Cannabis Medical Solutions Signs $5 Million Funding Commitment for 800 Commerce Subsidiary With Prominent Chicago-Based Private
May 31 2011 - 9:37AM
Cannabis Medical Solutions Inc.
(http://www.cannabismedsolutions.com/) (OTCBB:CMSI), a leading
company specializing in merchant payment solutions and financial
products for the medical marijuana and health care industries, and
its wholly owned subsidiary 800 Commerce Inc.
(www.800Commerce.com), a provider of merchant processing and mobile
payment solutions, today announced that the Company has executed a
term sheet for up to $5 Million in funding from Mammoth
Corporation, a private equity investment firm based in Chicago,
Illinois.
"Our management team is extremely pleased to have come to terms
for the funding facility from Mammoth Corporation that will be
exercisable at our discretion, which allows for flexibility and the
most favorable pricing possible. Under the "Equity Line of Credit,"
800 Commerce, Inc. may, at its discretion, periodically sell shares
of its common stock at a price equal to 75% of the closing price of
800 Commerce's common stock. Pricing will be based on a five-day
trading period prior to each purchase. At no time does the
agreement have an endless floor nor is deemed a 'TOXIC' financial
facility to CMSI or 800 Commerce. This equity line will fund the
confirmation phase of our business plan and other expansions moving
forward," stated B. Michael Friedman, CEO of Cannabis Medical
Solutions.
"The proposed spin-off of 800 Commerce will allow us to greatly
expand our revenue numbers by allowing 800 Commerce to become a
separate entity from Cannabis Medical Solutions, which has somewhat
limited our banking relationships and client base outside of the
medical marijuana sector. Once completed, this process will not
only give our current shareholders ownership of two companies for
the price of one through the dividend share issuance, but allow us
to announce all of our banking agreements and clients, which we
have been prohibited from doing as a known medical marijuana
company," stated Erick Rodriguez, President of Cannabis Medical
Solutions.
The drawdown equity financing of up to $5,000,000 with Mammoth
will be available to 800 Commerce upon an effective registration
statement or S-1 filing by 800 Commerce Inc. and finalized stock
purchase agreement. Each shareholder of CMSI will receive a
dividend share of 800 Commerce Inc. pursuant to percentage
ownership within the parent company CMSI. The S-1 filing is
expected to be filed within the next 30 to 60 days. A record date
will be announced within the coming weeks.
Mr. Brad Hare, principal officer of Mammoth Corporation, added:
"We are very excited to be working with CMSI and 800 Commerce, and
look forward to providing them with the necessary capital and
support to achieve their full potential in the coming years."
About Cannabis Medical Solutions
Cannabis Medical Solutions Inc. (OTCBB:CMSI)
(http://www.cannabismedsolutions.com/) 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
15 states, in an effort to keep these businesses within the
guidelines of CO Amendment 20, SB 109 and HB 1284, CA Proposition
215, SB 420, SB 1449 and Proposition 19. Cannabis Medical Solutions
(CMSI) 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, Colorado and
Montana.
About 800 COMMERCE INC.
800 COMMERCE Inc. (www.800Commerce.com) is positioned to become
a market leader in the online, wireless and traditional brick and
mortar merchant payment solutions industry. 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) technology. Our electronic payment
processing suite of services will enable clients to accept all
major credit cards, debit and ATM cards and ACH check drafts for
payment whether a retail, service, mail-order or Internet merchant.
As an industry innovator, we are dedicated to delivering
comprehensive services from merchant account activation, gateway
connections and web development to a worldwide client base.
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.
CONTACT: Cannabis Medical Solutions Inc.
Investor Relations:
305-396-9097
info@cannabismedsolutions.com