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).
New York State Senators vote 49-10 in favor of allowing limited access to medical marijuana. The bill would allow patients to inhale vaporized extracts of weed's active ingredients or eat them in food. Smoking marijuana would be prohibited, however. The State Assembly passed the measure 117-13 on Friday.
The state's Health Department will have the task of setting up the program.
According to Florida-based Novus Medical Detox, today's marijuana is much more potent than the varieties available a generation ago. This poses significant health risks to consumers as the wave of legalization gains momentum.
In a study by the University of Mississippi Potency Monitoring Project, the level of weed's main psychoactive ingredient, THC, has increased from 3.4% in 1993 to ~9% in 2008. In sinsemilla (the flowering tops of unfertilized female plants) THC levels have jumped from 5.8% to 13.4%. The lab has identified THC concentrations as high as 37% in certain pot strains.
The controversy surrounding the legalization of marijuana will no doubt intensify as the health risks of consuming ever-higher levels of THC in cannabis become more widely known.
The U.S. Patent and Trademark Office (USPTO) issues a notice of allowance to Medbox (MDBX) for a "seed-to-sale" medical marijuana dispensing system. The system verifies the identity of the patient/consumer receiving the medication, it monitors the dispensing of the medication, it tracks the development of the product including the location of the seeds acquired, the cultivation and harvesting of the plant and the conversion into the final product and it supports a complete biometric chain of custody through the company's Secure-Safe technology for added security and transparency.
The firm has initiated efforts to establish foreign patent protection in markets it deems relevant.
At last night's GeekWire Awards ceremony in Seattle, Leafly won App of the Year. The mobile app, described by some as the "Yelp of cannabis" helps pot consumers stay informed about cannabis strains, products and the best places to purchase them. It also connects patients to doctors who can assist them through the medical authorization process. It contains over 100K user-generated reviews of more than 800 cannabis strains as well as thousands of dispensaries and doctor locations around the world. GeekWire praised its functionality and clean professional appearance.
Leafly founder Cy Scott says, "Our team is truly honored to receive this award. When we released the app, our goal was to offer a simple way for medical and recreational cannabis consumers to get robust information at their fingertips. This award is a win for all who support the cannabis movement."
San Francisco Assemblyman Tom Ammiano submits a bill to tighten the regulations governing the use of medical marijuana by adults. It would make it illegal for physicians to prescribe medical pot for patients they have not examined and bar prescriptions by doctors who have a financial stake in a pot dispensary.
The assembly Public Safety Committee passed the bill yesterday.
Somewhat controversial is the provision for the Department of Alcoholic Beverage Control to enforce the law. The California Narcotic Officers Association cites the irony in allowing an agency with regulatory responsibility over the use of recreational substances to regulate medical products. The senate version specifies the state health department as the regulator.
The bill, if passed, could lay the groundwork for a tax-and-control scheme for recreational pot use similar to Colorado and Washington.
Move over Medbox (MDBX) because the ZaZZZ American Green Machine is in town in Colorado.
Tranzbyte (ERBB) COO Stephen Shearin reports that the Doctors Orders pot dispensary in Denver will soon take delivery of the company's automated weed dispensing machine that the firm unveiled on April 12.
In a salute to trend-grabbing entrepreneurs everywhere, Hempamericana files an S-1. The industrial hemp firm plans to sell 34M shares to the public via a self-underwritten best-effort offering @ $0.12 per. Shares will trade on the OTCBB if a market maker agrees to pick up the issue.
The company's sole employee is CEO Salvador Rosillo. He intends to use the ~$4M proceeds to execute his business plan of developing, manufacturing and marketing hemp-based products.
Potentially undermining his plan's robustness is the statement on page 5 concerning the use of the proceeds: We intend to use the net proceeds to us for working capital and other general corporate purposes, however we do not have any specific uses of the net proceeds planned.
Annual revenue jumps 102% for Medbox (MDBX). The increase was primarily due to recognizing deferred 2012 revenue related to the completion of contracts for Arizona customers that were delayed due to court action that was settled in 2013.
Gross margin was $2.6M (50.5%) compared to $1.5M (59.4%) in 2012. The decline was due to increased costs related to the build-out of locations for clients and the delays in implementing the AZ program.
SG&A was $3.2M versus $1.9M the previous year. Net loss from operations was $560K.
The company had $168K in cash and $185K in marketable securities at year end.
Colorado is off to a fast start collecting tax revenue from the sale of medicinal and recreational marijuana. According to Forbes, the state's January take was $1.5M for the former and $2M for the latter. The bulk of sales happen in Denver county.
The fully-burdened tax rate can be as high as 21.1% on pot consumers.
The state also charges a 15% "retail marijuana excise tax" that is levied on the first sale or transfer from a cultivation facility.
The state now faces the political problem about how and where to spend the money.
Marijuana industry stocks such as (MDBX) (CBIS) (MJNA) (GRNH) continue to generate substantial investor interest and debate.
Welcome to Medbox! Our Company features patented systems that dispense medication to individuals based on biometric identification (fingerprint sample). Our newly designed systems allow pharmacies, assisted living facilities, prisons, hospitals, doctor's offices, and alternative medicine clinics...More