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4. INVESTMENT IN KANNALIFE SCIENCES, INC.
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3 Months Ended |
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Mar. 31, 2013
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| Investment In Kannalife Sciences Inc. | |
| Investment in Kannalife Sciences, Inc. |
On March 4 and April 11, 2013, pursuant to a Stock and Warrant Purchase Agreement (the "Purchase Agreement"), the Company acquired a total of 2,039,626 shares of Series A Preferred Stock, 11,960,000 shares of Common Stock and Warrants to purchase common stock in KannaLife Sciences, Inc. (“KannaLife”), a Delaware corporation and phyto-medical company specializing in the research and development of pharmacological products derived from plants. These share holdings constitute a 16.65% share of the Series A Preferred Stock and the Common Stock as of April 12, 2013. The shares were acquired through two payments of $250,000 each and included the exercise of a portion of its Common Stock Warrant. The Purchase Agreement also contemplates two additional closings of $250,000 on or before July 1, 2013 and October 1, 2013. The Company intends to consummate these additional closings, so it will then own and hold 33.3% of the Series A Preferred Stock and the Common Stock. The Company paid the first installment of $250,000 as of March 31, 2013. |