LOS ANGELES, May 31, 2011 (GLOBE NEWSWIRE) -- 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. () 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