SIGO Sunset Island Group Inc (CE)

Item 8.01. Other Information

On December 20, 2017, the Company filed to Restate the Registration of VBF Brands. The filing was processed by the state of California on January 4, 2018. Prior to December 21, 2017, VBF Brands was a California nonprofit mutual benefit corporation. The Company amended the registration to convert VBF Brands to a “For-Profit” Company.

Prior to the passage of Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), medical cannabis activities where typically run through a California nonprofit mutual benefit corporation. However, after MAUCRSA passed for-profit companies are allowed to own and operate cannabis related businesses. As such, the company had previous acquired a nonprofit mutual benefit corporation (VBF Brands) to maintain compliance with the laws of California while the transition to MAUCRSA was being done on the state level. At the time, the there was a lot of confusion and uncertainty how the MAUCRSA would be regulated in California. On November 16, 2017, California’s three state cannabis licensing authorities publicly noticed proposed emergency regulations for commercial medicinal and adult-use cannabis. Once those were released the Company and its attorney began working on the temporary licenses that we filed on December 23, 2017. Prior to filing its for its licenses the Company converted VBF Brands to a For-Profit entity. VBF Brands, now a For-Profit company, is a wholly owned subsidiary of the Company.