Archive for 'Dividend'

The Board of Directors of Peoples Bancorp Inc. (Nasdaq: PEBO) yesterday declared a cash dividend of $0.10 per common share, payable April 18, 2011, to common shareholders of record on April 4, 2011.

The first quarter dividend represents a payout of approximately $1.1 million based on 10.5 million common shares currently outstanding and an annualized dividend yield of 3.32% based on the closing stock price of Peoples’ common shares of $12.05 on March 24, 2011.

Peoples also announced it intends to release first quarter 2011 results of operations before the market opens on Tuesday, April 26, 2011, and host a facilitated conference call at 11:00 a.m. Eastern Daylight Saving Time on the same date.  A simultaneous Webcast of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section.

Peoples Bancorp Inc. is a diversified financial products and services company with $1.8 billion in assets, 47 locations and 40 ATMs in Ohio, West Virginia and Kentucky.  Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, LLC, which includes the Putnam and Barengo divisions.  Peoples’ common shares are traded on the NASDAQ Global Select Market® under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com.

CONTACT: Edward G. Sloane, Chief Financial Officer and Treasurer, +1-740-373-3155

Web Site: http://www.peoplesbancorp.com

Raytheon (NYSE: RTN) Raises Dividend Again

Raytheon Company’s (NYSE: RTN) Board of Directors has voted to increase the Company’s annual dividend payout rate by 15 percent from $1.50 to $1.72 per share. The Board also authorized payment of a quarterly cash dividend of $0.43 per outstanding share of common stock to be paid on April 28, 2011 to shareholders of record as of the close of business on April 6, 2011. Payment of quarterly dividends is subject to Board authorization.

“This marks the seventh consecutive year that we have raised our dividend,” said William H. Swanson, Raytheon’s Chairman and CEO. “The dividend increase reflects our company’s strong financial position, continued confidence in the future and ongoing commitment to our shareholders.”

Raytheon Company (NYSE: RTN), with 2010 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 89 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.

Media Contact Investor Relations Contact
Jon Kasle Todd Ernst
781.522.5110 781.522.5141

http://www.raytheon.com

Maintains one of the strongest payouts to shareholders in the industry

Declares 6.7% increase and special 1-cent dividend for first quarter

The board of directors of BB&T Corporation (NYSE: BBT) today declared a 1-cent increase in the 2011 second-quarter dividend, as well as a special 1-cent dividend. After a review of BB&T’s capital plan and projections under very rigorous scenarios, the Federal Reserve today did not object to BB&T’s request to raise the dividend.

The total second-quarter dividend is $0.16 plus the $0.01 special dividend per common share. At this quarterly rate, the annual dividend is equivalent to $0.64 per common share. The $0.16 regular dividend represents a 6.7% increase over last year’s dividend.

“BB&T is pleased to provide this increase in our dividend and to be in the first group allowed to increase the dividend,” said Chairman and CEO Kelly King. “We continue to be one of the strongest capitalized institutions in the industry and we believe this action confirms that strength.

“We are proud to have maintained the fourth highest dividend yield among S&P 500 banks. We view this as a good first step to further increases in the future,” said King.

The dividends will be paid May 2, 2011, to shareholders of record as of April 8, 2011. BB&T has one of the strongest dividend payouts in the country for banks and has paid a cash dividend to shareholders every year since 1903. The company has approximately 694 million shares outstanding.

About BB&T

BB&T Corporation (NYSE: BBT) is one of the largest financial services holding companies in the U.S. with approximately $157.1 billion in assets and market capitalization of $18.3 billion, as of Dec. 31, 2010. Based in Winston-Salem, N.C., the company operates approximately 1,800 financial centers in 12 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others. More information about BB&T and its full line of products and services is available at www.BBT.com. More information about BB&T Corporation is available at www.BBT.com/About.

 

CONTACT: ANALYSTS, Tamera Gjesdal, Senior Vice President, Investor Relations, +1-336-733-3058, TGjesdal@BBandT.com, or MEDIA, Cynthia Williams, Executive Vice President, Corporate Communications, +1-336-733-1478, Cynthia.Williams@BBandT.com

Web Site: http://www.bbt.com

First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance and settlement services for real estate transactions, today announced that its board of directors has approved a new stock repurchase plan, which authorizes the repurchase of up to $150 million of the company’s common stock. Purchases may be made from time to time by the company in the open market at prevailing market prices or in privately negotiated transactions.

