Medbox Inc (OTCMKTS:MDBX) Wipes 50% in Three Sessions

It almost looked like Medbox Inc (OTCMKTS:MDBX) was making some sort of mystery comeback for a short while. However, traders’ hopes were dashed by a red streak that very nearly wiped any progress the stock made up the chart after narrowly avoiding a close at a dime per share.

On Friday MDBX dropped another 18% to reach a close at $0.13. Volume is still well above the monthly average, as the excitement around the three-day pop is still in the process of dying down. The short-lived push gave nimble traders with a high tolerance for risk an opportunity to make a quick buck.

In a recent announcement MDBX informed the public that it was parting ways with former CEO and board member Guy Marsala, whose position at the helm is now taken by Jeff Goh. Mr. Marsala received a notable severance package, consisting of 16 monthly payments of $30,000 and a grant of options to purchase up to $335 thousand worth of MDBX stock priced, curiously, at the lowest close MDBX registered over the past two years.

The fact that former CEO Bruce Bedrick sold another 60,000 shares in a single chunk, right into the price pop last week, at $0.24 apiece, also does not inspire resounding confidence in the company’s future.

Upon parting ways with MDBX, Marsala noted he was “proud to have successfully led” the company through a rough patch. Naturally, it all depends on one’s definition of success but with his tenure as CEO starting in July 2014 and with MDBX trading as high as $14 per share in Q3 of last year, then dropping from multiple dollars to nearly a dime in the first six months of 2015, how successful his leadership was is open to discussion.

MDBX clocked a very modest $41 thousand in Q1 revenues and net loss for the period was at $4.4 million.