SANTA CLARITA, CA--(Marketwired - Feb 21, 2014) - USEI Cannabis Initiatives Corp, a wholly owned subsidiary of U.S. Energy Initiatives Corporation, Inc. (OTC Pink: USEI) is pleased today to announced that the Company is focusing on Colorado and Canada for expansion. Bumper cannabis sales form a billion dollar industry. In America's first cannabis-legal state sales are surging far ahead of predictions, bringing huge additional tax revenue.
According to Anthony Miller, CEO, "USEI Cannabis, our subsidiary, is making progress in Colorado. According to The Telegraph, Cannabis is likely to become an annual billion-dollar legal industry in the state of Colorado by next year after officials suggested greater volumes of the drug are being sold than anticipated. Colorado was the first state in the US to license and tax sales of the drug for recreational use, allowing dozens of shops to open for business on Jan 1, 2014. In the lead up to legalization it was estimated that sales would reach $395 million in the 2014/2015 financial year. But in its first assessment since the New Year Governor John Hickenlooper's budget office has dramatically increased that to $612 million. When the $345 million in estimated sales of the drug to people with medical conditions is added that means a total of almost $1 billion. Colorado will collect $117.8 million in taxes from the recreational sales alone, far more than expected, with another $15.8 million from the medical ones."
Seven weeks after the first batches of the drug were sold there are now 163 cannabis retail shops in the state, and the drug is selling for more than the $202 an ounce that had been predicted. Mr Hickenlooper, a Democrat, had opposed legalization but the measure was passed by 65 per cent of Colorado voters. In a letter to local politicians this week the Governor said he was "pleased" with the extra revenue.
He said the new estimates were based on "A number of assumptions of the new industry including consumption patterns, market price, the number of retail stores entering the market, and other economic and control variables. We anticipate that these projections will change monthly as more data is collected and actual revenue." The "other variables" he referred to are likely to include the number of tourists visiting and buying the drug.
Colorado's experiment is being closely watched by other US states as opinion polls in some areas show a swing in favor of legalization.
The state is using the first $40 million it collects in taxes each year to build schools. Outlining how the newly estimated extra windfall would be spent Mr Hickenlooper said it would include efforts to prevent cannabis use by teenagers, campaigns against driving under the influence of the drug, and public health projects. Mike Elliott, executive director of the Marijuana Industry Group, told the Denver Post the "Idea of this being a billion dollar industry seems reasonable. We are focusing on Hemp and Medical Marijuana products and information regarding our Colorado operations are forthcoming and information regarding our cannabis subsidiary can be found on the company's website @ www.useicannabis.com/web/," further commented Miller.
About U.S. Energy Initiatives: U.S. Energy Initiatives Corporation is a diverse (OTC Pink: USEI) energy firm, that has a long history of developing hybrid fuel systems. This firm started in 1996 and has had a long successful business history of developing its business strategies. Management's new goal is to develop its old and new technologies and to build a dynamic and diverse firm. From 2014-2015 U.S. Energy Initiatives will center on the bio-fuels, Medical Marijuana and Hemp for developing products and services. Our goal here is to become an environmentally responsible firm, marketing our products to a worldwide audience to produce significant revenue and add value for our shareholders.
DISCLOSURES: "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release may contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive products, product demand, market acceptance risks, fluctuations in operating results, political risk and other risks detailed from time to time in the Company's filings with OTCMarkets.com and as required to the Securities and Exchange Commission. These risks could cause USEI's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company.