The board also declared a regular quarterly cash dividend of 6 cents per common share. The cash dividend is payable on April 15, 2011, to stockholders of record as of March 31, 2011.

About First American

First American Financial Corporation is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2009, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com .

Media Contact: Investor Contact:
Carrie Navarifar Craig Barberio
Media Relations Manager Director of Investor Relations
First American Financial Corporation First American Financial Corporation
(714) 250-3298 (714) 250-5214

CONTACT: Media, Carrie Navarifar, Media Relations Manager, +1-714-250-3298, or Investors, Craig Barberio, Director of Investor Relations, +1-714-250-5214, both of First American Financial Corporation

Web Site: http://www.firstam.com

Increases common stock dividend by 17.6%

BioMed Realty Trust, Inc. (NYSE: BMR) today announced that its board of directors has declared a first quarter 2011 dividend of $0.20 per share of common stock, representing a 17.6% increase over the company’s fourth quarter 2010 dividend of $0.17 per share.  The dividend is equivalent to an annualized dividend of $0.80 per common share.

BioMed also announced that its board of directors has declared a dividend of $0.46094 per share of the company’s 7.375% Series A Cumulative Redeemable Preferred Stock for the period from January 16, 2011 through April 15, 2011.

Both dividends are payable on April 15, 2011 to stockholders of record at the close of business on March 31, 2011.

About BioMed Realty Trust

BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry®. The company’s tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed owns or has interests in 85 properties, representing 147 buildings with approximately 12.2 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey, which have well-established reputations as centers for scientific research.  Additional information is available at www.biomedrealty.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the life science industry or the company’s target markets; risks associated with the availability and terms of financing, the use of debt to fund acquisitions and developments, and the ability to refinance indebtedness as it comes due; failure to maintain the company’s investment grade credit ratings with the ratings agencies; failure to manage effectively the company’s growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Rick Howe, Director, Corporate Communications of BioMed Realty Trust, Inc., +1-858-207-5859

Web Site: http://www.biomedrealty.com

Builders Insurance Group today announced that member company Builders Insurance (A Mutual Captive Company) will distribute its 15th consecutive dividend payment to its qualifying Georgia policyholders in the second quarter of 2011.  This year’s dividend distribution of approximately $1.8 million brings the total amount of dividends paid to more than $45 million.

“The Company, Board and Staff are pleased to once again deliver a significant Dividend distribution to our loyal policyholders,” said Allen Richardson, Chairman of the Board for Builders Insurance Group.  “This payout is a testament to the financial strength of our Company in withstanding difficult economic conditions, the success of our long-term strategic vision and to the dedication of our agents and policyholders in maintaining safe work environments.”

“It has been a tremendously productive year for Builders Insurance Group with the expansion of our Company through new products such as our Commercial Package Policy and into new territories including Colorado,” added Patrick Mitchell, President and Chief Executive Officer.  “This year’s Dividend is more than three times what was paid last year and a definitive sign that our Company can overcome challenges and continue to be a reliable partner to our policyholders. As the economy begins its recovery, we are well positioned to take advantage of the opportunities presented by an improved marketplace.”

To be eligible to receive a dividend, a Georgia policyholder must have maintained continuous coverage with Builders Insurance (A Mutual Captive Company) since December 31, 2007 and must be without any unresolved receivable balances. In addition, the policyholder must have maintained membership in an approved association membership organization.

Nearly 14,000 policyholders in residential and light commercial construction as well as variety of non-construction fields rely on Builders Insurance Group to protect their most important assets – people and property.  Over a span of almost two decades of operation, the company has evolved into a dynamic, financially secure and dedicated partner with a philosophy of providing outstanding products, backed by exceptional customer service and easy-to-use technology solutions. Headquartered in Atlanta, the company delivers innovative Workers’ Compensation, General Liability and Property insurance through independent agents to customers throughout the Southeastern, Mid-Atlantic and Midwestern United States as well as Colorado and Texas.  Builders Insurance Group and all of its member companies are rated A- (Excellent) VIII by A.M. Best Company.  For more information, please visit our Web site at www.bldrs.com.

