city of pasadena applicant name: the high note, inc

Reviewer: Billie-jo Naysmith
SECTION 1: QUALIFICATIONS OF OWNERS/ OPERATORS 750 640 85.33%
The CEO and sole owner currently owns and operates two retail locations in Los Angeles - Green Aid Recovery Group
and Collective Pharma, Inc., operating under the DBA of The High Note. Each business also has a distribution license
and cultivation license. The High Note Inc., is a subsidiary of Growth Network Holdings, Inc.
The application provided details of how the advisory team will assist the owner; there is no details related to the day-
to-day operations, and how the owner will split his time between three business.
GENERAL COMMENTS
The CEO and sole owner currently owns and operates two retail locations in Los Angeles - Green Aid Recovery Group
and Collective Pharma, Inc., operating under the DBA of The High Note. Each business also has a distribution license
and cultivation license. The High Note Inc., is a subsidiary of Growth Network Holdings, Inc. The owner information
page did not include applications for the directors. The applicant has been in the cannabis industry since 2009 as a
cultivator; in 2011, he began operating two dispensaries which were later allowed to operate under pre-ICO laws.
The advisory team has experience in cannabis compliance, marketing, and finance. The overall quality of the
application indicated the applicant may not have a high level of understanding of regulations.
Experience
Ownership Team
The applicant has been in the cannabis industry since 2009 as a cultivator; in 2011, he began operating two
dispensaries which were later allowed to operate under pre-ICO laws. The advisory team has experience in cannabis
compliance, marketing, and finance. The overall quality of the application indicated the applicant may not have a high
level of understanding of regulations.
THE HIGH NOTE, INC'S APPLICATION FOR CANNABIS RETAILER LICENSE, CITY OF PASADENA 1 OF 119
SECTION 2: BUSINESS PLAN 525 437 83.24%
Standard Operating Procedures (SOP)
This subcategory included nine separate SOPs involving the operations of the retail business.
Financial Plan
The financial plan included several financial forecasts however, there is no specific startup budget or estimate.
Funding/Proof of Capitalization
The proof of capitalization consists of a verifiable bank statement for Growth Network Holdings, Inc. with a balance of
as of December 31, 2018.
Records Software
The applicant will utilize Viridian Sciences for seed to sale and recordkeeping software. The application included very
comprehensive overview and user capabilities. The system will integrate with Metrc.
Track-and-Trace
The application includes procedures for the type of information added, as well as procedures for an inventory check
(every 14 days) and reconciliation.
State Testing Requirements
The application included a procedure for ensuring all product has met the state testing requirements prior to
accepting them into inventory.
training, and cash handling procedures, and customer service.
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Air Quality/Odor Control
Design Concept Integration
The customer education proposed includes information displayed in the retail area, vendor pop-up displays,
employee interaction and advise from the medical director.
Marketing
The applicant's marketing plan includes an open house, public relation events, media buying, digital marketing and
email/SMS marketing.
Community Benefits
The community benefit plan includes: employment - no discrimination, unionized; community involvement - benefit
to other business; economic incentives - tax revenue to City; education - events for community and support for local
schools; Law Enforcement and Fire Department - applicant wants to associate with organization that support them.
The exterior will include brick aesthetic and other art deco materials common to Pasadena. Signage is gold and
blends into hardwood, brick and art deco. A visual representation was included.
This subcategory includes two sentences that state the applicant believes the exterior design of aged brick, dark wood
and art deco fit seamlessly into Old Pasadena. Visual representations were also included.
The applicant will use the following measures to integrate security into the design concept: alarm sensors and glass
sensors, dome cameras outside and on the interior, uniformed
security guards.
The applicant will use a high-end air scrubbing system with charcoal fans and carbon scrubbers. May also use ozone
filters. Application stated "it is nearly impossible" to remove all odors.
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Product Access Protocols
The application failed to include this information. Additionally, this section of the application does not follow the
scoring criteria.
No specific subcategory, but retail facility policies dictate employees "must be 21 yeas of age and pass a thorough
background check prior to being hired".
Training includes product handling, burglary/robbery, and panic button. Very little detail provided.
No specific subcategory; storage, access control and cash management are applicable.
The applicant's plan indicates all cash registers will be reconciled with each change of employee. Cash will be counted
by two employees on camera and then stored in a safe until a deposit is made. "Random bi-weekly cash pick-up will
by arranged" by security or armored car.
