Medbox Prepares for Enactment of JOBS Act and Subsequent Changes in Investment Offerings
HOLLYWOOD, Calif., Oct. 3, 2012 /PRNewswire/ -- Medbox, Inc. (Pinksheets: MDBX) (www.medboxinc.com) announced today their anticipation of the enactment of the new JOBS Act, and provided insight into how the new law will affect company operations.
The JOBS Act, recently passed by Congress and signed by the President, will have a profound impact on millions of individual investors and small businesses across the country. As reported recently in Forbes, the most important part of the JOBS Act will be the lifting of the ban on general solicitation or advertising for investment capital. Currently, private businesses are prohibited from advertising for investors. In practice, this restriction means that high-growth start-ups spend months fundraising through a complex, inefficient process in which they are prohibited from informing their most passionate supporters, and instead can only introduce the business to qualified 'angel' investors.
The JOBS Act will change this, allowing for the free flow of information between small businesses and potential investors. Individual investors will be able to gain access to company offerings they may not otherwise ever find. Small businesses will be able to leverage their networks of customers, distributors and suppliers to connect with the best capital for their particular needs, as well as reduce the cost and time required to raise capital that is critical for expansion and growth.
Advocates for the bill, such as Startup America Chairman Steve Case , have articulated that this is about spurring entrepreneurship, unlocking small business growth opportunities, and job creation in every corner of America. It will also increase the amount of information and choice for investors everywhere.
The JOBS ACT has been reviewed by the SEC (Securities Exchange Commission) and some amendments to the bill have been suggested. Most notable of these revisions is that issuers using general solicitation must take reasonable steps to verify that the purchasers of the offered securities are accredited investors.
While there are several ways to make this verification, the most common anticipated method is based upon a person's net worth or income. The rule states that a person may be an accredited investor if their individual net worth or joint net worth with their spouse exceeds $1 million (excluding the value of the person's primary residence), or has had an individual income in excess of $200,000 in each of the two most recent years, or joint income with their spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year.
Medbox is working with their advisors on developing a public offering of discounted company-issued shares once the JOBS ACT is enacted.
"Medbox is a leading developer of automated storage and dispensing solutions for a variety of industries, including the pharmaceutical and healthcare sectors," according to Dr. Bruce Bedrick , CEO of Medbox, Inc. "These areas provide Medbox with significant growth opportunities, which we plan on capitalizing upon in the coming quarters."
The company will announce further details as permissible and available.
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, Tokyo and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, urgent care centers, clinics, hospitals, 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.medboxinc.com.
Disclaimer and Safe Harbor Statement:
This Press Release is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Offers are made only by prospectus or other offering materials, to individuals who meet the suitability standards required by law. This release may contain forward-looking statements that involve risks and uncertainties. A company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein. Please consult a broker or investment advisor before investing.
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