MedBox Hires Investment Bank for Strategic Options

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Technology and consulting company MedBox Inc. announced today it has teamed up with the Santa Monica, Calif-based investment bank DelMorgan & Co to review its strategic options.

MedBox said it will explore various opportunities for raising additional capital, including joint ventures, acquisitions, divestitures and strategic alliances. It also could consider an initial public offering on a major stock exchange, according to The Deal Pipeline.

MedBox, like all other publicly traded cannabis companies, currently trades on the over-the-counter markets. Moving to a higher-profile exchange – such as the New York Stock Exchange, the American Stock Exchange or the Nasdaq – would bolster the company’s visibility significantly and bring credibility to the industry as a whole.

The decision to bring on DelMorgan comes nearly two months after the MedBox’s shares plummeted 20 percent in the wake of an article painting the company’s founder and COO Vincent Mehdizadeh in a negative light. MedBox responded by issuing a statement to shareholders, calling the story “reckless” and “deceptive.”

The company manufactures automated machines that dispense marijuana.

MMJ Business Daily staff