Company Also Issues Comprehensive Shareholder Update and files Form 10 Registration Statement
WEST HOLLYWOOD, Calif., Jan. 21, 2014 /PRNewswire/ — Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), a leader in providing consulting services and patented medicine storage and dispensing systems to the medical and retail industries, announced that it has expanded its intellectual property portfolio with the confirmation that it has been awarded two additional patents for its Vaporfection brand of products. The announcement was made in conjunction with a comprehensive shareholder update, and Form 10 filing with the Securities and Exchange Commission.
The patents, awarded to the company’s wholly owned subsidiary, Vaporfection International, Inc., specifically relate to:
- “Vapor Glass™” technology, which features the use of laboratory grade glass encased heating element positioned in the center of the laboratory grade glass heating chamber air pathway. This unique Glass on Glass design results in a superior quality and efficient air/heat flow vapor, which ensures that nothing but the purest “convection” heated air enters the plant material, which releases the purest, naturally flavored and virtually odorless vapor into the users respiratory system. This method is unlike most vaporizers that apply “conduction” heat to the plant material using ceramics, metals and other possible contaminates in the air pathway.
- “Vapor Sense™” technology, which features a touch screen interface linked to an automatic temperature sensing control system. The technology uses a digital microprocessor temperature controller directly connected to a thermo coupling temperature sensor in the heating chamber. It also incorporates a fixed temperature setting option, auto shut-off, and cool-down safety features.
Both patents are in use on Vaporfection’s existing product line of portable and tabletop vaporizing units. The portable “miVape” will be debuted at the Champs Trade Show in Las Vegas later today.
“The patents awarded by the USPTO create tremendous incremental marketing opportunities for our Vaporfection line of products,” stated Vincent Mehdizadeh, President and CEO of Vaporfection International, Inc. “We will now have an exclusive patent on the glass-on-glass technology, which eliminates all metal in the airflow path and keeps the air crystal clean for patients and consumers. That’s a big deal.”
Company executives also announced today that a Form 10 Registration Statement was filed with the Securities & Exchange Commission. The filing was accompanied by updated and auditor-reviewed financial statements. Highlights of the financial statements for the nine months ended September 30, 2013 include:
- Medbox’s main subsidiary, Medicine Dispensing Systems, had pre-tax income of $998,000
- The Vaporfection subsidiary had a pre-tax loss of $195,000
- The public company parent, Medbox, Inc., due to higher accounting and legal fees, had a pre-tax loss of $847,453, separate and apart from its aforementioned subsidiaries, resulting in a consolidated net loss of $43,825, for the nine months ended September 30, 2013.
- The net loss is attributed to higher general and administrative expenses related to raising capital and regulatory compliance in connection with the filing of the Registration Statement on Form S-1, subsequently withdrawn, and the filing of our Form 10 registration statement in order to register Medbox common stock and become subject to the periodic reporting requirements of the Exchange Act.
- In addition, the Company incurred significant legal costs related to litigation on behalf of Arizona clients to allow them to move forward with the dispensary licenses that the state of Arizona had awarded them.
The company’s COO estimates revenues of over $1 million for the fourth quarter of 2013, which puts 2013 annual revenue at approximately $6 million, more than double the 2012 revenue of $2.5 million.
“While our MDS subsidiary is profitable, our Vaporfection subsidiary product development, and parent company non-recurring expenses in becoming a fully reporting company with the SEC have impacted our cumulative results through three quarters of 2013,” stated Dr. Bruce Bedrick, CEO of Medbox Inc. “With these expenses largely behind us, and our strong showing in the fourth quarter, we believe that we have turned a cumulative profit for the year.”
In addition, MDS has reported over $10 million in signed contracts for which revenue is yet to be recorded, related to orders for consulting services and Medbox machines that management believes to be firm. Delivery on these orders and capturing of additional consulting revenue is contingent on the clients who have contracted for them receiving required licenses. As a result, the Company cannot estimate the amount of such orders that will be filled during 2014.
Company executives also updated the general public regarding the issuance of the 100% stock dividend.
“We have submitted all required documentation to FINRA and have been in constant communication with their agents concerning this stock dividend,” stated Mehdizadeh. “We will be making the appropriate announcement when we are able to do so.”
The company also reviewed some 2013 highlights as follows:
- The company entered into a consulting agreement with a Canadian laboratory that is applying to become a marijuana distributor under the new guidelines set forth by the Canadian government. Medbox is the first U.S. public company to work closely with a Canadian marijuana cultivation facility.
- Medbox successfully completed the acquisition of Vaporfection International, Inc., which is now a wholly owned subsidiary.
- The Company successfully litigated against the Arizona Department of Health Services on behalf of its consulting clients, and won a court victory that positively affected every dispensary licensee in Arizona. The court ruling provided an extra year for licensees to erect their dispensaries. This was an unprecedented accomplishment and a critical victory for Medbox clients and the industry at large.
- The company was prominently featured in a myriad of media reports, including features and appearances on CNBC, Bloomberg TV, Fox Business Channel, and articles appearing in CNN, Chicago Tribune, Los Angeles Times, the Boston Herald, Wall Street Journal online, Bloomberg Businessweek, and Forbes Magazine.
- The company has contracts for more than 200 possible machine placements in Massachusetts, Washington, Nevada, Illinois, San Diego, and Oregon that can be filled, upon successful dispensary licensing approvals.
- The company and founder have donated and pledged over $1 million to industry advocacy groups including Marijuana Policy Project, Americans for Safe Access, and Drug Policy Alliance.
“There is no other company like Medbox in our industry,” Dr. Bedrick added. “Medbox is committed to transparency and professionalism, ensuring full compliance with all laws for our clients and bringing increased legitimacy to this industry. As the industry continues to grow, we expect to emerge as the clear leader, and the partner of choice in our sector. We are positioning ourselves to be the biggest, the best, and the most respected entity in the industry.”
To view the Medbox CNBC interview, visit: http://video.cnbc.com/gallery/?play=1&video=3000233522
To view Medbox on Fox Business’ Money with Melissa Francis, visit:
About Medbox, Inc:
Medbox is a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medicine and merchandise. Medbox has offices throughout the world, including New York, Arizona, Connecticut, Massachusetts, Florida, Tokyo, London and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations Department at (800) 762-1452 or go online to www.medboxinc.com.
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, political conditions and economic conditions in the states considering such legislation. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.
SOURCE Medbox, Inc.