CONTACT: Lisa Kwon, Communications Specialist, +1-678-309-4166, lkwon@bldrs.com

Web Site: http://www.bldrs.com

Mangrove Partners, owners of 149,373 shares representing approximately 5.71% of the outstanding shares of CPEX Pharmaceuticals, Inc (Nasdaq: CPEX), believes its analysis and intentions were inaccurately portrayed in CPEX’s March 2, 2011 letter to stockholders, which appears to use scare tactics in order to pressure stockholders into accepting an inadequate price for their shares.

Commenting on the merger, Nathaniel August replied, “At its most basic level the merger makes no sense. The buyer is funding only $3 million of equity yet there is approximately $10 million in transaction fees being paid to management and advisors.”

As regards CPEX’s scare tactics, Nathaniel August remarked, “When we first purchased CPEX stock last April, management told us the outlook for Testim was wonderful following the FDA’s response to Auxilium Laboratories, Inc.’s Citizen’s Petition, which states that future generic competitors must file a full NDA. Now that management is about to capture their change of control payments, CPEX is only too willing to tell stockholders how awful the outlook is for Testim.”

Mangrove Partners would like to highlight the following inaccuracies in CPEX’s letter:

  • CPEX’s letter fails to inform stockholders of the Citizen’s Petition regarding generic versions of Testim (and a subsequent affirmation of that response), which requires potential competitors to file a full NDA, an extremely costly process, in order to be approved.
  • Competing and generic products have been well known since before CPEX issued its proxy statement, which forecasts continued growth in the Testim royalty over the next four years despite the new competition. Is CPEX backing away from this projection? Although our analysis suggests that Testim is often used after AndroGel® has been ineffective, in which case we see little threat to the existing user base, we used CPEX’s own projections in the proxy statement showing slower future revenue growth as compared to the historic rate. Even with this slowdown, we show the DCF value of CPEX using the proxy statement’s projections far exceeds the merger price.
  • CPEX claims we don’t account for legal costs of maintaining the patents, but the truth is we use the proxy statement’s projected G&A expenses. On page 36 of the Company’s most recent 10-K legal costs are clearly included in G&A. Is CPEX now saying management’s figures were wrong?
  • CPEX claims we make dividend projections for future years, but the truth is we just show potential 2011 dividends based on CPEX’s projections in its proxy statement. If CPEX thinks the proxy statement is correct, then the dividend will actually grow for the next 3-4 years. Many royalty trusts we use as comparables already have declining production yet trade at 7-8% yields.

We are frustrated that CPEX seems to simply disavow their own figures in an effort to scare stockholders into accepting an offer that undervalues CPEX but provides management with lucrative change of control payments and its advisors with substantial fees.

Mangrove Partners believes there are two questions in evaluating the merger. First, is this a fair price? CPEX’s advisors use a DCF valuation and Mangrove Partners used CPEX’s own projections from the proxy statement to show that a DCF valuation far exceeds the $27.25 per share offered in the merger. CPEX has failed to show or even assert that our DCF analysis contains any errors. Second, is there a better alternative to the merger? Mangrove Partners has suggested either creating a royalty trust or refocusing on dividends. CPEX has failed to show any errors with our analysis showing that CPEX could pay an $8-9 per share annual dividend as a royalty trust or an $8-10 per share special dividend and a $4-5 per share annual dividend as a standalone company. Mangrove Partners stands behind its analysis, all of which is based on management’s projections in the proxy statement.

Mangrove Partners did have several discussions with CPEX’s advisors, but it was denied access to management and to the elected stockholder’s representatives of CPEX, the Board. In our discussions, we never made an offer to purchase CPEX and we currently have no intention of making such an offer. CPEX’s advisors conditioned a management call on agreeing to onerous confidentiality restrictions and limiting discussion to written questions submitted in advance. The simple truth is that the Board and management have refused to have any dialogue with us and have never returned our calls. What is so scary about a conversation with one of your stockholders?

