SiliconBeat

Cannabis Science, the San Francisco company dedicated to developing medicines derived from marijuana, filled in a bit more detail on why it fired former Chief Executive Steve Kubby last week in a filing today with the SEC. The company has authorized an internal investigation and “review by counsel” of Kubby’s “apparently fraudulent activities using the position he held as President & CEO as his authority to carry out these activities that damaged the Company and its shareholder value.”

Also disclosed in the filings were the resignations of the company’s chief operating officer, Raymond Carr, and its newly hired vice president in charge of research and development, Mary Ruwart, which were accepted by the board on Friday.

Among the “apparently fraudulent activities” Kubby is accused of in the filing are the “inappropriate and unauthorized signing of financial and share agreements” with both Carr and Ruwart, as well as with an unnamed “private party” and an “independent financial group”, all of “which were not disclosed to nor approved by the Board, using unauthorized company shares as collateral or consideration for his personal gain.”

The filing also cites Kubby’s “inappropriate and unauthorized acceptance of funds into a company account to which he had blocked and removed access by other officers and directors without approval or resolution”, as well as “inappropriate and unauthorized distribution of Company funds for his personal gain, while leaving essential obligations of the Company unmet.”

Finally, Kubby is said to have made “libelous accusation against the Company’s Directors and a key consultant, while misrepresenting his own actions to the public and the media in a manner injurious to the Company’s interests.”

Cannabis Science was formed earlier this year through a reverse merger with Gulf Onshore, a Texas-based energy company that traded as a penny stock under the symbol GFON.

In March, Gulf Onshore agreed to acquire Cannex Therapeutics, a private San Francisco company involved in medical marijuana research founded by Kubby, two of whose patents Cannabis said last month it was on the verge of filing with the U.S. government.

Cannabis Science shares lost two cents between Thursday and Friday, ending last week at 16 cents per share. They shed three cents Monday, and are currently down three more cents today, currently trading at 10 cents per share.