Medbox, Inc. Issues Response to Announcement of Lizada Capital’s Agreement with Shareholder
March 05 2015 - 8:00AM
Business Wire
Medbox, Inc. (OTCQB:MDBX) today issued the following statement
in connection with a news release issued yesterday by Medbox
shareholder Vincent Mehdizadeh regarding an agreement between
Mehdizadeh and Lizada Capital LLC.:
Medbox, Inc., its board of directors and management team are not
a party to, nor have they completed the review of an agreement
announced yesterday by majority shareholder Vincent Mehdizadeh,
which would result in the transfer of the majority of Mehdizadeh’s
Medbox shares to Lizada Capital.
Under the agreement, Lizada would purchase a specified number of
shares from Mehdizadeh for approximately $15 million, with a total
of $5 million of the funds being designated for purchase of Medbox
restricted shares of common stock, directly from Medbox. Lizada
would become Medbox’s largest shareholder, and a representative of
Lizada would join Medbox's board of directors. The transaction has
six separate closings over the course of 18 months.
While the Medbox board of directors and management team believe
the agreement between Mehdizadeh and Lizada could be favorable to
the company and its shareholders, and that Lizada is a viable
strategic partner that could assist with fostering the company’s
strategic plan, it is still subject to finalization and
customary approvals. In addition, while Medbox is open to the
proposed $5 million investment in Medbox in exchange for common
stock, Medbox is not presently a party to any agreements with
respect to that proposal, and the relevant terms and conditions of
the proposal would be subject to negotiation and approval by
Medbox.
About Medbox, Inc.
Medbox is a leading dispensary and cultivation infrastructure
and licensing specialist, patented technology provider, and partner
to the cannabis industry. Medbox utilizes its expertise to work
with investors and entrepreneurs who seek to enter the cannabis
sector, providing them with a high quality turn-key solution,
consisting of licensing, site selection, permitting, design, and
full build-out. Medbox has become a leader in providing compliance,
safety, security, oversight and operational expertise to the
medical and recreational cannabis industry nationwide.
Forward-Looking Statements
This statement contains forward-looking statements within the
meaning of federal securities laws. Such statements, including, but
not limited to, the third-party agreement being favorable to the
company and its shareholders, are based on current beliefs and
expectations and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are beyond the company’s 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 also include, but are not
limited to, technical advances in the industry, as well as
political and economic conditions present within the industry. The
company does not assume any obligation to update any
forward-looking statement to reflect events or developments after a
forward-looking statement was made, unless required by law.
PondelWilkinson Inc.Roger Pondel,
310-279-5980pwinvestor@pondel.com