Security Experience
Background Checks
Cash Management Plan
"Access Control" - key cards will be used to control limited access areas; lobby will be equipped with "buzz-in"
feature. Also, "Vendor/Contractors/Visitors" - all must check in at the reception desk and fill out a form. Visitor forms
will be retained for seven years.
The procedures allow for a delivery to be brought through an "Employee Only" entrance or "brought in at a time
when there is little to no traffic in the retail floor". No indication employees will ensure all cannabis products have
met state testing requirements or packaging and labeling requirements.
The application indicated security guards will monitor all entries/exits, observe all entries and departures onto the
property and hold periodic meetings with applicant and employees. No specific information regarding number of
guards on duty, or if any will be on duty after business hours.
The application includes camera specifications, types of cameras, recording capabilities, access, and placement
concepts. No information related to offsite storage or offsite monitoring was included.
No information provided; mention of armored car in cash management plan, but indicated bi-weekly pick-ups.
Security Guards
Armored Vehicle
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Section D:
Government-Issued
Identification
Redacted
EXPERIENCE
High Note, Inc., a vertically integrated cannabis company, is the vision of John Jezzini, its founder and CEO. High Note operates two dispensaries in the Los Angeles area and will launch the first of a range of recreational and medicinal cannabis products in 2019. Concurrently, High Note is constructing a cultivation and manufacturing facility in East Los Angeles alongside the High Note L.A. retail establishment and plans to break ground on its commercial cultivation center in California City this year which will be one of the largest cultivations in the State. Mr. Jezzini got into the cannabis industry in 2009 as a cultivator, believing that first-hand experience of the production process is essential. Working with two university graduate botanists, Mr. Jezzini’s focus on research and development for one full year allowed him to create propriety cultivation methodologies, including fertilizer, nutrient mix and hydroponic growing system. Within two years, John was delivering a higher yield of cannabis at a substantially lower price per pound than anyone else.
Mr. Jezzini began launching cannabis dispensaries in 2011. By 2012, he had a number of dispensaries and several cultivation facilities in Los Angeles. In 2013 the laws Los Angeles changed its law pertaining to cannabis dispensaries. To remain within the requirements of new laws, Mr. reduced his operations to two pre-ICO dispensaries. These are the current The High Note retail establishments.
A firm believer and staunch supporter of sound cannabis regulation and consumer protection, John has worked extensively with city officials to help pass essential cannabis legislation to bring the sector out of the black market and into the light. In 2016, when California was on the precipice of passing its new marijuana laws, including recreational adult use, John started Growth Network Holdings, Inc. and its wholly owned subsidiary High Note, Inc. with the purpose of creating a real proper functioning business in the cannabis space.
Through true vertical integration, High Note sets itself apart from most participants in the cannabis industry. High Note cultivates, extracts, manufactures, distributes and retails their own product. Furthermore, High Note’s team, from cultivators to
retail store managers, have proven track records and operate in accordance with industry standard corporate best practice. High Note, through its processes and management ensure good manufacturing practices, including safe cultivation, as well as quality, potency and consistency of products. In 2016 and 2017 High Note hired two Medical Doctors to start development of medicinal cannabis products to ensure that the formulation for its medical products actually perform the medical functions for which they are intended.
Growth Network Holdings, Inc., High Note’s parent company, has a full corporate team that advises on compliance, accounting long term strategic planning positioning, as well as longevity in the market.
Much like its founder, High Note is an active participant and strong proponent of clear, effective regulation and consistent enforcement in the cannabis market. This includes appropriate penalties that either compel compliance or weed out non- compliers. High Note supports the enforcement of cultivation, retail and other regulations, from opening and closing times, to fair wages, and payment of taxes and understands that non-enforcement of regulations actually penalizes compliant industry participants in favor of illegal black-market players.
The High Note itself, is set apart from other cannabis retail concepts. The stores offer an open, safe, informative and simplified customer experience. Each location offers a full range of recreational products including cannabis, drinks, edibles, cartridges, as well as medicinal products like salves, creams, and gel caps. In addition to distributing a selection of authentic and legitimate third-party brands, The High Note will also retail its own brands, including Ervana, Hervasea and Canna Pharmaceuticals, which will begin marketing in April of 2019.
The High Note believes that the current cannabis market is only the tip of the iceberg. As regulation clarifies, medicinal uses increase, more State’s legalize it, State tax revenue continues to grow and stigma reduces the more this industry will open and thrive.
