The red spike Medbox Inc (OTCMKTS:MDBX) logged on Thursday, after a share transfer deal was confirmed, was half-wiped on Friday’s trading session. The stock opened higher and then proceeded to close over 5% in the green, gaining 0.11 cents of its share price by the closing bell.
The deal between Mr. Vincent Mehdizadeh and Lizada Capital LLC stipulates for the migration of all company’s shares held by majority shareholders via Vincent Chase Inc. holding to Lizada. The transfer of shares will provide controlling interest to Lizada in Medbox Inc (OTCMKTS:MDBX). It is confirmed at a price of $10 initially, supported by other good and valuable consideration. It comprises of five closing, to be done in 90-day intervals, of $2 million per closing. It will be paid in an equal split to Vincent Chase Inc and Medbox.
The deal between Medbox and Lizada has a performance bonus clause, indicating that an additional $5 million may follow initial amount of $10 million if Medbox stock trades above $5 per share. A PR was issued by Mehdizadeh last week which was followed by Medbox official response. The management and the board of directors said that while deal may be an attractive opportunity for Medbox, it is still subject to customary approvals.
The company is not directly a participant under the deal; still the terms of the deal would be subject to approval by the company. It prompted Mehdizadeh to issue another statement stating that the agreement had been discussed with the board and management previously and that the fact of Lizada taking as controlling interest holder was clarified. It indicates that Medbox’s approval for the agreement is nothing but a formality. Going by the market’s reaction, it is still not clear whether the shareholders are pleased or not with the new announcements and releases.