As the business environment changes we see many different attempts at entrepreneurship. To the shock of many, even old fashioned hipsters, some states are attempting to legalize marijuana. Even now there are stores which cater to medical use of cannabis and sell a wide variety of products. One publicly traded company is thriving on this new age business. Cannabis Medical Solutions (CMSI) has made several large, profitable steps towards the expanding business of cannabis shops.
Their success was seen clearly only two days ago when stock volume began to rise notably. This slow climb suddenly took off, and has culminated so far today into a huge 500% increase in price since markets opened Monday. It seems that interest in CMSI is still strong and it is unknown what will have happened across the weekend and how high Monday will bring this stock.
Cannabis Medical Solutions specializes in online and wireless merchant payment solutions for businesses handling sales of medical use marijuana. They offer a spectrum of transaction processing solutions using traditional, Internet point-of-sale, e-commerce, and mobile (wireless) terminals in conjunction with industry alliance partners. Cannabis Medical Solutions is a subsidiary of Commerce Online Inc., a publically traded company under the stock symbol (CMSI).
Recent news of the issuance of dividends began the recent climb of CMSI earlier this week. 
This issuance was in the form of stock and quite considerable, having each owner of common stock receive an additional nine shares of common stock for each share they own of the record date set for May 14, 2010. Distribution of the dividend will begin on June 1, 2010. This may in part explain the seeming rush on CMSI, as new investors are looking to own a piece of the action in time.
Some more interesting news came in the form of a franchise announcement. CMSI in currently in negotiations to purchase two ‘dispensaries’ for medical marijuana in the state of California, which will be having a vote to legalize cannabis in November 2010. This is a large step for their business and may provide a new source of revenue. It also serves as a strong foothold in California should cannabis become legalized, giving CMSI two already up and running sites, which could easily be adapted to more wide spread purchasing of marijuana.
Kyle Gotshalk, CEO for Cannabis Medical Solutions stated:
“The network of medical marijuana dispensaries that CMSI has created by providing financial services to our clients in three states over the last six months, has presented a unique opportunity for our company and shareholders. It has always been a part of our business plan to not only partner with dispensaries on the merchant processing and financial security side, but to franchise, consult and brand licensed dispensaries throughout legal jurisdictions under the Cannabis Medical Solutions name”
Keep an eye out for CMSI in the short and long run. They seem to be acting agressive which is boosting prices, but as well, the vote in November for California to legalize marijuana may have far reaching repercussions.
To see more on the use of medical cannabis, refer to the video below.
By Stockpicktrading.com Team
