Medbox Inc (OTCMKTS:MDBX) Struggles to Find Bottom

Friday left a new deep red gash on the chart of Medbox Inc (OTCMKTS:MDBX). The stock slid nearly 19%, dropping to $0.023 per share by the bell, with volume remaining heavy at 11.5 million shares traded. With this drop, MDBX is now down over 40% within the course of four trading sessions.

The stock’s performance has been atrocious throughout 2015, after the SEC investigation was announced in late 2014 and MDBX then restated multiple financial reports, showing significantly smaller revenues than previously reported. The company is not doing a particularly good job on the business side of things in 2015 either. Here is what the Q3 report contained and it’s not exactly a pretty sight:

  • $346 thousand in cash
  • $16.7 million in current liabilities
  • $464 thousand in revenues for Jan – Sep 2015
  • $25.1 million in net loss for Jan – Sep 2015

The fact that MDBX founder Vincent Mehdizadeh is selling shares left and right on the open market, as indicated by three separate Form 4 filings, is not helping things either. Vincent Chase Inc. sold all of its 7 million MDBX shares. PVM International and Mr. Mehdizadeh as a physical person also sold a hefty load.

A quick look at MDBX‘s year-to-date chart reveals a grim sight, with the stock down over 99% YTD, after trading for over six dollars per share in January 2015.

To make matters worse, MDBX managed to dilute its common stock by over 60% over the course of the three months between August and November. The company’s outstanding shares grew from 69 million to over 114 million by mid-November.

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