Medbox Inc (OTCMKTS:MDBX) is dropping big on heavy trading in recent days after the Company filed an S-1 on October 16 announcing that they registered 207,494,120 brand new MDBX shares that are now hitting the open market.
The stock has been in heavy decline since the spectacular run it saw in early 2014 off its $5 base to highs of $45 as the entire sector caught fire and catapulted pot stocks to incredible highs.
Medbox Inc (OTCMKTS:MDBX) has created a free standing vending machine that dispenses packaged pot. The Company touts its cashless inventory control system whose biometric thumbprint scan and Company-issued debit card ensure that only those with prescriptions can get access to the product inside. Medbox has been awarded United States & Canadian Patents concerning the software and hardware related to their medicine dispensing systems.
The Company bills itself as a leader in the rapidly emerging cannabis sector, providing specialized services to operators of dispensaries, cultivation centers, manufacturers and research facilities in those states where approved. Through trusted clients and affiliates, the company promotes efficient, consistent, high quality products that are priced right, readily available and safely packaged.
MDBX has been hugely successful getting their brand into the national media with features on MDBX in CNN, ABCNews, Reuters, BBC, Fox Business, Bloomberg TV, CNBC, Associated Press, NPR, and company has been featured in articles appearing in Newsweek, Bloomberg BusinessWeek, Los Angeles Times, Chicago Tribune, and the Wall Street Journal, as well as over 30 other news agencies around the world.
Back in July MDBX announced it has signed an agreement to purchase 320-acres of agricultural land in Pueblo, Colorado. Terms of the transaction, which is expected to be completed in August 2015, were not disclosed.
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In what will be one of the largest cultivation centers in Colorado, Medbox plans to engage a licensed grower of hemp and marijuana, which it will advise on operations matters, ensuring proper oversight and compliance in the cultivation of high-quality commercial grade marijuana and hemp in a safe, controlled environment.
Earlier this year MDBX said they completed a $4.5 million financing with its existing lenders. CEO Jeff Goh said “We are pleased to have completed this additional round of funding, which demonstrates confidence in Medbox and its future. The funds will be used for corporate purposes, including further implementation of our strategic growth plan.”
On October 22 MDBX announced it has reached agreement in principle for a global settlement with pending class action and derivative plaintiffs who filed lawsuits against the company, certain current and prior directors and executives and others, regarding financial results for the fiscal years ended December 31, 2012 and 2013, each of the interim quarters for those years and the first three quarters of fiscal 2014, along with other matters.
Medbox said the settlement, which provides for the release and dismissal of all asserted claims, is contingent on final court approval in the derivative and class cases, and is not expected to have a material adverse effect on the company’s financial position or results of operations.
According to the S-1 from October 16 the prospectus relates to the public offering of up to 207,494,120 shares of common stock of Medbox, Inc. by the selling stockholders, including 193,847,216 shares issuable upon conversion of convertible debentures, 1,176,316 shares issuable as interest on convertible debentures, and 12,470,588 shares issuable upon the exercise of warrants.
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Currently trading at a $5 million market valuation MDBX has minimal revenues, rising short term debt and a history of dilution. Since inception MDBX has been big on hype and little on real substance. At the same time MDBX is one of the original pot stocks with a long history of making spectacular moves on national media exposure. The fact that MDBX just registered 207,494,120 brand new shares that are now hitting the open market will be the primary factor in trading for quite some time to come. We will be updating on MDBX on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with MDBX.
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Disclosure: we hold no position in MDBX either long or short and we have not been compensated for this article.