High Note currently holds nineteen licenses throughout the State of California which breakdown as follows: City of Los Angeles – 2 retail, 2 distribution, 1 manufacturing and 1 cultivation; California City – 13 cultivation, 1 manufacturing and 1 distribution. In addition, High Note is in the process of obtaining a
manufacturing license from the City of Commerce. High Note is rapidly growing, like the industry, and is fully invested in being a leading participant in the legal industry’s growth and evolution over the long haul.
OWNERSHIP TEAM High Note, Inc., applicant, is a wholly owned subsidiary of Growth Network Holdings, Inc., a California Corporation. Mr. Jezzini is the CEO and 98% owner of Growth Network Holdings, Inc. Mr. Jezzini is also the CEO and sole director of High Note, Inc. As discussed above, Mr. Jezzini has been in the cannabis industry since 2009 and has extensive experience in all aspects of the cannabis industry. Below is a brief bio of Mr. Jezzini: John Jezzini Owner and CEO John Jezzini is an entrepreneur and has been a leading industrial designer for cultivation and distribution in the cannabis industry since 2009. He developed proprietary growing methodologies that allows for propagation of the strongest plants, largest yields and delivering market-leading profit margins in a highly competitive and fast-growing market. Prior to founding the High Note, Mr. Jezzini began his career in real estate where in 2001 he was a senior underwriter with Wells Fargo. After Wells Fargo, Mr. Jezzini joined The Mortgage Store Financial as director of business development where he was responsible for a national sales team of over 300 employees in the retail and wholesale divisions. As director of business development, Mr. Jezzini consistently exceeded annual quota requirements. His experience in real estate and his drive to succeed led him to the founding of Solomon One; a real estate development company formed in 2007 with his partners. Solomon One specializes in residential and commercial properties, generation asset sales of over
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Advisory Team Growth Network Holdings has a full corporate team which advises High Note and Mr. Jezzini on issues of on compliance, accounting, long term strategic planning positioning, marketing as well as longevity in the market. Below are the biographies of Growth Network Holdings corporate team. Howard Davis President In his role as President, Mr. Davis is responsible for long-range, strategic planning, including the development of investor, alliance and merger opportunities. Davis spent the bulk of his eighteen years’ corporate experience focused on M&A, Private Equity and Executive Management. During his term as CEO of Assemble Systems, the company’s annualized revenue grew 125%, its customer base expanded to include 40% of the largest general contractors in the US, and the company entered into partnerships with six industry-leading software providers, including Oracle and Sage. Formerly, Davis also worked on the investment teams for LiquidFrameworks and Onit as Principal at RedHouse Associates and led acquisitions for the Virtualization Software group at Quest Software. While at GI Partners, Davis formed part of the acquisitions team for Digital Realty Trust, Linc Facility Services, Softlayer and PCHelp, while focusing on fund investments, post- transaction operational improvement, and strategic bolt-on acquisitions. Currently based in Los Angeles, California, Davis holds an MBA from The University of Texas and a bachelor’s degree from the University of Alabama.
Gavin Hadwen VP of Finance Gavin Hadwen, born and raised in Australia, is a specialist in both Finance and IT with significant experience at all stages of the manufacturing cycle starting from the age of 15 where he worked for the West Australian Newspaper. With a degree in Accounting from Curtin University, Mr. Hadwen has developed an expertise in finance, accounting and IT from his experiences working across four continents and over ten countries in multiple industries including industrial adhesives, personnel care consumer products, and the apparel industry. Mr. Hadwen’s career has included positions ranging from production floor operations, accounting, finance and IT. From 1998 to 2010 Mr. Hadwen worked in the Adhesives and Personnel Care divisions of Henkel where he held positions as Management Accountant, IT Director and Divisional PMO Controller. In 2011 Gavin began working with Rentokil as the South East Asia CFO based in their Singapore office. His responsibilities included oversight for all regional operations in Indonesia, Thailand, Philippines and Vietnam. In 2012 Mr. Hadwen moved to the United States as General Manager for Lawman Sportswear and then as Director of Finance, HR, and Operations for the East 8th Group. Heather Rodman, Director of Marketing Ms. Rodman has garnered diverse brand management and marketing experience during nine years with start-ups, as well as established organizations in the consumer-packaged goods industry. As Brand Manager for Loudpack, she drove innovation, rebranding, and marketing initiatives for four cannabis brands. During her tenure at Old Milwaukee Beer and Ole Smoky Moonshine, Rodman created, directed and managed traditional and digital brand strategy and marketing initiatives, and established strategic partnerships with Live Nation, Dierks Bentley and Harley-Davidson, amongst others. Prior to that Heather acted as Marketing Manager at RockStar Energy Drink, where she managed initiatives for Motor Sports, including NASCAR and Motocross and developed her appreciation for building and nurturing brands
