Several of the former members of the Cannabis Science, Inc. board of directors are former candidates for the Libertarian Party presidential and vice presidential nominations and/or members of the Libertarian National Committee. The author of the article, Tom Knapp, is a candidate for the party’s 2012 presidential nomination.
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In the first quarter of 2009, the Company acquired all of the assets of Cannex Therapeutics, LLC from Cannex and Steven W. Kubby, and committed itself to research and development of cannabis based medical products. The Company owns intellectual property related to a whole cannabis extract lozenge, which has demonstrated some efficacy in non-blind informal testing.
Like all such acquisitions, this one was accomplished by way of a contract.
The thing about contracts is that they generally include considerations by and to all sides. In this case the contractual cost of acquiring assets from Cannex and Kubby was 10.6 million shares of stock in the acquiring companies (1.2 million shares of Gulf Onshore and 8.5 million shares of K&D Equity Investments, a Gulf Onshore shareholder). And pursuant to a subsidiary Control Shareholder Agreement, the bulk of that stock is assigned to Steve Kubby.
Thing is, Kubby tells me he’s seen neither hide nor hair of that stock … which calls into question the claim that CSI actually “owns” the stuff it claims to have “acquired,” especially since K & D Equity Investments has since filed suit alleging breach of contract and seeking rescission of the acquisition.
CSI also has yet to comply with SEC rules [PDF] (specifically Item 5.02, “Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers”) pertaining to its July 8-K filings: