Cannabis Science Board of Directors Begins Investigating the Corporate and Legal Requirements Required to Issue Dividends to Shareholders of Record and Create a New Class of Common Shares to Raise Up to $5 Million for FDA Clinical Trials and Acquisitions
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.
