Medbox Inc (OTCMKTS:MDBX) sharp decline continues as a lack of any positive news or meaningful PRs threatens a further slump to 52-week lows. The stock’s sentiments in the Street have been hurt by allegations that the company’s executives shared misleading financial statements. The company is accused of overstating its F2014 revenues.
Revenues Overstating Concerns
The executives stand accused of sharing revenues from customer contracts that had not been received. Medbox Inc (OTCMKTS:MDBX) market cap currently stands at $10 million as the misleading statements continue to hurt investors trust.
The company needs positive news if the downward trend is to be controlled. The only news that had an effect on the stock was the announcement that that Medbox Inc (OTCMKTS:MDBX) had signed a distribution agreement for a vaporized branded miVape. However, the news failed to hold water for long, as one-day gains after the news were followed by ten trading sessions of the stock closing on the red.
Medbox Financial Concerns
Medbox Inc (OTCMKTS:MDBX) financial position also continues to elicit further concerns. It is only in the first quarter that the company announced revenues of $42,000 on a quarterly loss of $4.4 million. However, the company seems to have sorted out the issue, on reaching an agreement with current investors on a $3.5 million round of financing.
CEO, Ned Siegel affirms that the funds will be used for working capital as well as for general working capital. The chief believes that the $3.5 million wave of financing reflects the amount of confidence that current shareholders have on Medbox Inc (OTCMKTS:MDBX) long term prospects.
Medbox Inc (OTCMKTS:MDBX) has also confirmed that it will take part at this year’s Cannabis World Congress & Exhibition to be held on the East Coast. In attendance will be leaders both from the business and legal standpoint; starting June 17-19.