September 20, 2010
COLORADO SPRINGS, CO--(Marketwire - September 20, 2010) - Cannabis Science Inc. (OTCBB: CBIS) ("Cannabis Science, CBIS, or Company"), a pioneering US biotech company developing pharmaceutical cannabis products, is pleased to announce that its Board of Directors have begun investigating the corporate and legal requirements required to issue dividends to shareholders to create a new class of common shares. The company is in advanced negotiations with several groups pursuing funding opportunities for up to $5 million between $1.00 and $3.00 per new share. The proceeds will be used to fund FDA clinical trials, acquisitions, and further product research and development.
Thus far it is contemplated the new company share structure will include two classes of common stock, class A, the existing class, and class B common shares, the new class, with each trading with separate symbols. There is no contemplated change to its current preferred share structure. The company plans to create the new class via a dividend payment of shares of the new class to shareholders of record who own the current common stock. The date of record and ratio of the dividend payment for all shareholders to receive the dividend will be announced shortly.
Cannabis Science President and CEO Dr. Robert Melamede, PhD., noted, "I'm excited to proceed with the financing in relation to the new common share structure. This will provide us with the critical financing needed for FDA clinical trials and continue the development of Cannabis Science products and bring them to market. In the long run, this opportunity will open up a much wider market for our medical cannabis products thus multiplying the potential revenues offered through our licensed commercialization partner Rockbrook Inc."
Richard Cowan, Cannabis Science CFO added, "This is one of the last big pieces of the puzzle for Cannabis Science as a Company. With the new share structure and financing in place, we will then have the tools to realize the market potential for Cannabis Science and our products. We felt strongly about giving a dividend payment to our shareholders of record as part of the overall new share structure to reward their loyalty through this development stage of the Company. And we know that once we reach the FDA approval milestone for our products that everyone will be rewarded, especially our long-standing shareholders."
About Cannabis Science, Inc.
Cannabis Science, Inc. is at the forefront of pharmaceutical grade medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. In sum, we are dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.
Forward Looking Statements
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," "intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based drugs. Cannabis Science, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.
Cannabis Science Inc.
Dr. Robert J. Melamede
President & CEO
Mark J. Friedman