Medbox, Inc. (OTCMKTS:MDBX) Carves New 52-Week Lows

Friday was another red day for Medbox, Inc. (OTCMKTS:MDBX). The stock slipped to new lows, closing at $0.79 per share. Over 404 thousand MDBX shares changed hands and sent the ticker to a close another 6% in the red, at a new 52-week low.

The reason for the current position of the company lies in a number of reports that contained erroneous revenue reporting and were in turn restated. The restatement, which we covered in more detail in previous articles, showed significant discrepancies and further exacerbated the situation. A recent interview with MDBX founder and majority shareholder, Mr. Vincent Mehdizadeh, revealed some intriguing insights into his take on the company’s situation and the restatements.

His interpretation of the issue boiled down to “bad luck” and “horrible circumstances”. He further stated that the questions raised in a SEC subpoena handed to the company were “easily addressable”, yet management decided to restate. Mr. Mehdizadeh also added that the company never received a federal grand jury subpoena, even though there is an actual filing that says MDBX did indeed receive one, so it’s getting a little hard to decide who to believe.

Speaking of Mr. Mehdizadeh, he has submitted a large number of Form 4 filings lately, disclosing the sale of large chunks of MDBX shares. On April 27 Mr. Mehdizadeh sold 149,000 MDBX shares at prices ranging between $0.90 and $0.95 per share. On the same date, another 149,000 shares were sold through Vincent Chase, Inc. and PVM International, Inc. – entities that are both “owned and controlled” by Mr. Mehdizadeh as previous Form 4 filings inform.

Just how far MDBX is going to slide before it levels out and attempts recovery remains to be seen. The stock has so far lost over 85% year-to-date.