieves in paypayinging livable wages to all employees. We are excited to be one of the only cannabiscannabis companies to further invest in its employees by providing top quality health, vision and dental coverage through United Healthcare.
• We take all compliance seriously,seriously, and designate various Compliance Ambassadors to continuously monitor, educate, and createcreate awareness on the topic. The company has never received a violation with the OLCC (Oregon Liquor and Cannabis Control),Control), which is incredible given the sheer volumevolume of customers,customers, revenue and product that pass through our doors each year.year.
• Kaleafa has bbeeneen identified as a top 100 revenue-producing-producing cannabis business in America by the original CCB.
• We actively support the Cannabis Movement on a nationalnational and local level.level. Our employees are encouraged to become membermemberss of local cannabis advocacy groups and stay connected with current regulatory changes and market environments.environments.
• Kaleafa maintains a strict protocol regarding 280E tax exemptions.exemptions. We verify all calculationscalculations prior to submitting through qualified lawyers and accountants so that the bubusinesssiness is not burdened with unnecessary fines and penalties.
4 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 15 OF 92 • Kaleafa retainsretains one of the largest cannabiscannabis lawyerlawyer groupsgroups in the country to help with any issues that may arise on a state or local level,level, to remain compliant and address any questionable issues before they become something that the regulators need to address.
• We are not vertically integrated, and our strategy is focused on becoming the best possible retailer, whether ppurchasingurchasing online, instore or through delivery. This allows us to retainretain anan independentindependent perspective on the market and stay in touch with trends asas demanded by the customer.customer.
• Our experience launching medical and transitioning to recreational in Oregon has usus for the various challenges that all emerging markets will experience in the earlyearly phasesphases..
• Kaleafa'sKaleafa’s customer retention rate speaks for itself at greater than 92%. This is a powerful datapoint as there are more than 280 active licenses retailers iinn the PortlandPortland area.area. This demonstrates our understandingunderstanding of the customer'scustomer’s buying habihabitsts and the quality of customer service. Kaleafa sets anan exceptional expectation for quality and value that setssets the bar high for all shops in and around the Pasadena market.
• KaleafaKaleafa was recently chosen by Eaze delivery services as their sole partner in OregonOregon.. TheThe vetting process took over 12 months with every aspect of our business under review. They entertained many retail outfitsoutfits in OregonOregon,, and Kaleafa won the businessbusiness.. TheThe decision was made based on severalseveral factors including:
o Business Acumen
o Industry Knowledge
o Consumer Knowledge
o Product Knowledge
o Company Culture and Professionalism Kaleafa is dedicated to work with the city to be more than just a retail cannabis shop. We want to help shape the local industryindustry and be true educators for the city of Pasadena. We look at this as an honor and will hold our end of responsibility to the highest standards. It has never been about revenue for Kaleafa. We know if we do the little things, the big picture will take care of itself. We do not make this business about us, but rather the consumer. Kaleafa'sKaleafa’s perspective is unique,unique, as manymany of our would-bewould-be competitors center their business model around themselves.themselves.
1.31 .0— – Ownership Team
JULIJULIEE WIDMER BIO: Julie started in thethe hospitality industry in the Southern California Market before spending many years raising her 3 children at home. That experience led her to find a new career in the cannabis industry. She started the business with very little funding but an open mind toto how unique the chance was to create her legacy. This simplistic approach had her doing all aspect of the retail shop including reception, bud tending, purchasing and accounting. That experience
5 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 16 OF 92 allowed her to connect toto employees and customers on a uniqueunique level allowing her in site ththatat many owners will never achieve. With growth that now needs exceed 5 shops and 100 employees, you can imagine her role has evolved. The critical component in all of this though is that sheshe has personally done every aspectaspect in the business. This was never just an investment for Julie but rather a passion and career shift. She currentcurrentlyly serves as President of Operations.Operations. JOHN WIDMER BIO: John Started his career with Kaleafa in 2016 after spendingspending 13 years selling orthopedic implants for a British company. In 2014, a joint decision was made that Julie that would have her operate the day to day activity at Kaleafa while John held back until the business could support both partners working forfor the company. Although it has been nearly 3 years since joiningjoining Kaleafa, John has been vital in establishing operational benchmarks for efficiency, profitability, and overall customer satisfaction. MoreMoreover,over, he has created the wholesale and purchasing modelmodel that now oversees the entire organizationsorganizations product catalogcatalog.. Although his store level experience is minor, his back-end-end involvementinvolvement is extensive. He was recently named President of Retail as his role continues to change and expand. Some of his past dutiesduties have included:
Kaleafa Inc. Ownership Structure
Kaleafa Inc (NV Corporation) Currently 3 Kids Inc. 100.owned by 33.3. Minority Julie and John Widmer Interest held by Visionary Enterprises Inc.
Bonavento, LLC WWMP LLC WSW Investments, LLC (Desmoines, WA Store) (Kaleafa Glass, OR) (Kaleafa Tigard, OR) (Palm Springs,.Store) Est. 3/10/2014 Est. 6/11/2018 Est. 1/19/2018
Ashland Store WoodstockStore Oregon City Store Gresham Store Beaverton Store Glisan Store Pacific Northwest WWMP LLC OCJoe LLC 1450 SE Orient,. WWMP LLC WSW Investmenm,LLC Horticulture, LLC Est. 3/10/2014 Est. 4/20/2017 Est. 8/10/2017 Est. 3/10/2014 Est. 6/11/2018 Est. 9/28/2018
255 Minority Interest Minority Members: 5191 Minority Interest held by KAO T. Camp 25. held byJoe Zhou Investmenq LLC C. Cole 12.515 (Chris Osland) J. Chamberlin 12.5.
Business Plan - Operations 2a.1 —– Standard Operating Procedures (SOP)
Retail Operations —– Store Opening Procedures One hour prior to opening to the public a manager and/or shift leaderleader will orchestrate the following duties with asassistancesistance from budtenders and the receptionist to be completed before opening time.
6 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 17 OF 92 • Disable security alarm
• Remote disarm —– Open Alarm.com mobile application, disarm the building, enter building.
• Lock door behind you upon entering the building
• Manual disarm —– Enter the building, lock door behind you, and enter your private four-digit-digit alarm code into the alarm portal, press disarm.
• Open product vault(s) and begin setting up product displays on the sales flfloooorr
• Flower shelves
• Top shelf —– Top shelf flflowerower
• MiddleMiddle Shelf —– Mid priced flflowerower
• Lower shelves —– Budget and bargain flflowerower
• Sativa strains are to be placed together
• Indica strains are to be placed together
• Hybrid strains are to be placed together
• CBD dominant strains should be placed together
• Slat wall displaysdisplays
• Vape cartridges - hang product by producer
• Edibles
• Never puncture a product’sproduct's package —– always use 3M hanging tabs to hang products on pegs
• Small products —– hang from display peg
• Large prodproductsucts —– place on a hanging shelf
• Refrigerator
• Beverages & temperaturetemperature sensitive products are to be easily visible to customers
• Concentrates
• Remove display(s) from product vault and place on counter
• Back stock of concentrates is to remain in the concentrateconcentrate refrigerator out of customer sight or displayed on the grid wallwall —– location dependent.
• Prerolls
• Display hanging on a display peg or on a shelf in the preroll section.
• Power up POS systems and reception computer
7 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 18 OF 92 • Count money in registers
• All registers should have a balance of
• in fives
• in singlessingles
• quarters, dimes, nickels and pennies.
• Document discrepancies
• Verify POS stations are stocked with paper bags, exit bags, receipt paper, Zebra labels, pop tops, dollar grams (daily specialsspecials depending) and latex gloves
• Power up TVs and Digital menusmenus
• Turn on music
• Music containing racial slurs or profanity is not permitted.
• Housekeeping
• Verify bathrooms are clean and stocked with soap, paper towels, air freshener, and toilet paper.
• Sweep flfloorsoors
• Dust surfaces
• Stock customer concessions counter —– Red Vines, paper cups, napkins and hand sanitizer
• At time of opening
• Close entrances to Authorized Personnel Only rooms
• Secure product vault
• Unlock front door and turn on open sign
Retail OperationsOperations —– Customers Service Kaleafa is dedicated to providing a superiorsuperior customer experience. The Kaleafa experience must be consistent from day to day and store to store. Kaleafa provides knowledgeable and attentive service while acknowledging the customer'scustomer’s expressed needs. The goal is to use our product knowledge to guideguide the customer to their desired product by asking questions regarding their desired outcomes, expectations and budget. Kaleafa budtenders are expected to demonstrate an eagerness to serve and to accommodate a customer'scustomer’s needs or requests whenever possiblpossible.e. Every transaction should be made as easy as possible for the customer whether it is a sale or a return. The customer should always be made to feel appreciated and welcome at our stores, treat them as you would like to be treated. Kaleafa no-noes-noes of customercustomer service
8 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 19 OF 92 Never doubt a customer’scustomer's intelligence Never judge a customer'scustomer’s preference Never touch a customer'scustomer’s flflowerower with a bare hand Never deceive or lie to a customer Never complain oror vent frustration to a customer Best Practices of customer serviceservice
• Customers are to be assisted as they appear on the customer queue; first in first served
• Ask questions to guide your recommendations
Retail Operations —– Customer Check-in-in The ReceptionistReceptionist is the first line of defense to prevent sales to minors and over salessales to adult consumers. Every customer, guest, or service provider must present a valid ID regardless of appearance in order to be checked in. Verifying Customers'Customers’ Age
• Acceptable forms of ID
• The receptionist must verify the age of a person entering the establishment.establishment. A person must be 21 years of age to purchase marijuana for recreational purposes, or 18 years of age if acquiring marijuana as a registry identification cardholder.cardholder. Out of state medical cards are not acceptable.
• Under Oregon law only the followingfollowing forms of identification are acceptable alone as proof of age when purchasing or acquiring marijuana items: 1. An unexpired and unaltered U.S. state or District of ColumbiaColumbia driver license. 2. An unexpired and unaltered identification card issued by a U.S.U.S. state, District of Columbia, Puerto Rico, Guam, Northern Mariana Islands, United States Virgin Islands, or American Samoa, with photo, name, date of birth, and physical description. 3. An unexpired and unaltered ID card issued by a federally recognized IndianIndian tribe with photo, name, and date of birth. 4. An unexpired and unaltered passport or passport card. 5. An unexpired and unaltered U.S. military ID card.
• The following are examples of identification that ARE NOT acceptable alone as proof of age:age: ∙• NEXUS cardcard ∙• SENTRI card ∙• Green card ∙• FAST card ∙• Prison ID card ∙• Gun or Firearms permit, including a permit which allows the carrier to carry a weapon in public
9 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 20 OF 92 in a concealed manner ∙• IDNYC card (New York City Identification card)card) ∙• Social Security card ∙• Pilot'sPilot’s license ∙• Veteran Health IdentificationIdentification card ∙• Student ID cards New customers
• Request permission to retain the customer'scustomer’s first and last name, and date of birth in orderorder to; participate in Kaleafa'sKaleafa’s loyalty program; to be able review past purchases withoutwithout a paper receipt; to receive 10% off their first purchase.
• With permission —– create and save a new customer profile retaining the customer'scustomer’s date of birth and first and last name
• Without permission —– enter first and last name, date of birth and selectselect do not save customer information. Their data name will not be retained after the sale is complete. Returning customers
• Check the customers ID
• Search for their customer profile using their last name and first initial. (Ex. "Smith,“Smith, J”)J")
• Check the customer inin by clicking the appropriate button
• Inform the customer of their loyalty point balance and the current daily specials.
Retail Operations —– Making a Sale Pre-checkout-checkout
• Verify customer'scustomer’s ID at the point of sale station (second ID check)
• Select customer fromfrom the customer cue
• Prepackaged products are to be scanned using the barcode scanner
• Weighable products are to be handled with gloves or tongs only, never with a bare handhand
• Weighable products are to be scanned using the barcode scanner and weighed to the hundredthhundredth decimal point (Ex. 1.01g)
• Tare the scale to zero before weighing the product, verify nothing else is touching the scale
• Print label, stick label on to container,container, place flflowerower in container and seal
• Never allow a customer to touch flflowerower or place flowerower on the scale
• Before continuing to check out, ask the customer if there is anything else you can help with Check out
• Ask whether the customer would like to use theirtheir loyalty points (if they have a balance)
10 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 21 OF 92 • Apply any applicable discounts such as our 1010%% off veteran'sveteran’s discount and/or one of the daily specials
• Verifying contents and prices are correct with the customer
• Accept tender & make change
• Place receipt and produproduct(s)ct(s) in the exit package
• Thank the customer
Retail Operations —– Customer Service (Receipts)(Receipts) Reprinting a receipt
• Navigate to the customers tab in BiotrackTHC
• Once the customer is checked in, select their name in the que
• Their name will appear in a white text box in the upper left corner
• Click on the square humanoid icon next to their name and their purchase history will appear
Retail Operations —– Product Returns Product returns Kaleafa gladly accepts returns on faulty items. This can be a stressful situation for the customer so make this process as simple and convenient for them as possipossible.ble. Returns are to be processed by Floor Leaders or Managers.
• Retrieve a Product Return Form
• Fill out the form with as much detail as possible.
• Have the customercustomer sign the form
• Place returned product along with proof of purchase and return form in a tampertamper evident bag.
• Retain returned products in a central location.
• If a customer does not have a receipt, you can retrieve their purchase history from their pprofilerofile if they have agreed to allow us to retain their data. We will still accept a return without a receiptreceipt so long as the product is accompanied by the original packaging and retains a Kaleafa sales barcode.
• Proceed to process a payout.
11 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 22 OF 92 Retail OperationsOperations —– Register Cash Payouts Payouts Payouts are used to reimburse purchases made on behalf of the companycompany accompanied by a receipt, as well as provide payment to company services such as landscaping or maintenance, and processing customer returns. Payouts shouldshould only be processed by a Floor Leader or more senior position.
• From the customers tab navigate toto the payout icon on the right-handright-hand side of the screen and click.
• Enter the amount to be processed.
• Enter as much detail as possible in the description porportion.tion.
• Date, time, who the payout is for, what the payout is for
• Include a receipt (as applicable) iinn the till.
• Select OK and enter your PIN
• Open the till and collect the amount paid out.
Retail Operations —– Store Closing Procedures Store closing procedures should be completed within one hour from the time of the last sale of the day. After the last salesale is made
• Registers are to be reconciled and drops are to be placed in the drop safe
• Tips may be counted and exchanged for larger bilbillsls from the till, placed in a tamper evident bag and dropped in the drop safe
• All medicated product must be placed in the product vault and secured
• Store supplies are to be replenished
• Pop tops, paper bags, zebra labels, toilet paper, etc.
• All flfloorsoors and surfaces are to be cleaned
• TVs are to be powered down
• Waste bins are to be emptied and taken out to the garbage Before leavingleaving the building
• Secure all entrances and exits
• Secure all safe doors and product vault entry
• Turn off music
• Power down POS stationsstations
12 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 23 OF 92 • Set the alarm & exit building as a team. Under no circumstances should anyone be left alone in the building, nor should anyone leave the building by themselves at night. The buddy system is the preferred method of exiting the building at night.
• Lock the entrance behind you.
Retail Operations —– Cannabis Disposal 1 Any part of a marijuana plant or any solid or liquid waste thatthat is generated in the production or processing of marijuana will be stored, managed, and disposed of in accordance with this policy andand any and all applicable laws. 2 All waste materials disposed of pursuant to this policy will be recorded in the Inventory ControlControl System. 3 All non-liquid-liquid waste disposed of in accordance with this section will be rendered unusable before it is allowed to leaveleave the marijuana facility. This will be done by: 3.1 Grinding the marijuana/product/solid waste into a fine consistency. 3.2 IncorporatingIncorporating the marijuana/product/solid waste with finely ground compostable waste so that the ratio of marijuana/product/solid waste to compostable waste is 50% or less. 3.3 Disposing of the resultant mixture according to applicable state and local laws and regulations.regulations. 3.4 All liquid waste will be disposed of according to applicable state and local laws and regulations.regulations. 4 Each type of waste from the production and processing of marijuana will be evaluated to ensure that it is not hazardous waste. Any waste that meets thisthis definition will be disposed of in accordance with all applicable policies of this division and thethe laws of the State of Oregon. 5 Each daysdays disposal of unusable marijuana will be recorded in the Inventory Control System. This record will include: 5.1 A descriptiondescription of and reason for the marijuana being disposed of 5.2 Date of disposal 5.3 Confirmation that the marijuanamarijuana was rendered unusable before disposal 5.4 The method of disposal 5.5 The name and marijuana establishment agent registration card number of the agent responsibleresponsible for disposal. 5.6 A second marijuana agent will confirm the accuracy of the information recorded andand have their own marijuana establishment agent registration card number recorded.
