Cannabis Science, Inc. Receives U.S. Federal Government Clearance to Receive U.S. Federal Government Contracts

IRVINE, CA--(Marketwired - May 26, 2017) - Cannabis Science, Inc. (OTC PINK: CBIS), a U.S. company specializing in the development of cannabinoid-based medicines, has received U.S. Federal Government clearance to receive U.S. Federal Government contracts. As the world's largest customer, the U.S. Federal Government issues over $192 billion in contracts and over $450 billion in grants annually.

Cannabis Science has completed its registration in the U.S. Government's System for Award Management (SAM), and has applied for and received a Commercial and Government Entity (CAGE) Code from the Defense Logistics Agency's CAGE Program Office at the U.S. Department of Defense. Cannabis Science is now listed with all U.S. companies eligible for Federal Government Contracts. "Achieving eligibility to access contracting opportunities with the U.S. Federal Government is a significant step for Cannabis Science," stated Mr. Raymond C. Dabney, Cannabis Science's President, CEO, and Co-founder. "I believe we can leverage the unique experience and expertise of our company to win new business and grow Cannabis Science's revenue base. We also plan to work closely with our strategic partners and collaborators to access Federal contracting and grant opportunities."

Cannabis Science is registered in SAM with three North American Industry Classification System (NAICS) Codes:

§ 541711 - Research and Development In Biotechnology
§ 621511 - Medical Laboratories
§ 624230 - Emergency and Other Relief Services

SAM is the primary vendor database for the U.S. Federal Government. Having vendor information immediately available allows the U.S. Government to rapidly find the companies with the right capabilities to offer services for required government contracts, government initiatives, research & development projects, and particular supply needs, as well as for pandemic alert and other emergency requirements.

Cannabis Science intends to explore funding opportunities, individually and with its collaborators, with institutions such as the National Institutes of Health (NIH), institutes within NIH, such as the National Institute on Drug Abuse (NIDA), and others.

As part of its mandate to study drug abuse and addiction and other health effects of both legal and illegal drugs, NIDA funds a wide range of research on marijuana (cannabis); its main psychotropic ingredient, delta-9-tetrahydrocannabinol (THC); and chemicals related to THC (cannabinoids). Research suggests that THC and other cannabinoids may have potential in the treatment of pain, nausea, epilepsy, obesity, wasting disease, addiction, autoimmune disorders, and other conditions. NIDA has provided and continues to provide funding for research related to therapeutic uses of cannabinoids as it pertains to its mission, including studies on the use of THC and cannabidiol (CBD), another chemical constituent of marijuana, for the treatment of pain (as an alternative to opioid pain relievers), addiction, and other disorders. Research on therapeutic uses of marijuana or of specific chemicals in the marijuana plant for other diseases and conditions is supported by other components of NIH as is appropriate to their mission. For a complete listing of all projects funded by NIH examining the potential therapeutic benefits of cannabinoids, see the Therapeutic Cannabinoid Research category in the NIH Report database.

The vast majority of research proposals received and funded by NIH on therapeutic benefits of cannabinoids have examined individual cannabinoid chemicals or, in a few cases, marijuana leaves delivered through some means other than smoking. Research proposals submitted to any NIH Institute of Center (IC) to study therapeutic benefits of marijuana or one of its ingredients must meet the same accepted standards of scientific design as any other proposal and, on the basis of peer review, should meet public health significance and IC priorities to be competitive with other applications that qualify for funding. NIDA is a scientific, not a policy-making agency. The same is true for the NIH as a whole. NIDA's role is to conduct and support scientific research on drugs and drug abuse and to advise the public and policy-makers, such as Congress, the White House Office of the National Drug Control Policy, and the U.S. Drug Enforcement Administration on the results of that research -- with the goal of ensuring that the nation's drug policies are informed by science. That said, NIDA does closely watch legislative changes both nationally and at the state level and supports research that studies how changing drug policies -- for instance laws around recreational or therapeutic use of marijuana -- affect rates of substance use and related public health issues.

About Cannabis Science, Inc. Cannabis Science, Inc. takes advantage of its unique understanding of metabolic processes to provide novel treatment approaches to a number of illnesses for which current treatments and understanding remain unsatisfactory. Cannabinoids have an extensive history dating back thousands of years, and currently, there are a growing number of peer-reviewed scientific publications that document the underlying biochemical pathways that cannabinoids modulate. The Company works with leading experts in drug development, medicinal characterization, and clinical research to develop, produce, and commercialize novel therapeutic approaches for the treatment for illnesses caused by infections as well as for age-related illness. Our initial focus is on skin cancers, HIV/AIDS, and neurological conditions. The Company is proceeding with the research and development of its proprietary drugs as a part of this initial focus: CS-S/BCC-1, CS-TATI-1, and CS-NEURO-1, respectively.

