After registering a green trading session on Monday, the stock price of Medbox Inc (OTCMKTS:MDBX) declined more than 20% in following two trading sessions. Yesterday, the stock dropped more than 6% to close at $0.107. The decline came at a share volume of 6.55 million compared to average share volume of 4.60 million.
Medbox investors ignored all the data contained in company’s latest filings, including the news that was released on October 5, 20-15.The first few pages of filing in question detailed amendments made to existing deals. One of the amendments lowers the exercise price for the purchase of 6.3 million company’s common shares to $0.06 from its old price range of $4.93 – $0.29, almost 50% below the last close.
The second 8-K filing amends a securities purchase deal and the guidelines of a convertible debenture. The debenture was previously convertible into company’s shares at a 49% discount from the volume weighted average price of MDBX stock twenty days preceding conversion. The twenty-day period has been extended to sixty days, effectively permitting for cheaper conversion prices.
Earlier in the week, Medbox released a Schedule 14C, which stated that it is raising its authorized shares count to a whopping 410 million from 110 million. The only rationale given for this decision is that it will be advantageous to the company. Of course, it is just a myth as most of the times such instances prove to be diluting for shareholders.
In September, Medbox Inc (OTCMKTS:MDBX) confirmed that its subsidiary unit, Vaporfection, began distribution activities of the new vaporizer named as “miVape.” The new product is a glass-on-glass vaporizer using quartz crystal components and food grade and medical supplies. Also, it has a replaceable battery and can be charged utilizing micro USB.
Medbox Inc (OTCMKTS:MDBX) reported net loss of more than $11 million on revenue of less than $60,000 in the latest quarterly report.