Busting Medbox

Feb. 18, 2014 3:30 PM ETNotis Global, Inc. (NGBL)32 Comments
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Citron Research

Introducing Medbox

In this report Citron is not going to rehash the numerous law enforcement red flags adorning the bios of the nefarious characters behind MedBox (MDBX), and their many go-rounds with criminal and civil law enforcement entities. We believe these disturbing facts are extremely relevant to investors, but they have been previously detailed very thoroughly by the Southern Investigative Reporting Foundation as well as other media outlets. For those of you who do not know who is running the show, you can read it here.

Instead, this report will focus on the systemic fraud throughout this company and the stock promotion behind the fraud that has brought this worthless company to a $1 billion-plus market cap. Yes you read that correctly. There are currently 44,500,750 shares outstanding.

So What Exactly Is Medbox Selling?

Good question. Medbox claims they are not in the marijuana business, but rather offering products and services to candidates for dispensaries. That means they offer legal services (even though they are not lawyers), and construction build-out consulting (even though they are not construction contractors) to a highly limited cohort of wannabe dispensary operators. They do offer to help clients fill out applications for dispensary licenses in the states where marijuana sales are legal, along with literally thousands of professional and non-professional consultants competing for the business.

And if and only if their client actually obtains a license for a dispensary, they are contractually obligated to buy a dispensing machine from Medbox.

Ironically, Medbox's founder and COO Vincent Mehdizadeh was formerly busted for dispensing legal advice without a law license (can be read in previously stated article).

Medbox Is Spitting In The Face of the U.S. Government.

In January of 2014 FNRA issued a warning about investing in marijuana stocks and the possibility of fraud.

In the

This article was written by

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Andrew Left's Citron Research (http://www.citronresearch.com/) (formally known as Stocklemon.com) seeks to expose companies whose management is in some way misleading investors. Left digs into SEC filings, financials, management histories and other data to uncover such situations, and he is usually short the stocks he writes about. Mr. Left has been publishing for 7 years and has created a track record that is unrivaled in short selling. Mr. Left has been cited in Barron's, Wall St Journal, CNBC and other major publications repeatedly for his work. Mr. Left was also an invited speaker at the reknown Master Investor Conference. Visit: Citron Research (http://www.citronresearch.com/)

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