LOS ANGELES, Feb. 11, 2013 (GLOBE NEWSWIRE) -- MediSwipe Inc. (www.MediSwipe.com) (OTCBB:MWIP), a patient security solutions and financial products company for the medicinal marijuana and health care industry, today announced Friday's ruling in the state of Michigan to no longer allow "patient to patient" dispensary operations will not have a meaningful effect on the overall business strategy of the Company's plans to provide patient and state services in Michigan, or the other 17 legally approved states where the company is seeking to provide its services.
The Michigan Medical Marihuana Program (MMMP) currently only allows patients to buy the drug from registered caregivers, of which there are nearly 26,000 in the state. They supply marijuana to about 126,000 people, according to the program's application database, and individuals are allowed to possess up to 2.5 ounces of prepared marijuana, or 12 plants.
While that's not going to change, the court's 4-1 ruling Friday means that individuals who are properly registered as patients must purchase marijuana from a licensed caregiver or grow their own, and cannot sell it to anyone else, even another licensed patient. Therefore, there is no longer the opportunity for any storefront marijuana sales under the current law, the court ruled.
The case arose after a dispensary called Compassionate Apothecary was shut down by Isabella County for setting up a profit-making venture that let licensed patients sell leftover marijuana to one another, saying that activity was legal because the law allows "delivery" and "transfer" of medical marijuana. The Michigan Supreme Court disagreed, siding with a lower court's ruling in banning the sales.
Recently, an annual report to the state Legislature as required by the Michigan Medical Marihuana Act showed that over $10 million in revenue was collected from administration of the state's medical marijuana program in 2012, more than double the cost of running the program. The state collected ten million dollars in application fees from medical cannabis patients during its most recent budget year, which ended Sept. 30. After subtracting costs, Michigan netted a surplus of more than $5 million through the program, according to the new report. Based on this information, the state could make tens of millions of dollars.
"What this legislation has done is essentially attempt to define how medicine will be distributed and administered to patients, and all but eliminate the patient to patient store front dispensary model. Although it was our initial goal to work with the many dispensaries in the surrounding areas of the state, this legislation in essence provided an immediate opportunity to MediSwipe by driving patients directly to our company to match them with caregivers and provisional centers we already had exclusive agreements to work with. MediSwipe will provide each individual caregiver with digital cards and services for their patients, including payment options.
"We are still dealing with a patient base today of close to 130,000 patients in Michigan, growing each month with new applications, and only 26,000 caregivers. The need for MediSwipe to streamline the application process to the state for new patients and renewals through our kiosks is now needed more than ever. Kiosks can now be placed at health food stores, independent pharmacies and retail outlets with advertising revenue opportunities. The Kiosks can allow bill pay as well as medical applications for patients in digital format. MediSwipe will submit the patient applications on behalf of the patient for a small service fee, streamlining the process, much like a Turbo Tax service for the state. Although this legal action has created confusion and inconvenience for patients seeking medicine probably for the next several weeks, the opportunity for MediSwipe to have a fluid management team and business model to initiate new services and forms of revenue quickly in this sector are significant," stated B. Michael Friedman, CEO for MediSwipe Inc.
"With regard to the S-1 filing of 800 Commerce, we are pleased to announce that the second amendment to the Form S-1 was filed on Friday, February 8, 2013 with the Securities and Exchange Commission. Upon approval of the Form S-1, 800 Commerce, Inc., will then complete the process for its shares to be listed on the OTCQB exchange. MediSwipe plans to spin-off the shares it owns in 800 Commerce to MediSwipe's shareholders on a date determined by the Board of Directors once the S-1 is deemed effective by the Securities And Exchange Commission. We expect to be able to announce a proposed record date for our shareholders shortly. All shareholders of MediSwipe at that time will be given at least seven days notice," further stated B. Michael Friedman, CEO for MediSwipe.
About MediSwipe Inc.
MediSwipe Inc. (www.MediSwipe.com) provides innovative patient solutions for electronically processing transactions within the medical marijuana and healthcare industry. MediSwipe provides terminal-based service packages and an integrated Web Portal add-ons for physicians, clinics, hospitals and medical dispensaries that include: digital patient records, Electronic Referrals, Credit/Debit Card merchant services, Check Guarantee and Accounts Receivable Financing.
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 and Section 21E of the Securities Exchange Act of 1934, 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 MediSwipe Inc. to be materially different from the statements made herein.
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