LOS ANGELES, April 7, 2010 (GLOBE NEWSWIRE) -- Cannabis Medical Solutions Inc. (OTCBB:CMSI), a leading company specializing in both brick-and-mortar and online merchant payment solutions, insurance and accounting services for medical marijuana dispensaries and high-risk merchant accounts and services, today announced the signing of new merchant agreements for the states of California, Colorado and Montana. Under the exclusive agreements, CMSI will provide merchant processing and POS solutions through its alliance network, enabling these dispensary operations to take credit card transactions legally and provide inventory control of patient medical marijuana.
Eighteen states have discussed medical marijuana through legislation or citizen initiatives this year, most visibly, California announced on March 24th, that this year's ballot would include a question to allow local governments to legalize and tax marijuana. In addition to saving the state of California millions of dollars in law enforcement, the Regulate, Control and Tax Cannabis Act will also give local governments the ability to tax marijuana. Proponents of the act estimate that $15 billion worth of gray-market and black market marijuana is sold each year in California according to the Associated Press. An excise tax on the retail sales of marijuana would bring in an estimated $1.3 billion a year or more in revenue. Some counties and cities within California currently tax medical marijuana dispensaries. These city and county taxes bring in as much as $350,000 per dispensary.
"It is our goal at Cannabis Medical Solutions to bring the banking industry for these businesses in line with the rapid favorable legislation of the states for legalization. We are quickly proving ourselves as the responsible choice for bringing cash alternatives and solutions to the medical marijuana industry through inventory control of medication, credit card services and state tax reporting for non-profits and profit reporting states. CMSI has partnered with the only banking solutions allowing legitimate bank accounts and merchant services without fear of cancellation of merchant accounts or freezing of funds for miscoding," stated Kyle Gotshalk, CEO of CMSI.
About Cannabis Medical Solutions Inc.
Cannabis Medical Solutions Inc. (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 and SB 420, 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.