Steve Kubby out as CEO at Cannabis Science

I know too many of the people involved in this story to make any analysis or comment, but since I know some of my audience is investing in various cannabis-related businesses, I must report the news.

(SiliconBeat) The board of Cannabis Science, the San Francisco research and development firm aiming to develop medicines derived from marijuana, resolved today to “immediately remove and terminate all corporate contracts” with Chief Executive Steven Kubby. Without citing specific instances, the board resolution said Kubby “failed to conduct his duty in the manner that it is in compliance with his fiduciary duties to preserve shareholders value and corporate integrity.” Furthermore, the board said it “hereby” removed his power to negotiate, sign agreements or conduct banking on behalf of the company.

Kubby played a key role in the drafting and passing of California’s historic medical cannabis initiative (Proposition 215) in 1996 and has also authored two books on drug policy reform.

Robert Melamede, a director on the board of Cannabis Science and its chief science officer, was named to take over as chief executive immediately, continuing until the company’s next annual meeting. He will also serve as the company’s chief financial officer.

Steve Kubby tells his side of the story on his Facebook page:

I just watched 6.5 million shares of my stock, which has traded as high as $1.50 a share, go up in smoke, as a result of my decision to tell the truth and resign from Cannabis Science. Our movement cannot allow itself to be discredited by public companies who are not squeaky clean. Even if it involves friends I’ve known and cherished for years, I have an obligation to expose what I believe are fraudulent activities.