Medbox Inc (OTCMKTS:MDBX) registered a single green closing session in late March. The stock price continued sliding and lost more than 30% in a matter of few days. Yesterday the stock price of MDBX slid another 2.59% to close the trading session at $1.13 per share. The stock price has been hitting new 52-week lows in the month of April.
The single green session on March 27, 2015 came on the heels of the company’s annual financial results. However, before that the company witnessed sharp decline due to revenue recognition errors. The SEC and DoJ probe into the revenue recognition problems resulted problems for the company. It is one of the OTC stocks that registered a sharp decline from high of $7 per share made in December to 52-week low of $1.05. On Tuesday, the stock price is trading at $1.12 with decline of 0.88%. The annual report released by the company failed to instill any confidence in the shareholders due to the recent discrepancies discovered after reporting of restated financial numbers.
Few days ago, Medbox filed a new 8-K with SEC detailing amendments recorded in the existing financial deals. On March 13, 2015 it even confirmed a new debenture deal that effectively bumped the debentures price, from whichever is lower either 51% of the lowest VWAP point 20 days before conversion or $5.00, all the way dropped to the lower point of $1.83 per debenture or 51% of the lowest VWAP point 40 days prior to conversion.
On March 27, 2015 Medbox Inc (OTCMKTS:MDBX) also altered a previous deal with the same financier and increased the total principal figure of the debentures by $1.2 million, for a total amount of $3 million. The new changes brings the total investment amount to $6 million, as the initial July 2014 investment came at $3 million, and the first change added amount of another $1.8 million.