CBIS shares owned by Cannex Therapeutics to be cancelled and re-issued to K&D

Cannabis Science, IncJun 15 2010

Cannabis Science, Inc. (OTCBB:CBIS), a pioneering U.S. biotech company developing pharmaceutical cannabis products announces Federal Court order for CBIS shares owned by Cannex Therapeutics controlled by Steve Kubby to be cancelled and re-issued to K&D. Both K&D and Cannabis Science denounce the "slanderous, malicious attacks" on the Company by its fired CEO Steve Kubby. Both parties are assessing additional legal action against Steve Kubby for his continued attacks against Cannabis Science, its shareholders, and the company's current management team as a safeguard to defend shareholder interest.

Cannabis Science and its former management group are working together to address Steve Kubby's false statements regarding the company, its transactions, its shareholders, and its current and future financial status. Currently, Cannabis Science lawyers are looking into possible legal action against Steve Kubby and those websites and blogs that knowingly enable his libelous statements and fraudulent behavior. Steve Kubby's attempts to discredit Cannabis Science, urging CBIS shareholders to sell their shares so that they can invest in his private company may raise some serious legal issues.

Yesterday, K&D President Charlie Stidham spoke to Cannabis Science management and stated, "I spoke to Steve Kubby and told him to never use my name without my consent and stop all the slanderous, malicious attacks against Cannabis Science and its team."

Stidham further stated, "I will exercise my legal options to cause these malicious, calculated attacks on the Company and myself to cease. Steve Kubby assured me he would not continue with the attacks against the Company."

Mr. Stidham also emphasized, "I'm very pleased with Dr. Robert Melamede and Richard Cowan being the control shareholders in Cannabis Science and the job they have done progressing the Company since Steve Kubby. Our group understands the real potential with Dr. Bob and Richard in control of Cannabis Science and we are very pleased to help them out anyway we can. These gentlemen are clearly the leaders in the industry, and they have been very clear with the path they are heading down. To see them build the company this quickly having so many opportunities by far overshadows over any single lozenge, which now is obviously just a minimal part of the Cannabis Science big picture."

Dr. Robert Melamede, Cannabis Science Inc. President and CEO, states, "Up until now, we have chosen to ignore Steve Kubby's attacks. We were giving him time to regain balance after having to remove him from his duties as President and CEO. However, his repeated attacks in an effort intended to destroy our credibility, at any cost, with his unethical statements and news releases have now raised questions from our investors, and have apparently affected our share price. Rather than answering individual inquiries we chose to clarify the situation with this press release."

Richard Cowan, Cannabis Science CFO, added, "It is important to reiterate that Cannabis Science is a fully reporting audited company, complying in every way with SEC regulations. Further, Cannabis Science fired Steve Kubby because of his questionable financial activities and his apparent inability to understand the basics of corporate governance for a public company. Steve Kubby's continued disregard of basic business practices and ethics underscores the correctness of our earlier decision to terminate him as President and CEO of Cannabis Science."

Cowan noted, "Regarding the recent court settlement order, Steve Kubby has completely misrepresented what has occurred. He claims that a summary judgment for K&D and against him was somehow a victory for him and that Cannabis Science 'no longer exists.' In fact, it had no bearing whatsoever on the legal status of Cannabis Science Inc. and its current management or business plans.

"Earlier, K&D Equity Investments Inc. amicably settled their differences with the current Cannabis Science management team. However, they did not settle with Cannex Therapeutics, Kubby's private company or with Kubby personally. Under the court order, Kubby was forced to give all of his shares in Cannabis Science to K&D and in return he is to be released from further actions against him from K&D on that matter. In order to demonstrate the patent absurdity of the situation, a few of the critical misrepresentations made by Mr. Kubby will be examined."

Cowan further stated, "The notion that Cannabis Science under one of the world's leading experts on cannabinoids would need anything from Steve Kubby is absurd. We are growing very rapidly through strategic acquisitions and partnerships with people who want to work with Dr. Robert Melamede. These developments give us great confidence in the future of Cannabis Science as a major player in the pharmaceutical industry providing alternative medicines in several distribution outlets such as dispensaries, over the counter nutraceutical and FDA approved medicines in several delivery formats such as sprays, creams, extracts, and strips based on whole plant based formulations."