Cannabis Science Contemplates Extending Shareholder Record Date While Providing Guidance And SEC Communications For Proposed Dividend to Shareholders of Record For A New Class of Common Shares
DENVER--Cannabis Science, Inc. (OTC Bulletin Board: CBIS.OB), a US biotech company developing pharmaceutical cannabis products for critical ailments wishes to inform its shareholders that the Company is contemplating extending the shareholder record date for the proposed dividend, which will allow all current and potential shareholders additional time to participate. The Company is currently responding to comments from the SEC and filing a response letter and amended Schedule 14C to reflect the SEC’s guidance.
Reflecting the Company's focus on targeting critical ailments with successful cannabis treatments, the Company is seeking to build a major pharmaceutical firm. Giving our current shareholders extra shares in a pharmaceutical firm focusing on cannabis formulations is consistent with the developing corporate culture of rewarding its long-term shareholders with more shares, rather than reducing their current holdings, as most other companies commonly do when they restructure for new deals.
The Company must obtain final approval from the SEC and FINRA as well as file a definitive Schedule 14C prior to creating the new class of shares, before an effective shareholder record date is approved, and prior to issuing the special dividend to shareholders. The Company Attorney is awaiting this approval to complete filings with the Nevada Secretary of State, and SEC/FINRA to finalize the new share structure. We thank shareholders for their continued patience as we work through this process.
New Share Structure
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.
About Cannabis Science, Inc.
Cannabis Science, Inc. is at the forefront of pharmaceutical grade medical marijuana research and development. 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 might 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.