Majority Stockholder Withdraws and Cancels Written Consent Attempting to Remove Board
January 26 2015 - 7:30AM
Business Wire
Medbox, Inc. (OTCQB:MDBX)
(www.medbox.com), a leading dispensary
infrastructure/licensing specialist, patented technology provider,
and partner to the cannabis industry, announced today that a group
of stockholders attempting to appoint successor directors has
withdrawn and cancelled its proposed stockholder consent and
entered into a Voting Agreement with the Company to refrain from
attempting to remove any current members of the Board for a period
of twelve months.
As part of the agreement, the Company has dismissed with
prejudice a complaint filed in Los Angeles Superior Court against
the stockholder group challenging the effectiveness of the written
consent action. In addition, one or more members of the Board of
Medbox will periodically discuss with P. Vincent Mehdizadeh, the
Company’s largest stockholder, matters of interest or concern to
him during the term of the Voting Agreement.
The agreement further contemplates that, Mr. Mehdizadeh and his
affiliated stockholders may on or before January 25, 2015, present
a term sheet to the Company from an accredited investor to invest
in not less than $1,000,000 in restricted common stock of the
Company on terms as reasonably agreed to by the Board (the “Private
Placement”). In addition, either as part of the closing of the
Private Placement or otherwise at the request of Mr. Mehdizadeh,
Mr. Mehdizadeh shall have the right to appoint a person nominated
by Mr. Mehdizadeh, with industry experience, and reasonably
acceptable to the Board as the fifth director of the Company.
Mr. Guy Marsala, Medbox CEO, commented, “Medbox is a strong
company, and the continuity of its independent board helps
strengthen it even more. Having the support of our majority
stockholder will further help the Board maintain focus as Medbox
works toward implementation of its strategic initiatives and
achievement of financial milestones.”
P. Vincent Mehdizadeh, majority shareholder and founder at
Medbox stated, “The company is unified moving forward and I am
happy that the all-star board I assembled will remain intact with
the addition of a key member that will help with some of the
concerns I have had over the last few months. I am confident that
corporate messaging, industry awareness, and the company’s
dedication to excellence will improve over the coming months.”
About Medbox, Inc.
Medbox, Inc. (“MDBX” or the “Company”) is the leading dispensary
infrastructure and licensing specialist, patented technology
provider, and partner to the cannabis industry. Headquartered in
Los Angeles, CA, Medbox, through its wholly owned subsidiary,
Medicine Dispensing Systems, offers its patented systems, software
and consulting services to pharmacies, alternative medicine
dispensaries and local governments in the U.S. In addition, through
its wholly owned subsidiary, Vaporfection International, Inc.
(www.vaporfection.com), the company offers an industry award
winning medical line of vaporizer products. Medbox, through its
newly established subsidiaries, is also developing ancillary
services tailored to the alternative medicine industry, including
real estate acquisitions and subsequent lease programs to
alternative medicine dispensaries and cultivation centers, and
alternative medicine dispensary and cultivation management
services.
Forward-Looking Statements
The statements in this press release constitute forward-looking
statements within the meaning of federal securities laws. Such
statements are based on our current beliefs and expectations and
are inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
beyond our control. In addition, such forward-looking statements
are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Potential
risks and uncertainties include, but are not limited to, technical
advances in the industry as well as political and economic
conditions present within the industry. We do not take any
obligation to update any forward-looking statement to reflect
events or developments after a forward looking statement was
made.
Contact Information
Investor Relations:Stephen HartHayden IR917-658-7878hart@haydenir.com
Medbox:For more information on Medbox, please call (800)
762-1452.
Investor Relations:Stephen HartHayden IR917-658-7878hart@haydenir.com