Cannabis Science Issues Guidance as It Moves Forward with Shareholder Stock Dividend
Cannabis Science, Inc. (OTCBB:CBIS.ob - News), a pioneering US biotech company developing pharmaceutical cannabis products, is pleased to announce that on November 3, 2011 Cannabis Science, Inc. (the “Company”), filed an amendment to its Articles of Incorporation to create an additional class of common stock pursuant to the Company’s Definitive Information Statement on Schedule 14C which was filed with the Securities and Exchange Commission on August 18, 2011 (information incorporated by reference herein). The next step is for Cannabis Science to be issued a new CUSIP number and stock symbol.
The Company now has three classes of authorized stock: Class A Common Stock (new class), Class B Common Stock (current class) and Series A Preferred Stock. The Company will now issue the dividend to its shareholders of record as of December 31, 2010 so they receive 1 share of the new Class A common stock and 1 non-transferable share purchase warrant for each 10 shares of the former Class B common stock that they previously owned as of the record date.
President of Cannabis Science, Dr. Robert Melamede said, “Increasing shareholder value is of paramount importance at Cannabis Science. We specifically choose a publically traded structure to leverage all of our possible resources and options that comes along with this structure. The long-term relationship we look to have with our investors includes many steps that make a positive impact on the company and our stock. We see this dividend as one of those important steps.”
On December 20, 2010, our Board of Directors approved an amendment to the Articles of Incorporation to effect a recapitalization of the Company by establishing two classes of common stock, Class A and Class B and to issue a dividend to holders of our current common stock so they received 1 share of the new Class A common stock and 1 non-transferable share purchase warrant for each 10 shares of the former Class B common stock that they previously owned as of the current record date, December 31, 2010. Each whole share purchase warrant will be exercisable into one share of Class A common stock at a price of $1.00 per share. The share purchase warrants expire 90-days from the date Class A common stock commences trading under its own unique symbol. The Company is working diligently with the SEC and FINRA to obtain final approvals before any of the proposed changes can take effect.
Cannabis Science, Inc. is at the forefront of pharmaceutical grade medical marijuana research and development. The first formulations will address the needs of patients choosing to use concentrated cannabis extracts to treat their ailments. Eventually, all Americans will have access to a safe and effective FDA approved medicine regardless of which state they live in. To maintain that marijuana is a dangerous, addictive drug with no medical value is scientifically absurd. Cannabis medicines, with no effective lethal dose, are far safer than aspirin, acetaminophen, and most other OTC drugs that kill thousands of Americans every year.
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.
Source: Business Wire (November 16, 2011 - 11:02 AM EST)
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