Abattis Hopes To Be The Banker Of Medical Marijuana Sector

Colorado collected $6.1 million in taxes in just the first two months of this year, but understands there’s a lot more out there to collect since, how does a $200m market cap weedco pay its taxes when it’s forced to stockpile C-notes behind the counter? Answer: It often won’t, so Denver has pushed through legislation creating a new banking co-op facility that would let weedcos work together to create their own banking style institution.

Which is just what we need stoners running a bank. This, clearly, is all a bit ridiculous.

Enter Abattis Bioceuticals ( CSE:ATT , Stock Forum ).

Riding a steady stock rise since it became a weedco, the company is hoping to become medical marijuanas banker with their recent acquisition of a chunk of Instant Payment Systems , a Washington state-based firm that proposes to provide MMJ patients throughout the world with loadable payment cards and a mobile app that will remove cash from the equation and allow the transfer of funds digitally to bank accounts via their system.

The payment cards are intended to serve a dual purpose as they will also allow patients and regulatory agencies to track products and purchases made through the card for both safety and taxation purposes, without a staffer needing to make a run to their car at the end of their shift with a handbag stuffed with twenties.

This could be a big deal for the dot.bong world, but the acquisition of the payment company wasn’t entirely altruistic, as the system is also wired to take a piece of every transaction across the network.

Abattis’ move to purchase a 34% stake in the payment company also serves to place the final piece of the puzzle in its plan to provide seed-to-sale services that apply across the rapidly emerging MMJ sector.

Company president and CEO, Mike Withrow, at a Vancouver reception Thursday, commented on the milestone saying, This transaction enables the company to provide a valuable service and solves a problem to an unmet need for dispensaries of medical marijuana and other botanical medicines.

He added, The IPS cards and phone apps can be branded and loyalty programs can be used so the patients save money and can maintain a budget while managing their purchases of Medical Marijuana. The system also protects dispensaries from carrying cash as funds are automatically credited to their accounts.

Withrow said, It is becoming clear that investors understand our comprehensive business model. We are not just about cultivation, adding, We look forward to integrating this technology into our Washington State Lab model.

To read more, visit  http://www.stockhouse.com/news/newswire/2014/05/02/medical-marijuana-update-abattis-c-att-looks-to-be-medical-marijuana-sector-s

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