Medbox Inc (OTCMKTS:MDBX) Down in Double Digits

After a short green streak that the company logged against the odds, yesterday Medbox Inc (OTCMKTS:MDBX)’s share price dropped over 14%. The stock logged its third largest daily volume for the past month, at 3.7 million shares traded. By the closing bell MDBX sat at $0.114 per share.

The company managed to log a climb from twelve cents flat to $0.133 per share over the previous three sessions despite the information contained in its latest filings, including one that came on October 5. The first couple of documents in question are 8-K filings detailing amendments to existing agreements. One of them drops the exercise price for the purchase of a total of 6.3 million MDBX common shares from its old range of $4.93 – $0.29 all the way down to a new fixed exercise price of $0.06 – nearly 50% below the company’s latest close.

The other 8-K modifies a securities purchase agreement and the terms of a convertible debenture. The debenture in question was previously convertible into MDBX stock at a 49% discount from the volume weighted average price of the stock 20 days prior to conversion. The 20-day period has now been extended to 60, effectively allowing for cheaper conversion prices, as MDBX was trading at considerably lower levels in August.

To top it all off, MDBX put up a Schedule 14C on Monday. The filing informed the company is raising its authorized shares from 110 million to a whopping 410,000,000. The only reasoning provided for this increase is that it will be “beneficial to the company”. Of course, anyone who has been keeping an eye on the OTC for a while knows how events usually unfold after a big bump in a company’s authorized shares, especially one that just offered warrant and debenture holders ways to get cheaper shares.

MDBX logged Q2 net loss of over $11 million, on revenues of just under $60 thousand in its second reporting quarter.