On the other hand, as you once pointed out, Mayor

On the other hand, as you once pointed out, Mayor refers to SK3 as  "licensors" during the 11/05/2013 conference call. I rechecked that, and you're absolutely right. Mayor called SK3  "consultants" and "licensors."

(Definition: "The one who receives the license is the licensee; the one who grants it is the licensor.")

11/05/2013 A. Mayor: "...we're exploiting these assets as licensors and consultants in the industry."

"The wholesale managed collectives pay us a license fee for the intellectual property rights of products and processes for the creation of products such as Dharmanol and Canna-Loz, which license includes the right to use the name of the product and the formula for producing it."


Conference call segment

Mayor: "At no point does SK3 or its subsidiaries ever own the medicines.

We have management contracts in place to provide various managerial services and licenses to collectives that own or manufacture the medicines.

Our management contracts are a) with retail managed collectives that sell directly to patients and b) with wholesale managed collectives that take the raw material, that contains the medicine, and manufacture it into finished products, licensed in respect to manufacturing and marketing, and then sell these finished products to other dispensaries.

The wholesale managed collectives pay us a license fee for the intellectual property rights of products and processes for the creation of products such as Dharmanol and Canna-Loz, which license includes the right to use the name of the product and the formula for producing it.

Now, a great deal of time, effort and expertise have gone into developing these production methods so that they result in consistent products.

The beauty behind this whole thing, Darrell, is that we're exploiting these assets as licensors and consultants in the industry."
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