Citron goes after Medbox, shares lower

|By:, SA News Editor

Citron Research accuses Medbox (MDBX -2.7%) of taking part in "multiple frauds," and declares shares of the marijuana dispensing machine/consulting services provider to be "worthless."

Citron observes Medbox announced last April it had Q1 2013 revenue "well in excess of $2 million," but reported Q1 revenue of only $1.75M in an SEC filing the following month.

The firm also claims only one Massachusetts Medbox client has seen its dispensary application reach Phase 2, and the the client had their leased signed over to them by Medbox. In addition, the company and founder Vincent Mehdizadeh are accused of engaging in a number of related-party transactions.

Citron's report (.pdf)

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