After recording three consecutive green trading sessions, the stock price of Medbox Inc (OTCMKTS:MDBX) dropped more than 14% on Wednesday and closed in deep red at $0.114. The decline came at a share volume of 3.77 million compared to monthly average share volume of 4.63 million. It comes as the first indication that the traders are disturbed by the series of filing that the company has issued over the last few days. After yesterday’s decline, the market cap of Medbox stands at $7.96 million.
Increase in authorized share count
Yesterday’s sharp decline indicates that the traders are bothered by the recent increase in Medbox’s authorized shares. On October 5, 2015, the company reported that increase of its authorized shares cap to 410 million from 110 million. The people who monitor OTC stocks know the aftermath after a company increases the count of authorized shares, particularly when it is done using a large multiplier.
Know the answer
The investors who are wondering the reason behind this move can access the previous two 8-K filings issued by the company. Both the files were issued on October 2, 2015. The first filing revealed that Medbox was amending current warrant pricing. It lowered the exercise price of its July 2014 warrants for the acquisition of 6.3 million shares to $0.06 from previously disclosed range of $4.93 – $0.29.
The second Form 8-K amended a couple of share purchase deal and the terms and conditions of a convertible debenture. Also, back in September, the company reported that its wholly owned subsidiary firm, Vaporfection, commenced distribution activities of “miVape” vaporizer via its North American distributor, ‘VaporNation.’
The miVape vaporizer is a glass-on-glass vaporizer that utilizes premium quartz crystal components, true convection heating and food grade and medical materials. This unique product can be charged using micro USB and features a replaceable battery.
Medbox In (OTCMKTS:MDBX) has been in a major bear market for a long time now and the last session has turned out to be a strong display f that only. The stock ended the last trading session with a major loss of 14.54% with the volume surging to 3.7 million, almost double the daily average of 1.9 million. The volume has not been notably high in the last few days, typically seen in a corrective phase. The stock has hit the long term resistance area around $0.2950, which has pushed it down.