WEST HOLLYWOOD, Calif., Oct. 15, 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 signing of a term sheet with a medical marijuana research and development laboratory licensed and permitted by Health Canada. According to the terms, Medbox has been engaged in an ongoing consulting role as the lab transitions to cannabis producer and distributor. The laboratory is one of only a few allowed to cultivate and study cannabis in Canada for use in medicinal applications. With Medbox's help, the laboratory is poised to be one of the first to have a producer and distribution license granted in the new Canadian medical cannabis market.
"The laboratories that possess a level 6 clearance and exemption to the Controlled Drugs and Substances Act (CDSA) in Canada are truly the best suited to transition into the production and distribution model that Health Canada has adopted," stated Dr. Bruce Bedrick, CEO of Medbox, Inc. "This consulting arrangement and business partnership is by far the most potentially lucrative deal we have executed to date and has an uncapped earning potential over many years. We are extremely excited about working alongside this laboratory as they start legally selling their medicine to the patients of Canada."
Company executives further clarified the deal allows Medbox to benefit in the following ways:
- Co-branding and joint development of cannabis infused formulations and products to be sold in the Canadian market,
- Consulting revenue to Medbox, through a wholly owned subsidiary, on all sales of medical cannabis products in the Canadian market sold by the licensed producer/distributor,
- Development and product placement of next generation Medbox machines that are outfitted with additional security features that will allow the equipment to act as a "medicine vault" meeting or exceeding all specifications set forth in Canadian law as to storage of controlled substances,
- Expanding of Medbox's market to allow for equipment placements in doctors' offices and cultivation centers to monitor dispensing of medications to facility staff prior to reaching the end user.
"The Canadian government has adopted laws regulating cannabis and how it is to be produced and distributed. This key development actually puts Canada ahead of the United States with respect to the governmental medical marijuana race we are now seeing worldwide," stated Vincent Mehdizadeh, Chief Operations Officer at Medbox, Inc. "With new markets opening up in various countries globally, while we are encouraged by the leaps and bounds that we have seen in the United States, we would be remiss if we did not capitalize on opportunities in other jurisdictions that are 100% condoned on a federal level."
Company executives reiterate that these Canadian activities are meant to enhance the company's core business in the United States and allow the company to be in a "first mover" position once an open market exists in the United States as it soon will in Canada.
"Medbox has existing relationships with over 150 dispensary operators in the United States as a technology supplier and industry consultant," added Mehdizadeh. "We anticipate that this number will grow to over 500 dispensaries within the next few years. These relationships are extremely valuable and allow for us to market medicinal products to these dispensaries once the United States government allows for such activities to occur. We are uniquely positioned to fill that need when the time comes."
The executed term sheet requires additional agreements to be executed with the laboratory no later than November 10, 2013. As such, the company will be further elaborating on its expanded operations in Canada over the next few months in future press releases.
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, 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. 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, 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.