Medbox Executes $6 Million Equity Transaction with Private Investment Firm
HOLLYWOOD, Calif., Feb. 19, 2013 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), announced that the company has executed a $6 million equity transaction with a private investment firm involving a restricted stock purchase directly from the company at market rate as of January 17, 2013 for $5 million and the remaining $1 million stock purchase at a discount to market. The shares issued are considered a long-term investment for the firm that specializes in funding up-and-coming companies. The investment firm has made an initial payment to Medbox and is scheduled to complete funding of the transaction by May 2013.
The instant transaction, along with other opportunities currently being investigated by Medbox management, provides alternative acquisition funding sources in lieu of the company's founder selling affiliate shares into the market in order to fund expansion. To date, the company reports that the founder has not liquidated any shares into the public market. In addition, based on advice from counsel, affiliate shares cannot be sold publicly for 90 days after the company files its Form 10 with the SEC to become fully reporting. With the Form 10 on pace to being filed next month, the company has decided to seek out more traditional funding sources in lieu of founder funded expansion.
"Although we have an aggressive acquisition schedule for this year, the $6 million equity transaction, other viable transactions that have been presented to the company, and the company's earnings, will allow us the capital we need to go after any viable acquisitions as well as explore opportunities within our company to boost revenues in our existing market segments," stated Dr. Bruce Bedrick, CEO of Medbox.
The company also announced that it is on pace to have its best financial performance quarter in company history in Q1 2013 and is in the process of closing 4 acquisition targets within Q2 2013 that have executed term sheets with Medbox.
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, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide.
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.