HOLLYWOOD, Calif., Nov. 16, 2012 /PRNewswire/ -- Medbox, Inc. (Ticker: MDBX) (www.medboxinc.com), responded to the dramatic rise in their stock price over the past few days. After being featured in a November 13, 2012 Wall Street Journal MarketWatch report suggesting that the medical marijuana market might be ripe for investment, shares of Medbox, Inc. rocketed upward, reaching $215 per share on Thursday on thin volume. Dr. Bruce Bedrick, CEO, suggested that while the company's present business strategy is working well and their new product line continues to garner interest in the conventional pharmaceutical distribution channel, the company attributes the share price increase to a lack of float and not based upon present business economics.
Bedrick states: "As we previously disclosed, Medbox had a record 3rd quarter generating over $1.3 million in revenue and its highest EBITDA margin to date. As stated in our October 17th press release, revenues are projected to jump to over $24 million by fiscal year end 2014, and continue on a rapid growth path to over $48 million by fiscal year end 2016. EBITDA is projected at a healthy $10.2 million and $22.1 million for the same periods."
"While we are pleased by the share attention, Medbox shares have traded between $2.75 and $3.45 over the past several months. Our fundamentals and market potential are improving, especially with the potential of our new Rx product line, but we temper investor expectations at present price points."
In the days since the article, Medbox has seen their stock rise over 3000%, giving the company a market cap of $2.26 billion. The management of Medbox is concerned about the sudden and pronounced increase in their stock price and is taking steps to reduce these tremendous price swings.
"We will take steps to attempt to avoid a roller-coaster syndrome, with the stock rising and falling in dramatic fashion," Med
|SOURCE Medbox, Inc.|
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