LOS ANGELES, Nov. 3, 2014 /PRNewswire/ -- Medbox, Inc.,
(OTCQB: MDBX), the leading licensing, infrastructure and security
specialist, patented technology provider, and partner to the
cannabis industry, commented on the recent 8-K filing discussing
matters pertaining to a former employee of the company who filed an
employment claim and sent a letter to certain government agencies
asserting claims against the Company. The former employee
subsequently lost the employment claim. However, the Company is now
internally investigating the letter's contents to ascertain
validity of the claims.
The 8-K references that the Board of Directors of Medbox, Inc.
appointed a special board committee to investigate, review, and
evaluate a letter involving the Company, sent in May 2014 to certain government agencies by a
former employee of Medbox. Within the last few weeks, Medbox was
awarded a judgment against this employee on his employment claims,
which demanded $1.5 million in
damages related to the Company's alleged wrongdoing. Prior to
litigation of the employment claim, and after repeated settlement
demands were made by the former employee and rebuffed by Medbox,
the employment claim was filed and sent along with a letter to
government agencies by the former employee, alleging wrongdoing by
the company.
Mr. Vincent Mehdizadeh, Founder and Consultant to
Medbox stated, "The former employee vowed to
retaliate against the Company in any way he could after his illegal
cash demands of the company were ignored. It now appears
that writing a letter to government agencies filled with
factual inaccuracies and blatant falsehoods was the most
effective way to facilitate that goal."
Current management commented that the Company has not
found any indications that the subject matter contained
in the letter is true concerning the conduct of
prior officers of the company. However, the company's
internal investigation on the matter is still in process. The
Company also clarified that no subpoenas have been served on the
Company, it's current or former officers, or anyone affiliated to
the Company.
Mr. Mehdizadeh added, "I painstakingly put together the best
management team and Board of Directors in our sector for a reason,
and in their judgment this voluntary disclosure is what good public
companies that have nothing to hide should do. The
company will continue to demonstrate to shareholders, the
investment community, and all other public company participants
in the cannabis sector, how a well-run and respectable
public company should operate. Medbox has and will
continue to be the gold-standard for accountability."
About Medbox, Inc.
Medbox, Inc. ("MDBX" or the "Company") is the leading licensing,
infrastructure and security specialist, patented technology
provider, and partner to the cannabis industry. Headquartered in
Los Angeles, CA, Medbox, through
its wholly owned subsidiary, Medicine Dispensing Systems, offers
its patented systems, software and consulting services to
pharmacies, alternative medicine dispensaries and local governments
in the U.S. In addition, through its wholly owned subsidiary,
Vaporfection International, Inc. (www.vaporfection.com), the
company offers an industry award winning medical vaporizer product.
Medbox, through its newly established subsidiaries, is developing
the following ancillary services tailored to the alternative
medicine industry: cannabidiol research and development, real
estate acquisitions and subsequent lease programs and management
services to alternative medicine dispensaries and cultivation
centers.
Forward-Looking Statements
The statements in this press release constitute forward-looking
statements within the meaning of federal securities laws. Such
statements are based on our current beliefs and expectations and
are inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
beyond our control. In addition, such forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Potential
risks and uncertainties include, but are not limited to, technical
advances in the industry as well as political and economic
conditions present within the industry. We do not take any
obligation to update any forward-looking statement to reflect
events or developments after a forward looking statement was
made.
Contact Information
Investor Relations:
Stephen Hart
Hayden IR
+1- 917-658-7878
hart@haydenir.com
Medbox:
For more information on Medbox, please call (800)
762-1452.
SOURCE Medbox, Inc.