Extreme Biodiesel gets $5 million credit line to grow hemp
Extreme Biodiesel Inc. announced that the company and its wholly owned subsidiary XTRM Cannabis Ventures has just received preapproval for a $5 million line of credit from Coastal Mortgage Group for the purpose of purchasing real estate.
XTRM plans to use the credit line for purchasing real estate for the purpose of hemp cultivation, medical marijuana cultivation and commercial real estate related to dispensaries so long as its use is deemed legal.
Some of the terms of the line of credit are that any transactions and property use are deemed legal by state and federal authorities, clear title, and that the company must contribute at least 10 percent of the purchase price.
Company President Joseph Spadafore stated, “Extreme has already identified several properties that we feel fit the company’s needs. We also want to assure investors that this line of credit does not involve a debt conversion or anything that can be converted to XTRM stock.”
The company also announced that XTRM Cannabis Ventures has just completed assembly of its first mobile hemp-to-biodiesel production unit.
XTRM Cannabis Ventures will begin marketing and posting specs for the unit shortly on its new website being constructed at http://xtrmcannabisventures.com.
When Pres. Barack Obama signed the Farm Bill, some longstanding restrictions on the growth of cannabis/hemp will be lifted. A problem for the biofuel industry has always been locating cost-effective products for conversion 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. Given that hemp seed has a better cloud point and cetane value plus similar oil content to other seeds such as canola, hemp will quickly become a viable and better alternative.
Housed in a traditional 25-foot trailer, the mobile hemp biodiesel unit can be moved very easily from site to site to maximize output. XTRM is positioning itself to become one of the, if not the, first company to market a dedicated mobile hemp-to-biodiesel unit.
“Using existing relationships with others involved in the industry such as product developers and growers we believe there will be great demand for this product,” said Spadafore.