In recent months, the United States government changed its policy regarding legal use of products containing marijuana.  Instead of continuing to prosecute individuals for possessing, selling and/or using marijuana, the federal government will recognize the primacy of state laws governing the use, growing and delivery of marijuana.  This means that an individual who adheres to state laws affecting marijuana can now use it, grow it, transport it and sell it.

     California first decriminalized marijuana when its voters passed Proposition 215 in 1996.  Known as the Compassionate Care Act, Prop. 215 permitted individuals to utilize marijuana for medical purposes.  Although restrictions continually loosened since 1996, marijuana cultivation as a business venture was precluded by the federal government’s continued prohibition.  Several years ago, Jerry Brown, a former Governor of the state, became California’s Attorney General.  In late 2007, he issued an opinion which describes the manner in which marijuana can be lawfully grown and distributed.

     Our company’s goal is to obtain significant market share in an industry which we believe has become and will remain our Nation’s #1 growth business over the next decade.  To this end, we have secured the necessary systems, land and equipment to enable a sustainable growing and marketing operation in Southern California.   Based mid-way between Los Angeles and Palm Springs, our first location should enable us to obtain a significant foothold in the industry with ample room for growth.

Executive Summary

The fundamentals of this business are as follows:

     Fund an established collective management entity to enable operation of legal collectives to grow and distribute marijuana in accordance with California Proposition 215 outdoors on approximately 170 acres of leased land in Riverside County, California, and using indoor facilities in order to obtain a higher level of product being demanded by the numerous dispensing collectives serving qualified patients and caregivers.

     Provide Collective members with value, along with added benefits such as door-to-door delivery and periodic product re-pricing and added strain selection, and offer a platform on which legal cooperating collectives can offer superior product at substantial savings over present supplier pricing.

     Despite California’s decriminalization of marijuana sales and use, a significant obstacle remained because the United States government, which still classifies marijuana as a controlled substance, continued to prosecute persons despite conflicting state laws.  However, the Federal government announced that it would no longer prosecute persons for marijuana violations unless both State and Federal laws were violated.  A copy of an article about that recent announcement is attached.

     Already, thirteen states have decriminalized marijuana to some extent.  The State of New York is also among several states currently revising legislation to enact statutes permitting therapeutic marijuana sales.

Growth Potential

      Reports indicate that there is demonstrated growth in the market for marijuana, to such an extent that it appears that producers entering the supply chain cannot keep up with constantly expanding demand for product.  In addition, research is continually discovering more uses for marijuana as a medication, and more varied and creative product applications and packaging practices, as in incorporating marijuana in baked goods.

     Although California is widely regarded as the American mecca for marijuana cultivation, as more states move to legalize uses of marijuana, the product’s growth curve is likely to advance exponentially.  Presently, thirteen states have decriminalized marijuana for medicinal uses to some extent, and other states are also considering or enacting legislation to legalize the plant.