through strategic marketing and sales initiatives that touch and engage all aspects of the business. Rodman holds a bachelor’s degree in Environmental Studies from UC Santa Barbara. John Cavan Corporate Counsel Mr. Cavan specializes in intellectual property with a focus toward entrepreneurial ventures. Over the last eight years, Mr Cavan has worked extensively with medical marijuana establishments in California and Nevada with an array of legal issues including compliance issues, contract drafting, real property leasing, land use and federal forfeiture litigation. Through his work in the industry, Mr. Cavan has become a leading attorney with regards to the existing laws and legal hurdles facing medical marijuana establishments and the new laws and regulation which will shift to the marijuana business landscape. Previously, Mr. Cavan has prosecuted over 100 trademark applications with the US Patent and trademark office as well as copyright applications through the us copywrite office, has litigated four cases in front of the trademark and appeal board, and has litigated over 25 cases in the state and federal courts of Nevada on issues including, copyright infringement, insurance, rights of privacy and publicity, trademark infringement, employment issues, contract disputes, corporate dissolution, forfeiture and partnership. Mr. Cavan is an attorney and member of both California and Nevada state bars.
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COMMUNITY BENEFITS Overview Pasadena is one of the great cities of California. It is world famous for the tournament of Roses Parade, the Rose Bowl, its history, parks, architecture, industry and arts. Pasadena has long been considered one of the premiere places to live and raise a family in California. While Pasadena has a fame for its past, it is very progressive and forward thinking. The willingness of the community to accept cannabis establishments is a prime example of that. It is the High Note’s desire to operate a retail establishment celebrating the history of Pasadena while accentuating the progressiveness of the community. High Note believes that its concept for retail establishment would fit right into the architecture and feel of Pasadena’s history. As our Neighborhood compatibility section discusses in more detail, our exterior would fit well with the architecture requirements mandated by the City of Pasadena, especially old town Pasadena. High Note’s goal would be that someone walking down the street would not see our retail store, in any way, as out of place or a “sore thumb”. Even walking into the lobby, an unknowing patron would not be bombarded with cannabis products and heavy cannabis smell, but rather would see a very clean professional room with a welcoming Receptionist and no cannabis products. Those wishing to see more, who are of the proper age and have proper identification, can see the retail floor by merely checking in and being buzzed into the retail floor We believe our set-up allows for the forward movement of the times while not losing the roots and history which make Pasadena so unique. Employment
As stated in the business plan and labor and employment section of this application, High Note is looking to hire up to 10 new employees for its retail operations. High Note would like to hire, if not all, a majority of its employees from Pasadena and the surrounding area. High Note does not discriminate for any reason on the basis of race, color, creed, religion, sex or sexual orientation. High Note looks for highly motivated individuals who want to learn. Further, High Note will not discriminate against an employment candidate based on a prior cannabis conviction. High Note will look to give those employment candidates who were subjected to the overreaching cannabis laws of the past an equal chance at employment and a pathway to management positions if the employee shows initiative, drive and determination required of High Note’s management team. Currently, High Note’s employees are unionized under United Food and Commercial Workers Union (“UFCW”). High Note believes in promoting from within, when possible. High Note’s policy is to reward smart hard workers with the opportunity to move up in the organization and train them on certain skills which will translate to this or other business opportunities. Community Involvement In addition to the employment opportunities at High Note facilities, other local businesses will directly benefit from High Note’s buildout and ongoing operations including: During Construction
ü Local Hardware stores for quick items for the construction project ü Local licensed building contractors
Ongoing Continuing Retail Operations
ü Local Hardware stores for small repairs ü Local Office Depot and Staples for office supplies
ü Local plumbers, electricians and HVAC specialist for ongoing service and repair.