Mangrove Partners was further confused by CPEX’s assertion that voting down the merger is “Mangrove’s only path to a profitable investment.” Had the Board read our filings, they would know that we have made money on our investment in CPEX. At this point, Mangrove Partners only cares about maximizing value and our future per share returns will replicate the returns earned by all other stockholders. In fact, publicizing our opposition to the transaction comes at our sole expense, yet a better outcome will be shared by all stockholders. This is the opposite outcome of the merger, which has management receiving large change of control payments while stockholders are denied better alternatives such as a royalty trust, dividend focused company, or dividend recapitalization. Our interests are aligned with fellow stockholders.

Instead of addressing stockholders’ concerns, CPEX has derided Mangrove Partners for its investment in CPEX. We understand the sale process was time consuming and the Board is recommending the merger, but that does not excuse CPEX’s unwillingness to engage with shareholders. We strongly encourage the Board and management to open a two-way dialogue with their stockholders and question why Robert Hebert was listed as the investor contact on CPEX’s press release when to the best of our knowledge he has not returned shareholder calls for months.

Mangrove Partners opposes the proposed merger based on the following factors:

  • Inadequate Price: The merger represents only 3.6x 2011 forecast operating profit and is a discount to the debt being raised by the acquirer. The inadequate price was further revealed when the acquirer’s stock more than doubled after announcing it will acquire CPEX.
  • Better Alternatives: CPEX can refocus itself on paying its earnings out can afford a dividend of over $4 per share without touching its estimated net cash position of over $9 per share. Alternatively, CPEX may be able to spinoff Testim into a royalty trust paying over $8 per share in annual dividends. We believe CPEX is worth substantially more as a standalone company than the merger consideration being offered.
  • Conflicted Management: Management is set to receive change of control payments of over $7.3 million or over 10% of the value of CPEX.
  • Faulty Fairness Opinion: The fairness opinion is lacking key elements such as comparable transactions and comparable companies analyses. The DCF analysis provided to stockholders appears misguided and we could not replicate its conclusions using the banker’s methodology.

Investors with questions concerning our reasons for voting against the merger should call Steven C. Balet or Geoff Sorbello at Okapi Partners LLC, which is advising Mangrove Partners, toll free at 1-877-285-5990.

Mangrove Partners’ prior letters and presentations to CPEX can be found here:

CONTACT: Steven C. Balet or Geoff Sorbello, both of Okapi Partners LLC, for Mangrove Partners, 1-877-285-5990

Digital Realty Trust, Inc. (NYSE: DLR), a leading global wholesale datacenter provider, today announced that its Board of Directors has authorized quarterly common and preferred stock dividends for the first quarter of 2011.

“We have increased our quarterly common stock dividend by 28.3% to $0.68 per share because of our growth in taxable income and cash flow as well as our optimism regarding our future growth.  This is the 9th dividend increase since our IPO in the fourth quarter of 2004.  On an annualized basis, this represents an increase of 34.7% over the 2010 annual dividend of $2.02 per share and a compounded annual growth rate of 18.2% since our first full quarter of operations following the IPO in 2005,” said A. William Stein, Chief Financial Officer and Chief Investment Officer of Digital Realty Trust.

Common Stock Dividend

Digital Realty Trust’s Board of Directors authorized a quarterly common stock dividend of $0.68 per share to common stockholders of record as of the close of business on March 15, 2011.  The common stock dividend will be paid on March 31, 2011.

Series C Cumulative Convertible Preferred Stock Dividend

The Company’s Board of Directors authorized a preferred stock dividend of $0.273438 per share to holders of record of the Company’s 4.375% Series C Cumulative Convertible Preferred Stock as of the close of business on March 15, 2011. The series C cumulative convertible preferred stock dividend will be paid on March 31, 2011.

Series D Cumulative Convertible Preferred Stock Dividend

The Company’s Board of Directors authorized a preferred stock dividend of $0.34375 per share to holders of record of the Company’s 5.500% Series D Cumulative Convertible Preferred Stock as of the close of business on March 15, 2011. The series D cumulative convertible preferred stock dividend will be paid on March 31, 2011.

About Digital Realty Trust, Inc.

Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing secure, reliable and cost effective datacenter facilities.  Digital Realty Trust’s customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust’s 96 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.8 million square feet as of December 9, 2010, including 2.3 million square feet of space held for redevelopment. Digital Realty Trust’s portfolio is located in 28 markets throughout Europe, North America and Singapore.  For additional information, please visit Digital Realty Trust’s website at http://www.digitalrealtytrust.com.

