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Medbox Inc., a California-based company that’s capitalizing on medical marijuana dispensary regulations in Massachusetts and other states, is “jumping into a different ball game” in its bid to become a fully-reporting company with the Securities and Exchange Commission (SEC), CEO Vincent Mehdizadeh said this week.
Medbox, which has an office on Speen Street in Natick, sells automated, biometric dispensing and storage systems for medicine and merchandise. It filed a registration statement with the SEC last week, and Mehdizadeh expects it to take effect within 90 days. At that point, Medbox can pursue a listing on a more visible stock exchange.
Valued at $24.25 per share on Monday, Medbox stock is now traded on the OTC Markets.
But once it’s SEC-compliant, Medbox will qualify for listing on NASDAQ Global Market, as well as the NYSE MKT. Mehdizadeh said the company is also considering a more visible OTC market exchange than the one it uses now.
Though the company has kept a relatively low trading profile since Mehdizadeh launched it in 2008, the company got a significant boost after a November 2012 Wall Street Journal article identified Medbox as a solid investment.
“(The stock) went to $215 in a matter of three days, which is ridiculous,” Mehdizadeh said. “And we basically had to issue a press release cautioning investors…because we didn’t want investors to lose money in the market based on hype.”
Stock prices leveled off and held at around $25, still a significant improvement from the $3 to- $6 range that was more typical for Medbox before the article was published.
Massachusetts is a good place for Medbox to do business, Mehdizadeh said, because the state’s 35 medical marijuana dispensaries will be highly regulated, requiring the kind of security Medbox systems feature.
Medbox, which also offers consulting services, has about 10 clients pursuing dispensary licenses with the state following the legalization of medical marijuana in November 2012 by Bay State voters. Once the Department of Public Health issues a time frame for application, Mehdizadeh said the company will apply for licenses on clients’ behalf.
“We envision that will happen this year,” he said.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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