Medbox Inc (OTCMKTS:MDBX) Catches Its Breath
After a brief pop following the publication of its latest quarterly report, Medbox Inc (OTCMKTS:MDBX) logged a number of red session that sent it back under six cents per share. Yesterday the stocked closed 3% up on its heaviest volume for the past month.
The company put up its latest quarterly report last Friday. Even though the results were less than impressive, MDBX managed to score a double-digit green session on the day the report came out. Here is the short version of the important numbers in the report:
- $564 thousand in cash
- $13 million in current liabilities
- $59 thousand in Q2 revenues
- $11.3 million in Q2 net loss
Those numbers are a far cry from the millions of annual revenues MDBX erroneously reported for 2012 and 2013. The issue with revenue recognition led to the need to restate a number of reports and the new revenue figures were considerably smaller. This restatement and the disappointing new results put up were what led to the abysmal chart performance of MDBX over the past nine months.
The company put up a brand new press release yesterday, informing that in its preparations to enter the “cultivation market”, MDBX employed the services of an Israeli marijuana consultancy company. The PR is likely the reason why MDBX closed green yesterday.
More importantly, the company also published an 8-K two days ago. It revealed that MDBX signed an agreement for the purchase of convertible debentures in the amount of up to $3.97 million. The first closing under the deal was in the amount of $650 thousand, the next one is going to take place next week. Sadly, the convertibles have a provision that allows them to convert into common stock at a fixed 49% discount from the lowest daily VWAP of MDBX common stock 30 days prior to conversion.