WEST HOLLYWOOD, Calif., Dec. 19, 2013 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), a leader in providing industry specific consulting services and patented systems to the medical and retail industries, announced a 2-for-1 stock split effected in the form of a common stock dividend. The 100% stock dividend issuance will have a record date of December 18th, 2013, a declaration date of December 28th, and a tentative issuance date of January 15th, 2014.
Management clarified that the class of shares to receive the dividend are the common shares only and not the preferred class of shares held by company executives.
"We wanted to reward existing shareholders and also increase the stock's marketability by making it attractive to a larger number of potential investors," stated Vincent Mehdizadeh, COO at Medbox, Inc. "The dividend results in a transfer of equity from company executives to our common shareholder base. I credit much of our company's breakout success to our loyal shareholders that believed in us in our early stages and have allowed us to expand at an enormous rate."
According to management, prior to the split, common shares held just under 50% of stockholder equity and voting power. After the split, common shares hold 2/3 of stockholder equity and voting power. The total issued and outstanding shares of common stock and preferred stock on a fully diluted basis, which was 29,500,750 will then be 44,500,750.
"What sets us apart from most other companies in our space is our low issued and outstanding share count, attention to transparency, relationship with our shareholders, and overall work ethic," stated Dr. Bruce Bedrick, CEO of Medbox, Inc. "We are going into a new year that has the makings of being our most exciting to date."
The company has been advised that under the Internal Revenue Code and the regulations thereunder as presently in effect, the receipt of one additional share for each share held on December 18th, 2013 will not constitute taxable income to shareholders for U.S. Federal tax purposes. The company advises each shareholder to seek their own tax advice on how this stock dividend impacts them.
All shareholders, whether shares are held electronically or in paper form, will receive their shares from the company's transfer agent upon FINRA approval of the dividend, estimated at no later than January 15, 2014. The newly issued shares will be restricted from sale for 12 months, at most.
In addition, based on recent market volatility, the company will be withdrawing its S-1 on file with the Securities and Exchange Commission and instead be filing a Form 10 registration statement that will not be registering additional shares for sale. The company will rely on its strategic advisor, Del Morgan & Company to provide capital expansion options in lieu of a share offering, as was initially proposed in the S-1 filing. The Form 10 will allow the company to be fully reporting and an SEC filer by March 1, 2014, based on current filing expectations.
"We value our shareholders immensely and these steps were necessary to ensure that our company not add to any market volatility seen in the last few weeks," stated Mehdizadeh. "By not adding 3.5 million shares to the issued and outstanding share count through the S-1 and giving common shareholders increased equity and voting power, we have once again taken measures to demonstrate our commitment to this company and its shareholders."
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, and has their corporate headquarters in West Hollywood, California.
Medbox offers their patented systems, software and consulting services to pharmacies, dispensaries, , 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 (Pink Sheets), 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.
Forward-Looking Statements: The statements in this press release constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry, political conditions and economic conditions in the states considering such legislation. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.
SOURCE Medbox, Inc.