Medbox Responds to Unprecedented Rise in Stock Price
HOLLYWOOD, Calif., Nov. 16, 2012
HOLLYWOOD, Calif., Nov. 16, 2012 /PRNewswire/ -- Medbox, Inc. (Ticker: MDBX)
(www.medboxinc.com), responded to the dramatic rise in their stock price over
the past few days. After being featured in a November 13, 2012 Wall Street
Journal MarketWatch report suggesting that the medical marijuana market might
be ripe for investment, shares of Medbox, Inc. rocketed upward, reaching $215
per share on Thursday on thin volume. Dr. Bruce Bedrick, CEO, suggested that
while the company's present business strategy is working well and their new
product line continues to garner interest in the conventional pharmaceutical
distribution channel, the company attributes the share price increase to a
lack of float and not based upon present business economics.
Bedrick states: "As we previously disclosed, Medbox had a record 3rd quarter
generating over $1.3 million in revenue and its highest EBITDA margin to
date. As stated in our October 17th press release, revenues are projected to
jump to over $24 million by fiscal year end 2014, and continue on a rapid
growth path to over $48 million by fiscal year end 2016. EBITDA is projected
at a healthy $10.2 million and $22.1 million for the same periods."
"While we are pleased by the share attention, Medbox shares have traded
between $2.75 and $3.45 over the past several months. Our fundamentals and
market potential are improving, especially with the potential of our new Rx
product line, but we temper investor expectations at present price points."
In the days since the article, Medbox has seen their stock rise over 3000%,
giving the company a market cap of $2.26 billion. The management of Medbox is
concerned about the sudden and pronounced increase in their stock price and is
taking steps to reduce these tremendous price swings.
"We will take steps to attempt to avoid a roller-coaster syndrome, with the
stock rising and falling in dramatic fashion," Medbox company founder, Vincent
Additionally, the company is investigating means to minimize any potential
shareholder losses should the stock price fall rapidly.
"We are in discussions with our attorneys to determine if we can reward our
early investors who believe in our company, by giving them company-owned
shares should the price they bought at fall significantly," Mehdizadeh said.
"That's what investor-focused companies do."
For more information, contact Medbox Investor Relations at: (800) 762-1452.
About Medbox, Inc:
Medbox is a leader in the development, sales and service of automated,
biometrically controlled dispensing and storage systems for medicine and
merchandise. Medbox has offices throughout the world, including New York,
Arizona, Connecticut, Massachusetts, Tokyo, London and Toronto, and has their
corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to
pharmacies, urgent care centers, drug rehab clinics, hospitals, prison
systems, hospice facilities, and medical groups worldwide.
Medbox, Inc. is a publicly traded company, and is listed on the OTC Board,
ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations
Department at (800) 762-1452 or go online to www.thedispensingsolution.com
The price of Medbox, Inc. (MDBX) common stock has risen sharply in the past
few trading days. Management has no explanation for the volatility of the
stock and has expressed concern that the extreme and sudden rise in the price
of the Company's common stock is unwarranted and cannot be maintained.
Management urges investors to fully evaluate the merits and risks associated
with buying or selling the Company's securities. Investors should always
consult their financial advisors prior to investing in the Company's
Further information regarding making investment decisions can be found on the
Securities and Exchange Commission web site at:
http://www.sec.gov/investor/pubs/financialnavigating.htm (Financial Navigating
in the Current Economy: Things to Consider Before You Make Investing
SOURCE Medbox, Inc.
Contact: RAH Marketing, firstname.lastname@example.org
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