After recording a single green trading session in late March, the stock price of Medbox Inc (OTCMKTS:MDBX) continued declining and lost almost 30% since that positive closing. On Friday, the stock halted its declining trend of the week to record gains of 5.44%. The stock closed with gains of $0.06 at $1.16 with share volume of 210,209 compared to average volume of 298,426.
Few days ago, the stock price of Medbox recorded a new 52-week low of $1.o5 per share with on healthy volumes. The single green closing that took back in late March came on the base of the company’s annual report. The revenue recognition blunders and the DoJ and SEC probes the revenue errors brought about are the prime reasons behind the decline of MDBX. It dropped from $7 per share in December 2014 to its current low prices.
The restated financial numbers for the accounting periods where errors were discovered reflected massive discrepancies between the reality and the erroneous reports that consequently resulted in huge bigger net loss figures. The shareholders never expected such a massive discrepancy and it hurt the confidence of the market participants.
Few days ago, Medbox Inc (OTCMKTS:MDBX) released a new 8-K form, detailing amendments done to existing financial deals. On March 13, 2015 the company finalized a new debenture deal. It effectively affects the price of existing debentures to the lower of 51% of the lowest VWAP forty days before conversion or $1.83 from the lower of 51% of the lowest VWAP twenty days before conversion or $5.00.
On March 27, 2015 Medbox amended a prior deal with the same financier and summed the total principal of the debentures increase by another $1.2 million. This increases the total investment to as much as $6 million. As per the July 2014 investment the amount stood at $3 million. The first amendment resulted in an increase of another $1.8 million.