Medbox (OTCQB:MDBX) enters into an agreement to sell $3M aggregate principal amount convertible debt to accredited investors. The debt will be sold in three tranches of $1M, the first of which was placed on the July 21, 2014 closing date of the contract.
The debentures bear interest at 10% per annum and are convertible into shares of common stock at $11.75 per share. The company can pay interest in cash (at a 30% premium) or in stock (at a 30% discount to the lowest average volume weighted price over the prior 20 trading days).
MDBX shares closed yesterday at $15.54.