Human Resources —– Employee Management Policy Statement: The Company willwill administer a disciplinary procedure for employees that is fair, prompt, and complies with the requirementsrequirements of laws and regulations. This Standard Operating Procedure is intended to provide direction that will correct inappropriate behavior or performancperformancee deficienciesdeficiencies unless the offense committed is one for which dismissal is appropriate. It is designed to provide guidelines for employee discipline that are clear to both employees and supervisors. Definitions:Definitions:
13 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 24 OF 92 Adverse Action:Action: An Adverse Action is a disciplinarydisciplinary action taken by the Appointing Authority which results in suspension without pay, demotion, reductionreduction in salary, or dismissal of an employee. NOTE: Adverse Actions must be approved by and are issued by Human Resources to ensure consistency of discidisciplinaryplinary actions. Demotion:Demotion: The movement of a qualified employee to a job on a lower pay grade within the same compensation plan. When moving between two different pay plans, a pay grade is deemed lower when its market average or midpoint salary is 5% or moremore below the market average or midpoint of another pay grade. Supervisor and Employee Requirements:Requirements: To ensure that employees are aware of performance and behavioral expectations and that discipline is administered appropriately, supervisors must: Inform employeesemployees regarding: • Job duties, responsibilities, and expectations • Relevant information (i.e., agencyagency-wide-wide rules, policies, standards, etc.) that will assist employees in carrying out job duties • Local rules and operating procedures • Changes in duties, responsibilities,responsibilities, expectations, standards, policies, etc. • Provide performance feedback to employees • Hold employees accountable for performance standards throughout the performance period • Complete evaluations at the midpoint and at the end of the performance year.year. • Consistently enforce rules, policies, etc. Similar situations should be handled iinn a similar manner; however, it is not required that the penalty for violations be precisely the same in every instance. The penalty may vary because of • TheThe Severity of thethe OffenseOffense • Presence or absence of intent • Previous work record of the employee • Other relevantrelevant factors Be aware that it is not necessary or required that every disciplinary action be followed in sequence for every situation (i.e., oral reprimand, then writtenwritten reprimand, then adverse action). Over a period, it may be appropriate to use severalseveral approaches, including disciplinary action, to address an employee'semployee’s issue(s). Some situations, on the other hand, require immediate dismissal. The basic guideline in eacheach situation should always be to use the form of discipline that is most appropriate for the inappropriate behavior or performance deficiency. Not administer discipline with the purpose of punishing the employee. Disciplinary actions, except for dismissal,dismissal, are a good faith effort to affect change in, and correct unacceptable behavior and/orand/or performance. Employees must: Satisfactorily perform job duties and behave in a reasonable manner in accordance with company standards of conduct. Be aware that it is not a right that disciplinary actions be administered in sequence, (i.e., oral reprimanreprimand,d, then written reprimand, then adverse action). The supervisor will decide what discipline is required for each instance of inappropriate behavior
14 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 25 OF 92 or performance deficiency.deficiency. Be aware that disciplinary action is administered as a good faith effort intended to affect change in, and correct unacceptable behavior and/or performance. Understand that your employment relationship with Kaleafa is for an indefinite period of time.time. EmploymentEmployment may be terminated at-will,-will, at any time, with or without cause. Cooperate fullyfully and truthfully and provide assistance, when appropriate, with investigations regarding alleged misconduct. This includes activities such as: Cooperating in interviews;interviews; Answering questions related to the performance of official duties; Producing requestedrequested documents; and reportingreporting suspected criminal or administrative misconduct including fraud, waste and abuse relating to any company program or operation. Employees who makemake false allegations and/or disclose information with willful disregard will be subject to disciplinary action. NOTE: In some cases (suspension, salary reduction, demotion, dismissal) supervisors must obtain the approval of the Appointing Authority before proceeding with implementing the disciplinary action. Disciplinary Actions: In addition to or prior to taking disciplinary action against an employee, other disciplinary actions such as a verbal warning, written warnings, attendance plans, letters of concernconcern and expectations, unauthorized leaves without pay, work plans, denials of salary increase,increase, written reprimands and suspensions with pay may be appropriate to emphasize inappropriate behavior or performance deficiencies. Verbal Warning:Warning: A Verbal Warning is a discussion between the supervisor and employee intended to get employees back on tracktrack after inappropriate office behavior or substandard work performance. A verbal warning should be documented by the supervisor in the form of written notes to be plaplacedced in the supervisor'ssupervisor’s employee management file. Letter of Concern and Expectations: A Letter of Concern and Expectations is issued to the employee by the supervisor to outline concerns and expectations. The concerns are typically based on poor performancperformancee or behavior that violates performance expectations previously provided in thethe employee'semployee’s performance plan. The letter should clearly list the performance and/or behavior issues, future performance and/or behavior expected, and the timeline for improvement.improvement. The employee should be asked to sign and date the letter to indicate receipreceiptt of the letter. The supervisor should keep the letter in their employee management file. Work Plan:Plan: A Work Plan is a written statement of specific/detailed work expectationsexpectations and may include a timeline. The plan is designed to give the employee the opportunityopportunity to raise performance to an acceptable level. Supervisors may write a work plan to supplement the performance plan or add the expectations to the Individual DevelopmentDevelopment Plan section of the performance plan. The supervisor must inform the employee of thethe changes. Work plans that are separate from the performance plan should be kept in the supervisor'ssupervisor’s employee management file.
Human Resources —– Termination Any terminationtermination of thethe employment relationship, whether voluntary or involuntary, must be treated in a confidential, professional manner by all concerned. The Department of Human Resources will share this information with others in the Company as deemed necessary toto complete the termination process and to resolve any issues relating to the termination.termination. 1. Voluntary Termination
15 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 26 OF 92 a. An employee who voluntarily terminates the employment relationship is expected to provide his or her supervisor with adequate written notice, andand preferabpreferablyly no less than two weeks in advance, regardless of jobjob classification. b. An employeeemployee who voluntarily terminates the employment relationship is expected to work the entire notice period unless approved by the immediate supervisor. 2. Involuntary TermiTerminationnation a. In the event of gross misconduct by an employee, the employee could be placed on Investigation and Administrative Leave (with or without pay). Involuntary Termination may occur without prior notice or application of the Performance Improvement proceprocess.ss. Gross misconduct may include, but is not limited to, the following: i. ViolationViolation of any law, policy, regulation, or practice, including those related to the Code of Conduct ii. Unlawful or improper conduct while on work time iii. Conviction of a crime which may callcall into questionquestion the Faculty or Professional Staff Member'sMember’s ability to properproperlyly carry out the responsibilities of his/her position iv. Violence or the threat of violence in the workplace v. Theft or fraud vi. Lying or intentionally withholding information that shouldshould be disclosed;disclosed; vii. Insubordination or refusal to perform work; viii. Serious negligence,negligence, recklessness or intentional wrongdoing; ix. Acts of discrimination or retaliation; and/or x. Demonstrated lack of respect for others. b. The list set forth above is not exhaustive. Gross misconductmisconduct may require the supervisor to take adverse employment action, inclincludinguding but not limited to, any action outlined in the Performance Improvement Process Policy (which includes termination). c. A supervisor contemplating involuntary termination of an employee must review the matter with the next level of management and their HRHR Partner prior to making a final determination. d. The supervisor is responsible for compiling complete and accurate documentation regarding any Involuntary Termination, regardless of the babasis,sis, as outlined in the Performance Improvement Policy. e. The HR PartnerPartner is responsible for conducting the termination meeting with the affected employee, and for fully documenting the discussion. f. Kaleafa will not rere-employ-employ anyone who has been involuntarilyinvoluntarily terminated from employment at the Company for gross misconduct.
WholesaleWholesale Support —– Overview 1. Accept the Manifest in Metrc. a. Open Metrc and Login. b. Switch to the Wholesale Location. c. Click Transfers —– they will always be licensed. d. Click the IncomingIncoming Tab.
16 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 27 OF 92 e. FilterFilter the manifest column by the Manifest Number listed on the printed copy. The manifest should populate near the top. f. Click the receive button to the right-handright-hand side. A new window will open. i. Verify each package listed on the manifest, if any prodproductsucts need to be rejected, they will be circled by the manager. ii. Double check Metrc tags and quantities. iii. If a price is listed, double check this against the invoice for accuracy. g. Click the green Receive Transfer Button. 2. Verify the product has been created in BioTrackTHC.BioTrackTHC. a. Open BiotrackTHC and login, switch to the correct location if necessary. b. Click the Products button on the right-handright-hand side. A new window will open in BioTrackTHC.BioTrackTHC. c. Search for the item being intaken —– for example prepre-packaged-packaged 1g GSC extract by KaleafaKaleafa willwill be listed as 1g1g-Kaleafa-GSC-Kaleafa-GSC in BioTrackTHC. d. If the item exists, select it from a drop-down-down list that will pop up below the text input box. e. Verify the existing product information is correct. i. PricePrice ii. Usable Amount iii. Category iv. Vendor f. If the item does not exist in BioTrackTHC'sBioTrackTHC’s system,system, create it following the Item Creation SOP. 3. Intake the product into BioTrackTHC.BioTrackTHC. a. On the blue Metrc tag for each package, write the quantity, the wholesale price of the package, and the name of the product. b. In BioTrackTHC,BioTrackTHC, click on thethe New Inventory butbuttonton on the rightright-hand-hand side. A New window will open. i. Deselect the Auto-Print-Print labels option to the left-handleft-hand side. ii. In the Product text box, enter the name of the item being intaken exactly as it'sit’s been created in BioTrackTHC.BioTrackTHC. ClickClick on the product from the dropdrop- down list that appears below. iii. Enter the weight or quantity for the package. iv. Enter the wholesale price of the individual package. v. Scan the Metrc tag into the Metrc ID Field vi. Click Add. vii. Do this for each package received by the vendor. viii. OOncence all items are added, click the Create button to the left. 4. After the items have been created, close the New Inventory window and print BioTrackTHCBioTrackTHC Labels for every package you'veyou’ve intaken. a. Organize physical product into package size matching MetrcMetrc Tags.Tags. b. Make sure you separate packages into baggies or boxes so that all the product is in one container with its matching blue Metrc tag. c. Each package must have a BioTrackTHCBioTrackTHC barcode label matching the Metrc tag placed on the outside of the container where it iiss easy to reference later. 5. Separate products into bins for stores and add the extra product into backstock. a. Each bin is color coded for each store.
17 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 28 OF 92 i. Red: Oregon CityCity ii. Blue: Beaverton iii. Grey: Gresham iv. Green: Woodstock v. Black: Ashland b. Any product not immimmediatelyediately sentsent to a retail location will be organized into Wholesale backstock.
Wholesale Support —– Creating New Items in BiotrackTHC OVERVIEW: This process is necessary to maintain accurate product information for our budtenders on the sales flflooroor and whenwhen syncingsyncing customer sales to Metrc. 1. Open BioTrackTHC and login. a. Click Products. b. Search for a premade template that matches the type of item needing to be created. Templates are listed at the bottom of this guide. c. Delete the text within the Existing ProductsProducts box to createcreate a new item —– this is an important step if it is skipped BioTrackTHC will overwrite the template instead. 2. Enter the necessary item information. a. Strain b. Name c. Usable Amount of THC d. Price Point —– typically the wholesale price x 2. i. Verify whether the produproductct is hemp-based-based and has THC in it to dictate the tax on the recreational price point. Don't go off the blue hemp and red THC stickers on the outside of the bottle, since these are nnotot always accurate, look at the usable amounts in the testing ininformationformation on the physical item itself. e. Vendor f. Metrc Weighable i. On the Metrc Manifest, each package will have its own CategoryCategory— – like (Extracts) vs (Extracts (each)) OR (Buds) vs (Buds (by strain)). ii. If the item is categorized as just (Extracts),(Extracts), (Buds),(Buds), etc.,etc., the MetrcMetrc Weighable box in BioTrack must be checked. iii. If the item is categorized as (Extracts (each))(each)) or (Buds (by(by strain)),strain)), the Metrc Weighable box in BioTrack must be left unchecked. 3. When all information has been added, click SAVE near the bottom left of the window.window. TEMPLATES
• EXTRACTS o 11gg -Template-Template-Shatter-Shatter o 1g-Template-Template-Live-Live Resin o 1g1g-Template-Terp-Template-Terp Sugar o 1g-Template-Template-Honeycomb-Honeycomb • DRIPPERS/RSO o 1g1g-Template-Strain/Flavor-Dripper-Template-Strain/Flavor-Dripper
18 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 29 OF 92 • JOINTS o .5g-Template-Template-Joint-Joint o 11gg -Template-Template-Joint-Joint • VAPE CARTS o .5g-Template-Template-Cart-Cart o 11gg -Template-Template-Cart-Cart o .25g-Template-Template-Disposable-Disposable Cart o .5g-Kaleafa.5g-Kaleafa Gold L.R.-FireL.R.-Fire OG o 1g1g-Kaleafa-Kaleafa Gold L.R.-StarL.R.-Star Kush o .5g-Kaleafa.5g-Kaleafa Platinum-Banana-Banana o 1g1g-Kaleafa-Kaleafa Platinum-Hybrid-Hybrid o .5g-Kaleafa.5g-Kaleafa Gold-JGR-IndicaGold-JGR-Indica o 1g1g-Kaleafa-Kaleafa Gold-J1-SativaGold-J1-Sativa o .5g-Kaleafa.5g-Kaleafa Silver CO2-Airborne-Airborne o 1g1g-Kaleafa-Kaleafa SilSilverver CO2-Airborne-Airborne o .5g-Kaleafa.5g-Kaleafa Silver Distillate-Agent-Agent Orange o 11gg-Kaleafa -Kaleafa Silver C-Cell-Cell-Jack-Jack Herer-SativaHerer-Sativa • EDIBLES o 50mg-Template-Flavor50mg-Template-Flavor o 100mg100mg-Template-Flavor-Template-Flavor —– RememberRemember that Medical grade items are not applicable for recreational sales. o 50mg-Kaleafa-Berry50mg-Kaleafa-Berry GuGummymmy o 50mg-Kaleafa-High50mg-Kaleafa-High CBD Berry Hard Candy • TINCTURES o Tincture Template • TOPICALS o Template-Topical-Topical —– Remember to add the usable info! o Template-TransdermalTemplate-Transdermal Patch • FLOWERFLOWER o (FarmName)-12/14Strain(FarmName)-12/14Strain - for 12/14 Price Point flower o (FarmName)-10/12Strain(FarmName)-10/12Strain - for 10/10/1212 Price Point Flower o (FarmName)-8/10Strain(FarmName)-8/10Strain - for 8/10 Price Point Flower o (FarmName)-8/8Strain(FarmName)-8/8Strain - for 8/8 Price Point Flower o (FarmName)-Strain-FR(FarmName)-Strain-FR o (FarmName)-Strain-$99oz(FarmName)-Strain-$99oz o (FarmName)-Strain-$60oz(FarmName)-Strain-$60oz o (FarmName)-Strain-Dollar(FarmName)-Strain-Dollar Gram
Wholesale SupportSupport —– ProductProduct Intake OVERVIEW: This process is important to meet the requirements of the OLCC for receiving marijuana products from another licensee. METRC REQUIREMENTS 1. Before starting the intake process, make sure the following information is present: a. InvoiceInvoice
19 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 30 OF 92 b. Metrc Manifest c. Purchase Order (for flflower)ower) d. Test Results (for flflower)ower) e. Wholesale Invoice Sheet 2. Double check the information on the driver's manifest to makemake sure that the date and the license they are delivering to is correct (and that they have signed inin the SignatureSignature of Person Transporting field on the manifest itself). a. Take this time to double check and confirm the invoice with the Metrc manifest and the physical product are identical. b. Make sure that all blue Metrc tags and their associated packages areare present that are listed on the Manifest and that there is no extra or missing product. c. IfIf anything isis missing or incorrect, you can reject individual items or the entire drop if necessary —– justjust make sure you circle the rejected items on the manifest. UseUse your bestbest judgmentjudgment when it comes to rejecting product —– ifif you are unsure, pair with your purchasers. 3. Once allall packages have been verified or rejected, sign to receive the transfer. a. Fill in the Date/Time Received field on the front page of the manifest - make suresure this information is as accurate as possible. b. On the last page of the manifest, print your name in thethe Name of Person Receiving or Rejecting Product field, then sign and date on the Signature line. KALEAFA REQUIREMENTS 1. Now begin filling out thethe WholesaleWholesale Invoice sheet. a. Add the date. b. Mark the payment method —– whether terms are COD (check on delivery), Net14,Net14, Net30, or Consignment. c. Supplier Name, ensure this is accurate and has enough information to easily locate later i. For example, Buddies will drop produproductct for Kaleafa Gold carts as well as their own product, writing Buddies/Golds in the supplier name is an easy way to separate white label carts from normal product drops later. 2. Check to see if the vendor dropping product needs to be paid. a. Reach outout to the appropriate accounting team member to verify outstanding balance(s) from previous invoices. Some standard terms are as follows: i. For flflowerower purchases, there will typically be a net14 or net30 payment plan ii. The vendor will need to check-in-in with pupurchasingrchasing whowho will authorize any payments. iii. Any drops totaling or under will be paid off immediately. iv. Other items will typically receive 25% of the total invoice amount as a down payment. b. If the Vendor requires immediate payment, it is important thatthat the checkcheck number is written in the Check # field on the WholesalWholesalee Invoice.Invoice. i. In the Product field, make sure to write either Attached (if there is an invoice attached), or handwrite the products you are receiving as well as their price and quantity.
20 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 31 OF 92 ii. Near the bottom of the WholesaleWholesale Invoice sheet, you'll see a spot to writewrite in an InvoiceInvoice totaltotal,, what was paid that drop, and any remaining balance if applicable. 3. Once all of the above have been verified, sign on the "Received”Received By"By” line and write the date and timetime below. The vendor will also sign at the bottom agreeing to the information as noted on the Invoice and received by Kaleafa. a. The vendor might need or request copies of the manifest and Wholesale Invoice for their own records —– print as requested.
