LOS ANGELES, Aug. 2, 2010 (GLOBE NEWSWIRE) -- Cannabis Medical Solutions Inc. (http://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, today announced that the Company has signed merchant services agreements with four (4) additional medical marijuana dispensaries located in California and Colorado. Under the new agreements, CMSI will provide merchant services, cash advance POS systems and The MediPayment closed loop patient system to the licensed dispensaries. Gross annual processing volume is expected to exceed $500,000 annually, with additional revenues being generated through sales of POS systems and the CMSI proprietary MediPayment patient solution being installed this month in select dispensary locations.
"Without a doubt, CMSI has proven to be the primary partner that medical marijuana dispensaries have turned to for merchant and financial services through its banking partner network, cash advance loans, POS systems and secure patient payment solutions", stated B. Michael Friedman, co-founder and acting CEO of Cannabis Medical Solutions. We will continue to provide cutting edge and compliant financial solutions as an alternative to cash only transactions for this exploding industry, as new legislation evolves throughout the United States to maintain our leadership role," added Friedman.
"With regard to the recent announcement to purchase and hold equity interest in multiple dispensaries in Colorado, we have withdrawn our proposal to purchase an interest in Green Medicals LLC, and Green Door Dispensaries as further due diligence and financials could not be provided before the licensing and filing deadline of August 1, 2010 as required under HB 1284 for Colorado. It was further determined that under the Colorado law, that direct ownership in operations would not be possible without 2 years residency or as a public or corporate entity, barring CMSI from direct equity ownership. However, CMSI through a private group of investors will now seek to purchase commercial real estate and land zoned for medical marijuana dispensaries and lease commercial space and land to licensed individuals for the operation of medical dispensaries and cultivation. By investing in commercial real estate and land within the depressed real estate markets of California and Colorado, we are seeking to purchase these properties at a 20%-40% discount and place these appreciating real estate assets on our balance sheet while collecting revenue through rental income and the sale of our financial products and services. Under this model, we can grow our business and dramatically increase shareholder value without the risks associated to direct dispensary ownership. CMSI is presently negotiating the purchase of our first commercial building with a licensed dispensary as a long term tenant," further stated Friedman.
About Cannabis Medical Solutions
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, SB 420 and HB 1284, 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.