Medbox Secures Capital from Current Lenders and Board Members
Medbox, Inc. (OTCQB:MDBX) (www.medbox.com), a leading licensing, infrastructure and security specialist, patented technology provider, and partner to the cannabis industry, is pleased to announce that on January 30, 2015, the Company and its current lenders entered into an Amendment, Modification and Supplement to the original Purchase Agreement (the “Purchase Agreement Amendment”) pursuant to which the Investors will purchase an additional $1,800,000 in convertible debentures in seven Modified Closings. The initial $200,000 was funded at the Closing of the Purchase Agreement Amendment.
Two of Medbox’s independent board members also invested in the Company. Mr. Ned L. Siegel, the chairman of the Company’s Board, entered into two separate subordinated convertible promissory notes with the Company, one as previously disclosed on January 5, 2015 and another on January 30, 2015, each in the principal amount of $50,000 and having a three-year term and an interest rate of 8% per annum. In addition, Mr. Mitchell Lowe, a member of the Board, entered into a subordinated convertible promissory note with the Company on February 2, 2015 in the principal amount of $50,000 and having a three-year term and an interest rate of 8% per annum. Each of the promissory notes carried a Warrant that is exercisable into shares of the Company’s common stock.
For details please see the Company’s 8-K filing by clicking on the following link (MDBX 8-K).
Medbox intends to use the net proceeds to accelerate the development and growth of its current business pipeline in key target markets within the U.S. In addition, the Company intends to apply a portion of the net proceeds for general corporate purposes, which may include working capital, continued investment in geographic expansion, as well as research and development.
Mr. Guy Marsala, Medbox CEO, commented, “I am excited to announce a follow-on capital raise from our existing lenders to our Company, as this demonstrates confidence and commitment from our partners. The capital commitment from two of our Board members is equally as important as this shows their belief in our plan and vision. This new capital will be used to continue developing our robust pipeline and expanding our business in other key target markets. Medbox is building what we believe is the best positioned and best managed company in the industry. By properly capitalizing our business we can truly reward our shareholders.”
The securities sold in the private placement were not registered under the Securities Act of 1933, as amended (the “Securities Act”), and were sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated under the Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities.
About Medbox, Inc.
Medbox, Inc. (“MDBX” or the “Company”) is the leading dispensary infrastructure and licensing 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 line of vaporizer products. Medbox, through its newly established subsidiaries, is also developing ancillary services tailored to the alternative medicine industry, including real estate acquisitions and subsequent lease programs to alternative medicine dispensaries and cultivation centers, and alternative medicine dispensary and cultivation management services.
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.
Stephen Hart, 917-658-7878
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