WholesaleWholesale SupportSupport —– Splitting Items in Metrc and BiotrackTHC OVERVIEW: This process is necessary to separate larger quantity packages received at Wholesale into small quantities that are delivered to multiple retail locations and maintain compliance with the OLOLCC.CC. METRC PROCESS 1. Open Metrc and Login, make sure you are logged iintonto Kaleafa Wholesale. a. Select the "Packages"“Packages” tab. b. Click on the "Active"“Active” tab. c. Select "Filter"“Filter” and enter the last 4 numbers of the Metrc tag and click "Search"“Search” to pull up the package that needneedss to be split.split. d. Verify the information in Metrc matches the productproduct.. e. Name f. Quantity g. Item Category h. Click on the item line, and it will highlight orange. i. Select "New“New Packages"Packages” and a new window will pop up. 2. Enter the Information for the split package details in that windowwindow a. New Tag: Scan an unused Metrc tag —– there will be tags on site for this. b. Item: In this field, search for the item name of the package. Typically, products are named in Metrc exactly as they are in BioTrackTHC for consistency. c. Quantity: Enter howhow many individualindividual items being added to this tag from the parent tag. d. Select the unit of measure from a drop-down-down menu. Make sure this matches the unit of measure selected on the parent tag. e. Package Date: Click the Today button to auto-populate-populate the date intointo this texttext field. f. After verifying the information is correct, click the green "Create“Create Package"Package” the window should close automatically. The quantity on the parent package will update as well. BIOTRACK PROCESS If the parent package has already been intaken into BioTrackTHC,BioTrackTHC, it will need to bbee split within this system as well. 1. Open BioTrackTHC and login, make sure you are in the correct location. 2. Locate the item needing to be split and click to highlight it.
21 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 32 OF 92 3. Click "Convert"“Convert” near the bottom of the BioTrackTHC window. A new window will pop up. a. CopyCopy the text from the Product text box and paste it into the New Product text box. b. Select the "Room"“Room” (from dropdown list) where the converted product is to be stored in, so that it can be easily found later. c. In the "Quantity"“Quantity” text box, enter the units beinbeingg taken from the parent package. Enter the same number in the "New“New Product Quantity"Quantity” field. This will be the new quantity for this package. d. Enter "Cost“Cost per Unit",Unit”, this should be the same as Original Cost Per Unit listed in the grgreyey box above. e. Click the "Next"“Next” button twice and enter your pin. f. Once the parent package has been split into the necessary quantities, close the Inventory Conversion window 4. Locate the converted product in BioTrack and highlight the New Package thatthat was just created 5. Click Details, a new window should pop up. a. In the Metrc ID text field, delete the existing Metrc number listed there and scan the new Blue Metrc Tag from the package created in Metrc. b. Click Save. PRE-PACKING-PACKING BINS 1. Organize physical producproductt into pacpackagekage size matching Metrc Tags. a. Make sure you separate packages into baggies or boxes so that all the product is in one container with its matching blue Metrc tag. b. Each package must have a BioTrackTHC barcode label matching the Metrc tag placed on the outsideoutside of the container where it is easy to reference later. 2. Separate products into bins for stores as directed by Purchasing or the Wholesale Manager. 3. Bins are color-coded-coded for each store as follows: a. Red: Oregon City b. Blue: Beaverton c. Grey: Gresham d. Green:Green: WoodstockWoodstock e. Black: Ashland 4. Any product not immediately sent to a retail location will be organized into Wholesale backstock.
Wholesale Support —– Processing Product OVERVIEW: This procedure is necessary to ensure that products are properly brokenbroken-down,-down, weighed, ppackagedackaged and preparepreparedd for transfer to retail locations. 1. Processing Oil Slab a. Starting with a blank Processing Checklist Form, check the box for Concentrate in the top left-handleft-hand corner of the form. b. Fill out strain name, and processor name.
22 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 33 OF 92 c. Getting accurate weight of concentrateconcentrate (oil slab). To avoid overweighing oil slab, we must adjust for the weight of the terp paper the oil is pressed between. i. Step 1: Use a tray —– or other flflatat and wide surface to weigh the paper —– and zero the scale. ii. Step 2: Remove thethe extra paper off thethe tray and add the slab —– this will give an accurate weight on the oil. iii. Step 3: Add this number (weight in grams) to the "Gross“Gross Weight"Weight” on the Processing Checklist Form d. Reset the scale and begin dividing product (must wear gloves).gloves). i. UseUse the dab tools to break apart oil slab. There should be tools on site to use depending on the consistency of the extract. ii. Each 1 gram portion will be folded into terp paper and inserted intointo a 3x4.5"3x4.5” mylar bag ONLY. Note: tolerance must be withinwithin 0.99 to 1.01 grams of stated weight. e. If the slab is not fully processed, weigh the remaining product to get a remaining weight of the oil slab. This amount should be written on the Processing ChecklistChecklist Form in the Waste/Unused section, as well as on a sticker onon the outside of the box the slab came in. Date and initial beside it. i. The box or container with the remaining weight is kept in a refrigerated safe room in Wholesale when it is not being proprocessed.cessed. ii. Subtract the "Waste/Unused"“Waste/Unused” total from the "Gross“Gross Weight"Weight” total —– this will be the "NET“NET Weight"Weight” on the Processing Checklist Form f. Once finished, all the individual grams are kept together in plastic bags or a box with the completed Processing Checklist.Checklist. Adhere a hand-writtenhand-written label listing strain name andand quantity on the outside of the bag or box. 2. Processing Dollar Grams a. Starting with a blank Processing Checklist Form, check the box for Flower in the top left-handleft-hand corner of the form. b. Fill out strain name, and processor name. c. Weight out the flflower.ower. i. EverythingEverything in thethe bag will be counted as usable flflower.ower. Dump the entire contents into a bowl and weigh on the scale. ii. This number will be written on the "GROSS“GROSS WEIGHT'WEIGHT” line on the processing checklist. d. Remove all flflowerower from the scale and separate any shake with a sifter —– there should be one on site to use. Set any shake or stems collected off to the side —– this will be weighed at the end of the process. e. Weigh out grams and place them in 8-dram-dram pop-tops-tops ONLY. Note: tolerance must be within 0.99 to 1.01 grams of thethe usable flflower.ower. Any stems removed from the grams as they are being weighed will be added to the shake collected earlier. f. Once all product is weighed into pop-tops,-tops, weigh the leftover waste —– write thisthis down under "Waste/Unused“Waste/Unused Amount"Amount” on the Processing Checklist Form. i. Subtract the "Waste/Unused"“Waste/Unused” total from the "Gross“Gross Weight"Weight” total —– this will be the "NET“NET Weight".Weight”. g. Sign and date the Processing Checklist Form. h. All pop-tops-tops filled with this product strainstrain are kept in bags of 20 each and stored in the same bin togethertogether to avoid confusion.
23 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 34 OF 92 i. Each bag should have a label put on the outside of the bag with the strain, farm, and the total finished grams. ii. This same information needs to be on a label on the outsideoutside of the bin so that wholesale can easily see what product isis finished. xnihniesaleWholesale Support —– rmatingCreating TransfersTrancforc in MetreMetrc and RintrarkTI-ICBiotrackTHC OVERVIEW: All items being sent to retail locations must be tracked and recorded within the OLCC system by creatingcreating a manifest in Metrc. Transferring items in BioTrackTHCBioTrackTHC ensures that the items can be sold within the POS system once the store receives the product. METRC PROCEDURES 1. Login to Metrc and ensure you'reyou’re in the Wholesale license. 2. Near the top of the page, click on "Transfers"“Transfers” a. Transfers will always be licensed transfers.transfers. 3. Once this page loads, click "New“New Transfer"Transfer” and a new window will pop up. a. In the "Destination"“Destination” field enter the license for the destination. b. In the "Planned“Planned Route"Route” field, copy and paste turn by turn directions from Google Maps. c. To the right, selectselect "Wholesale"“Wholesale” for the type of transfer. i. It is critical to record the price of each item being transferred to license stores. d. In the "Employee“Employee ID"ID” field, select the driver fromfrom the dropdown list. i. For new drivers, enter the required details in the appropriateappropriate boxes below and they will be automatically added to the dropdown list. e. Next, select the"the” Vehicle"Vehicle” the driver will be using from the dropdown list. i. For new vehicles, enterenter the required details in the appropriate boxes below and they will be automaticallyautomatically added toto the dropdown list. f. Adjust the date, departure, and arrival time to be as accurate as possible to the driver'sdriver’s schedule. g. In the "Package“Package #1"#1” field, scan the Blue Metrc tag into this field and enter the package price beneath it (the package price is cost perper unit multiplied by quantityquantity).). Do this for each package to be transferred. h. Once each package has been added to the manifest, click the green "Register“Register Transfer"Transfer” button at the bottom of the page 4. Print two copies of the Manifest and two copies of the ReceiptReceipt Page.Page. a. To print the Receipt Page,Page, click the drop-down-down arrow to the left of the transfer in Metrc and click the "Print"“Print” icon on the rightright-hand-hand side. b. Select PDF to save the file, then open and print it from your computer. c. Staple the Receipt PagePage to the back of the manifest. d. One copy willwill be sent with the driver transporting the product, and the second copy will be for our bookkeeper. On the copy meant for our bookkeeper, add the prices of all packages and total them at the bottom. BIOTRACKTHCBIOTRACKTHC PROCEDURES 1. Transfer the product in BioTrackTHC.BioTrackTHC.
24 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 35 OF 92 a. Open BioTrackTHCBioTrackTHC and navigate to the room where the items to be transferred are located. b. Locate each package listed on the manifest and check the box to the left of the barcode to keep this item selected. Do this for eacheach package on the manifest until all items are selected. c. Click the "Transfer“Transfer Inventory"Inventory” button on the right side of the page. A new window will open. d. Deselect the "Auto“Auto-Print-Print Label"checkboxLabel” checkbox underneath the "Print“Print Label"Label” button on the left sideside of the nnewew window. i. If left checked, this will print a barcode for every item transferred and tends to freeze BioTrackTHC.BioTrackTHC. We advise against using it. e. In the "Going“Going To”To" field near the middle of the page, select the correct location from the drop-down-down list.list. f. ClickClick the "Add“Add to Transfer”Transfer" buttbuttonon near the middle of the window for each item being transferred. The items above start to highlight as it moves down the list. 2. Once all items are highlighted, double check against the manifest to make sure there are nono missing packages. 3. Click the "Transfer“Transfer All"All” button and enter your pin to complete the BioTrackTHCBioTrackTHC transfer.
Wholesale Support —– Creating Flower Jar Labels OVERVIEW: This process is necessary to display accurate, customer facing, testing information that matches BioTrackTHCBioTrackTHC and Metrc.Metro. 1. Open AdobeAdobe Illustrator and click on the magnifying glass in the top right-handright-hand corner to search the files. a. Search for "Blank”Blank Template”Template"— – Load this template into Illustrator. Alternatively, this file can be found in the CreativeCreative CloudCloud Files in the Flower StickeStickersrs folder. 2. Next, search for the strain name for jar label that needs to be created. a. If a strain has already had a jar label created for it in the past, it should be listed in the Wholesale Labels folder in the CreatiCreativeve Cloud Files.Files. b. Each flflowerower jar labeledlabeled as strain name first, followed by a hyphen "-"“-” and then the farm name (example: Forbidden Fruit--SugarSugar TreeTree).). c. Load the matching strain file into Adobe Illustrator 3. Update the label information if necessary. a. Verify thatthat the ininformationformation is correct —– strainstrain name, farm name, and color of the label to identify the type of flflowerower strain (see below). i. In the case of flflowerower specials (feel right, ounces, etc.), search for the strain information on Leafly.Leafly. b. If anything needs to be changedchanged or updated —– like the testingtesting and batch info, click on the "Type”Type Tool”Too/"from from the toolbox in illustrator to update this information. c. Any information listed on the flflowerower labels should match the specifics below: i. TEXT FORMAT 1. Farm Name:Name: CAPITALIZECAPITALIZED,D, Gotham Medium, 23pt 2. THC/CBD Percentages:Percentages: CAPITALIZEDCAPITALIZED,, Gotham Medium, 30pt 3. Strain Name:Name: CAPITALIZEDCAPITALIZED,, Gotham Medium, 45pt (allow adjustment to fit)
25 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 36 OF 92 4. Strain TypeType:: Gotham Medium, 20pt 5. Test Info:Info: Gotham Medium, 7pt ii. COLOR 1. Sativa ColorColor.: EE3424 (red) 2. HybridHybrid Color: 098D45098D45 (green) 3. IndicaIndica CColorolor: 863D97 (purple) 4. CBD Color: 3170B8 (blue) 5. Background ColorColor.: FFF7D4 (tan) 4. Once all information on the label is correct, add it to the Blank Template. a. Use the "Direct”Direct Selection Tool”Too/"from from the toolbox in Adobe Illustrator to select the entire label. b. CopyCopy and paste the new label into the Blank Template just created in Step 3 above. c. Align the label for printing. One (1) label will go in each corner of the page - 4 labels per page. 5. Make sure to print a FRONT and BACK jarjar label,label, so eacheach label is printed twice.twice. One blank template can hold the front and back labels for 2 strains 6. Print directly from Illustrator. a. Make sure to print to the correct printer. There is a specific device for printing vinyl labels onsite. 7. Repeat this prprocessocess for every set of labels needingneeding to be created 8. Every flflowerower jar label also needs a matching jar top label. The labels will be found in the Flower Jar Top Price Labels folder within the Creative Cloud Files.Files. a. Find the label template that matches the strain'sstrain’s pricpricee point - they should be named clearly —– and open the template in the Zebra Label Printer program. b. Once it loads in the Zebra program, double click the "Strain“Strain Name"Name” to edit this text box. i. The strain will be listed at the TOP and the farm will be listed underneath.underneath. c. Put the flflowowerer jar labels and the jar top labels into a file or folder so they do not bend or get damaged. Make sure that any flflowerower being transferred out is paired with its matching label/stickers.
Wholesale Support —– Making Sales FloorFloor BarcodeBarcodes OVERVIEW: This process is necessary for creating sales flflooroor barcodes with accurate product information for the budtender, the customer, and for BioTrackTHC. 1. Open BioTrackTHC and login. a. Navigate to the package or packages that need labels. b. Check the box beside each package to be highlighted. c. Click "Print“Print Label"Label” near the bottom of the BioTrackTHC window. This will print the BioTrackTHC barcode to be used for the sales flflooroor stickers. d. Click the "Products"“Products” button on the right-handright-hand side of BioTrackTHCBioTrackTHC and looklook up each item by name in order to get the correct price point. i. Write these prices on the BioTrackTHC barcode sticker so that they can be easily referenced later
26 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 37 OF 92 2. Load a premade template into the Zebra Printing program and print stickers for each packapackage.ge. a. Open the Creative Cloud Files. i. NOTE: This is a folder that is synced to our Adobe Illustrator account, any changes that are made within this folder will affect the files for each location. b. Navigate to the "Product“Product Stickers”Stickers" folder and load thethe "Variable“Variable ProductProduct Sticker Template".Template”. i. This template will be used for any product that is not flflowerower c. Once the template loads, click the "Print"“Print” button near the top of the page, and a new window will pop up. i. Product Info —– Enter the usable amount, the strainstrain or flflavavor,or, and the type of product within this text box. Example (1g Blood Orange RSO) ii. Farm Info —– Enter the manufacturer name. iii. Medical Price iv. Recreational Price v. UID —– In this field, scan the Blue Metrc Tag that should be present with every package containingcontaining marimarijuanajuana products. vi. Barcode —– In this field, scan the BioTrackTHC barcode. Always double check the barcodes are accurate through BioTrackTHC. vii. Enter the quantity needed and click Print 3. All sales flflooroor barcodes should be kept with their package —– the bbarcodesarcodes andand MetrcMetrc tags are unique for each product. a. Fold the stickers neatly and place them in the bag or box along with the product.
Wholesale Support —– Preparing Bins for Transport OVERVIEW: This procedure is necessary to ensure that products and bins are properproperlyly packaged and labeled according to OLCC laws before transporting to retail locations. 1. Obtain packing slip and prefilled bin from the manager. a. Separate packages into baggies or boxes so that all the product is in one container with its matching blue Metrc tag. b. Each package must have a BioTrackTHC barcode label matching the Metrc tag placed on the outside of the container where it is easy to reference later. 2. Each bin is color coded for each store. a. Red: Oregon City b. Blue: Beaverton c. Grey: Gresham d. Green:Green: WoodstockWoodstock e. Black: Ashland 3. Verify all product, quantity count, and the Metrc ID numbers on the manifest match the physical items in the bin. a. If something is extra or missing, it needs to be brought to the Wholesale Manager's attention as soon as possibpossible.le. i. NOTE:NOTE: Some items, like Nightingale Hemp based CBD lotion, will not have a Metrc tag. These items are rare but there will be
27 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 38 OF 92 a BioTrackTHC barcode stickered to the last page of the manifest if there are any of these items in the bin. b. Complete a small chchecklistecklist labellabel sticker on top of the bin to initial and verify things on the list are completed. On this sticker, double check the Manifest number matches the printed manifest with the bin. c. Sticker packages one at a time to avoid mixing up product. Each bag or box of product should have sales flflooroor labels and a Blue Metrc tag in the bag.Double check to make sure that the product listed on the barcode is accurate to the product in the bag before stickering each individual item. If something is incorrect, let one of the managers know. i. Product may need to be individually bagged, or hole punched. It is crucial that sales flflooroor stickers do not cover testing or lab information. d. Once a package has been stickered, it must be bagged or boxed together with the Blue MetrcMetrc tagtag facingfacing outward —– this makes it easy for the GM or Assistant receiving the product at a retail level to double check their manifest. e. Heavy items should be put on the bottom of the bin, flflowerower will be placed on top. f. Once all product in the bin has beebeenn stickered,stickered, initial on the sticker on the top of the bin next to Who Processed. i. Double check all items in the bin to make sure no packages are missing. ii. Initial the QC'D/Verified line on the checklist label on the lid of the bin. g. The manifest will be plplacedaced on the OOUTSIDEUTSIDE top of the bin. h. The finished bins will be set aside for the delivery driver to take to the retail location
Wholesale Support —– Inner Store Transfers OVERVIEW: This process is important to meet the requirements of the OLCC for transportingtransporting product legally from a wholesale licensed location to a retail licensed location. 1. Each bin should be stickered with a label listing Location, Manifest Number, Date, as well as a checklist sticker on the top of the bin with each person’sperson's initialsinitials who (i) created labels,labels, (ii) processed the items and (iii) verified the bin after it was processed. a. Double check to make sure each bin being transported has a matching manifest. 2. Verify that the contents of the bin are correct. a. The manifest should have a list of every marijuanamarijuana product being transported. i. Since the driver is legallylegally responsible for these items while transporting them, it is important that each package listed on the manifest is accounted for. The bins go through several checks before thisthis point, so this is thethe last opportunity to catch any mistakes before the product is on the road. b. After all contents in the bin are verified, it should be sealed with Tug Tights on each end. i. Each Tug Tight must be initialed by the driver. ii. The driver needsneeds to sign inin the"the” SignatureSignature of Person Transporting"Transporting” field on the manifest and the bin is now ready to be transported. 3. It is extremely important that all information on the Metrc Manifest is complete and accurate:
28 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 39 OF 92 a. Manifest Number —– double check the manifestmanifest number on each bin label against the printed manifest. b. Date & Time —– make sure this matches the driver’sdriver's schedule as accurately as possible. c. Destination License Number and Address —– check against the manifest information on the bin label. d. Route to Be Traveled —– a list of turn by turn directions acquired by Google Maps and any notes that are applicable to this delivery. e. Name of Person Transporting —– this must match the driver'sdriver’s information, as well as the information about the vehicle transporting the products 4. AllAll bins of product should be delivered to and accepted by a General Manager, Assistant Manager, Bud Leader, or an onsite inventory team member. a. If the authorized manager wants to reject any product, they need to circle the item on the manifest andand release the producproductt back to the driver. This must be done this with each item being rejected. b. Once the authorized manager verifies the contents of the bin and rejects any product (if necessary), the driver will require that person to print, sign and datedate in the appropriateappropriate fields located on the bottom of the manifest. 5. Whenever products are rejected from an original manifest, the driver will need to sign the"the” Signature of Individual Taking Receipt of Rejected Portion of This Shipment”Shipment" field. 6. Once signed, make a copycopy of this manifest at the location, and lock the rejected product in a bin with Tug Tights initialed by the driver to be returned to the originating licensed location (Wholesale).
