SOURCE: CannaVest Corp.

CannaVest Corp.

July 21, 2015 13:27 ET

CannaVest Settles Pending Litigation With Medical Marijuana, Inc. and Files Its Form S-1 Registration Statement

LAS VEGAS, NV--(Marketwired - July 21, 2015) - CannaVest Corp. (OTCBB: CANV), a leading manufacturer and distributor of hemp-derived Cannabidiol (CBD) oil products, announced today that it has entered into a Settlement Agreement with Medical Marijuana, Inc. and its affiliated companies (the "MJNA Parties") to resolve all pending litigation. Pursuant to the settlement, the MJNA Parties will pay CannaVest the sum of $750,000, $150,000 of which has been received and the remaining $600,000 is payable pursuant to the terms of a Secured Promissory Note payable in six equal monthly installments. Also pursuant to the settlement, CannaVest received by assignment certain domain names associated with CannaVest's business from the MJNA Parties, and assigned all of its right and interest in certain trademarks affiliated with the RSHO™ and Real Scientific Hemp Oil™ brands.

CannaVest's Chairman and Chief Executive Officer, Michael Mona, Jr., stated, "We are very pleased to achieve a full and final settlement of the litigation between CannaVest and Medical Marijuana, Inc. We believe the terms of the settlement are positive for our stockholders, and having this matter resolved allows us to avoid the cost of litigation going forward and focus on executing our growth strategy."

In addition to securing the settlement of litigation, today CannaVest filed its Form S-1 Registration Statement with the Securities and Exchange Commission ("SEC") pursuant to terms of its financing arrangement with its institutional investor. As previously disclosed in CannaVest's Form 8-K filed with the SEC on May 21, 2015, CannaVest entered into a $6.5 million financing arrangement, pursuant to which the company has received $1 million to date. Within three days of filing its Form S-1, CannaVest will receive an additional $500,000 and an additional $500,000 will be received within 25 days of filing the Form S-1, at the discretion the investor. Upon effectiveness of the Form S-1, CannaVest will receive the final $4.5 million of the financing. The foregoing summary of the Redwood financing is qualified in its entirety by the full text of the transaction documents attached as exhibits to CannaVest's May 21, 2015 Form 8-K, which can be reviewed at www.sec.gov.

Pursuant to the Form S-1, although the company is seeking to register a total of 29,738,562 shares, that number is equal to 250% of the number of shares that could be issuable to the investor based on the company's current stock price and assuming the investor holds each of its convertible notes for the full term. Michael Mona, Jr. stated, "The filing of our Form S-1 with the SEC not only allows CannaVest to secure additional funding, but also demonstrates increased transparency in its reporting and communication with its stockholders." Mr. Mona continued, "Through independent testing, our products proved to be the safest, highest-quality CBD products in the market today, and now we are able to present to our stockholders and the public the quality of our business operations and management efficacy."

The full text of CannaVest's Form S-1 can be found by visiting www.sec.gov.

About CannaVest Corp.
CannaVest Corp. (CANV) is a leader in the procurement and wholesale of the hemp-derived cannabidiol (CBD), and the development, marketing and sale of consumer products containing hemp-derived CBD, which is refined into its own PlusCBD Oil™ brand. CannaVest resells raw industrial hemp product to third parties, acquired through supply relationships in Europe. CannaVest has primary offices and facilities in Las Vegas, Nevada and San Diego, California. Additional information is available from OTCMarkets.com or by visiting www.cannavest.com.

FORWARD-LOOKING DISCLAIMER

This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of CannaVest Corp. to be materially different from the statements made herein.

LEGAL DISCLOSURE
CannaVest Corp. does not sell or distribute any products that are in violation of the United States Controlled Substances Act (US.CSA). The company does grow, sell and distribute hemp-based products and are involved with the federally legal distribution of medical marijuana-based products within certain international markets.

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