Medbox Responds to Unprecedented Rise in Stock Price
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 Mehdizadeh stated.
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 securities.
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 Decisions).
SOURCE Medbox, Inc.