Wholesale Support —– MetreMetrc Sales Uploads This process is necessarynecessary to accuratelyaccurately uploadupload each retail location'slocation’s daily sales from BioTrackTHC to be recorded and tracked by the OLCC within Metrc. DOWNLOAD REPORTS FROM BIOTRACKTHC 1. Open BioTrackTHC and login. a. Click on the"the” Reports"tab.Reports” tab. Select Metrc Reports and then select Metrc Sales. b. Select thethe start and end date from the calendar. These dates will always be the same (i.e. Jan 1, 2019 - Jan 1, 2019). It is important when uploading sales to ONLY upload for one day. c. Next, select the location you want to pull sales for.for. d. Make sure that Diagnostic Mode is set to No and select"select” View Report".Report”. A list of sales should populate on the rightright-hand-hand side 2. Once this list loads select the"the” Export"Export” button on the left. A new window will pop up. a. In the name field of the new window, renamerename the file to includeinclude the storestore name, sales, and date so that it can easily be found later, and select SaveSave.. i. For example: Metrc SalesSales-1-16-2019.csv-1-16-2019.csv becomes WoodstockWoodstock Sales 11-- 1616-2019.csv-2019.csv b. From the drop-down-down menu below —– make sure to select the folder named 'Metrc Uploads' on the computercomputer and Click SaveSave.. UPLOAD REPORTS TO METRC
29 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 40 OF 92 1. Once the report has successfully been exported from BioTrackTHC, upload it to Metrc. a. Open Metrc and switch to the correct license for the store that'sthat’s being uploaded. b. Once the locationlocation page loads in Metrc,Metrc, click the icon in the top right-handright-hand corner that looks like a white piece of paper with an arrow pointing upwards. This should take you to a Data Import page in Metrc. 2. Once the Data Import page loads, click on the "Sales”Sales (new)"tab.(new)” tab. a. Click on the "Select”Select Files..."Files…” button at the top of the list. A new window should open. b. In the new window, navigate to the ’'MetrcMetrc Uploads'Uploads’ folder and select the file exported earlier from BioTrackTHC. Click "Open"to”Open” to begin the upload process. c. The file name should populate bebelow,low, selectselect the orange "Upload"”Upload” button underneath it. 3. Once Metrc is done uploading the file, the name text will change green and the file will be added to the list. If there are no errors in the upload, the text will be gray,gray, and Successfully Imported will be listed in the status column to the right of the upload screen. 4. If the file text is red and displays "Error“Error —– Not Imported",Imported”, this means that Metrc encountered an error and was not able to upload the sales for that day. a. ClickClick on the right facing drop-down-down arrow nenextxt to the name of the file that has the error. b. You should see a small list populate underneath the name of your file. This will be a list of the errors Metrc encountered while trying to upload your file. Most CommonCommon Errors 1. 'Package'Package (Metrc tag) ddoesoes not exexistist inin the current Facility'—Facility' – this means that the item sold has a Metrc tag that does not appear in the license'slicense’s Metrc active package list. 2. 'Package'Package (Metrc tag) isis in Transit and cannot have its contents sold.' This can happen when a license accidentallyaccidentally sells a package that hasn'thasn’t been accepted from an incoming Metrc transfer. 3. 'Package'Package (Metrc tag) cannot be sold by "Grams" (WeightBased), because itit isis not compatible with "Each" (CountBased),(CountBased)', this means that the Metrc Weighable option for this item was set incorrectly in BioTrackTHC. Unfortunately, Metrc doesn't show the item name anywhere in the error, it is only identified by the Metrc tag. a. Navigate back to the Metrc Sales report in BioTrackTHC (make suresure you're pulling information for the correctcorrect locationlocation and day) and then select YES for the Diagnostic Mode field. b. Click View Report and sales will now have the corresponding product information on each line. This should make it easy for you to find which product had the error in Metrc. c. Once you'veyou've found the correct Metrc tag and corresponding product in your Metrc Sales report, navigate to the Inventory tab in BioTrackTHC, select the Products button and look up the item here. Once the item details load, youyou should see a checkable box next to MetrcMetrc WeighabWeighablele under the Options tab. d. You need to DESELECT the Metrc weighable option on this item, click save to confirm your changes to this item. 4. 'Package'Package (Metrc tag) cannot be sold by "Each" (CountBased), because itit isis not compatible with "Grams" (WeightBased),(WeightBased)', thisthis means you need
30 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 41 OF 92 to SELECT the Metrc weighable option on this item. Once you have updated the Metrc weighable option on this item, click save to confirm your changes to this item. 5. 'Package'Package Label was not specifiedspecified in TransactionTransaction 0.'O. , this error occurs whenwhen something in BioTrackTHC doesn't have a Metrc tag associated with it but is categorized as a Marijuana Product. a. You should have a row number associated with this line in Metrc - you will have to open the Excel file you've saved to your computer earlier andand navigate to the row specified on Metrc. Unfortunately, there is no easier way to find out which item caused the error. b. Once you've located the suspect item, double check to see if it is even something thatthat requires a Metrc tag. For example, if this item is clearly paraphernalia and does not contain marijuana DESELECT the Marijuana option under the options tag in BioTrackTHC and save the item. If the item clearly an edible or something that contains marijuana,marijuana, make sure that the Marijuana option in the optionsoptions tab stays SELECTED, you will need to track down this item Metrc tag and add it to the parent package listed in BioTrackTHC. 6. Once you have fixed each item you received an error on, you can re-run-run the salessales report in BioTrackTHC for that locationlocation and datedate and re-attempt-attempt the upload to Metrc.
2a.2!a.2 —– Financial Plan The Company is currently using multiple licenseslicenses of QuickBooks Online for general ledger and accounting. For inventory management, POS (Point(Point of Sale), and cannabis compliance and reporting KaleafaKaleafa is using BiotrackTHC. These systems are not integrated, and the company is not able to scale adequately. Following is a schedule of our key procedures that are performed on a routine basis: 1. Kaleafa'sKaleafa’s accounting procedures are as follows:follows: a. QuickBooks Manual Updates b. Wholesale Manifests entered into QBO i. Wholesale to Store Transfers entered into QBO ii. Recording Bank Deposits and Daily Sales Reconciliations c. Tracking of POS and Z-out-out Report through BioTrackTHCBioTrackTHC d. Recording expenses, Paying VendorsVendors and Bills e. MonthMonth-end-end Closing f. Producing Annual Reports g. Maintaining Debt Schedules and paying loans/interest h. Fixed Asset Management and Depreciation Schedules i. Weekly Cash Flow Forecast 2. Kaleafa'sKaleafa’s regulatory procedures requiring documentation are as follows:follows: a. Quarterly BankBank Filings as per MAPS b. Oregon Department of Revenue i. Monthly Marijuana Tax Vouchers ii. QuarterlyQuarterly Marijuana Tax Reconciliations c. Local City Tax Filings d. Collecting W-9W-9 and issuing 1099s
31 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 42 OF 92 Kaleafa has engaged a professional consulting firmfirm (principles(principles come from KPMG) to guide the business in the selection and implementation of a new fully integrated ERP & POS solution. The new system will be selected March 6, 2019 after thorough screening and inin-depth-depth reviews. Following are the criteria directly for our RFP that we wiwillll implement beginning Q2 of 2019: Scope of Work, Specifications & Requirements 1. Technical Requirements The Company is interested a SaaS based solution; however, private cloud or hosted solutions will be considered. Please provide to followingfollowing information aboutabout your platform: 1. High level system and hardware architecture review 2. Monthly Uptime/DowntimeUptime/Downtime statistics for the last 12 months 3. Modifications to base code (e.g. upgrade schedule; hotfixes schedule) 4. Support model including knowledgebase andand self-helpself-help optionsoptions 5. System'sSystem’s customization and configuration capabilities (e.g. API, workflows, customer fieldsfields and forms) Functional Requirements/Use Cases In your response please let The Company know how your solution works/solves each of the Requirement/UseRequirement/Use Cases. AnswersAnswers can range from a simple confirmation to a narrative to actual screen shots. If selected for a demonstration, you will be required to show how each requirement from The Company is solved by your solution through out of the box functionality,functionality, additional module purchase and integration (self or 3rd party), configuration (e.g. workflow), or customization (scripting/custom code). W The Company is interested in understanding how your solution fulfills the following requirements/use cases:
• ERPERP Requirements/UseRequirements/Use Cases • POS Requirements/Use Cases • Reporting • Other Requirements 4.2.1 ERP Requirements/UseRequirements/Use Cases General Accounting 1. Provide explanation of general ledger account, department/cost center, subsidiary structure within solution. 2. How does youryour system support consistencyconsistency of account naming, departments, etc. across multiple subsidiaries? 3. How does the solution enable the close process and hard close process? 4. Explain and demonstrate your solution for intercompany accounting and consolidation. Specifically,Specifically, address how your system handles intercompany and consolidation of multiplemultiple entities where the parent holds different ownership interests. See questions under inventory for additional points to address.
32 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 43 OF 92 5. Provide a brief overview of your systems besbestt practice accountsaccounts payable cycle (PO to payment). 6. How can The Company use your systemsystem to provide a structured approval process for potential vendors and vendor setup? 7. What kind of visibility will The Company have into outstanding PO, including vendors, prproducts,oducts, expected delivery?delivery? 8. How does the system handle inventory receipt before invoiceinvoice receipt? 9. How does your system handle partial receipt and payment of PO's?PO’s? 10. How does your solution work with Positive Pay? 11. Explain and demonstrate how your solution works with multiple bank accounts from different financial institution including within different subsidiaries in different states. 12. Explain and demonstrate the cash reconciliation process within your system. 13. Explain and demonstrate the ability of the system to handlehandle the upload ofof bank files containing debit and credit transactions. 14. Explain andand demonstrate your system'ssystem’s inventory valuation methods. What costing methods does your system support? 15. How does your system handle employee expense reimbursements? 16. What is the solution for company credit cards, cash advances, check requests, and subsequentsubsequent approvals?approvals? 17. Explain how your system handles the purchase, recording, and reporting of capital purchase/fixed assets. 18. How does your system enable the tracking and reporting of sales tax? Do you have established integrations with systems that support sales tax collection, reporting, etc.? 19. How does your system support budgeting/forecasting? 20. How does your system support 1099 reporting? 21. What is the process for launching new subsidiarysubsidiary companies inin your system? 22. How does your system handle multiple state operations? InventoryInventory Management 1. Provide your solution'ssolution’s best practice for ordering, receiving and organizing inventory into a warehouse/location; picking a multiple item order; andand transferring the order from the warehouse to a retail subsidiary or between retail subsidiaries. Please include a description of how your system facilitates the recording of the accounting entries associated with these transactions. 2. Explain how your systemsystem supports locationslocations within the warehouse and retail stores. How will The Company have visibility to inventory in locations within the warehouse, within a store and across stores and the warehouse. 3. Demonstrate how The Company can transfer inventory betweebetweenn subsidiaries at cost and with markup. 4. Demonstrate the best practice for handling the return process in your system. Please include a description of a return to a retail location and a return from a retail location to the warehouse. 5. How does your system iinteractnteract with inventoryinventory Barcode/RFID scanning? 6. Demonstrate what your system'ssystem’s capabilities are with respect to holding/searching all information/data/images for each product SKU. 7. Explain and demonstrate your system'ssystem’s ability to track serialized inventory. DoesDoes your system supportsupport multiple SKUs and/or items of the same SKU witwithh the same serial number?
33 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 44 OF 92 8. Demonstrate the receipt, transfer, and sell of a serialized item. 9. Explain and demonstrate your system'ssystem’s ability have more than one sales price point per SKU. 10. ExplainExplain how employeesemployees can see slow or dead products/inventory 11. Explain andand demonstrate how demand planning functionality works within your system. Does your system support centralized demand planning across multiple locations? 12. How does your system report on historicalhistorical product demand by vendor? 13. How does your system support receiptreceipt of product in bulk, splitting into smaller quantities/weights for inventory purposes and maintaining tracking of associated serial numbers? 14. Describe how your system supports the categorizationcategorization and reporeportingrting of SKUs. 15. How does your system support cycle/periodiccycle/periodic inventory counts. Please explain how your system tracks and reports shortages, etc. 16. What is the conversion process for items received pounds and sold in grams? 17. Explain how your systemsystem handles returnsreturns from customers and returns to centralized distributiondistribution location. POS Requirements/Use Cases 1. Provide an overview of your solution'ssolution’s best practice for retail sales. 2. Explain how your solution handles deli style (weight based) sales. 3. Does your solution provprovideide an age verification process? 4. How does your system handle tax charges on sales? 5. Demonstrate how pricing works within your solution. 6. Demonstrate how your system allow of more than one price point per SKU. 7. Explain and demonstrate how youryour solution handles discounts and promotions. 8. Does your system supportsupport a loyalty management solution? If so explain. 9. Explain and demonstrate how your system enables customers to comply with cannabis regulation. 10. What ERP/Accounting systems does your solutionsolution integration withwith?? 11. Does your solution have an open API to facilitatefacilitate integrations? Reporting 1. Provide a walkthrough on your solutions out of the box reporting capabilities in each of the requirements identified in Section 4.2.1 and 4.2.2. 2. Provide an explanationexplanation of the capabilitycapability to customize existing reports and/or createcreate new reports. 3. Explain how your system tracks changes to records and transactions for audit purposes. 4. Does your system have the ability to normalize POS data in order to be connected to 3rd party reporting plplatformsatforms like Tableau? Other Requirements 1. DemonstrateDemonstrate the UI from a high-levelhigh-level to provide a general understanding of how users will operate within the system. 2. Demonstrate any out of the box CRM functionality your system provides. 3. What cannabiscannabis compliance systemssystems does your solution integrate with?
