Medbox sees stock rise over 3000%, bumping market cap significantly
Medbox, a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medication and merchandise, recently saw its market cap jump from $45M to $2.3B in less than a week, as investors try to pin down the next big boom industry.
As Medbox has positioned itself to dispense medical marijuana with its machines, the company was recently featured in an article on MarketWatch on how to invest in legalized marijuana, and in the days since, has seen its stock price right over 3000%. The management of Medbox is concerned about the sudden and pronounced increase in their stock price and is taking steps to reduce these tremendous price swings.
“We will take steps to attempt to avoid a roller-coaster syndrome, with the stock rising and falling in dramatic fashion,” Medbox company founder, Vincent Medhizadeh said.
Additionally, Medbox is looking into ways to minimize any potential shareholder losses should the stock price suddenly plummet.
“We are discussions with our attorneys to determine if we can reward our early investors who believe in our company, by giving them company-owned shares should the price they bought at fall significantly,” Medhizadeh said.
Medbox uses fingerprint samples to ensure that only those who qualify can get medication from its machines, record that users are registered patients with valid authorization from a physician and to track each transaction for accounting and compliance purposes. Patient information is stored locally, not online.
Following the drastic rise in share price, Medbox has further identified their plans as to moving from the OTC Market to the OTC Bulletin Board and becoming a fully reporting company meeting all SEC requirements. At present the company is a “Current” OTC Market stock which means they voluntarily file reports and post financials on the OTC markets website for the public to view. The company’s attorneys have already begun the process of preparing the S-1 registration statement for filing with the SEC and are in the midst of a public audit, as to the company’s prior 3 years of financials, which will be complete at the end of 2012. The company will be filing its S-1 and will have completed its internal audit within Q1 2013.
Last month the firm announced it will be establishing a new pharmaceutical biometric device division, called MedboxRX, to offer its medication storage and retrieval systems to pharmacies, assisted living facilities, prisons, hospitals, urgent-care centres, doctors’ offices and large retail chains.
Do you see Medbox’s stock price continuing to rise? Let us know in the comments.