USA's Cannabis Science acquires two revenue producing operations to boost medical marijuana R&D

Colorado, USA-based biotechnology firm Cannabis Science, which is developing medicinal cannabis products, has acquired 100% of a private company with two revenue producing operations, an organic medical marijuana growing facility and a medical marijuana dispensary providing patients with medical marijuana in Colorado in accordance with state laws.

Richard Cowan, Cannabis Science's chief financial officer, stated: "Obviously, acquiring two revenue producing operations immediately changes the nature of Cannabis Science, giving us a positive cash flow stream much sooner than otherwise would have been possible. We are now entering a new phase of our business and we expect to expand these revenue streams immediately by the acquisition of a larger facility as previously announced to meet the demand for Cannabis Science products. Our main focus remains the development of pharmaceutical cannabis products for [Food and Drug Administration] approval. In fact, these acquisitions will improve our ability to develop pharmaceuticals and increase our ability to serve the rapidly growing patient community."

Currently, both operations are producing revenues in the hundreds of thousands of dollars and generate significant positive cash flow. The transaction was a share swap in which the company is issuing a total of 2,400,000 shares for both the acquisition of these operations and as compensation for a management contract that will add significant skills to our company's team. The seller of these facilities, Adam Pasquale, is joining the Cannabis Science management team as director of horticulture. Mr Pasquale's responsibilities include overseeing these operations and implementing the company's plans to expand these areas of business across the country, as the laws allow.