34 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 45 OF 92 4. PleasePlease identify other software offerings for which standard integrations are maintained. Examples include, banks, credit card companies, expense management systems, CRMs, PLMs, etc. ProformaProforma IncomeIncome Statement EBITDA Cash Flows
Model Store New Stores P&L 1/31/2019 6:49 AM Kaleafa - Pasadena Launch Q1 2020 Dollars in Thousands ($000) FYE Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Revenues Cost of Goods Sold Packing, Testing & Adjustments Gross Profit Gross Margin Selling Expense Payroll W2 Benefits and Related Insurance & Workers Comp Commissions & Supplies Advertising & Promotion Total Selling Expense As a % of Sales Occupancy Expense Building Rent Security, Maint. & Repairs Total Occupancy Expense As a% of Sales
Admin and Operating Expenses Business License & Dues Insurance G&L Exec. Management Fees IP License Fee Outside Services Depreciation Automobile & Related All Other Admin and Operating Expenses Total Admin and Operating Expenses As a % of Sales Pre-opening Expenses Contribution (Loss) Contribution Margin
EBITDA (excl. pre-opening expenses) EBITDA Margin
35 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 46 OF 92
Capital Expenditures and Startup Schedule --*Dollars *Dollars Stated InIn Thousands ($000)($000) RRRPRgPRRPFiRRPRRFiRPRRPRRI;ifiRRPRRRRRRRRilMRRRRPflgli RRRPRgPRRPFiRRPRRFiRPRRPRRI;ifiRRPRRRRRRRRilMRRRRPflgli neck 29 2$ 3
1 / Yen 50 37 94 23 22 91 29 II 2 Year 18 17 1.6 15 14
II 12 11 II 9 0 7 1 War 6 5 4 3 2 1 070 W
29 . 9 / 3 EXPENDITURES hepornaents Depmerble 212 exalt39777 12972/Pumiasel 136 CAPITAL Leasehold Laabobtecpnw Tee TetalCapft Odor/ 2a.3 –- FundingFunding &Et Proof of Capitalization
36 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 47 OF 92 m • CREDIT UNIONaps PO Box 12398 • Salem OR 97309 MAKE THE MOVE 503.588.0181 • 800.688.0181 mapscu.com • [email protected] Federally Insured by NCUA Move your other card balances to Maps. • Special low balance transfer rate through 2/28/19 • $0 in fees 20z - 410 - J000000 - 21853 - 49437 PACIFIC NORTHWEST HORTICULTURE LLC mapscu.com/move Rate based on credit OREGON CITY OR 97045-3864 qualifications. 1111111111111111"111111111111111111111111111"11111111"1111"
Service Period
Primary Account Number Member Number From To Page
12/01/2018 12/31/2018 1 of 3
Account Summary Beginning Total Total Ending Account Description Account Number Balance Withdrawals Deposits Balance Ashland Savings Ashland Checking Ashland Savings - Date Transaction Withdrawal Deposit Balance 12/01 Beginning Balance 12/24 Deposit Nov Tax 12/31 Withdrawal use to pay bills 12/31 Withdrawal Nov Taxes 12/31 Maintenance Service Charge 12/31 Ending Balance ANNUAL PERCENTAGE YIELD EARNED: 0% FOR A 31 DAY PERIOD Average Daily Balance: Dividends Paid To You YTD On Ashland Savings Deposit Summary Date Amount Date Amount Date Amount 12-24 Total for this Period Total Year-to-Date Total Overdraft Item Fees Total Return Item Fees
Ashland Checking Date Transaction Withdrawal Deposi Balance 12/01 Beginning Balance 12/03 Check 808005 12/03 Check 2000000007 12/03 Deposit 12/04 Check 209 12/04 Check 210 12/04 Check 2000000008 12/04 ACH Debit GUSTO 6semjm2pm7c - CSD 807276 6semjna8339 12/04 ACH Debit GUSTO 6semjm2pI9p - FEE 806329 6semjna64f7 12/04 ACH Debit GUSTO 6semjm2pm7d - CND 807277 6semjna833r 12/04 ACH Debit GUSTO 6semjm2pm7r - TAX 807291 6semjna82rg
Continued on page 2 EOM-PRNT 2.-410 - J000000 - 21853 - 49437
37 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 48 OF 92 m • CREDIT UNIONaps PO Box 12398 • Salem OR 97309 MAKE THE MOVE 503.588.0181 • 800.688.0181 rnapscu.com • [email protected] Federally Insured by NCUA Move your other card balances to Maps. • Special low balance transfer rate through 2/28/19 • $0 in fees 114s/ , 2oz - #10 - J000000 - 21685 - 48874 1450 SE ORIENT LLC mapscu.com/move allaS Rate based on credit OREGON CITY OR 97045-3864 qualifications. 111111111111111111111111111111111111111111111111111millillilii
Service Period
Primary Account Number Member Number From To Page
a Oa 12/01/2018 12/31/2018 1 of 4 Account Summary Beginning Total Total Ending Account Description Account Number Balance Withdrawals Deposits Balance Enhanced Monitoring Savings New Gresham Checking Enhanced Monitoring Savings - Date Transaction Withdrawal Deposit Balance 12/01 Beginning Balance 12/10 Withdrawal Transfer to pay bills xxx3452 12/12 Deposit Nov Taxes xxx3452 12/17 Withdrawal Pay bills xxx3452 12/18 Deposit Nov Taxes xxx3452 12/31 Withdrawal nov taxes xxx3452 12/31 Maintenance Service Charge 12/31 Ending Balance ANNUAL PERCENTAGE YIELD EARNED: 0% FOR A 31 DAY PERIOD Average Daily Balance: Dividends Paid To You YTD On Enhanced Monitoring Savings Deposit Summary Date Amount Date Amount Date Amount 12-12 12-18 Total for this Period Total Year-to-Date Total Overdraft Item Fees Total Return Item Fees
New Gresham Checking Date Transaction Withdrawal Deposit Balance 12/01 Beginning Balance 12/03 Debit Card NYCE AMAZON.COM*M00ZZ5V12 SEATTLE WA US 12/03 Check 2000000020 12/03 Check 2000000021 12/03 Deposit 12/04 Debit Card INTUIT PAYME*IN *PATNW503-7305182 OR US 12/04 Check 153 12/04 Check 154 12/04 Check 2000000022
Continued on page 2 EOM-PRNT 2o7 -410 - J000000 - 21685 - 48874
38 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 49 OF 92 m • CREDIT UNIONaps PO Box 12398 • Salem OR 97309 MAKE THE MOVE 503.588.0181 • 800.688.0181 rnapscu.com • [email protected] Federally Insured by NCUA Move your other card balances to Maps. • Special low balance transfer rate through 2/28/19 • $0 in fees 114s/ , 3az - 9,12 - J000000 - 0 - 95930 WVVIVIP LLC mapscu.com/move Rate based on credit OREGON CITY OR 97045 qualifications.
Service Period
Primary Account Number Member Number From To Page .11.6850 Sib 12/01/2018 12/31/2018 1 of 19 Account Summary Beginning Total Total Ending Account Description Account Number Balance Withdrawals Deposits Balance Woodstock Savings Woodstock Checking Beaverton Checking Wholesale Checking O.C. Checking Old Gresham Checking Woodstock Savings Date Transaction Withdrawal Deposit Balance 12/01 Beginning Balance 12/12 Deposit Inv Payment xxx6876 12/13 Deposit Nov Taxes xxx6876 12/31 Withdrawal nov taxes xxx6876 12/31 Maintenance Service Charge 12/31 Ending Balance ANNUAL PERCENTAGE YIELD EARNED: 0% FOR A 31 DAY PERIOD Average Daily Balance: Dividends Paid To You YTD On Woodstock Savings Deposit Summary Date Amount Date Amount Date Amount 12-12 12-13 Total for this Period Total Year-to-Date Total Overdraft Item Fees Total Return Item Fees
Woodstock Checking Date Transaction Withdrawal Deposit Balance 12/01 Beginning Balance 12/03 Debit Card ONFLEET 8772384423 CA US 12/03 Check 2000000189 12/03 Check 2000000190 12/03 Check 2000000191 12/03 Withdrawal lnv Payment xxx4914
Continued on page 2 E0M-NAMN- 3oz - 9x12 - J000000 - 0 - 95930
39 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 50 OF 92 Kaleafa Consolidated 5--yearyear Proforma Key Metrics
Model Summary 1/31/2019 7:31 AM
Kaleafa 5-Year Pro Forma Key Assmnpfions Dollars stated in thousands Model Start Date 1/1/2019 Annual Inflation / CPI 2.0%
Stored Launch Store # Launch Store # Launch Store # Launch Store # Launch Store # Launch 1 Mar-19 11 Sep-20 21 Jun-21 31 Apr-22 41 Feb-23 51 Dec-23 2 Apr-19 12 Oct-20 22 Jul-21 32 May-22 42 Mar-23 52 3 May-19 13 Nov-20 23 Aug-21 33 Jun-22 43 Apr-23 53 4 Jun-19 14 Oct-20 24 Sep-21 34 Jul-22 44 May-23 54 5 Aug-19 15 Nov-20 25 Oct-21 35 Aug-22 45 Jun-23 55 6 Sep-19 16 Jan-21 26 Nov-21 36 Sep-22 46 Jul-23 56 7 Feb-20 17 Feb-21 27 Dec-21 37 Oct-22 47 Aug-23 57 8 May-20 18 Mar-21 28 Jan-22 38 Nov-22 48 Sep-23 58 9 Jun-20 19 Apr-21 29 Feb-22 39 Dec-22 49 Oct-23 59 10 Aug-20 20 May-21 30 Mar-22 40 Jan-23 50 Nov-23 60
SUMMARY P&L (1 YEAR) 2019 2020 2021 2022 20231 2024 2025 2026 2027 2028 Existing Store Sale s Delivery Sales New Store Sales Total Revenues # of Stores
COGS Goss Profit Gross Margin%
Selling Expenses Occupancy Expenses Pre-opening Expenses Interest Expense (Income) Management Bonuses Admin and Operating Expense Operating Expenses # of FTEs
Net Income Net Income Margin%
EBITDA EBITDA Margin%
WORKING CAPITAL ANALYSIS 2018 2019 2020 2021 2022 2023 Current Assets AR Inventory Other Cunent Assets Non-cash Current Assets
Cunent Liabilities Accounts Payable Other Cunent Liabilities Total Cunent Liabilities
Net Working Capital Change in Working Capital
*Dollars*Dollars Stated In ThousandsThousands ( )
40 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 51 OF 92 Kaleafa Pasadena Business Plan Application Plan Business Pasadena Kaleafa BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 0 Kaleafa Inc. Kaleafa Inc. Pro Fonna Balance Sheet Pro Fonna Income Statement Confidential & Proprietary Confidential & Proprietary *Dollars *Dollars Stated In Thousands In Thousands Stated *Dollars FYE A a FYE - -13 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 0 Revenues 2 0' Current Assets < Cash Cost of Goods Sold
m Stated Packing, Testing & Adjustments cn Accounts Receivable - 13; Gross Profit Merchandise Inventory •m CO Gross Margin Z C Other Current Assets ▪ In. Regulatory License Selling Expense fFCD In Store Supplies Payroll Thousands W2 Benefits and Related Cu, Prepaids &Deposits Insurance & Workers Comp. E -0 Total Current Assets - I Commissions & Supplies O Pi Advertising & Promotion 0 Fixed Assets Total Selling Expense > Gross PP&E +Intangibles As a % of Sales -a Acc. Depr. & Amortization cn Occupancy Expense Net Building Rent D rr. Total Assets Maint. / Repairs, Security & Util. C 0 Total Occupancy Expense
cn52 OF 92 As a % of Sales r..) Current Liabilities 0 0 Admin and Operating Expenses m z Necessary to Finance co cn Accounts Payable Business License & Dues Insurance G&L + D&O Accrued Interest Payable 0 Exec & Admin Salaries Sales Tax Payable 0 Outside Services Accrued Payroll Depreciation Payroll Taxes Payable Automobile & Related Total Current Liabilities All Other Admin and Operating Expenses Total Admin and Operating Expenses Notes Payable As a % of Sales New Debt Facility Operating Income To Equity F Shareholders Capital - Three Kids, LLC Pre-opening Expenses Capital - WWMP, LLC Interest Expense (Income) Mgmt. Bonus @ 3.0% of Operating Incom New Equity Investment Retained Earrings Net Income cn Net Income (Loss) Net Income Margin Total Equity 0 EBITDA 4 Total Liabilities and Equity EB1TDA Margin 0
-13 To cn 41
2a.4!a.4 – Records Software Business records are an integral part of every organization, large or small. They are the recordings of business documents regarding dealings, contracts, etc....etc.… which all need to be retrievable for normal business operations. The retention of these documents will vary from group to group, but the common demand for a healthy business is organized business records. In the 21st century, digital file storage and eventuallyeventually cloud ddigitaligital filefile storage has become a standard business practice for numerous technical and logistical reasons. For modern businesses, having a thought-outthought-out digital business records SOP and a trusted cloud data storage host are extremely important forfor the overalloverall health of organizations. That'sThat’s why Kaleafa has used Google data storage solutions to better retain and access electronic records. As per state requirements and best business practices, Kaleafa retains all required business documents electronically.electronically. ThisThis includes, but not limited to, daily manifests, created inventory reports, and all electronic communications conducted on company email. As for the entirety of Metrc inventory records and all POS system records, we know that Franwell and our "Point“Point-Of-Of- Sale"Sale” software provider meets a high level of data storage integrity to allow us to leave all records inside the cloud hosted software. As for Metrc sales reporting, the API from Metrc can be cumbersome and unreliable. This has requiredrequired KaleafaKaleafa to conductconduct manual uploads of sales into Metrc via CSV files. This requires an inventory manager to export daily sales from the stores POS manually and then upload the exported report into Metrc. This can require fixing errors in Metrc during uploadupload bbecauseecause of incorrectincorrect reported information from POS system. In the ideal store environment, our POS system will have a functioning API integration with Metrc to allow a seamless upload process into Metrc. As for signed delivery manifests, Kaleafa retainsretains completedcompleted manmanifestsifests by scanning all the day'sday’s reports into our Google storage drive to maintain storage compliance. In conclusion, Kaleafa follows all strategic planning practices for retaining and maintaining all business records via use of technologytechnology andand procedures.
2a.5 - Trank-and-TrampTrack-and-Trace Kaleafa Cannabis Company has been using Franwell'sFranwell’s Metrc traceability system for three plus years, operating five retail licenses and one wholesale. Kaleafa has nearly perfected the use of the system internally for ininventoryventory reportingreporting and manifest creation. The Kaleafa wholesale team has created numerous operationaloperational documentdocumentss involving Metrc systems. California'sCalifornia’s Track-and-and- Trace system hashas some small differences with reporting and manifesting, but Kaleafa feelsfeels ververyy confident that the core operations that we use today will easily adjust to the new regulation requirements. California'sCalifornia’s marijuana traceability system is based on Franwell RFID technology and managed using their Metrc software. The cloud-based-based softwaresoftware allows licensed facilitiesfacilities to manage, transfer, and receive marijuana inventory using Franwell unique RFID tags. (Kaleafa Metrc SOP’sSOP's included above in section 2a.1)
42 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 53 OF 92 2a.6!a.6 —– State Testing Requirements Per California State law, BCC regulated retail cannabiscannabis stores can only sell certified tested cannabinoid products that meet all testing requirements. This process doesn't just guarantee the purchase quality and value for Kaleafa, but also help protect the general public with accurate dosage informationinformation and a certified safe pproductroduct for customers to consume. Kaleafa follows very strict purchasing guidelines to uphold the responsibility we value with the communities we currently serve. The Franwell Metrc tracking system is the most important asset for thethe cannabiscannabis industry to validate product testing results. As per current laws, all cannabinoid products receive a wide range of tests to confirm potency and safety. Potency tests include a spectrum of cannabinoid testing and terpenoid testing. Both are of the utmost importancimportancee in the retail market because it allows fair market value to be assessed and present accurate product dosage. Product safety testing is the largest portion required of state test standards. These tests identify any foreign contaminantscontaminants or solvents that could potentially taint a cannabinoid product during the growing or manufacturing process. Testing Includes, but is not limited to, processing chemicals, residual pesticides levels, semolina, hepatitis, mycotoxins, and heavy metals.metals. KaleafaKaleafa values these safety standards to help maintain cannabis product safety for our customers and community. Included are multiple standard operating procedures put in place at our wholesale group to better purchase safe and compliant products.
2a.72a.7 —– EmployeeEmployee Training CompanyCompany Mission: To emphasize the importance of on-going,-going, best in class training for all employees, specific to their current and future roles. Types of Training modules:
4. Asst General Manager a. Role of assistant and how to support GM
43 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 54 OF 92 b. Quick overall review on the GGMM responsibilitiesresponsibilities c. HR Training d. Advanced customer Service Course e. Cash Management Training f. Scheduling Training g. intake training 5. General Manager a. Advanced training on Inventory controls b. Advanced HR Training c. Advanced BiotrackTHCBiotrackTHC training andand the reporting functionalitiesfunctionalities EducationalEducational Timelines: For all GM's:GM’s:
Wholesale and Assistant GM’s:GM's: Training modules are scheduled as needed due to the fast growth of this industry. General Training Modules for all employees: meetings for all employees conducted at the wholesale location or via web conference by Kaleafa'sKaleafa’s training consultant, Tony Glavey, (PHD in sales and BusinessBusiness Process')Process’) with representation from our humahumann resource manager as well as one current business partner. We strive for groups of no more than 8 employees, divided amongst each shop maintaining familiarity with other employees and creating the "family"“family” feel Kaleafa isis known for. Generally, meetings focus on 4 core areas in increments. These include:
Goal for all employees: training with a goal of minimum of continuing educationeducation on all aspects of ourour business. We emphasize strong culture and career advancement.
44 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 55 OF 92 Kaleafa Employee Training 101: Cannabis Basics At Kaleafa, we strive to be the leader in product and application knowledge. Our budtenders are more than cashiers,cashiers, they act as consultants to our customers. As an employee you will be trained on each strain we sell, and its unique properties. The following are the basics of Cannabis: What Are the Different Types of Marijuana Plants? Sativa: TheseThese plants are talltall and have long, narrow leaves. They'reThey’re usually grown outdoors. Because this strain contains more THC, it'sit’s thought that sativa plants have more of a stimulant effect. Indica: These plants are short, have wider leaves, and are typically growngrown indoors. IndicaIndica plants, which have a higher cannabidiolcannabidiol content, are thought to be sedatives and have a more calming effect when taken medicinally. This type of marijuana is sometimes taken at night. Hybrid: A hybrid is a combination of both sativa andand indica plants andand contains characteristics of the two. Hemp:Hemp: This form of the cannabis plant is grown for fiber that can be used to make rope and textiles. The seeds, like flflaxax or chia seeds, contain protein and other beneficial nutrients. But this form of cannabis won'twon’t get you high — or as high — as sativa,sativa, indicaindica,, or hybrid strains, because it contains more CBD than THC (and very low levels of THC at that). What Is the Different Ways People Consume Marijuana? Inhaling smoke: With this method, you pack a small amount of dried cannabis into a pipe or rollingrolling paper. You then light it and inhale the smoke from the mouthpiece of the device. While smoking marijuana is inexpensive and easy, it could be harmful to your lungs because many other toxins are producproduceded by the creationcreation of smoke. Edibles: You can infuse cannabis into butter or oil and cook it into lollipops, ice cream, gummy bears, mints, and chocolate bars. Eating cannabis is a popular alternative to smoking it, though the potency of edibles varies immenselyimmensely and can causecause strong side effectseffects that can last for hours. Because it takes longer to absorb THC through digestion, it can take longer for the effects to take hold, and longer for them to wear off. Vaporizers: To vaporize marijuana, a small amount of dried cannabis or cannabis extract is placed into a vaporizer machine to be inhaled. This option allows you to inhale a vapor instead of smoke. It'sIt’s thought that this method may be less harmful for the lungs than smoking, but more research needs to be ddone.one. CBD oil is mademade by extracting a resin from marijuana or hemp plants. Extractions from marijuana plants are much more potent and effective than extracts from hemp plants.
