Medbox Inc (OTCMKTS:MDBX) witnessed a massive sell-off during Friday’s trading session plunging by 19% on heavy volumes, which were 1.5 times the daily average. The stock continues to trend lower and hit a fresh 52-week low during the trading session, which is considered to be a bearish signal. Medbox currently trades below all daily moving averages. The MACD oscillator continues to form lower lows indicative of the strong sell side momentum. The RSI indicator shows no signs of an intermediate reversal, which is being seen as a huge negative. Traders believe the stock could trend lower towards levels of $0.180
Medbox Inc (OTCMKTS:MDBX) to begin growing hemp at the Pueblo, Colorado property that the company bought recently. The company has got a license from Colorado and a Conditional Use Permit (CUP) from Pueblo County to grow the drug on its facility. Medbox is into operation of dispensaries, cultivation centers and other cannabis-related search in approved states.
Medbox and a local farmer have inked a 5-year deal and greenhouses will be planted in the location in coming days. Under the agreement that has been signed by Medbox, the company would retain a larger stake from Pueblo produced products sale. A 320 acre land has been purchased by the company in August 2015 for cultivation of hemp. The greenhouse building process has already begun at the facility. This property will include 36,000 square feet area covering around seven greenhouses that can be used to plant between 5,000 to 10,000 plants.
Excellent Opportunity To Grow
The company’s President and interim Chief Executive Officer Jeff Goh said that the purchase, licensing and CUP approvals were a good development but the job was not over. The partnership with a local farmer who was experienced will help the company achieve great growth in the future. By 2016 mid, the company was expecting the first harvest and sale of the hemp products, confirmed Goh.
Medbox To Help PrimaCan
In another agreement, a manufacturing division of the company will be housed in a facility that the company will lease out in Orange County region of California and PrimaCan will extend production and distribution of edible products. PrimaCan is primarily into manufacture and sale of medical marijuana in form of cannabis containing medicines that are sold in South Californian dispensaries.
According to Goh, Medbox would help PrimaCan by giving it an increased presence in the industry and make the products of the company that are high on quality accessible to a large patient database. Also, partnering with PrimaCan will also help Medbox to increase the revenue inflow from the sale of the partner company products. This deal is a part of the company’s efforts to provide cannabis-based medicines to the clients in the most cost-effective and secure way.