Forward-Looking Statements This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing words such as "anticipate," "seek," intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based drugs. Cannabis Science, Inc., does not undertake any duty nor does it intend to update the results of these forward-looking statements. Safe Harbor Statement. The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for forward looking statements. Certain of the statements contained herein, which are not historical facts are forward looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

Cannabis Science, Inc. Receives U.S. Federal Government Clearance to Receive U.S. Federal Government Contracts

Washington State Marijuana Regulators Want Clarity From Feds

OLYMPIA, WA – Two Washington state regulators who are drafting rules for the state’s newly legal recreational marijuana industry said they would benefit from clearer directives by the federal government on how to build a system that would avoid being shut down.

Chris Marr, one of three appointed members of the state Liquor Control Board charged with drafting state pot rules, said the U.S. Department of Justice had so far provided scant guidance on how to develop an industry that federal authorities, who view pot as an illegal drug, won’t feel compelled to shutter.

“Policy is being established that will be a precursor for a large number of states,” Marr said. “It’s irresponsible. They should at least engage even if just for the purposes of information gathering.”

Washington and Colorado last November became the first U.S. states to legalize recreational pot use, even as the drug remains illegal under federal law, and both expect to have recreational-use marijuana stores open starting next year.

Despite the federal prohibition of cannabis, the states are proceeding with efforts to create rules for their nascent markets with provisions including advertising restrictions and security requirements for growing operations.

Engagement in those efforts could give federal authorities a voice in a process that could also serve as a model for other states that may pursue legalization in the future, Marr said.

But apart from a handful of opaque or piecemeal statements, the Obama administration has been tight-lipped in how it plans to respond to state legalization of the recreational marijuana.

In December, President Barack Obama told ABC news that he “has bigger fish to fry” than going after recreational marijuana users. U.S. Attorney General Eric Holder later told a U.S. House subcommittee he was committed to upholding federal drug laws.

“People on the outside may think that ‘Surely they’re monitoring it, getting information quietly,’” Marr said. “My understanding is as far as the federal government is concerned they’ve been totally unengaged.”

Ruthann Kurose, Marr’s colleague on the Liquor Control Board, agreed that more feedback from the Obama administration would be helpful, but was reluctant to level criticism.

“They have to think not only about one or two states but about the national implications,” Kurose said. “I do think it would be easier if we had some clarity.”

Board Chairwoman Sharon Foster was not immediately available for comment. The Justice Department did not respond to a request for comment.

But a spokesman for Washington state Governor Jay Inslee, a Democrat, said Inslee and state Attorney General Bob Ferguson had met with Holder in January to discuss the state’s plans.

In that meeting, Holder posed questions on issues from labeling requirements to keeping pot from leaving the state, and Inslee responded in a letter the following month, the spokesman said. Inslee has not been in direct contact with Holder since.

“But our Washington D.C. staff stays in touch with the Department of Justice, and we made sure they saw the draft rules and the final rules when they came out. They’re aware of what’s happening,” Inslee spokesman David Postman said.

Postman said that “it would be nice to have an affirmative statement from the federal government that they would allow things to happen.” He said the Justice Department had offered no timeline for clarifying its position.

One clue to how the federal government will handle recreational pot may lie in its approach to the medical marijuana industry, which now legally operates in 18 states and the District of Columbia.

The Justice Department has given individual U.S. Attorneys some discretion in taking state laws into account in addressing medical pot, marijuana business lawyer Hilary Bricken said.

In Washington state, Bricken said, there is “a vast difference” in approach between the Seattle-based Western District and the more rural Eastern District, with the latter taking a harder line in shutting dispensaries and growing operations.

In Marr’s view, such decentralization raises the prospect of a recreational-use system that “is allowed to flourish” in one part of the state but “not allowed to function” in another.

Emily Langlie, spokeswoman for the U.S. Attorney for the Western District of Washington, referred questions to the Justice Department. A spokesman for the U.S. Attorney for the state’s Eastern District did not return a call for comment.

Washington State Marijuana Regulators Want Clarity From Feds