Medbox Secures Capital from Current Lenders and Board Members
February 02 2015 - 10:07AM
Business Wire
Medbox, Inc. (OTCQB:MDBX)
(www.medbox.com), a leading licensing, infrastructure and security
specialist, patented technology provider, and partner to the
cannabis industry, is pleased to announce that on January 30, 2015,
the Company and its current lenders entered into an Amendment,
Modification and Supplement to the original Purchase Agreement (the
“Purchase Agreement Amendment”) pursuant to which the Investors
will purchase an additional $1,800,000 in convertible debentures in
seven Modified Closings. The initial $200,000 was funded at the
Closing of the Purchase Agreement Amendment.
Two of Medbox’s independent board members also invested in the
Company. Mr. Ned L. Siegel, the chairman of the Company’s Board,
entered into two separate subordinated convertible promissory notes
with the Company, one as previously disclosed on January 5, 2015
and another on January 30, 2015, each in the principal amount of
$50,000 and having a three-year term and an interest rate of 8% per
annum. In addition, Mr. Mitchell Lowe, a member of the Board,
entered into a subordinated convertible promissory note with the
Company on February 2, 2015 in the principal amount of $50,000 and
having a three-year term and an interest rate of 8% per annum. Each
of the promissory notes carried a Warrant that is exercisable into
shares of the Company’s common stock.
For details please see the Company's 8-K filing by clicking on
the following link (MDBX 8-K).
Medbox intends to use the net proceeds to accelerate the
development and growth of its current business pipeline in key
target markets within the U.S. In addition, the Company intends to
apply a portion of the net proceeds for general corporate purposes,
which may include working capital, continued investment in
geographic expansion, as well as research and development.
Mr. Guy Marsala, Medbox CEO, commented, "I am excited to
announce a follow-on capital raise from our existing lenders to our
Company, as this demonstrates confidence and commitment from our
partners. The capital commitment from two of our Board members is
equally as important as this shows their belief in our plan and
vision. This new capital will be used to continue developing our
robust pipeline and expanding our business in other key target
markets. Medbox is building what we believe is the best positioned
and best managed company in the industry. By properly capitalizing
our business we can truly reward our shareholders."
The securities sold in the private placement were not registered
under the Securities Act of 1933, as amended (the “Securities
Act”), and were sold in reliance upon exemptions from the
registration requirements of the Securities Act pursuant to
Regulation D promulgated under the Securities Act. Therefore, such
securities may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and any applicable state
securities laws. This press release does not constitute an offer to
sell any securities or a solicitation of an offer to purchase any
securities.
About Medbox, Inc.Medbox, Inc. (“MDBX” or the “Company”)
is the leading dispensary infrastructure and licensing 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 line of vaporizer products. Medbox,
through its newly established subsidiaries, is also developing
ancillary services tailored to the alternative medicine industry,
including real estate acquisitions and subsequent lease programs to
alternative medicine dispensaries and cultivation centers, and
alternative medicine dispensary and cultivation management
services.
Forward-Looking StatementsThe 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 InformationInvestor Relations:Stephen HartHayden
IR917-658-7878hart@haydenir.com
Medbox:For more information on Medbox, please call (800)
762-1452.
Hayden IRInvestor Relations:Stephen Hart,
917-658-7878hart@haydenir.com