Medbox Inc (OTCMKTS:MDBX) closed last week on a weak note as it recorded a new 52-week low and registered a decline of 6% to close at $0.79 a share. The things are more or less same as it recorded another red session on Thursday. In last trading session, the share price of Medbox declined more than 8% to close the trading session at $0.650. The decline came at a share volume of 422,566 compared to average share volume of 368,530.
There are several red flags linked to the performance of the company. The latest addition in the list of red flags is Medbox’s financial reports that had miscalculated revenue. The inflated revenues were restated after a long time, and moreover it represents significant discrepancies.
The concerns of investors are justified as the company first delays financial filings and when it reports, it comes with errors. So, somewhere the faith of investors has shattered, and they feel it better to stay away from investing in it. A recent interview with Medbox’s majority shareholder, Mr. Vincent Mehdizadeh, covered his views on the matter of Medbox’s restated financial numbers.
Mehdizadeh has an all together different perspective on the erroneous numbers. He termed as mere “horrible circumstances” or “bad luck.” He added that the company can easily answer to questions mentioned in a SEC subpoena and handed over to Medbox Inc (OTCMKTS:MDBX). However, the company found it rational to restate numbers. He said that no federal grand jury subpoena was issued related to erroneous numbers. It is a contradictory statement as there is a filing recorded on same matter.
The founder submitted numerous Form 4 applications lately, confirming the sale of MDBX shares. In April’s last week, he sold 149 thousand company’s shares for somewhere between $0.90 and $0.95 per share. At the same time, another pack of 149,000 shares were sold by two firms owned by founder.