Written by ι Stock Market Media Group Staff — February 18, 2014
Extreme Biodiesel, Inc. (OTC Pink: XTRM) may have just entered the marijuana industry in 2014 with its wholly owned subsidiary, XTRM Cannabis Ventures, but it’s already emerging as a company that will have a significant footprint in the arena. The company’s timing is impeccable as a number of recent moves by the Obama Administration and legislators in Washington dramatically favor both Extreme Biodiesel and XTRM Cannabis’s business plans.
Extreme Biodiesel is actually a natural fit in the cannabis industry with its mission to provide a cost-effective, high-quality alternative diesel fuel, create “green” jobs, reduce the environmental impact of fossil fuels and diminish U.S. reliance on foreign oil. So, to further expand its model to accommodate a strong focus on medical marijuana, cannabis and hemp related products, should be a smooth transition for the company. It’s a transition that will be made easier with recent language in Washington, D.C. changing dramatically.
Executives at the company admit they are positioning XTRM Cannabis to be a leader in the cannabis space, and unlike many companies in the industry, Extreme Biodiesel’s subsidiary has a well thought out business plan that expects to highlight a number of lucrative possibilities for the company’s investors. Soon after announcing its arrival in the industry, the company opened escrow on a 40 acre parcel of land in California which it plans to use to cultivate hemp and marijuana. The initial plans also call for the construction of a massive indoor grow facility.
XTRM Cannabis Ventures stated that it would like to develop the 40 acres to house up to five 20,000 square foot warehouses for indoor cannabis (marijuana) plant growth, 20 acres for outdoor hemp cultivation for biodiesel, and an industrial center to process the marijuana/cannabis into smokeless products. The company’s President, Joseph Spadafore, said in a recent release that XTRM Cannabis is in the process of consulting with leading horticulture and farming experts to ensure the entire property is utilized properly for maximum benefits in this endeavor.
Two recent announcements out of the nation’s capital should prove beneficial to both Extreme Biodiesel and XTRM Cannabis. First, President Obama signed a $1 trillion Farm Bill earlier this month that legalizes the cultivation of hemp in 10 states including California where the company calls home. The benefit of this Farm Bill to the company and its investors is that XTRM Cannabis just completed assembly of its first Mobile Hemp to Biodiesel production unit. It’s a development that could prove significant to an industry that has continued to search for more cost-effective products to convert into biodiesel. Until recently hemp was simply too expensive to consider for biodiesel, but with the passage of the Farm Bill, hemp costs are expected to decrease.
Another key event that has the marijuana industry and supporters of legalizing medical marijuana and legitimate marijuana businesses excited happened late last Friday when the Obama Administration paved the way for legal banking. The guidance issued by the Justice and Treasury departments is the latest step by the federal government toward enabling a legalized marijuana industry to operate in states that approve it. The intent is to make banks feel more comfortable working with marijuana businesses that are licensed and regulated.
For XTRM Cannabis, this is a monumental announcement especially given the company will work directly with growing legal cannabis and producing legal cannabis based products. Many public companies have toiled in the industry for years waiting on more relaxed policies and for more states to continue legalizing medical and recreational marijuana use, but it appears that XTRM Cannabis has timed its move into the marijuana arena perfectly, thus sparing its investors years of frustration in this burgeoning space.