LOS ANGELES, Sept. 14, 2010 (GLOBE NEWSWIRE) -- Cannabis Medical Solutions Inc. ( http://www.cannabismedsolutions.com/ ) (OTCBB:CMSI), a leading company specializing in merchant payment solutions and financial security products for medical marijuana dispensaries and high-risk merchant accounts, today announced that the Company has signed an agreement with a major infused beverage and edibles company licensed within the state of Colorado to provide merchant services and the CMSI proprietary MediPayment™ System to over 150 medical marijuana dispensaries as a proprietary payment solution.
The CMSI proprietary "MediPayment" closed loop payment system will allow the company to now issue vendor payment cards to each of its dispensary accounts totaling over 150 separate dispensaries in which it delivers a variety of infused beverages to dispensaries, wellness care centers to provide to patients. Presently, the delivery process requires delivery persons and company representatives to receive only cash or checks for delivery of edibles and infused beverages. The MediPayment™ system will virtually eliminate cash transactions often causing theft and fraud, by allowing the driver to swipe the branded MediPayment™ card with a specialized POS device once delivered and verified, transmitting payment directly to the Company, leaving a receipt, tracking and inventory record for the delivery of the products.
"It has always been our goal to provide a safe, intelligent and secure transaction for purchase of medicine within this sector, eliminating the present business model of cash payments for medication in the now multiple states allowing the operation of medical marijuana dispensaries. With MediPayment™ and our merchant services network, delivery drivers no longer will need to carry large amounts of cash or checks for delivery of medicine and edible products. The transactions are in real time through the swipe of the MediPayment™ card, and any vendor can verify funds immediately, without the fear of theft or fraud often associated with cash only transactions.
"Presently, our new alliance provides infused products to approximately 200 dispensaries and wellness centers throughout the state of Colorado. We are confident that once they are activated on the MediPayment™ system and see how it operates through cashless transactions, reporting, marketing and bonus rewards, the dispensaries will in turn expand the system to their patient base, issuing cards to thousands of patients throughout Colorado as a secure payment model, eliminating the problems often associated with cash and credit card transactions. CMSI will receive no revenues from the sale or purchases of medicine or edibles. A 2% transaction fee each time the card is used, less than the cost of an ATM fee or credit card fee presently being used, will be the CMSI revenue model. With the card going out to over 150 dispensaries within the coming weeks, we would hope to have between 15,000 and 40,000 patients on the card with an approximate revenue stream of $2.00 to $4.00 per patient a month," stated Michael Friedman for CMSI.
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.
CONTACT: Cannabis Medical Solutions, Inc. Investor Relations: 800.420.CALL info@cannabismedsolutions.com