[[tagnumber 0]][[tagnumber 1]]Most of last week went really good for the stock of Medbox Inc (OTCMKTS:MDBX) which recovered quite a lot of the value that it had lost during the prolonged slide that it has recorded in recent months.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The reason for the massive increase in both price and volume was a fluff press release, issued on Tuesday, that reminded us of something that had happened a week ago, the closing of a $4.5 million financing deal with the company’s existing lenders. What the press release failed to mention was the means through which it will acquire the funds.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Luckily, a 8–K form filed on August 19 has all the details for those willing to do just a little bit of due diligence. It turns out that the company will use convertible debentures that can be converted into shares of common stock at a 49% discount from the lowest volume weighted average price of [[tagnumber 10]]MDBX[[tagnumber 11]] over the course of 30 days prior to conversion.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This can surely result in massive dilution considering the current price of the company stock. By the end of the week investors realized that the news was not that good to support such an upward run and [[tagnumber 10]]MDBX[[tagnumber 11]] corrected severely, losing 34.40% of its value in Friday and closing at $0.164, recording a total of $2.25 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see the ticker suffering in today’s session as well, with the price sitting 23.17% down as of the writing of this article. It all looks like [[tagnumber 10]]MDBX[[tagnumber 11]] might return to its downward slide and continue to hit 50–week low after 52–week low, so doing your due diligence and weighing out the risks before making any moves is crucial.[[tagnumber 2]]

[[tagnumber 0]][[tagnumber 1]]Most of last week went really good for the stock of Medbox Inc (OTCMKTS:MDBX) which recovered quite a lot of the value that it had lost during the prolonged slide that it has recorded in recent months.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The reason for the massive increase in both price and volume was a fluff press release, issued on Tuesday, that reminded us of something that had happened a week ago, the closing of a $4.5 million financing deal with the company’s existing lenders. What the press release failed to mention was the means through which it will acquire the funds.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Luckily, a 8–K form filed on August 19 has all the details for those willing to do just a little bit of due diligence. It turns out that the company will use convertible debentures that can be converted into shares of common stock at a 49% discount from the lowest volume weighted average price of [[tagnumber 10]]MDBX[[tagnumber 11]] over the course of 30 days prior to conversion.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This can surely result in massive dilution considering the current price of the company stock. By the end of the week investors realized that the news was not that good to support such an upward run and [[tagnumber 10]]MDBX[[tagnumber 11]] corrected severely, losing 34.40% of its value in Friday and closing at $0.164, recording a total of $2.25 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see the ticker suffering in today’s session as well, with the price sitting 23.17% down as of the writing of this article. It all looks like [[tagnumber 10]]MDBX[[tagnumber 11]] might return to its downward slide and continue to hit 50–week low after 52–week low, so doing your due diligence and weighing out the risks before making any moves is crucial.[[tagnumber 2]]