We still need to get the details from the company first.
Its just guessing today.
Say your date of ownership will be November 4th and an distribution date of November 13. With a pay out of 10 shares of the new company for every share you own on the day of record.
So if you hold all your shares to the open Nov 5th you will have 309,020 shares of some new symbol, And you will be free to sell all your CBIS Nov 5th and still have these new XXXX shares. Come Nov 12th they will just show up in your stock account with ( XXXX ) and unable to trade thill the maturity date. 6 mos,a year what ever they decide.
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.
To be honnest no one knows what kind of value will be placed in the new shares. I'm just guessing the Pharam side to CBIS as CBIS becomes legal weed. After all thats the main goal of even starting Medical MJ to form a loop hole around weed being the focus on the war of drugs. I think as CBIS got into all this medical side, they fell into something very real with very real potential.
After all Pot and all outlawed substances can be used for medical studies. You know like believing a lie as reality. Stranger things have happened in medical advancements. Why not medical weed?
