- Vincent Mehdizadeh, the founder of Medbox Inc (OTCMKTS:MDBX), clarified on recent sales by company’s affiliates to shareholders. He stated that sales were involuntary and were done to recoup the loan. In the last eighteen months, he acquired a secure credit line via a financial firm by pledging company’s stocks. A large portion of capital was utilized to provide loan to the public company. In last trading session, Medbox’s shares surged more than 27% to close at $1.84.
Medbox was faced with the liquidation problems when the stock price of Medbox Inc (OTCMKTS:MDBX) dropped below $3 per share. As a result, a margin call was activated on the loan, resulting in a forced liquidation to repay the credit line. The sales were unintentional and have ceased.
Medbox didn’t have sufficient funds to pay back the loan, following which involuntary sales were done by the respective bank to recoup the loan. After the recent transactions, the credit line has been fully paid. Moreover, the founder has ceased all trading activity until further notice. Mehdizadeh, who is also the majority shareholder in the company, said that he intends to re-invest in Medbox to recoup some of the shares that he had to liquidate in past few weeks. He added that he is still a long-term believer in Medbox as Medbox Inc (OTCMKTS:MDBX) is well positioned to be a new leader in the new industry.
Mehdizadeh founded Medicine Dispensing Systems in February 2008 a subsidiary of Medbox. Mehdizadeh served as a senior consultant with Medbox from December 2012 until May 2013. After that, he was transitioned to COO and Board Chairman through May 2014. He is responsible for the development of two key patents behind the Medbox’s technology. He assembled the expert management team and developed the strategic business model that generated revenue for Medbox Inc (OTCMKTS:MDBX). Overall, he is a key person responsible for the success of Medbox.