SHARE

News Alert: Citius Pharmaceuticals Receives FDA Approval For LYMPHIR™ (Denileukin Diftitox-Cxdl) Immunotherapy For The Treatment Of Adults With Relapsed Or Refractory Cutaneous T-Cell Lymphoma. Click to Read More.

Medbox Inc (OTCMKTS:MDBX) disclosed that it filed a Form S-1 with the U.S. SEC in association with receiving committed funds of almost $3.5 million from existing investors. The majority of the funds will be released upon the SEC stating the Form S-1 effective. The capital will be used principally to meet working capital needs and for other general corporate purposes.

The momentum

Medbox has been trading subdued since the last week of March. In last few trading sessions, the stock price has plummeted more than 30%. Yesterday, MDBX stock price opened higher at $1.16 and then declined to make a low of $1.11 and finally closed at $1.13. The share volume was 373, 083.

The news

Medbox has been remained under extreme pressure after it reported restated results. The revenue recognition errors were huge that shattered the confidence of the investors. The company was trading close to $7 per share in December and in a matter of few months it has declined to as low as $1.05. The company reported annual results in last week of March. The consolidated net loss was $16.5 million for the fiscal ended December, 2014 against net loss of $3.7million for the same comparable period, a year ago.

The other update

Medbox Inc (OTCMKTS:MDBX) stated that the revenue model used in FY2014 is different from the revenue model used in FY2013. It will no longer opt for one-time upfront fee business model. Instead it will enter into the consulting contracts that are applicable over a longer period. In 2014, the company hired a new CFO as well as CEO, and made several changes to its Board of Directors. The company worked on a new stock compensation plan so as to attract new talent to its management. However, the changes in stock compensation plan increased total operating costs by $4.4 million.