Medbox Inc (OTCMKTS:MDBX) Stacks New Massive Q3 Losses
Yesterday Medbox Inc (OTCMKTS:MDBX) made a faint attempt to climb the charts, closing 5% up at $0.054 per share on volume comparable to its monthly average. The company put up its Q3 report a few days ago and the figures in it were less than impressive, to say the least.
The Q3 report came through last week and indicated that MDBX is still leaking money at an alarming rate. The brief summary of the balance sheet for the third quarter is as follows:
- $346 thousand in cash
- $16.7 million in current liabilities
- $314 thousand in Q3 revenues
- $9.2 million in Q3 net loss
The net loss the company incurred for the span of nine months between January and September 2015 is a stupefying $25 million. The company once again logged gross loss for the quarter, with cost of revenues being twice the amount of actual revenues.
Outstanding shares are through the roof as well. MDBX had 69.8 million OS as of early August 2015. The new report shows that number was up at 114.4 million by early November. This means dilution within the space of just three months was 63% – an impressive feat for any OTC enterprise.
On Nov 17 MDBX filed an 8-K amending the third closing under a convertible debentures agreement signed back in August. The $700,000 third round will close in four tranches of $125 thousand and a final one of $200 thousand, over November and December.
It’s worth mentioning that the convertibles in question come with a delicious discount, with the ability to convert into common stock at a 49% discount from the lowest daily VWAP over the 30 days prior to conversion.
