|Original CBIS deal now in hands of XCHC. |
Item 1.01 Entry into a Material Definitive Agreement
On September 10, 2012, Cannabis Science, Inc. entered into a 25-year renewable Joint Venture Operating Agreement with Wolastokwik NeGoot-Gook (Maliseet Nation at Tobique, “WNGM”), and George Kattar to establish production operations, a clinical laboratory, integrated database system, a medicine production facility, and treatment center. Cannabis Science entered this Agreement on a non-exclusive basis and all other parties on an exclusive basis.
Under the Agreement, WNGM will share in 50%, Cannabis Science will share in 25%, and Kattar will share in 25% of net operating profits of the Joint Venture. Pursuant to the Agreement Cannabis Science will issue 1 million Rule 144 restricted common shares to WNGM and Kattar.
WNGM will provide land, building lumber, electricity, herbals, therapeutic formulations and other products and services as mutually agreed.
Cannabis Science will provide medical cannabis extract formulations, delivery methods, products, and techniques, including future products or processes and other products or services as mutually agreed.
Kattar will provide business and government contacts, marketing and distribution channels, and other products and services as mutually agreed.