Lifestyle Delivery Systems Inc. Announces Cannabis Tax Reduction Ordinance by the City of Adelanto Goes Into Effect
14 June 2019
VANCOUVER, British Columbia, June 11, 2019 /PRNewswire/ -- Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQX: LDSYF), (Frankfurt: LD6, WKN: A14XHT) ("LDS" or the "Company") is pleased to announce that the City of Adelanto, where the Company's state-of-the-art facilities are located, informed the Company that the city ordinance to reduce the cannabis tax has gone into effect as of June 6, 2019.
Last week the City of Adelanto announced the ordinance to reduce the tax on Transportation, Distribution, Manufacturing, and Cannabis Testing Lab Services from 5% down to 1% voted 4 to 1 in favor of the reduction has become effective. The City council also had voted 4 to1 to reduce the cultivation tax from $5 per month per square foot to $0.42 cents per month, per square foot, this tax reduction and the dispensaries tax which was reduced from 5% down to 3%, both went into effect on June 6, 2019. The reduction in city taxes will be a positive incentive for cannabis businesses to operate in Adelanto.
The Company's CEO, Brad Eckenweiler, stated, "This tax reduction was essential to our future and the future of our subsidiaries in Adelanto. Without this restructuring of the taxes in Adelanto the Company would have had to move its licensing jurisdiction in order to compete in the current California cannabis market. We were not alone in this assumption, most of the operators in Adelanto were making similar plans, some have already moved portions of their operations. We were forced to reduce our production based on the onerous tax burden, which would have cost far more money to operate than to not operate. That is now behind us, and we are preparing to ramp up our production once more, understanding that this was an obstacle that has been overcome and we can resume full operations." The LDS subsidiaries are excited to get back to a full work schedule and applaud the actions of the city council and look forward to a long and mutually beneficial future together.
The Company will continue to update the market on all events as they become relevant.
About CSPA Group, Inc.
CSPA Group, Inc. is located in Adelanto, California and is a City-Permitted and State-Licensed manufacturer and distributor/transporter in the California cannabis industry. The company manufactures extracted oils and distillates, and produces CannaStripsTM under a license agreement with Lifestyle Delivery Systems Inc. a British Columbia company.
About Lifestyle Delivery Systems Inc.
Lifestyle Delivery Systems Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product. From start to finish, the production process, based on the Company's technology, tests for quality and composition of all the ingredients used in each and every strip which results in a delivery system that is safe, consistent and effective.
Lifestyle Delivery Systems Inc.
CEO & Director
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Cautionary Disclaimer Statement:
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, The Company undertakes no obligation to publicly update or revise forward-looking information.
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SOURCE Lifestyle Delivery Systems Inc.