It took only a few hours yesterday for the stock of Medbox Inc (OTCMKTS:MDBX) to shed nearly a third of its value that it earned over the last few sessions. There was no information or an official press release posted by the company to cause anxiety among the shareholders to sell the stock.
Change in CEO
The only new development reported by Medbox Inc (OTCMKTS:MDBX) relates to its leadership shuffle this week. The company had noted that Jeff Goh has been appointed as the new Chief Executive Officer, who will replace Guy Marsala. Apart from stepping down as the CEO, Marsala has also decided to vacate his positive as a member of the Board of Directors, according to the press note. Further, the company’s 8-K filing showed that Marsala has received a hefty compensation as a severance package.
The details emerged that Marsala will receive as much as $500,000 in severance pay, which will be paid to him in $30,000 monthly installments. Also, Marsala has been granted options to buy up t $335,000 worth of the company’s stock at the effective closing price on June 30. It should be noted that the company’s closing stock price as on June 30, 2015, was its lowest price within the last two financial years.
Based on the accumulated information, it can be said that the downside in the company’s stock could be initiated by a group of people, who might have made a quick profit by taking advantage of the short spike that occurred over the last few days. As per another view, it is believed that the investors might have been upset with the amount of severance package that the company paid to Marsala, whose tenure in the company was marked by terrible performance.
In the most recent past, Medbox Inc (OTCMKTS:MDBX) had already restated his revenues as per the instructions of the SEC, which as expected, showed a substantial difference from what was stated earlier. The stock of Medbox Inc (OTCMKTS:MDBX) fell by 3.03% to $0.16 during the previous trade session as 1.33 million shares changed hands.