Safe Harbor Statement

This press release contains forward-looking statements, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount and timing of expected payment of dividends on our common stock and preferred stock and statements related to our financial performance and expected REIT taxable income, distribution requirements, cash flow and future growth for 2011.  These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in real estate and zoning laws and increases in real property tax rates.  For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the United States Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2009 and subsequent quarterly reports on Form 10-Q.  The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For Additional Information :
A. William Stein Pamela Matthews
Chief Financial Officer and Director of Investor Relations
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 (415) 738-6500
+1 (415) 738-6500

CONTACT: A. William Stein, Chief Financial Officer and Chief Investment Officer, or Pamela Matthews, Director of Investor Relations, both of Digital Realty Trust, Inc., +1-415-738-6500

Web Site: http://www.digitalrealtytrust.com

Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced that its Board of Directors declared a regular quarterly cash dividend of $0.06 per share, subsequent to the Board’s review of the Company’s financial results and capital strength for the quarter and the year ended December 31, 2010.  The dividend will be paid on February 15, 2011 to shareholders of record as of February 1, 2011.

Sierra Bancorp is the holding company for Bank of the Sierra (www.bankofthesierra.com), which is in its 34th year of operations and is the largest independent bank headquartered in the South San Joaquin Valley.  The Company has $1.3 billion in total assets with 25 branch offices, an agricultural credit center, an SBA center, an online “virtual” branch, and over 400 employees.

The statements contained in this release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company.  Readers are cautioned not to unduly rely on forward looking statements.  Actual results may differ from those projected.  These forward-looking statements involve risks and uncertainties including but not limited to the bank’s ability to maintain current dividend payments or increase dividend payouts to shareholder, its ability to continue to generate record financial results, changes in economic conditions, interest rates and loan portfolio performance,  and other factors detailed in the Company’s SEC filings. Sierra Bancorp undertakes no responsibility to update or revise any forward-looking statements.

www.sierrabancorp.com

CONTACT: Ken Taylor, EVP/CFO, or Kevin McPhaill, EVP/Chief Banking Officer, both of Sierra Bancorp, +1-559-782-4900, or 1-888-454-BANK

Web Site: http://www.sierrabancorp.com

Cannabis Science, Inc. (OTC Bulletin Board: CBIS) to Issue Dividend

Cannabis Science, Inc. (OTC Bulletin Board: CBIS) to Issue Dividend-Image via Wikipedia

Cannabis Science, Inc. (OTC Bulletin Board: CBIS), a pioneering US biotech company developing pharmaceutical cannabis products, is pleased to announce to its shareholders and the investment community that the Company has filed its action to approve the decision of our Board of Directors to amend the Articles of Incorporation to effect a recapitalization of the Company by establishing two classes of common stock, Class A and Class B and to issue a dividend to holders of our current common stock so they received 1 share of the new Class A common stock and 1 non-transferable share purchase warrant for each 10 shares of the former Class B common stock that they previously owned as of the record date, December 31, 2010. Each warrant will grant the holder to purchase an additional share of Class A common stock at a price of $1.00 per share. The warrant will be exercisable for 90 days from the date that the Class A common stock receives a trading symbol.

On December 20, 2010, our Board of Directors approved, subject to receiving the approval of the holder of a majority of our outstanding capital stock, an amendment to the Articles of Incorporation to effect a recapitalization of the Company by establishing two classes of common stock, Class A and Class B and to issue a dividend to holders of our current common stock so they received 1 share of the new Class A common stock and 1 non-transferable share purchase warrant for each 10 shares of the former Class B common stock that they previously owned as of the record date, December 31, 2010. Each whole share purchase warrant will be exercisable into one share of Class A common stock at a price of $1.00 per share. The share purchase warrants expire 90 days from the date Class A common stock commences trading under its own unique symbol. The Amended Articles effecting the new class and share dividend will become effective following filing with the Secretary of State of the State of Nevada, which will occur promptly following the 20th day after the mailing of this Information Statement to our stockholders as of the Record Date.

We are currently authorized by our Certificate of Incorporation to issue 250,000,000 shares of common stock, $0.001 par value per share and 1,000,000 shares of preferred stock, $0.001 par value per share. Pursuant to the Amendment we will reclassify our common stock so that we can issue 250,000,000 shares of Class B common stock (our current class), 100,000,000 shares of Class A common stock (our new class) and 1,000,000 shares of preferred stock.

