Medbox Comments on FINRA Advisory Concerning Marijuana Stocks
WEST HOLLYWOOD, Calif., Jan. 13, 2014 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), a leader in providing consulting services and patented systems to the medical and retail industries, commented on FINRA's renewed advisory concerning marijuana related stocks.
The advisory, released Friday, highlights what investors should be aware of when investing in marijuana related stocks.
The advisory stated, in part:
"We are reissuing this alert to warn investors not only about the potential for fraud in this arena, but also to reiterate the risks of investing in thinly traded companies about which little is known… One company, for example, promoted its move into the medical cannabis space by issuing more than 30 press releases during the first half of 2013. These releases publicized rosy financial prospects and the growth potential of the medical marijuana market. The company was also touted on the Internet through the use of sponsored links, investment profiles and spam email, including one promotional piece claiming the stock "could double its price SOON" and another asserting the stock was "poised to light up the charts!" Yet the company's balance sheet showed only losses, and the company stated elsewhere that it was only beginning to formulate a business plan."
Other excerpts from the advisory stated, in part:
"For example, the CEO of one thinly traded, yet heavily touted, company that purports to be in the medical marijuana business spent nine years in prison for operating one of the largest drug smuggling operations in U.S. history. The former CEO of a similar company was recently indicted for his role in a multi-million dollar mortgage-based Ponzi scheme."
Medbox executives were pleased that a stern advisory was re-issued about the sector's stocks by FINRA and had the following comments:
"Some of the public companies in the marijuana sector are in the business of self-promotion with little or no substance or even an executable business plan," stated Vincent Mehdizadeh, Chief Operations Officer at Medbox, Inc. "Since day 1, our company has made its quarterly reports and financials available to the public, kept shareholders diligently informed about the company and its operating personnel at all times, offered ongoing support to its many clients, completed an audit of its financials, donated substantial amounts to industry advocacy groups that support medical marijuana patient rights to safe access of the medicine, and also demonstrated profitability while not deriving revenue from the cultivation or sale of the marijuana itself. As far as I know, we are the only company in the space to have accomplished those feats. With that being said we have stated in the past that investors should make informed decisions when buying our stock as the volatility may not be something the average retail investor can stomach."
Company executives also pointed out that most, if not all, of the other marijuana related public companies in the sector spend the majority of their operating budgets promoting their stocks through assorted public/investor relations firms and as a result show operating losses quarter after quarter. Medbox does not have an investor relations firm and according to company executives its general preference has been not to operate with one through this period in the company's development until a reputable candidate is identified.
"Much of the investor interest in Medbox has occurred through financial press, financial media, and general media coverage chronicling advances in the medical marijuana industry, an industry in which we feel we are the most reputable company," stated Dr. Bruce Bedrick, Chief Executive Officer at Medbox, Inc. "Consequently, we spent much of last year trying to find a reputable firm that would be a good fit to handle our investor relations consistent with best industry practices, and now feel we have found the right fit for our company. We expect to announce more details some time after our Form 10 registration statement is filed with the SEC this week, as that is our main priority at present."
To view the complete FINRA advisory, access the link below:
To view updated quarterly reports, detailed company information, and financials on Medbox, Inc., access the link below:
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, Florida, Tokyo, London and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations Department at (800) 762-1452 or go online to www.medboxinc.com.
SOURCE Medbox, Inc.