45 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 56 OF 92 Tinctures or sprays:sprays: A tincture is a concentrated form of medical marijuana that'sthat’s often mixed withwith alcohol, glycerin, or a substance called medium chain triglyceride (MCT) oil. (MCT is found in coconut oil.) You can squirt or spray the solution under your tongue. It can also be mixed with water or other beverages. A downside to using this method is thatthat it can be expensive:expensive: Tinctures can cost up to for a small bottle. Patches:Patches: A small patch can deliver marijuana through the skin. It'sIt’s most often worn on the wrist, foot, or ankle. Single patches usually last up to eight hours. TopicalTopical products: Salves,Salves, ointments, lotions,lotions, and oils can be used for aches and pains. These topical options don'tdon’t cause a "high."“high.” Dabbing: In dabbing, a small amount of thick wax or oil containing plant-extracted-extracted THC is heated through a glass pipe and a metal rod with a butanbutanee torch. This may not be a safe way to consume the drug, because experts think that the chemicals involved in the preppreparationaration of the oils and the heat from the torch may create harmful toxins. THC vs. CBD The active ingredients in marijuanamarijuana are chemicals kknownnown as cannabinoids. Marijuana contains more than 100 cannabinoids, naturally occurring compounds found in plants and animals — they even occur in humans. The cannabinoids present in your brain and throughout your body are called endocannabinoids.endocannabinoids. These chemicalschemicals play an important role in thinking, memory, and sensory perception, according to the National Institute on DrugDrug Abuse (NIDA)). The cannabinoids that produce marijuana'smarijuana’s effects are tetrahydrocannabinol, or THC, and cannabidiol, oror CBD. THC and CBDCBD act on different neurological pathways and create different physical and mental reactions. THC, for instance, is muchmuch more psychoactive, which means it can affect the way your brain perceives the world around it. It acts on the body’sbody's endocannabinoidendocannabinoid systemsystem and is the cannabinoid responsible for making people feel intoxicated or euphoric. THC is what makes people "high."“high.” CBD doesn'tdoesn’t act on the same neurological pathways. Researchers believe that CBD acts instead on the brain’sbrain's serotonin system,system, which regulatesregulates mood, sleep, appetite, and desire. It may calm and relax you rather than alter your perception. It also doesn’tdoesn't affect physical reactions as much. The amount of THC and CBD in each cannabis plant is variable and depends on how it was grown, prepared, and stored. The more THC a plant has, the stronger its effects. Marijuana also contains hundreds of other chemicals, the amounts varying from plant to plant.
46 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 57 OF 92 There are two main types of cannabis plants used for marijuana: sativa and indica.indica. Each produces slightly different effects. There are also hybrid plants grown to combine the two strains. Hemp plants, which are anotheranother type of cannabis plant, do not produce the high (or anywhere near the high) that sativa and indica plants do. Marijuana'sMarijuana’s capacity for relieving stress, relaxing the body, and changing your perception has made it a popular recreational drug for thousandsthousands of years. According to a 2016 report from the United Nations, it'sit’s the most widely used drug in the world. An estimatedestimated 182.5 million peoplepeople partake of it globally. Not only is it the world'sworld’s most consumed drug, but in the United States, there'sthere’s been anan estimated six or seven-fold-fold increase in its potency since the 1970s. According to a study published in September 2017 inin Clinical DialoguesDialogues in Neurology, potency has been increasing in similar ways in Europe as well. Kaleafa Employee Training 101: UnderstandingUnderstanding the law At Kaleafa, flawless alignment with state and city regulations is paramount. The following are the CalCaliforniaifornia and PasadenaPasadena legislatives codes instrumental in the proper and legal execution of our business. Failure to follow all regulationsregulations listed below will be immediate grounds for termination.
47 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 58 OF 92 2a.8!a.8 – Customer Training One of Kaleafa'sKaleafa’s top priority focusesfocuses on educating thethe community on cannabis. We believe cannabis is a very helpful source of relief for many individuals, however it can also be damaging to young undeveloped bodies. We stand behind not medicating minors unless recommended by one'sone’s doctor. Below you will seesee a four-postcard-postcard informational sheet explaining many facets of cannabis and how it can affect everyone differently.differently. These cards are available in all stores for continuing education.
2a.9 —– Marketing Kaleafa'sKaleafa’s Marketing Strategy SummarySummary Kaleafa CannabisCannabis Co. provides high-quality-quality products at competitive prices with excellent customer service. 1. Our customers often expressexpress how they trust Kaleafa to provide high-quality-quality products at a great value across all price points. 2. We value our customerscustomers and make them feelfeel welcomed, no matter the budget. Our commitment is to treat each customer with honesty, fairness, and professioprofessionalism.nalism. 3. Our approach is to provide the best possible customer experience whether ordering online to be picked up, delivered to their home, or walking into a store for a handshands-on-on experience learning about products. 4. We constantly strive to partner with other leading companies dedicated to superior customer experience in areas where there are strong synergies supporting a mutually beneficial long-termlong-term relationship (e.g. technology applications, customer loyalty, and delivery platformsplatforms.).) 5. We provide superior customercustomer service through controlled promotions, standing behind products and providing educational community outreach, earning us one of the strongeststrongest retention rates in the market at 92%. 6. We use a wide variety of cost effective yet tasteful marketing channelchannelss that communicate to the consumer our story and how we are dedicated to the community. 7. Our online marketing strategy includesincludes creating originaloriginal content that helps educate, entertain and give perspective to our consumers about the lifestyle and health benbenefitsefits of cannabis and cannabis related products. 8. Moving forward we are going to be more proactive with a marketing strategy that uses the latestlatest and most effective methods to share our story with new customers and strengthen relationships with our existing customer base 9. We work with distributors and product manufacturers to provide them with opportunities to inform our customercustomerss of their unique product strengths and selling propositions (e.g. vendor days). 10. Overall our mission is to keep things simple, transparent,transparent, customer focused and effective.
Understanding Our Customers We know the average Kaleafa customer spends to per year, with thethe top 10% spending up to . Customers typically shop once a week and will spend on average per visit.visit.
48 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 59 OF 92 Bud-tender-tender relationships are important for our customers to feel like 'regulars'‘regulars’ when visiting a store. Many customers will dodo some internet reresearchsearch but primarily rely on our experienced and educated bud-tenders-tenders for recommendations and trustworthytrustworthy information about strains and effects. Our customers use cannabis products to relax, relieve stress, and alleviate discomfort and papain.in. They appreciateappreciate competitive prices on quality products, which allows them to experience alternative varieties and new forms of consumption. We never want customers to spend more than they can afford, and ensure they feel great about their purchases, whwhetherether they are spendingspending or . We have commissioned an analysis of typical customer demographics, behaviors, and motivations to gain a better understanding of our customers. The following are summary results from thatthat study:
49 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 60 OF 92 Kaleafa Customer Personas
An anzdysis of typical customer demographics, behaviors, and motivations for guiding website decisions.
Overview We conducted 12 customer interviews on Friday, July 5, 2018 at the Woodstock and Oregon City locations. The purpose of the interviews was to validate our provisional personas established using a blend of census data for the Portland metropolitan area and from Kaleafa's loyalty program. We inteviewed 6 customers in each location (8 men and 4 women) using a common set of questions on demographics as well as current behaviors and motivations. We will use these findings to guide priorities and goals for the new Kaleafa website.
Persona studies should be viewed as living documents and updated as quantifiable data becomes available through testing, analytics, and further interivews. The following decribes a typical male and female Keleafa customer now. But as the industry matures, personas will also reflect a more experienced customer.
Kaleafa Customer Personas The Homeworld Group, Inc. J,iy 20n 2
50 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 61 OF 92 Persona #1 DESCRIPTION Name Age Lives in Occupation Income Marital staus
BEHAVIOR
Shops at closest location, but will drive for a good deal Shops once a week Spends average of per visit Mobile user Relies on budtenders for recommendations and some Internet search Shops product category rather than brands, mostly flower
MOTIVATIONS
Budtender relationships and feeling like a regular Relax, relieve stress, and occasional pain Wants to be treated fairly and honestly Looks for good deals and low prices Wants trustworthy information about strains and effects Doesn't trust online reviews Doesn't look at online menus
Kaleafa Customer Pot ,on,, Thu Haneworld Group, Inc. Persona 3
Persona #2 DESCRIPTION Name Age Lives In Occupation Income Marital staus
BEHAVIOR
Shops at closest location Shops for self and or family ,,ember Shops once a wook Spends average of per visit Mobile user r. frionds and budtenders for recommendations ihwer, extracts, and odtles
MOTIVATIONS
Hen :h and we Hess, treanly wi,ditions, and fun Overall selecVor and prces rather than daily specials Personalized budteneer , OCO —,ordat ions Warts quality source of information about canrabis and wellness Not brand loyal Doesn't look et online menus
Kaleafa Customer Personas The Homeworld Group, Inc. 2018 4
51 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 62 OF 92 Summary Although we propose 2 personas, there are many more overlaps in behavior and motivation than there are unique. We keep them separate in order to better discover ways to serve the growing female market as we improve the Kaleafa website. Findings will also inform brand and business strategy.
COMMON THEMES
Shops at closest location Shops weekly Trust and honesty Spends average of per visit Mobile first regardless of age cohort
Budtende7s relationships are most important to purclasing. decisions
UNEXPECTED FINDINGS
Only 2 out •:of 12 ale medical card holders, but most reported buying products to treat a medical condition
Over have of tiose interviewed didn't know about Kaleafa's website, but nearly all reported interest in access to quality canr abis information — more stain effects rather than menus.
Kaleafa Customer Personas The Homeworld Group, Inc. SLITfila'y 201?
Next Steps
A basic overview of where we are in the project development timeline and what to expect. Actual C0'4PLETE DISCOVERY deliverables will be defined In the corresponding Urn a combination of quantitative and qualitative data to create personas that will Statements of Work. serve to focus website development goals and priorities. Establish baseline metrics for current website engage,ent.
EXECUTION — PART 1 Determine what are the main user problems and b_siness goals to solve in the website redesign. Define and agree on goals and new KFIs. Create list of recom. mended features that support the website goals. Establish priorities and timelines for a phased roll-out. Create rcugh prototypes and test on customers who were in t -e frst interview rovrid as well as on new customers.
EXECUTION — PART 2 I old m testing results and new eralytics to refine concepts. Reg,n refining UI and visual design for first phase of development. This stage will incorporate new brand elements as well as marketing and 5E0 requirements. Establish VVordPress logistics in order to build out and test phase one of redesign.
ITERATE & ROLL OUT NEXT SET OF FEATURES This phase con to uously circles hack between Execution Part 1 and 2 As we learn mom about website usage we will course correct designs.
Kaleafa Customer Personas The Homeworld Group, Inc. Near. 2012
52 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 63 OF 92 Kaleafa is DistinctlyDistinctly Different —– Here'sHere’s why...why… Many of our customers say that they feel like family and are known on a first name basis by our staff. We truly care about our customers and they recognize it, thus they remain loyal. We are fiercely consumer oriented and leaveleave our perceptions behind. We are always interested in knowing what the customer wants and their opinions from papastst purchases. When customers buy from Kaleafa, they trust they have received a superior product that is fresh. We make sure our customers receivereceive the highest qualityquality product available for the best price. This dedication has allowed us to become better andand more efficient at procuring excellent products. We ask 20 - 30 customers when we are thinking about adding new products. This has led us to acquire a wide varietyvariety of customer focused inventory that is in strong demand. Consequently, we have gained a reputationreputation for being able to move inventory quickly, allowing us to get better pricing and priority access. We want our customers to think of us as a trusted familyfamily member that has the inside scoop on the cannabis industry who is always looking out for great deals on high-quality-quality products. Our namesake Kaleafa can be loosely translated as a trusted steward of the people. A Khalif is a person or electedelected official who upholds fairness and democracy and has the best interest of the people at heart. Kaleafa'sKaleafa’s BasicBasic Marketing Strategy Kaleafa'sKaleafa’s online marketing plan focuses on the story of our business and our commitment to customers, rather than over-hyped-hyped sales pitches that turn-offturn-off new potential customers who may not identify with the 'stoner'‘stoner’ culture. In the papastst our online marketing strategy wasn'twasn’t a priority. Moving forward, as we grow and become more recognized as a trusted brand, it'sit’s going to plplayay a key role in ourour continued success. The goal of our marketing strategy is to increase awareness, authority, andand affinity to build and maintain rapport with our customers. As Kaleafa focuses on its origin story and becoming a resource, organic online marketingmarketing becomes mmoreore effective and paid advertising becomes less expensive. For this to materialize, we are developingdeveloping highly valuable, relevant and most importantly, shareable pieces of digital content. Our objective is to inspire users to share this digdigitalital content in orderorder to lower the cost of getting in front of more people. Visual Story Based Content —– CreatingCreating original content that tells the story of Kaleafa in an engaging way. Videos, articles and social media posts that focuses on the story to establishestablish transparencytransparency and build rapport. We also want to create content around the people in our community that we have been proud to serve - mom’s,mom's, dad's,dad’s, firefighters, veterans, cancer patients, business owners, athletes. We want to share their story and how cannabis has helped improve their quality of life. Education of Product and Industry —– In such an expansive and new industry, even the experts must keep on the wire to stay with the latest developments. Cannabis is a unique industry because of the recentrecent innovation aroundaround new products and ways to consume. There is a massive amount of information being produced eacheach day on cannabis and cannabis related
53 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 64 OF 92 products. Kaleafa has become a trusted resource where the average consumer can navigate this new and ever-changingever-changing worldworld with confidence. Audience Engagement —– One of the most effective ways to grow our presence onlineonline is to encourage customers to provide feedback on their experiences and reviewing products. Kaleafa aims to proactively respond to these reviews in ways thatthat drive relevant information into our community of loyal and new customers. Taking the time to respond to unfavorable reviews publicly allows us to demonstrate with action as well as words that we truly care about the customer and their satisfaction. Industry Focused Websites and Publications —– There are regulations and restrictions for how and where Kaleafa can advertise its products, nevertheless cannabis focused websites and publication have fewer restrictions. Our most effective advertisements tactfullytactfully relay brand messaging and compel users to engage without displaying cannabis or related pproducts.roducts. Quick Promotional Strategy Overview Our marketing strategy operates
With a firm understanding of our demographics, we can tailor messagingmessaging and place promotions in a way that resonates with our audience. We also make our advertising tasteful and respectable to fit in with the local community. We strive to remain compliant with local and federal regulations and are alwaysalways careful to avoid marketing to or near minors. Once they are in store, our commitment to customer service and user experience leave a lasting positive experience.experience. This creates rapport and is the reason why customers visit us on a weekly basis and recommendrecommend us to their friendsfriends and family. Learning about our customers and how they interact with the world, allows us to strategically place our promotional materials in few specific locations that are welcomed by all and reinforce Kaleafa'sKaleafa’s commitment to our community.community.
54 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 65 OF 92
NATIONAL GEOGRAPHIC CHANNEL 11.1,JJ
THE POTLANDER ca-ED pc Oregonian IW thePortland ERCURY 55 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 66 OF 92 56 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 67 OF 92 57 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 68 OF 92
58 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 69 OF 92
59 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 70 OF 92 60 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 71 OF 92 Business Plan —– Community Benefits 2b.1 – Communitycommunity Benefits Kaleafa strongly believes in corporate social responsibility and implements such this via a fourfour- pronged platform: People, Products, Planet and Community.Community. Everything that we do must align with our core values of hiring those from the community, selling quality products that are environmentally friendly, and serving the communitiescommunities in which we do business. For Kaleafa, CSR doesn'tdoesn’t just mean making donatiodonations,ns, although we do that as well, but more so partnering and volunteering with organizations whose causes that align with the communities’communities' needs. People: Our company seeks to hirehire employees from the community with past marijuana related offenses whenever it makes sense. When two local job applications are close in terms of skills, knowledge and abilities to perform the job, will use this criteria as a differentiating factor. GeoGeorgerge Farfan, a long-timelong-time Pasadena resident, who has consistently fallen below thethe poverty line and was formerly convicted on marijuana charges, will be part of the management team in Pasadena supporting operations. We provide competitive wages, flflexibleexible schedulesschedules and basic health insurance for FT employees. In all needed services (construction,(construction, security, etc.) we will strive to support other local small businesses. Products & Planet: Our company has historically been committed to purchasing product from licensedlicensed growers and processors in the local growing communities wherever possible.possible. We
61 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 72 OF 92 prefer locally sourced and tested products that are compliant with the highest agricultural and sustainable standards. Community: Our community integration plan is multifacetedmultifaceted and often crossescrosses several of our CSR platforms. For instance, our WoodstockWoodstock OR location has an annual Woodstock Gives Back event. Every year we set up a "fair-"fair- like" atmosphere to create a fun, informational and educational experience for those whom would not normallynormally frequent a dispensary. We choose an organization or recipientrecipient in need in the Woodstock community and donate 20% of our sales for the entire day to that organization or cause. We also always supply donation jars for those not purchasing to promote their contribution. Our favorite campaign was for a five-year-year-old-old girl who was a customer of ours. She originally had what the doctors claimed was a terminal brain tumor. She was treated with a heavy cannabis regimen and her cancer went into rremission.emission. She remainsremains cancer free today! The monies raised aided her family wwithith medical expenses and rehabilitation. Kaleafa has also donated money and/or volunteer time with many 501c3 organizations such as:
• Clackamas Dog Foundation
• Multiple Sclerosis Foundation
• Slant StoriesStories (Supporting our LGBTQ Community)
• Our Lady of Sorrows Senior Citizen Community
• Local elementary schools for their auctions
• Ashland independent food festival.