As of the date the Amendment was approved by our Board and the Majority Stockholders, there were 107,170,574 shares of our common stock issued and outstanding.

Reasons for the New Class of Common Stock

Our Board believes it is in our best interests and the best interests of our stockholders to create a new class of common stock as it will allow for greater value for shareholders in having increased dividend participation in addition to enabling the issuance of shares of our common stock or other securities in connection with such potential issuances and such other purposes as the Board determines at a higher price. The Board believes that the new class will afford the Company greater flexibility in seeking capital and potential acquisition targets. The Board has no immediate plans, understandings, agreement or commitments to issue shares of the new common stock for any purposes other than the dividend. While there is no immediate benefit for the Company arising from this recapitalization, we believe the added capital proceeds from the exercise of share purchase warrants into Class A common shares will benefit the Company in its capital growth objective and the added value to shareholders will retain their loyalty and commitment towards the Company ‘ s longevity and profitability.

New Share Structure

Upon effectiveness of the Amendment, we will be authorized to issue 250,000,000 shares of Class B common stock (our current class) and 100,000,000 shares of Class A common stock (our new class) and 1,000,000 shares of preferred stock.

Class A Common Stock (New Class)

Each share of Class A Common stock will be entitled to thirty votes per share on all matters voted on by holders of the Company ‘ s common stock. In addition, each share of Class A Common Stock will be convertible into Class B Common Stock at a ratio of 30 for 1, that is, every one share of Class A Common Stock can be converted into 30 shares of Class B Common Stock, at the election of the holder. Each shares of Class A Common Stock will also be entitled to a ratio participation of 97/100 th (97%) on all declared dividends on the Company ‘ s common stock, e.g. for every dollar of declared dividend on the Company ‘ s common stock, Class A will be entitled to $0.97. Furthermore, the Company will, as soon as practicable, apply for a unique trading symbol for this newly created class of common stock.

Class B Common Stock (Former Class)

Each share of Class B Common stock is entitled to one vote per share on all matters voted on by holders of the Company ‘ s common stock. Shares of Class B Common Stock will not be convertible into other classes of the Company ‘ s common stock. Each shares of Class B Common Stock will also be entitled to a ratio participation of 3/100 th (3%) on all declared dividends on the Company ‘ s common stock, e.g. for every dollar of declared dividend on the Company ‘ s common stock, Class B will be entitled to $0.03. Class B Common Stock will continue to trade under the Company ‘ s current trading symbol CBIS.OB.

Series A Preferred Stock

Each shares of Series A Preferred Stock is entitled to 1,000 votes per share on all matters to be voted on by the holders of the Company ‘ s common stock and is not convertible into any shares of the Company’s common stock.        With respect to rights on liquidation, dissolution or winding up, shares of Series A Preferred Stock rank on a parity with the Company’s common stock.

Share Dividend

Upon the effectiveness of the Company ‘ s proposed corporate actions, the Company will issue a dividend to holders of our current common stock so they received 1 share of the new Class A common stock for each 10 shares of the former Class B common stock that they previously owned as of the record date. These shares will be mailed to the shareholders directly from our transfer agent without any action require on the part of our shareholders.

Warrants

Upon the effectiveness of the Company ‘ s proposed corporate actions, the Company will issue one non-transferable share purchase warrant for each 10 shares of the former Class B common stock that shareholders previously owned as of the record date, December 31, 2010. Each whole share purchase warrant will be exercisable into one share of Class A common stock at a price of $1.00 per share. The share purchase warrants expire 90 days from the date Class A common stock commences trading under its own unique symbol.

About Cannabis Science, Inc.

Cannabis Science, Inc. is at the forefront of pharmaceutical grade medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. In sum, we are dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.

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 works such as “anticipate,” “seek,” intend,” “believe,” “plan,” “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.

Cannabis Science Inc.

Dr. Robert J. Melamede

President & CEO

info@cannabisscience.com

www.cannabisscience.com

1-888-889-0888

Cannabis Science Inc.

Mark J. Friedman

Investor Relations

info@cannabisscience.com

www.cannabisscience.com

1-877-431-CBIS (2247)

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