SOURCE: Mobile Broadcasting Holding, Inc.

December 17, 2015 08:25 ET

Mobile Broadcasting Holding, Inc., to Acquire Medical Cannabis Company

NEW BRUNSWICK, NJ--(Marketwired - Dec 17, 2015) - Mobile Broadcasting Holding, Inc. (OTC PINK: MBHC) announces that it has entered into an agreement for the immediate acquisition of Medically Minded, LLC, which is focused on providing medical cannabis, medical cannabis-related products, and medical tourist services. The Company plans to change its name to Medically Minded, Inc.

Veteran medical executive and President Stephen A. Jones will replace the Company's current management. Mr. Jones has advised the Company that he plans to announce his board of directors in upcoming weeks, which include medical doctors of ophthalmology, pediatrics, and general practice; attorneys; and a scientist who has developed a cannabis extraction technique and lectures on the human endo-cannabinoid system. Medically Minded is also engaged in advocacy efforts to achieve legalization of medical cannabis in the U.S. Virgin Island, with the expectation that it will be able to obtain the necessary licensure to engage in the cultivation and distribution of cannabis products, when approved by the territorial legislature. U.S. Virgin Island legislation passage is expected to occur in March/April 2016.

Given the current favorable political climate, prospects appear particularly positive that the U.S. Virgin Island Medical Cannabis Patient Care Act will be approved. Presently, 23 states and the District of Columbia (Washington, D.C.) have removed state-level criminal penalties from the medical use and cultivation of cannabis. The U.S. Territory of Guam has enacted a regulated medical cannabis program, and the Governor of the U.S. Territory of Puerto Rico has signed an Executive Order to implement a medical cannabis program. Fourteen other states have decriminalized the use of medical cannabis for children with seizure disorders ("Charlotte's Web" laws).

Mr. Jones stated: "We are excited about the prospect of becoming a publicly traded company. Entry into the medical cannabis field will require significant capital, which we believe would not be available to us as a private issuer. The opportunity to launch with a debt free public company is very attractive to us. We believe our distribution network in the U.S. Virgin Islands coupled with the advance expertise of our board will enable us to play a dominant role in the medical cannabis sector, when the legislation is approved. Meanwhile, we plan to lay the groundwork for establishing and managing the business units necessary for delivering our medical cannabis, medical cannabis products, and medical tourism services."

Contemporaneous with the acquisition, the Company intends to sell its current, wholly owned subsidiary, Mobile Broadcasting Corp. Mr. Bland, the Company's current director and controlling stockholder, will contribute 3,000,000 shares of the Company's Series A-1 Preferred Stock which he owns, now representing 97% of the Company's equity, for reissue to the owners of Medically Minded. The Series A-1 Preferred Stock will be modified to represent 80% of the Company's equity and waive participation in certain possible future spin-off distributions.

Mr. Bland stated: "It has become increasing clear that the Company will not be able to obtain the funding necessary for the subsidiary to both effectively complete development of and launch the live video streaming technology and pay outstanding licensing fees to the related-party technology's owner, which fees are in default and license subject to cancellation. Not only will the purchase and sales transactions result in the Company's outstanding common stock increasing its participation in the technology to five percent from three percent equity, the Company will provide new opportunities in an exciting and growing, lucrative business sector."

In the sale of its subsidiary, Mobile Broadcasting Corp., the Company will receive five percent of the purchaser's common stock. The number of shares will be determined at a future date. In addition, the purchaser will assume all of the Company's outstanding indebtedness, primarily reflecting funds loaned to the subsidiary, which will be eliminated, leaving the Company asset and debt free for the acquisition. The purchaser is Mobile Broadcasting Network, Inc., a company controlled by Mr. Bland. Mobile Broadcasting Corp. has been engaged in development of technology for live video streaming technology to cellular devices on 4G LTE and wireless networks.

There are not conditions to closing and the parties intend to complete the sale as soon as possible.

SAFE HARBOR AND INFORMATIONAL STATEMENT
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may", "would", "will", "expect", "estimate", "anticipate", "believe", "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company's reports filed with the SEC. The Company is not eligible to rely on the safe harbor provided by Section 21E(c) of the Exchange Act because it is not subject to filing periodic reports under Sections 13 or 15(d) of the Exchange Act.

Only information that is publicly available will be provided.

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