Medbox Inc (OTCMKTS:MDBX) has announced that it would be present at the 2015 Cannabis World Congress & Business Exhibition. Additionally, the company is also a featured exhibitor at the conference. The exhibition is one the premier cannabis conference on the East Coast. It is due to be held on June 17-19 in NYC. The event is attended by leaders from the business and the legal sides of the marijuana industry. The event is a great way for Medbox to market its services and products.
Medbox also revealed that it would receive $3.5 million from investors, in committed funds, as per the SEC filings. The CEO of Medbox, Ned Siegel, stated that the additional funds reflect on the confidence of investors in the company’s leadership. A statement from the company revealed that the funds would be used as working capital and for general purposes by the company. The added funds partially take care of the financial problems highlighted by the company in its 1Q2015. The company had revenues of almost $42,000; while it’s quarterly loss equaled $4.4 million.
The news has been a welcoming one, after a number of company executives were accused of misleading the investors through fraudulent financial statements. The executives now face a lawsuit from the shareholders foundation. The company and its executives stand accused of violating the laws of the SEC. As per the filing, Medbox overstated its revenues, during the FY2014. This was mostly done by recognizing revenue from customer contracts, before it was even received. Medbox has since then agreed to amend its FY2014 reports.
The subsequent cuts in revenues led the company to lose investor trust and interest and currently, the company’s market cap stands at $10 million. The depressing news has led to the MDBX stock sliding down. Fortunately for the company, the recent news about added funds and the exhibition have got the stock moving up again, but will little chance of soaring high.
Medbox Inc (OTCMKTS:MDBX) closed at $0.389 after trading 35.54 million shares in the market and registering a rise of 23.41%.