• Kirkland Boys and Girls Club
• The Gresham Japanese Garden
• Food drives for MoveMove for Hunger
• EducationalEducational Resources for Central Catholic High School
• Our staff has made and delivered brown bag lunches to the local homeless population.
• Hired a local T-Shirt-Shirt Artist that donates 50% of proceeds to local food banks. The above are samplessamples of the community engagement activities that the company has engaged in at our various locations. If chosen as one of the retailers in Pasadena the company will strive to find local community organizations close to our hearts and work tireless to give financiallyfinancially in additionaddition to volunteer time to give back! Located bbelowelow is Kaleafa'sKaleafa’s presentation used when the ownership group donates time to local high schoolsschools to better educate teachers, staff, and parents on the modern cannabinoid products on the market.market.
62 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 73 OF 92 kaleafa.beaverton kaleafa.beaverton
KALEAFA CANNABIS EMPOWERMEN PRESENTED BY KALEAFA TEAM (JULIE WIDMER {OWNER} + MICHAEL BONHAM {HR} + GUS GOULET {IT & COMPLIANCE}
KALEAFA CANNABIS COMPANY
• June 2014, Kaleafa opened in SE Portland serving the medical community
• October 1st 2015, Kaleafa began serving Recreational Customers (21yrs+)
• February 2017, Beaverton location Opened
• December 2017, Oregon City location Opened
• May 2018, Gresham location Opened • August 2018, Ashland location Opened
• Today • Serves on average 370 customers per day, per store • Projected to return in December 2018 Tax revenue to the State and Local Government • Kaleafa employs over 92 team members in the metro area
63 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 74 OF 92 \ V71 11\11 DRIVER L- A j,1 Aim LICENSE AGE LAWS & VERIFICATION BER 01-47-87441 8`1 Exi 06/03/2008 HAIR EYES SE_X CTY • Age Requirements BRO BRO YE' ISSUE DA STR ENDORSE • Recreational laws require that you are 21 to purchase, 06/18/1998 possess, and consume 11111 I 1111 111 111 Mc LOVIN 18 • Medical laws require that you are at least years of age to 892 ST obtain an OMMP/OHA Card HONOLULUMOMONA , HI 96820 • Children under the age of 18 must have a guardian that possess an OMMP caregivers card to obtain medical marijuana. OHA OMMP • OLCC stores do not allow anyone under the age of 18 to enter the Patient Identification Card premises Patient Card No: • Check-in Requirements at OLCC stores DOB: Id: • Must present a valid government issued ID Patient Card Issue Date: 4/9/20 I 4 • If under 21, must have OMMP/OHA Card on hand. Patient Card Effective Date: 4/9/20 I 4 Card Expiration Date: 4/9/2015
FLOWER, EDIBLES, TINCTURES, TOPICALS, CONCENTRATES, EXTRACTS
64 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 75 OF 92 FLOWER
• Slang • Weed, Pot, Devils Lettuce, 420 magic, Greenz, Reefer, Spliff, Bud, Grass, Herb, Mary Jane, Blunt, Stogie.
• Ways you can consume • Joint, Spliff (tobacco joint), Blunt (Cigar Wrapped) • Glass Pipe • Vape • Bong
Inhalation exerts pressure, BONG SCIENCE drawing "cleaner smoke by Potcha up through the filter of cool water.
Cannabis buds are placed THE BONG in receptacle and lit. As bubbles burst, smoke is released into chamber and rises upward.
Smoke is pulled down through stem, entering water as bubbles. Smoke bubbles are pulled up through water with each inhalation. POTCHA Copyright notice: You are welcome to use this cool image, provided you do so honestly and respect our copyright by showing the Potcha attribution.
65 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 76 OF 92 EDIBLES
• Slang • POT BROWNIE. HIPPY DIPPY GUMDROP
• Recreational Dosage • 5mg THC Serving (50mg max package size)
• Medical Dosage - 10-50mg THC Serving (100mg max package size
TINCTURES / RICK SIIVPSON OIL
• Slang • "Green or Golden Dragon"
• Used by Medical Community for ease of dosing
• Usually ingested orally
• Easily added to common foods and drinks to create edibles
• Commonly produced using an alcohol based extraction method
66 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 77 OF 92 TOPICALS
• Lotions, Salves, Oils, Sprays, Roll-ons,
• Used highly by Medical Community
empower- CANNABIS INFUSED OIL CANNA£11$ THERAPEUTI C SOARING SALTS
SOAK IT WHEI: IT NEWS
CANNAV1S INFUSED SENSUAL OIL
PUT IT WHERE YOU PLEAS.
CONCENTRATES: KIEF & HASH
■ Kief • "...refers to the resinous trichomes of cannabis that may accumulate in containers or be sifted from loose, dry cannabisflower with a mesh screen or sieve" (wiki)
• Hash • Hashish, or hash, is a cannabis resin made by taking trimmings and parts of the cannabis plants to extract the cannabinoids in a primitive manner
• Ways to Consume • Smoke it like flower or ingest orally
67 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 78 OF 92 • kaleala.beaverton
EXTRACTS kaleala.beaverton • BHO, PHO, Shatter, Ear Wax, 710 (OIL), Crumble
• Ways you can Consume • Dab it • Smoke it • Vape it • Eat it
• Extract vs Concentrates • Extract • Is the process of extraction that uses heat, pressure, and or carbon based solvents. • Concentrate • Is the process of extraction that does not involve, heat pressure, or carbon based solvents
BusinessBusiness Plan —– Product Offerings 2c.1 —– Product Procurement First and foremost, we take the safety and security of our consumers and employees seriously. All products we intake into our Kaleafa System are vetted in a multipurpose fashion. WeWe strive to have thethe widest and most in-depthin-depth product selectionselection in the industry but that comes with many challenges and operational procedures we need to implement to ensure quality and consumer satisfaction. Below is a recap of the process’process'
• All vendors mustmust be state certicertifiedfied with current license and packaging requirements.requirements. • Everything in taken must be done so via the Metrc System. • We meet with a minimum number of new vendors each week to ensure we understand current market variability while providing an eveneven playing field to all vendors. This allows us to constantlyconstantly source the products our consumers will demand at a variety of price points. • We source as locallylocally as possible while supporting the micro tier growers and proceprocessors.ssors. This allows the “little"little guy"guy” sustainability plus we cancan find boutique items that other retail providers may miss. • All new product goes through an internal group discussion and (when possible) testing. We are allowed a certain amount of product samplessamples that we can use for this purpose. • If we source any new prproducts,oducts, they are purchased on a minimum level while we access the demand for said products. It allows us to find the items consumers are requesting
68 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 79 OF 92 while allowing us to keep a level and open playing field to all vendors. We show no favoritism toto anyany one product or supplier. • At this time, we have elected to not vertically integrate as we feel it provides for a better purchasing model internally and externally to our customer. By not growinggrowing our own supply, we can have honest conversations with consumersconsumers on best products and best value. Our stance is that once you have interest in any said product, it can skew the employee to favor that offering. • We regularly stay in contact via social mediamedia with all vendors to ensure their compliance and social polpoliciesicies match our values. We focus on all consumers and want to protect their rights and safety when entering our retail establishment, especially with the products we chose to represent us. • We rregularlyegularly elicit consumer feedback via in store testimonials on how products are performing. We want to make sure branding is matching the desired outcome. • All product labeling and testing are checked twice during purchase to ensure they match the reported numbers in the testing data. We look at testing date and testingtesting results to match reported records. • All procurement is standardized to one location with same group of employees to create reproducible results with product evaluation and testing. Our lead purchaser has been employed since our inception in 2014. TheirTheir knowledge of the market is second to none.
NeighborhoodNeighborhood Compatibility & Enhancement 3.1 —– Exterior Design Concept Kaleafa has a goal to be compatible with architectural styles found in the existing characters of the neighborhood. It will be importantimportant that each design have a thorough understanding of the community in which they are designed for. The neighborhood is also defined by the area of influence around the residence. This may be the extentextent of the physical boundaries of the neighborhood which areare experienced or seen from the subject residence. It may also mean the area visible from the front yard, or the area in which children couldcould be easily monitored. Kaleafa maintains tasteful architecturalarchitectural structures and landscaping allowing a peaceful ambiance.ambiance. A compatible design will include consideration for the existing character of its neighboring residences and properties. Successful applicationsapplications will address issues that occur at the interface between adjacent properties. Managing the mass and bulk of a building is a fundamental design task that must be considered from the earliest part of the design process. It is important that designersdesigners consider these criteria as soon as plans begin to emergeemerge to allow for a smooth transition and a welcoming community. Kaleafa believes in the "reduce,“reduce, reuse or recycle"recycle” mentality when finding structures that meet our retail requirements, by renovating and bringing life back to the community all while reviving older,older, forgotten but generally beautiful structures. Kaleafa enjoys being a part of an "up-and-“up-and- coming"coming” neighborhood and strives to contribute in enhancing the local area. Kaleafa implements the of hiringhiring professional engineers, architects and general contractorscontractors to maintain proper permitting with the city during and after construction and strives for excellence in the build-out-out process resulting in a proper building for the community to enjoy.
69 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 80 OF 92 EST. 2014 *HALEAFA FAMILY. ALWAYS... 3.2 —– Design Concept Integration Kaleafa loves to learn and absorbabsorb the history surrounding our new location areas. Our goagoall is to keep the past in the present, to celebrate and connect us all with the people and events that have helped define each property.
• Kaleafa'sKaleafa’s Woodstock property is operating out of an over 100100-year-year-old-old craftsman style house that has been converted to a commercial property serving over 300 people per day. It still maintains its special spot in the community as a treasured landmark.
• Kaleafa'sKaleafa’s Oregon City property is located at the end of the Oregon Trail making this property fun to decorate historically.historically. Wagon Wheels and rustic wood cabinets with chicken wire detail adorn this otherwise large open space into a classic old-worldold-world atmosphereatmosphere with an incredibly warm homey touch.
• Kaleafa'sKaleafa’s GreshamGresham property operates out of an old bank still equipped with thethe original vault and bodes a midmid-century-century design with simple forms, high functionality, minimal ornamentation, and an undeniably timeless appeal.appeal. Customers often comment on how appreciative the cocommunitymmunity is of the building upgrades in turn creating a cleanercleaner more modern appeal in the neighborhood.
• Kaleafa'sKaleafa’s Ashland property is found in a quant, small, home town close to the border of California.California. Our shop there is growing to be a favorite cannabis spot for the locals to appreciate Oregon grown cannabis from their neighbor’sneighbor's licensed OLCC grower and producers not very far from this location. Across from Southern Oregon’sOregon's College campus and participatingparticipating in the famous Shakespeare festival, Ashland is a vacation destination for adults with cannabis on their mind.mind.
70 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 81 OF 92
3.3 —– Integration of Security Measures Kaleafa CannabisCannabis CompanyCompany has always valued and pushed to be a part of every community their storesstores reside in. Part of that effort is creating a comfortablecomfortable and inviting environment for all types of customers. A largelarge initiative of a stores design process is making sure the bank level security elements are concealed inside the retail establishment. Kaleafa does not want to be perceived as a high security risk to their customers because the same levels of security can be achieved with smart design elements. One design element that Kaleafa stands behind is including a basic reception / check-in-in area atat the entrance of every retail store. To our customers, it'sit’s a way to confirm legal age, documentation, and to be addedadded to the POS que before entering the building. Kaleafa stores exist in geographic locations where the reception / check-in-in area isn'tisn’t requiredrequired by law yet, Kaleafa still choose to include the checkcheck-in-in function in the store layout for the additional securitysecurity layer. The concept is simple yet works. The receptionist will be the first line of defense to start a silent alarm and dispatch emergencyemergency help. Security cameras are a major part of modern dispensariesdispensaries and another element of security that can tastefully be built into the stores design. With proper placement, you can achieve the same security advantages while concealing the hardware. AnotherAnother important element is the use of the latest digital videovideo technology. Kaleafa has been using 360 video recording for almost 5 years now and uses it as a standard to create blanket coverages of store locations with a quarter of the physical cameras. BuildingBuilding security system will be designed around redundancy and layers. This means that alarm systems sensors are layeredlayered in a single environment to trip not one sensor during a break in to confirm a level of security risk in an emergency. This allows KaleafaKaleafa management and the alarm monitoring company to respondrespond appropriately to a situation. Kaleafa'sKaleafa’s additional security measures are intended for standard healthy business practices. Including well-lit-lit exteriors surrounding the building, maintained vegetationvegetation for limiting lottering positions, increased security on licensed perimeter and parking lot, clean interior and exteriorexterior of store, security film installed on exterior windows, deeper sales counters to prevent a customer from reaching over to employee, andand locked trash receptacles. Overall, Kaleafa'sKaleafa’s security plans have only increased in complexity and reliability with every store that has opened. With the help of their prized contractors and security consultants, Kaleafa will always push the boundaries of mixing security, functionality, and style.
3.4 —– Air Quality/Odor Control Kaleafa fully understands the responsibilityresponsibility and laws regarding ventilation systems inside marijuana dispensaries. Because handling fresh cannabinoid products can put off loud odors, this requires a proper odor control and mitigation plan. This engineered plan helps guarantee Kaleafa'sKaleafa’s ability to serve customers and not affect the surrounding community with unwarranted marijuana scent.
71 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 82 OF 92 Unlike the Kaleafa stores in Oregon, California'sCalifornia’s recreational marijuana system requires pre- packed products. This will drastically cut the amount of product odorodor being created inside the store and put less demand on air scrubbing. Part of the odor control plan is also finding the weak points for interior air to escape the building. Kaleafa has every intention of hiring Jenkins/ Gales & Martinez, INC. once a popotentialtential retail site has been selected. The group will deliver a plan of action for Kaleafa management to proceed with operations to achieve the isolation of interior store air and odor.
Security Plan 4.1 –- Security Experience Kaleafa Cannabis Company has always stride for internal and external resources for security consulting and experience. With 6 licensed premises operational and 4 more in the works, Kaleafa has turned to Gus Goulet (IT directordirector & Compliance Officer) for all security and technology design.design. Mr. Goulet’sGoulet's background consists mostly in technology and support, but most notably, worked in a Microsoft office for 2 years in a tier 3 game console testing site where he learned operationsoperations security on a high level. Mr. Goulet applied a high level of operations security using digital video surveillance and key-card-card systems to keep a high level of tiered access between the office spaces for over 150 employees working with sensitive prototypprototypee hardware and software. In 2014, Mr. Goulet joined the KaleafaKaleafa team while working toward a bachelor's degree in computer science at University of Oregon. Mr. Goulet quickly used his expertise to design Kaleafa'sKaleafa’s first stores with the best technology and security systems. As laws have changed, and the marijuana iindustryndustry has grown, the demands on technology security has only increased. Mr. Goulet has focused his efforts on increased reliability of video surveillance and data storage for better overall securitysecurity and theft prevention in the retail environment. As KaleafaKaleafa looks to expand operations into new territories, Mr. Goulet will be using local contractors to assist with installation of new technology systems that exceed state and local systems requirerequirements.ments. 4.2 – Background ChPnkRChecks All potential candidates willwill be requested to submit authorization to perform a background check at the time a job offer is ppresented.resented. The review will audit the candidate'scandidate’s local, state and federal criminal history. PreviousPrevious convictions will not necessarily revoke the job offer. BACKGROUNDBACKGROUND CHECK DISCLOSURE WWMP LLC (DBA Kaleafa Cannabis Company) may order a "consumer“consumer report"report” (a(a background report) or "investigative“investigative consumer report" on you about your employment application, and if you are hired, or if you already work for the Company, may order additional background reports on you for employment purposes, to the maximum extent pepermittedrmitted by applicable law. The background check company, ADP Screening and Selection Services, wiwillll prepare the background report for the Company. ADP ScreeningScreening and Selection Services is located at 301 Remington Street, Fort Collins, CO, 80524, and can be reached by phone at 800-800- 367-5933367-5933 or at their Internet Web site address www.adpselect.com. The bbackgroundackground report may contain information concerning your character,character, general reputation, personal characteristics, mode of living, criminal history, and credit standing. An "investigative“investigative
72 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 83 OF 92 consumer report”report" is a background report that includes information fromfrom personal interviews. Information may be obtained from privaprivatete and public sources and for investigative consumer reports from personal interviews as noted above.above. You may request more information about the nature and scope of an investigative consumer reporeport,rt, if any, by contacting the Company. The Fair Credit ReportingReporting Act gives you specific rights in dealing with consumer reporting agencies. You will find thesethese rights summarized in the document titled A Summary of Your Rights Under the Fair Credit ReportingReporting Act, as provided on subsequent pages. AUTHORIZATION FOR BACKGROUNDBACKGROUND CHECKS I authorize WWMP LLC (DBA Kaleafa Cannabis Company) to obtain my background report,report, including investigative consumer reports. I also agree that a copy of this form is valid like the signed original. I understand that, as allowed by law, thatthat WWMP LLC may rely on this authorization to order additional background reports, including inveinvestigativestigative consumer reports, (1) during my employment and (2) from companies other than ADP ScreeningScreening and Selection Services without asking me for my authorizationauthorization again, as allowed by law. I understand that WWMP LLC may order a background report under my legallegal name and any other names I may have used. I also authorize the following agencies and entitiesentities to disclose to ADP Screening and Selection Services and itsits agents all information about or concerning me, as allowed by law, including but not limited to: my past or present employers; learning institutions, including colleges and universities; law enforcementenforcement and all other federal, state and local agencies; federal,federal, state and local courts; the military; credit bureaus; testing facilities; motor vehicle recrecordsords agencies; if applicable, worker’sworker's compensation injuries; all other private and public sector repositories of information; and any other person, organization,organization, or agency with any information about or concerning me. The information that can be disclosed to ADP Screening and Selection Services and its agents includes, but is not limited to, informationinformation concerning my employment history, earnings history, education,education, credit history, motor vehicle history, criminal history, military service, professional credentialscredentials and licenses and substance abuse testing. WASHINGTON STATE:STATE: You also have the right to ask ADP Screening and Selection Services for a written summary ofof your rights under the Washington Fair Credit Reporting Act.