ü Local janitorial and cleaning services ü Local news papers and media outlets for advertising and job postings ü Local restaurants for lunch
Economic Incentives Beyond these local businesses, Pasadena in general and its public services will benefit from High Note’s presence in the City. Originally, in its construction phase, Pasadena would like to work with the City to file the correct Board of Equalization paperwork which allows all taxes derived from the development of our business park go directly to Pasadena, if possible, and not be shared with the State. (This was proposed by a City Attorney for California City in a previous meeting). Further, the following will benefit the city and its departments and projects:
ü Tax revenue from the business tax to be levied on cannabis businesses ü Increased patronage to local establishments and increased sales tax
through employee spending. ü Increased funding for public services and public projects
Specific Contributions to the Community It is a goal of High Note to be a part of its community which specifically means giving back to the City of Pasadena. High Note believes that the cornerstone of great communities are safety and education. That is why High Note places special emphasis on education and first responder services (such as law enforcement, fire department and emergency medical services). Education High Note believes in communities that prioritize education. High Note will be sponsoring educational events, giving to educational programs and holding fund raisers in an effort to support the local schools and after school programs within
Pasadena and will work with the City to determine which schools are in most need of the financial support and put special emphasis on assisting these schools. Law Enforcement and Fire Department High Note, and its owner, have participated in numerous programs that support local law enforcement such as the Police Activity League in Los Angeles. High Note would like to support the law enforcement and fire department of Pasadena in much the same way. High Note will sponsor fund raising activities and events to support the local law enforcement and fire department. Further, High Note wants to associate with organizations that support education, first responders, disadvantaged children’s support groups and medical/cancer groups. We have identified the following non-profits that serve Pasadena who we have a strong interest in supporting both through physical attendance at events and fund raisers:
• Pasadena Police Officers Association • Pasadena Fire Fighters Local 809 • Boys and Girls Club of Pasadena • Foothill families • Options for Learning • Door of Hope • Journey House • Casa Treatment Center
Finally, High Note wants to support a portion of our community that it believes is sometimes forgotten, that being our veterans. High Note will offer significant discounts on all products to veterans. In addition, High Note will work with local veterans’ groups to help with studies on the effect of cannabis on reduction of PTSD, chronic anxiety and opiate addition on veterans. To give veterans more options and assistance when returning home from combat zones.
EXTERIOR DESIGN CONCEPT
The High Note’s overall design naturally assimilates to many neighborhoods in the City of Pasadena, including Pasadena’s Victorian and art deco buildings. The exterior of The High Note, if located in an old Pasadena neighborhood will blend in with existing retail stores by sharing its walls with other local establishments. The High Note will boast proudly the aged brick aesthetic and other art deco materials that is Pasadena, which lends to High Note’s main design concept of a low-key speak-easy dispensary. The use of materials for both exterior and interior will use natural elements that create the ambiance that is The High Note. This will include use of brick, wood paneling, dark tinted windows, recessed lighting, Edison bulb pendants and custom butcher block counters. The outside signage will blend in with that of the surrounding neighborhood. The signage is a gold and while it performs the function of alerting the public where the High Note is located. The signage also blends into the hardwood, brick and art deco exteriors such that it fits into Pasadena especially the rich history of the old town. When customers enter The High Note, they will be greeted by a fully curated lobby that does not give an air of a cannabis retail facility, but rather, is a professional feel with no indication of cannabis on the premises. Customers check-in with the reception and enter into the retail space through a secret door bookshelf.
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DESIGN CONCEPT INTERGRATION Although High Note believes that its exterior design concept will work with most neighborhoods in Pasadena, High Note believes that is especially true about Old town Pasadena. High Note believes that the elements outlined in its exterior design concept, namely, aged brick, dark wood and art deco materials fit seamlessly into the old town ambience and spirit.
Air Quality Plan Odor is one of the most common complaints regarding cannabis establishments. High Note, Inc. is aware of this issue and takes many precautions in an attempt to limit the emissions of any odor in and from the Location. Although it is nearly impossible because of the amount of cannabis in the retail facility, High Note strives to make the ambient air as free of cannabis smell as possible High Note is constantly circulating the air in its retail location through its proprietary air filter system (see below) and through its HVAC units. High Note uses a proprietary system comprised of high-end air scrubbing equipment where the air is circulated through charcoal can fans, the air is then pushed through carbon air scrubbers before re-circulating the air into the retail facility or outside. This dual filtration system limits the odor emitted from the retail facility to well below the standard in the industry. In addition, High Note is always looking for ways to limit the odor with new and emerging technologies. High Note is currently in discussions with a company that produces ozone air filters which proport to kill 99% of all bacteria in the air which passes through the filter to test these filters in High Note’s facilities. The bacteria are the what causes the smell that emits from cannabis. We are hopeful that these ozone filters will be a long term solution to the odor issue, or that when added to our current system it will eliminate 99% of all odor from the cannabis facility.

city of pasadena applicant name: the high note, inc

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