updated 6/9/2011 10:17:58 AM ET 2011-06-09T14:17:58

LOS ANGELES, June 9, 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 released a Letter to Shareholders and corporate update to shareholders. The letter to shareholders will also be posted on the company's corporate website for the next seven days, located at www.CannabismedicalSolutions.com.

Dear current and prospective Cannabis Medical Solutions shareholders,

I would like to provide you with an update on our recent activities, as well as provide a snapshot of what we anticipate achieving through our company over the coming months. There are a few items that we would like to make sure that our current shareholders and the investing community are aware of:

Many of you have contacted the company for an update on our progress. Our mission from inception has been to create a financial payments and services company for the medical marijuana and healthcare sector since 2010. Our unique blend of financial and customized payment solutions help these operations to obtain banking and credit card services properly, eliminate theft, fraud and provide tracking and compliance for medical transactions. In our opinion, we remain the first public company within the sector to offer the only full legitimate suite of banking and merchant services for this business model, and will continue to provide cutting edge payment solutions and services for the medical marijuana space as well as the mobile healthcare industry.

Over the past few months, the company has undertaken a thorough analysis of the state of our sector, as well as how the company can best capitalize on the circumstances of today and how we can best prepare for the future. As such, I am excited to announce that our new management team and I have determined that we believe that diversification is tantamount to success in today's and tomorrow's environment.

Presently, we support and provide services to several dispensary and wellness operations in the states of California, Colorado and Montana through our banking and merchant services agreements. We also provide traditional merchant services through our wholly owned subsidiary 800 Commerce Inc. Both Companies have added additional banking and solution partners which now allow us to provide patient ID cards with online medical record access, digitized personal health records for medical patients and mobile payment technology. We expect to announce new agreements and revenue streams offering these services over the coming weeks.

Recently, we have announced the funding facility and signed term sheet for our wholly owned subsidiary 800 Commerce Inc., in the amount of $5,000,000. The first funding will take place immediately upon the effective registration of the S-1 filing and spin-off of 800 Commerce Inc. All shareholders as of the record date to be announced in the near future will receive a proportionate share of the spin-off company, in addition to their holdings in Cannabis Medical Solutions. As earlier stated, we expect this filing to take place within the next sixty days. In addition, we are excited to announce that we have just executed a term sheet with an additional credit facility directly to Cannabis Medical Solutions in the amount of $10,000,000. Terms of this funding will be released within the next seven days. We are extremely pleased to have found a funding partner who believes in our business approach within the sector based on our new plans.

It has been quite challenging to raise capital over the last twelve months, capture a retail audience for the Company and move forward with our business model based on present federal government outlook toward medical marijuana regulation and wavering state legislation. We have found over the last year that simply having the word "Cannabis" in our corporate name, although beneficial at first in gaining recognition within the sector, has proven to be detrimental in allowing us to announce banking partners, move forward with signing agreements and meaningful contracts, as well as receive research coverage or gain positive traction within the marketplace. We believe our stock price and business model has suffered dramatically directly as a result of our classification as a cannabis company.

In reality, our banking agreements, financial and mobile payment solutions are second to none. In fact, our banking agreements with 800 Commerce include some the largest providers and partners of ecommerce transactions in the country. We have been limited in being able to grow the merchant processing side and business model of 800 Commerce as a direct cause of being part of a cannabis company. By initiating the spin-off, we believe we have solved this issue, and our current shareholders will immediately begin to reap the benefits of the dividend and spin-off company and brand that will soon become a recognized brand and revenue driven company within the merchant services and debit card industry. Further, it has been voted by the majority shareholders and board that the parent Company will soon change its name from Cannabis Medical Solutions to a name to reflect our MediPayments card brand, mobile payment solutions, and new digitized personal health records division, which will allow us to expand our client base to the entire healthcare sector while servicing our existing client base. We believe our business model, management team, and the aggressive execution of our plan on behalf of our shareholders is more important than a name, which has held us within certain box or stigma based on existing federal and state legislation.

Important milestones and events within the last thirty days and to be completed over the next ninety days include:

  1. Executed Term sheet for $5,000,000 credit facility for 800 Commerce Spin-off subsidiary
  2. Executed Term sheet for $10,000,000 credit facility for Cannabis Medical Solutions directly
  3. Initiation of 800 commerce Spin-off and dividend share to existing shareholders with record date to be announced in near future with filing of S-1
  4. MediPayment patient card deployment throughout California for both dispensary patients and Rx pharmacy patients offering discount on prescription drugs, insurance and card to card money transfer
  5. Continued research and development on Biometric device tied to MediPayment card program similar to drug database and prescription card program for Walmart, CVS for patient ID and bill pay
  6. Partnership with one of the largest providers of digitized personal health records for dispensary, wellness and RX patients

With our corporate funding needs now place we have 100% confidence in our business plan and in the ability of our team to execute it profitably on behalf of our shareholders. Rest assured that we will act in your best interests at all times and as we move forward with your company, creating both growth and value in the near term. We promise to update our shareholders on a weekly basis as to the progress of these numerous and exciting events with our company.


B. Michael Friedman

CEO, Cannabis Medical Solutions, Inc.

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.


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.


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:

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