Medbox Inc (OTCMKTS:MDBX) continues to drift downwards in recent trading after the massive run up the stock experienced earlier this year off its $5 base to highs of $45 as the entire sector caught fire and catapulted pot stocks to incredible highs.
MDBX is drifting towards $5 support as we head into November; a month many predict will mark a turnaround point for Pot stocks which have been in free fall ever since the March 27 halt of CANN served as a huge wakeup call to an entire industry.
Medbox Inc (OTCMKTS:MDBX) is the leading dispensary infrastructure and licensing specialist, patented technology provider, and partner to the cannabis industry. Headquartered in Los Angeles, CA, Medbox, through its wholly owned subsidiary, Medicine Dispensing Systems, offers its patented systems, software and consulting services to pharmacies, alternative medicine dispensaries and local governments in the U.S.
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Through its wholly owned subsidiary, Vaporfection International, Inc the company offers an industry award winning medical vaporizer product. Medbox, through its newly established subsidiaries, is developing the following ancillary services tailored to the alternative medicine industry: merchant services and armored transport for cash deposits, cannabidiol research and development, real estate acquisitions and subsequent lease programs to alternative medicine dispensaries, and alternative medicine dispensary management services.
Medbox was founded on the principle that all great industries thrive when automated and regulated. Our wholly owned subsidiary, Medicine Dispensing Systems has grossed $13 million dollars since it began doing business in 2010 and later allowed for an acquisition and the establishment of a public company presence in Medbox, Inc.
The Company has been awarded United States & Canadian Patents concerning the software and hardware related to their medicine dispensing systems. Company founder and CEO has appeared in interviews with CNN, ABCNews, Reuters, BBC, Fox Business, Bloomberg TV, CNBC, Associated Press, NPR, and company has been featured in articles appearing in Newsweek, Bloomberg BusinessWeek, MicroCapDaily, Los Angeles Times, Chicago Tribune, and the Wall Street Journal, as well as over 30 other news agencies around the world.
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On September 25 MDBX announced that it has completed a second capital raise in a private placement transaction of convertible debentures for $2.5 million, convertible into common stock at a conversion price of $11.75 per share, subject to certain adjustments under Medbox’s control. The financing will take place in two tranches, with the initial $1.0 million closed on Friday, September 19, 2014.
Medbox intends to use the net proceeds to accelerate the development and growth of its current business pipeline in key target markets within the U.S. In addition, the Company intends to apply a portion of the net proceeds for general corporate purposes, which may include working capital, continued investment in geographic expansion, as well as research and development.
Conclusion: MDBX made a 10,000% run back at the end of last year and that alone puts this stock among the greatest penny stocks of all time. Many have suggested the stock is overvalued and it has been for most of its trading history especially on the run up to $45 but that does not mean it won’t go higher short term.
Currently trading at whopping $270 million market valuation MDBX captured investors sentiment with the dream of Cannabis legal in every state with dispensary’s on every corner each with a Medbox Dispensing System in the corner. While this could be reality 20 years down the road it’s still a long way off and for the time being at least, MDBX continues to burn a lot of cash and produce little revenues.
Technically MDBX trades fairly close to established long term support level of $5. Investors accumulating here are betting the stock goes north come November with Marijuana being legalized in Alaska, Oregon and Washington D.C. The massive publicity expected could easily drive MDBX and the rest of the sector skyward again!
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Disclosure: we hold no position in CBIS either long or short and we have not been compensated for this article.