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5. INVESTMENT IN KANNALIFE SCIENCES, INC.
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3 Months Ended |
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Mar. 31, 2013
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| Equity Method Investments and Joint Ventures [Abstract] | |
| 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 the common stock of KannaLife Sciences, Inc. (“KannaLife”) and warrants to purchase common stock in 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 issued and outstanding Series A Preferred Stock and the issued and outstanding common stock of KannaLife as of April 12, 2013. The shares were acquired through two payments of $250,000 each and included the exercise of a portion of the Company’s 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 paid the first installment of $250,000 as of March 31, 2013. |