Medbox Inc (OTCMKTS:MDBX) ended last week on a dismal note as it made a new 52-week low and closed with decline of 6% at $0.79 per share. The things have not changed for better as it posted another red session yesterday. In last trading session, the stock price of MDBX declined more than 5% to close the trading session at $0.710. The decline came at a share volume of 354,656 compared to average share volume of 368,464.
The problems
There are many problems associated with the performance of Medbox Inc (OTCMKTS:MDBX). The recent inclusion in the list is its current position due to a number of financial reports that contained miscalculated revenue. The erroneous revenues were released and restated after a long time. The restatement numbers represented significant discrepancies. It resulted in severe problems for the company. The investor’s faith was broken due to erroneous numbers. A recent interview with Medbox founder and a majority shareholder, Vincent Mehdizadeh, highlighted his interesting insights on the company’s restated financial numbers and the present situation.
The indications
Mehdizadeh interpretation of the erroneous numbers was nothing more than “horrible circumstances” and “bad luck.” He further added that the questions asked in a SEC subpoena given to Medbox can be easily answered, yet company’s management made sure to restate numbers. Mehdizadeh denied of receiving a federal grand jury subpoena related to erroneous numbers. However, there is a filing that stated Medbox did receive one, so it is tough to decide who to believe.
The filings
Mr. Mehdizadeh submitted numerous Form 4 filings lately, stating the sale of large portion of MDBX shares. In last week of April, he liquidated 149,000 company’s shares at prices ranging between $0.90 a share and $0.95 per share. During the same time, additional 149,000 shares of MDBX were sold through PVM International, Inc and Vincent Chase, Inc., the firms “owned and controlled” by Mehdizadeh.
