LOS ANGELES, May 17, 2010 (GLOBE NEWSWIRE) -- Cannabis Medical Solutions Inc. (www.cannabismedsolutions.com) (OTCBB:CMSI), a leading company specializing in both brick-and-mortar and online merchant payment solutions and financial security products for medical marijuana dispensaries and high-risk merchant accounts and services, today issued the following clarification regarding the recently announced stock dividend and forward stock split.
In response to questions from stockholders, the Company wishes to clarify for stockholders and brokers the procedure through which stockholders may obtain their dividend certificate or shares. On May12, 2010 Cannabis Medical Solutions Inc. (OTCBB:CMSI) announced that its Board of Directors had declared a special stock dividend. The company initially announced that the dividend would be payable to stockholders of record on May 14, 2010 with the dividend being paid on or about June 1, 2010.
This clarification and second announcement provides that the Financial Industry Regulatory Authority (FINRA) has advised the company of the operation of Nasdaq Rule 11140(b)(2), which states:
In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date. This has been interpreted by the Company and its advisors that the dividend will trade with the stock until June 1, 2010, the payable date. Purchasers on June 2, 2010 or later will not be entitled to the dividend. If a stockholder is already a record owner of the Company holding certificates for Cannabis Medical Solutions Class A common stock issued in the stockholders name prior to or by May 14, 2010, the shareholder does not need to take any further action. A Dividend Certificate will be mailed directly to the shareholder by the transfer agent. All Registered Shareholders who purchased shares in the open market as of the record date of June 1, 2010, will be issued shares electronically representing the dividend shares entitled.
Cannabis Medical Solutions recommends that non-registered shareholders after May 14, 2010 should contact their representatives (Brokerage firms, On-line trading companies etc.) to ensure they are credited with the stock dividend. They should not contact Island Stock Transfer directly as that will be done by the Brokerage Firm. The Brokerage Firm will provide proof of ownership to Island Transfer. Persons needing further information or interpretation should consult with their broker-dealer or legal advisors.
"This stock dividend is intended to lay the groundwork for the growth of our Company, allowing us to continue our ongoing efforts to improve trading liquidity, broaden ownership, promote capital investment for acquisition and enhance shareholder value" stated CEO Kyle Gotshalk.
About Cannabis Medical Solutions Inc.
Cannabis Medical Solutions Inc. (OTCBB:CMSI) (http://www.cannabismedsolutions.com/) has quickly become the most recognized brand and partner in both online and wireless niche merchant payment solutions. The Company offers a full spectrum of secure and reliable transaction processing solutions using traditional, Internet Point-of-Sale (POS), e-commerce and mobile (wireless) terminals in conjunction with Industry Alliance Partners. The Company has recently focused on providing payment solutions to the licensed medical marijuana dispensaries throughout 14 states. In an effort to keep these businesses within the guidelines of CA Proposition 215 and SB 420, Cannabis Medical Solutions offers reliable merchant payment solutions and closed loop pre-paid stored value and loyalty cards as a unique cash alternative to these regulated dispensaries for both operators and members of collectives. CMSI will seek to capitalize on this presently untapped and much needed solution, and presently provides services to multiple locations throughout California, New Mexico, Colorado and Montana.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Cannabis Medical Solutions Inc. to be materially different from the statements made herein.