HOLLYWOOD, Calif., Jan. 15, 2013 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), announced that the company's Founder and Senior Consultant, Vincent Mehdizadeh, will be funding the necessary capital to expand operations and close identified target acquisitions for a total target infusion into the company of $30,000,000 over a 12 month period.
After a comprehensive review by corporate legal counsel, Medbox and its founder have identified a strategy to fund significant expansion while minimizing dilution to shareholders. To that end, an affiliate of Mr. Mehdizadeh will begin liquidating shares of Medbox common stock, in accordance with applicable securities law requirements, into the public marketplace as soon as the shares are designated as eligible for sale by the responsible clearing firm. The affiliate will then reinvest all liquidation proceeds, less estimated tax liabilities, by purchasing restricted stock from Medbox at the prevailing market rate. The liquidated shares will also benefit the company by increasing the float of freely trading shares in a controlled manner. The company also announced that it will not be making a public offering of shares through an S-1 registration statement, previously announced as occurring this year, and will instead file a Form 10 registration statement with the SEC during the first quarter of 2013 to achieve its goal to become a fully reporting company, within 60 days of that filing.
Recent interest in Medbox from the investment community has been strong as evidenced by the many inquiries and meetings that the Company's CEO, Dr. Bruce Bedrick, had during his attendance at the 2013 JPMorgan Healthcare Conference, which he also mentioned during his recent interview as a featured guest on Closing Bell with Maria Bartiromo on the CNBC network. As such, the company believes that the market should easily support these additional shares in its public float. While the company has fielded several inquiries regarding selling equity to third parties to fund expansion, the current funding plan provides the necessary capital, while avoiding any financial liability to the company or significant dilution to shareholders.
"Looking back when my concept was just an idea of creating a technology that would bring compliance and transparency to the medical marijuana industry, I am humbled and have a great deal of gratitude to our Medbox clients and also our shareholders for allowing me to bring a product to market and have it achieve such amazing worldwide recognition," stated Vincent Mehdizadeh, Founder and Senior Consultant at Medbox, Inc. "The success of Medbox has given me the opportunity to give back to the company by using this financing strategy and I welcome the opportunity to do so in order to once again demonstrate the visionary thinking that led to the creation of Medbox in the first place. I believe this progressive and investor focused approach unlike "business as usual" policies are the path to ensuring operational success."
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.
Safe Harbor Statement:
This Press Release contains forward-looking statements that involve risks and uncertainties. The company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein.
SOURCE Medbox, Inc.