WEST PALM BEACH, Fla., Feb. 22, 2010 (GLOBE NEWSWIRE) -- The following shareholder letter and press release is to update the shareholders and investment community of the state of business of Commerce Online, Inc. (OTCBB:CMIB).
As we move forward into 2010, I would like to personally thank each of you as shareholders of Commerce Online Inc. (CMIB) for your loyalty, patience and confidence in our company. We are now at that point in our developing company's growth in which we have had several favorable and significant events occur since the first of the year that we would like to inform you of.
Over the past month, many of you have contacted the Company wondering what the management team was doing to create shareholder value. While there have been few newsworthy developments over the past few months, one of the most important events to take place was our recent move as a fully reporting company on the Pinksheets to the OTC Bulletin Board. This important step for both our shareholders and management will now allow our company greater exposure to a retail audience, consideration by analysts and institutional investors, and provides not only further transparency to our investors but a show of commitment by management and proof of our business model. I want to assure you that we have diligently focused on pursuing transactions that will enhance shareholder value, and believe that several of these efforts are now coming to fruition.
We have been aggressively pursuing acquisitions of business and companies with significant revenue potential within vertical markets. As you are now aware, we have placed a strong focus on payment processing and financial services to medical marijuana dispensaries, now legal within 14 states. Based on the recent developments and legalization of this medical business niche, Commerce Online has quickly become the trusted name and first choice for these medical dispensaries to partner with for credit card processing, debit and loyalty card programs, ATM's and mobile advertising. Our unique position within the payment processing industry by aligning ourselves and having agreements with the only banks in the country willing to underwrite this business, has allowed CMIB to take an early and considerable leading role within this previously untapped market. Presently, we are providing payment services to medical marijuana dispensaries within California, Colorado and New Mexico. Our tailored financial services program for dispensaries provides these businesses a unique alternative to cash only operations, often leading to criminal activity, employee theft, fraud and non-compliance with state legislation.
Within the first month of our first quarter 2010, we have added merchant services to four additional dispensaries, and we believe we will be providing services to at least 20 additional locations by the second quarter of this year. Our goal is to reach a total of fifty million in total gross processing revenues through our alliance network by the end of this year. Within the first quarter alone, new business signed with existing processing revenues could represent close to ten million in gross processing based on existing operations on cash only basis.
Due to our recent leadership role within the medical marijuana sector, management has recently decided that a brand name more identifiable with the medical marijuana industry would be more beneficial, as we believe this sector will continue to grow exponentially with more and more states regulating the sale of medical marijuana both through dispensaries and online. Providing merchant services, secure online and mobile payment solutions will continue to be our main focus and revenue stream for years to come based on the legislative outlook and recent trends of more states allowing the monitored sale of medical marijuana. We are committed to working with state legislators, individual dispensary owners and patients to provide a payment system and services that virtually eliminate theft and criminal activity, provides reporting elements as set forth from each individual state, while at the same time protects patient rights and information.
We would like to take this opportunity to inform all shareholders, institutional investors and the general public that the shareholder majority and board has recently voted to rename our company "Cannabis Medical Solutions Inc." as www.cannabismedsolutions.com to truly identify our Company as a leader within this niche to be effective immediately. Our Commerce Online and 800Commerce brand will become a wholly owned division of our Company, to continue to maintain and grow our traditional merchant processing services to our brick and mortar as well as ecommerce clients, which will effectively separate the business models, and potentially lead to a future spin-off opportunity as a dividend to our shareholders.
Like you, management of the Company has been disappointed with its recent share price and lack of liquidity which is now contrary to our new momentum apparent in our business model. We remain confident that those investors who have been patient during this challenging period will soon be rewarded.