4.3 —– Employee Safety Education KaleafaKaleafa has many SOP'sSOP’s concerning Employee Safety Education. The following are a few excerpts pullepulledd from the always evolving SOP's:SOP’s: Emergency Preparedness:Preparedness: BombBomb Threat 1. If you receive a bomb threat by telephone: a. Keep the caller on the line as long as possibpossiblele so that the call may be traced. b. DO NOT transfer the call or interrupt the caller c. Notify the GeneralGeneral Manager or designee d. Call or have someone nearby call 911.911. Do not hang up until directed to do so by emergency personnel. e. Follow the instructions on the Bomb Threat Call Procedures on the next page
73 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 84 OF 92 2. If you are informed about a bomb threat: a. Evacuate immeimmediately.diately. Fire evacuation procedures IMPORTANT: Any time you hear the fire alarm, assume it is NOT a test. Evacuate immediately and meet at your designated assembly area. 1. If you notice or cause a fire, pull the nearest fire alarm. Call 911. 2. If there are guestsguests or company customers in the building, the employee associatedassociated with the guest(s) should guide them out. 3. Evacuate the building through the nearest exit 4. If there is smoke: Crawl or stay as low to the flflooroor as possible 5. If there is smoke: Use a wet cloth, if possible, to cover your nose and mouth. 6. Always check doorsdoors for heat before opening. Use the back of your hand to feel the upper, lower,lower, and middle parts of closed doors. 7. If the door is not hot, brace yourself against it and open slowly. 8. If the door is hot, do not open it. Look for another way out. 9. If your clothesclothes catch fire, do not run. Stop-Drop-Drop-and-and-Roll-Roll to put out the fire 10. DO NOT USEUSE THE ELEVATORS! 11. WALK, DO NOT RUN! Women wearing high heels should remove them to reduce the risk of falling. 12. Go to your predetermined Assembly Area 13. Never go back into a burning {Verify} Fire Extinguisher Use: Remember "PASS"“PASS” building 14. Once at the AssemblyAssembly Area, Supervisors should take a head count to make sure PullPull the pin on the extinguisher handle everyoneeveryone is out of the building AimAim low at the base of the fire and accounted for. They will then notify firemen, police SqueezeSqueeze the handle officers, etc. SpraySpray from side to side 15. Stay in your Assembly Area until you receive further instructions. Verify that all employees:employees: 1. Understand that employees are not expected toto place themselvesthemselves in imminent danger or risk their lives to carry out these procedures 2. Know where the fire alarm boxes and fire extinguishers are located and how to use them 3. Know what to do when a fire alarm iiss heard 4. Know the layout of their flflooroor and the building itselfitself in order to be able to evacuate to safety 5. Know where to assemble in case of building evacuation or if the building is rendered unavailable 6. Be familiar with all the employees in their area. An updatedupdated list should be kept and accessible at thethe Supervisor'sSupervisor’s desk.
74 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 85 OF 92 7. Let their supervisor know of any special needs or assistance that they may require during an emergency 8. Understand any special needs of those in their area. Is there someone who is physicalphysicallyly impaired such as; deafness, blindness, someonesomeone who is confconfinedined to a wheelchair or has mobility problems? If so, an employee should be assigned to assist them in case evacuation is necessary. All adult staff members of the company are empowered to call 911911 without a supervisor'ssupervisor’s permission. An employeeemployee witnessing a safety-,safety-, security-security- or medical-related-related incident in or near the Company should: 1. Secure your immediate safety 2. If possible, ensure the safety of those around you 3. If necessary and possible, leave thethe area 4. Call 911 5. Provide as much information and detail as pospossiblesible about: a. Incident description b. Location c. Injuries d. Current situation e. Address and telephone of your location 6. Follow the Dispatcher'sDispatcher’s instructions. DO NOT HANG UP UNTIL DIRECTED TO DO SO by emergencyemergency personnel Notify the General Manager of the incident. 1. ProvideProvide information and detail per the above 2. Follow the instructions of the General Manager
444.4 - Employee Theft Reduction Measures Employee Theft Reduction and Prevention Measures 1. Implement the useuse of clear trash bags 2. Implement the use clear latex gloves 3. ArrivalArrival and departure employee bag checks 4. Secure employee lockers 5. Monthly inventory audits 6. Weekly inventory spot checks It will be the General Manager and Assistant General Manager to supervise and prevent employee thefttheft by implementing the following proceduproceduresres and policies. 1. No employee shall access the product or cash vault unaccompanied 2. No employee, when purchasing a product, shall ring themselves up or be allowed to weigh their own product
75 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 86 OF 92 3. At thethe end of each employee'semployee’s shift a personal belongings inspectiinspectionon will be performed. This includes bags, lunch boxes, backpacks, large jackets, etc. Any store product that the employee has purchased must be accompanied by a receipt. 4. It shall be company policpolicyy that it is notnot acceptable for physical contact to be made duringduring an inspection. 5. Failure to comply with reasonable searches can be subject to disciplinary action 6. It will be store policy to inspect opaque garbage bags as they exit the building by two staff members, all cardboard boxes must be flflattenedattened before being recycled or disposed of 7. Whenever possible the store will use clear garbage bags and clear latex gloves 8. Kaleafa will empower employees to report theft and will provide an anonymous hotline to reporeportrt alleged thefttheft of company property.
Retail locations must audit their sales floor inventoryinventory once a month to ensure inventory accuracy in compliance with OLCC regulations.regulations. 1. Open BioTrack and login.login. a. Click the "Reports"“Reports” tab.tab. b. Select the "Current“Current Inventory"Inventory” reportreport c. Select the location you'reyou’re auditing and select the "Sales“Sales Floor"Floor” room.room. d. Print this reportreport for each category —– each report should have the BioTrackTHCBioTrackTHC Barcode and the Metrc ID listed on each item line. i. You can customize the report by click the "Customize"“Customize” button. ii. "Batch“Batch #"#” and "Secondary“Secondary ID"ID” must be checked.checked. 1) AuditAudit the Sales Floor.Floor. a) Physically count each individual item on the sales flflooroor and match the item information to the "Inventory“Inventory Report"Report” printed from BioTrackTHC.BioTrackTHC. b) Any discrepancies —– including positive or negative quantities compared to count, missing produproduct,ct, or extra product must be investigatedinvestigated.. i) Search for the item in Metrc using the tag listed in your "BioTrackTHC“BioTrackTHC Inventory"Inventory” report.report. ii) Verify the quantity count compared to your physical count of the itemitem.. iii) Adjust the product if necessary, listing "Inventory“Inventory Audit"Audit” as the reasonreason..
4.5 —– uasnCash managementManagement Planman Cash Management - Register Reconciliation Each Point of Sale (POS) is closed after the morning shift and night shift by a Floor Leader or more senior employeeemployee 1. Retrieve the till closing form titled "register“register reconciliation"reconciliation” 2. Pop the cash drawer 3. Count all the change and cash and record the count of each denomination on the form 4. Leave $300 in cash in the till excluding change, and set aside the remainder, thisthis will be your drop.
76 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 87 OF 92 5. Select close cash on the salessales screenscreen and enter the counted amounts of currency. If there is a discrepancy, recount the till. 6. Run a "Z“Z-out"-out” report 7. Select the reports tab a. Navigate to sales in the drop-down-down menu and select "Z“Z-Out"-Out” b. ConfirmConfirm the start and end times, location and terminalterminal are accurate c. Select "View“View Report"Report” d. Print the report 8. Count your drop (total cash in hand) 9. Circle "cash“cash remaining"remaining” on the Z-out-out report and write it on the register reconciliation form. 10. Subtract the cash remainingremaining from the total cash in hand and enter the on step five of the register reconciliation form. 11. Place the total cash in hand, the register reconciliation form and the z-out-out report in a tamper evident register drop bag. Note the amountamount of money on the bagbag,, date, and initial. 12. Place drop in the money safe. ManagersManagers —– Cash Management 1. The following day the General Manager or Assistant General Manager pulls all the previous days drops. The Manager will then verify the amount of money in each drop, circling and initialing the correct amount, or will indicate a discrepancydiscrepancy by crossing out the original amount and writing the correct amount adjacent, circled and initialed. 2. The Manager will staple the z-out-out report, and the cash counting machimachinene receipt to the regisregisterter reconciliation form and will retain the documents. 3. After the entire day has been counted, the GM/AGM consolidates the cash and completes a deposit slip. The money and deposit slip are put in a tamper evident bank deposit bag andand fills out a Pacific ArmoredArmored pickup sheet. The bag is not ready for pick up. 4. The GM/AGM enter all numbers (Bio track and actual) into their store'sstore’s cash drop spreadsheet 5. The GM/AGM enter the bag number and amount of deposit into the "Bank“Bank Deposit"Deposit” spreadsheetspreadsheet 6. Once the money is deposited, the financial controller verifies what was deposited to what was on the spreadsheet to be deposited. It is initialed once the deposit is verified All Z-out-out reports and cash reconciliation forms are to be retained on file.
L+.04.6 - Product Access Protocols Customer Check-in-in Process The Receptionist isis the first line of defense to prevent sales to minors and over sales to adult consumers. Every customer, guest, or service provider must present a valid ID regardless of appearanceappearance in order to be checkedchecked in. Verifying Customers'Customers’ Age 1. Acceptable forms of IDID a. The receptionist must verify the age of a person entering the establishment. A person must be 21 years of age to purchase marijuana for recreational purposes,
77 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 88 OF 92 or 18 years of age if acquiring marijuana as a registry identification cardholder. Out of state medical cards are not acceptable. b. Under Oregon law only the following forms of identification are acceptable alone as proof of age when purchasing or acquiring marijuana items: 1. An unexpired and unalteredunaltered U.S. state or District of Columbia driver license.license. 2. An unexpired and unaltered identification card issued by a U.S. state, District of Columbia, Puerto Rico, Guam, Northern Mariana Islands, United States Virgin Islands, or AmericanAmerican Samoa, with photo, name, date of birth, and physical description. 3. An unexpiredunexpired and unaltered ID card issued by a federally recognized Indian tribe with photo, name, and date of birth. 4. An unexpired and unaltered passport or passport card. 5. An unexpired and unaltered U.S. militarymilitary ID card. 1. The following are examples of identificationidentification that ARE NOT acceptable alone as proof of age:age: ∙• NEXUS card ∙• SENTRI card ∙• Green card ∙• FAST card ∙• Prison ID card ∙• Gun or Firearms permit, including a permit which allows the carrier to carry a weapon in public in a concealed manner ∙• IDNYC card (New(New York City Identification card)card) ∙• Social SecuritySecurity card ∙• Pilot'sPilot’s license ∙• Veteran Health Identification card ∙• Student ID cards New customers 1. Request permission to retain the customer'scustomer’s first and lastlast name, and date of birth in order to; participate in Kaleafa'sKaleafa’s loyalty program; to be able review past purchases without a paper receipt; to receive 10% off their first purchase. 2. With permission —– create and save a new customer profile retaining the customer'scustomer’s date of birth and first and last name 3. Without permission —– enter first and last name, date of bibirthrth and select do not save customer information. Their data name will not be retained after the sale is complete. Returning customers
• Check the customerscustomers ID
• Search for their customer profile using their lastlast name and first initial. (Ex. "Smith,“Smith, J”)J")
• Check the customer in by clicking the appropriate button
• Inform the customer of their loyalty point balance and the current daily specials. 4.7 - Product DeliveriesDeliveries Kaleafa always has safety and security in mind while finding potential properties. We take severalseveral measures to reduce risks to our vendors, employees and customers. A perfect plan for security would include a loading dock or back door to access proper personal and the onsite
78 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 89 OF 92 vault when dropping off product. However, not all properties warrant this.this. In the event no loading dock or back door is available for sensitive deliveries, Kaleafa obtains the use of our personal security guard to escort eacheach vendor to and from the exterior and into the inventoryinventory office space of our property. Normal business practices also allow us to accept sensitive deliveries only during limited hours of the day reducing the risk of constant traffic and potential vulnerability.vulnerability. Once the product has entered the building, our staff starts the accepting process as outlined in our standard operating procedures below: 1. It is extremely important that all information on the Metrc Manifest is complete and accurate: a. Manifest NumberNumber —– double check the manifest number on each bin label against the printed manifest. b. Date & Time —– make sure this matches the driver'sdriver’s schedule as accurately as possible. c. Destination License Number and Address —– check against the manifest information on the bin label. d. Route to Be Traveled —– a list of turn bbyy turn directions acquired by Google Maps and any notes that are applicable to this delivery. e. Name of Person Transporting —– this must match the driver'sdriver’s information, as well as the information about the vehicle transporting the products 2. All bins of producproductt should be delivered to and accepted by a General Manager, Assistant Manager, Bud Leader, or an onsite inventory team member. a. If the authorized manager wants to reject any product, they need to circlecircle the item on the manifest and releaserelease the product back to the driver. This must be done this with each item being rejected. b. Once the authorized manager verifies the contents of the bin and rejects any product (if necessary), the driver will require that person to print, sign and date in the appropriate fields located on the bottom of the manifest. 3. Whenever products are rejected from an original manifest, the driver will need to sign the"the” Signature of Individual Taking Receipt of Rejected Portion of This SShipment"hipment” field. 3. Once signed, make a copycopy of this manifestmanifest at the location, and lock the rejected product in a bin with Tug Tights initialed by the driver to be returned to the originating licensed location.
4.8-4.8 - Security Guards • will be prpresentesent during all operation hours. will be prpresentesent for the first 3 months of operation. Once customer traffic patterns are established, will be present for high traffic times and during armored guard money pickpick-ups.-ups. • Armored guard moneymoney pickpick-ups-ups will occur • Location willwill have a key control log for all business keys. Location will change locks when a key is lost or stolen. • Location will have a functioning alarm system where each associate has their own alarm code
79 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 90 OF 92 • LocationLocation will not allow non-associate-associate in the store outside of operating hours (posted hours) • Non-associates-associates will not be allowed behind counters, in offices or in stock areas • Register (POS) keys will be kept in a sealed and secured location associates have individualindividual ID'sID’s and Passcodes to the POS • Only Managers/SupervisorsManagers/Supervisors can conduct "high“high risk"risk” transactions on the POS • Passcodes will be required to be changed at least every six months • Multiple security cameras will be installed covering all entrances, POS locations,locations, stock areas and product displaysdisplays • Entrances will bbee strictly controlled w/ a buzz-in-in system to limit access/entry • Additional regulations will be posted on exterior signage
4.9..9- - Video Camera Surveillance To ensure that all customer and employee interactinteractionsions with cannabis is recorded, backed up, and unable to be tampered with, we have established standards for all of our stores both on how the property is monitored, and what we do with that data. Complying with all BCC regulations on video surveillance thethe following areas are covered in cameras:cameras:
• Any rooms thatthat have or will ever have cannabis in them, • All rooms where customers view, or employees interact with cannabis • Room where server is stored • limited access areas • All ingress / egress into buildings fromfrom 20 feet out have a permanent and constant recording of 360° cameras. In large rooms, especially where cannabis transactions occur, several cameras are used to ensure that a comprehensive view of all cannabis is always available. At each Point of Sale (POS),(POS), we ensure that thethe employee, all customers involved in every transaction, and all individuals on the retail flflooroor can be seen clearly enough to discern identifying facial features. All of these cameras are transmission control protocol (TCP) enabled andand are hardwired to thethe local network. These cameras are high definition, up to QXGA resolution at 2048x1536 pixels, but always exceeding the minimum resolution of 1280x720 pixels, and 30 frames per second. They have automatic infrared night vision, and allall the footage is savedsaved to an onsite drive and backed up constantly to an off-site-site drive. data is kept for a minimum of 90 days, and every server room both on and off-site-site is recorded to have a log of all physical access. Access to the camera footage is availableavailable immediately uponupon request, on location or off, and our camera client allows us to review footage from any point in time. Saved footage playback allows us to view multiple cameras at once to track the progress of an individual or package throughout ourour building from the momentmoment of entrance - to - exit with displays that show the date and time of the current video. To ensure there is no disruption in recorded video, we have an active monitoring client on our video management servers (VMS) to warn of any video surveillance oror storage drive failures, and we contractcontract with an external company to ensure that any failure is dealt with immediately, no matter the time of day.
80 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 91 OF 92
4.99 - Armored VehicILVehicle On a semi-weeklysemi-weekly to daily basis an armored transportation serviceservice will pick up bank deposits from the store. The deposidepositsts are to be prepared and documented before the courier'scourier’s arrival. All documents shall be retained and preserved for future reference.
• Prepare bank deposit (see SOP Cash Handling for Managers)
• Document the bag number andand total amount being picked up in the armored transport deposit register document and initial the entry
• When an authorized courier arrives, verify that the courier is a designated authorized individual from the service provider byby;;
o Cross referencing the inindividual'sdividual’s badge ID number to the Authorized Personnel Document
o Verifying that the courier'scourier’s headshot matches the badge ID and Authorized Personnel Document.
• Escort the courier to the cash safe, open safe, verify the armored transporttransport deposit register entriesentries match the bag numbers and cash totals, then transfer the bank deposit bags to the courier.
• The courier will verify their receipt of each bag by initialing the deposit register and leaving a carbon copy of the receipt for your records.
• Escort the couriercourier off the property
81 Kaleafa Pasadena Business Plan Application BONAVENTO INVESTMENT & MGMT CO LLC'S APPLICATIONS FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 92 OF 92