Medbox Comments on Recent 8-K Filing
Company adds context and clarifies matters related to information contained in its most recent public disclosure filing
LOS ANGELES, Nov. 3, 2014 /PRNewswire/ — Medbox, Inc., (MDBX), the leading licensing, infrastructure and security specialist, patented technology provider, and partner to the cannabis industry, commented on the recent 8-K filing discussing matters pertaining to a former employee of the company who filed an employment claim and sent a letter to certain government agencies asserting claims against the Company. The former employee subsequently lost the employment claim. However, the Company is now internally investigating the letter’s contents to ascertain validity of the claims.
The 8-K references that the Board of Directors of Medbox, Inc. appointed a special board committee to investigate, review, and evaluate a letter involving the Company, sent in May 2014 to certain government agencies by a former employee of Medbox. Within the last few weeks, Medbox was awarded a judgment against this employee on his employment claims, which demanded $1.5 million in damages related to the Company’s alleged wrongdoing. Prior to litigation of the employment claim, and after repeated settlement demands were made by the former employee and rebuffed by Medbox, the employment claim was filed and sent along with a letter to government agencies by the former employee, alleging wrongdoing by the company.
Mr. Vincent Mehdizadeh, Founder and Consultant to Medbox stated, “The former employee vowed to retaliate against the Company in any way he could after his illegal cash demands of the company were ignored. It now appears that writing a letter to government agencies filled with factual inaccuracies and blatant falsehoods was the most effective way to facilitate that goal.”
Current management commented that the Company has not found any indications that the subject matter contained in the letter is true concerning the conduct of prior officers of the company. However, the company’s internal investigation on the matter is still in process. The Company also clarified that no subpoenas have been served on the Company, it’s current or former officers, or anyone affiliated to the Company.
Mr. Mehdizadeh added, “I painstakingly put together the best management team and Board of Directors in our sector for a reason, and in their judgment this voluntary disclosure is what good public companies that have nothing to hide should do. The company will continue to demonstrate to shareholders, the investment community, and all other public company participants in the cannabis sector, how a well-run and respectable public company should operate. Medbox has and will continue to be the gold-standard for accountability.”
About Medbox, Inc.
Medbox, Inc. (“MDBX” or the “Company”) is the leading licensing, infrastructure and security specialist, patented technology provider, and partner to the cannabis industry. Headquartered in Los Angeles, CA, Medbox, through its wholly owned subsidiary, Medicine Dispensing Systems, offers its patented systems, software and consulting services to pharmacies, alternative medicine dispensaries and local governments in the U.S. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product. Medbox, through its newly established subsidiaries, is developing the following ancillary services tailored to the alternative medicine industry: cannabidiol research and development, real estate acquisitions and subsequent lease programs and management services to alternative medicine dispensaries and cultivation centers.
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 as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward looking statement was made.
For more information on Medbox, please call (800) 762-1452.
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