February 27, 2014 / Corona, CA / ACCESSWIRE / Extreme Biodiesel
Inc. (XTRM) wholly owned subsidiary XTRM Cannabis Ventures
announced today that the legal marijuana marketplace in Colorado is
exceeding the states tax expectations.
Colorado's legal marijuana market is far exceeding tax
expectations, according to a budget proposal released this month by
Gov. John Hickenlooper that gives the first official estimate of
how much the state expects to make from pot taxes.
The proposal outlines plans to spend some $99 million next
fiscal year on substance abuse prevention, youth marijuana use
prevention and other priorities. The money would come from a
statewide 12.9 percent sales tax on recreational pot. Colorado's
total pot sales next fiscal year were estimated to be about $610
million.
Retail sales began Jan. 1 in Colorado. Sales have been very
strong, though exact figures for January sales won't be made public
until sometime early next month.
The governor predicted sales and excise taxes next fiscal year
would produce some $98 million, far above a $70 million annual
estimate given to voters when they approved the pot taxes last
year. The governor also includes taxes from medical pot, which are
subject only to the statewide 2.9 percent sales tax.
In Colorado, Hickenlooper's proposal listed six priorities for
spending the pot sales taxes.
The spending plan included $45.5 million for youth use
prevention, $40.4 million for substance abuse treatment and $12.4
million for public health.
"We view our top priority as creating an environment where
negative impacts on children from marijuana legalization are
avoided completely," Hickenlooper wrote in a letter to legislative
budget writers, which must approve the plan.
The governor also proposed a $5.8 million, three-year "statewide
media campaign on marijuana use," presumably highlighting the
drug's health risks. The state Department of Transportation would
get $1.9 million for a new "Drive High, Get a DUI" campaign to tout
the state's new marijuana blood-limit standard for drivers.
Also, Hickenlooper has proposed spending $7 million for an
additional 105 beds in residential treatment centers for substance
abuse disorders.
"This package represents a strong yet cautious first step" for
regulating pot, the governor wrote. He told lawmakers he'd be back
with a more complete spending prediction later this year.
The Colorado pot tax plan doesn't include an additional 15
percent pot excise tax, of which $40 million a year already is
designated for school construction. The governor projected the full
$40 million to be reached next year.
The initial tax projections are rosier than those given to
voters in 2012, when state fiscal projections on the
marijuana-legalization amendment would produce $39.5 million in
sales taxes next fiscal year, which begins in July.
The rosier projections come from updated data about how many
retail stores Colorado has (163 as of Feb. 18) and how much
customers are paying for pot. There's no standardized sales price,
but recreational pot generally is going for much more than the $202
an ounce forecasters guessed last year.
Mason Tvert, a legalization activist who ran Colorado's 2012
campaign, said other states are watching closely to see what legal
weed can produce in tax revenue.
"Voters and state lawmakers around the country are watching how
this system unfolds in Colorado, and the prospect of generating
significant revenue while eliminating the underground marijuana
market is increasingly appealing," said Tvert, who now works for
the Marijuana Policy Project.
Meanwhile, The Denver Post reported Wednesday that banks holding
commercial loans on properties that lease to Colorado marijuana
businesses say they don't plan to refinance those loans when they
come due. Bankers say property used as collateral for those loans
theoretically is subject to federal drug-seizure laws, which makes
the loans a risk.
Colorado's two largest banks, Wells Fargo Bank and FirstBank,
say they won't offer new loans to landowners with preexisting
leases with pot businesses. And Wells Fargo and Vectra Bank have
told commercial loan clients they either have to evict marijuana
businesses or seek refinancing elsewhere.
"Our policy of not banking marijuana-related businesses and not
lending on commercial properties leased by marijuana-related
businesses is based on applicable federal laws," Wells Fargo
spokeswoman Cristie Drumm told the Post.
XTRM President Joseph Spadafore stated “We are interested, and
are currently looking into potential investments in Colorado
whereas XTRM would purchase Commercial Notes from institutions not
wishing to lend to landlords any longer. There’s plenty of
opportunity in the cannabis industry and we intend to be there for
it.”
Recent XTRM Update
40 Acre Hemp / Medical Marijuana Land Project Update
The Company is pleased to report that it plans to close escrow
on the property on or before March 20th, 2014.
The project, when built out is expected to use the 40 acres to
accommodate up to five 20,000 sqft warehouses for indoor marijuana
/ cannabis growth, 20 acres for outdoor Hemp cultivation for
biodiesel, and an industrial center to process marijuana / cannabis
into smokeless products.
President Joseph Spadafore stated “The passage of the Farm Bill
and Marijuana Legalization Progress has really generated vast
opportunities for XTRM. We have already identified two additional
parcels of land in California that are candidates for our planned
Hemp To Biodiesel project and Marijuana cultivation once approved
by any state and/or federal authorities. Once the 40 acre parcel is
closed next month we plan to acquire at least 1 more parcel of
land”
About Extreme Biodiesel and XTRM Cannabis
Ventures
Extreme Biodiesel is an alternative fuel and recycling company.
Our mission is to provide a cost-effective, high-quality
alternative diesel fuel, create "green" jobs, reduce the
environmental impact of fossil fuels and diminish US reliance on
foreign oil. Extreme Biodiesel is currently repositioning itself
into a holdings corporation with focuses on Bio Diesel, Real
Estate, Technology and Cannabis Sectors.
XTRM Cannabis Ventures is a wholly owned subsidiary of Extreme
Biodiesel focused in the sector of Medical Marijuana, Cannabis and
Hemp related products.
XTRM Cannabis Ventures Disclaimer
The Company would like to assure all investors that in all
cannabis related actions the Company is conferring with counsel to
be sure any business activities are deemed legal. XTRM advises all
investors to see the website being developed
at http://xtrmcannabisventures.com/
Investor Relations Contact
info@extremebiodiesel.com
855-736-7360
Safe Harbor
Disclaimer
Forward-Looking Statements are included within the meaning of
Section 27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
regarding our expected future financial position, results of
operations, cash flows, financing plans, business strategy,
products and services, competitive positions, growth opportunities,
plans and objectives of management for future operations, including
words such as "anticipate," "if," "believe," "plan," "estimate,"
"expect," "intend," "may," "could," "should," "will," and other
similar expressions are forward-looking statements and involve
risks, uncertainties and contingencies, many of which are beyond
our control, which may cause actual results, performance, or
achievements to differ materially from anticipated results,
performance, or achievements. XTRM is under no obligation to (and
expressly disclaim any such obligation to) update or alter our
forward-looking statements, whether as a result of new information,
future events or otherwise.
Extreme Biodiesel (PK) (USOTC:XTRM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Extreme Biodiesel (PK) (USOTC:XTRM)
Historical Stock Chart
From Apr 2023 to Apr 2024
