Cannabis Medical Solutions signs merchant services agreements with four medical marijuana dispensaries

Aug 2 2010

Cannabis Medical Solutions Inc. (http://www.cannabismedsolutions.com/) (OTCBB:CMSI), a leading company specializing in both brick-and-mortar and online merchant payment solutions and financial security products for medical marijuana dispensaries and high-risk merchant accounts, today announced that the Company has signed merchant services agreements with four (4) additional medical marijuana dispensaries located in California and Colorado.  Under the new agreements, CMSI will provide merchant services, cash advance POS systems and The MediPayment closed loop patient system to the licensed dispensaries.  Gross annual processing volume is expected to exceed $500,000 annually, with additional revenues being generated through sales of POS systems and the CMSI proprietary MediPayment patient solution being installed this month in select dispensary locations.

"Without a doubt, CMSI has proven to be the primary partner that medical marijuana dispensaries have turned to for merchant and financial services through its banking partner network, cash advance loans, POS systems and secure patient payment solutions", stated B. Michael Friedman, co-founder and acting CEO of Cannabis Medical Solutions.  We will continue to provide cutting edge and compliant financial solutions as an alternative to cash only transactions for this exploding industry, as new legislation evolves throughout the United States to maintain our leadership role," added Friedman.

"With regard to the recent announcement to purchase and hold equity interest in multiple dispensaries in Colorado, we have withdrawn our proposal to purchase an interest in Green Medicals LLC, and Green Door Dispensaries as further due diligence and financials could not be provided before the licensing and filing deadline of August 1, 2010 as required under HB 1284 for Colorado.  It was further determined that under the Colorado law, that direct ownership in operations would not be possible without 2 years residency or as a public or corporate entity, barring CMSI from direct equity ownership.  However, CMSI through a private group of investors will now seek to purchase commercial real estate and land zoned for medical marijuana dispensaries and lease commercial space and land to licensed individuals for the operation of medical dispensaries and cultivation.  By investing in commercial real estate and land within the depressed real estate markets of California and Colorado, we are seeking to purchase these properties at a 20%-40% discount and place these appreciating real estate assets on our balance sheet while collecting revenue through rental income and the sale of our financial products and services. Under this model, we can grow our business and dramatically increase shareholder value without the risks associated to direct dispensary ownership.  CMSI is presently negotiating the purchase of our first commercial building with a licensed dispensary as a long term tenant," further stated Friedman.